Automated Guided Vehicle Manufacturing
Business for Sale Industry Economics
$805,000,000
Revenue
20.72%
Projected CAGR
2003 - 2020
Historical
2020 - 2026
Projection
18.80%
CAGR
$71,000,000
Profit
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Summary
The Automated Guided Vehicle (AGV) Manufacturing industry has grown steadily in the last five years. AGVs are mobile robots that are used for material processing, logging, and routine activities. Industry operators design, assemble and mount them.
Consistent economic growth has been fueled by solid consumer purchasing increases. As a result, more suppliers, shipping firms, and other businesses have purchased AGVs to transport the increasing amount of products within their facilities while lowering manual labor costs.
Operators in these industries, in fact, used AGVs to increase productivity and lower long-term running costs. As a result, market revenue is forecast to grow at a 25.5 percent annualized rate to $804.5 million in the five years leading up to 2020, with a 10.7 percent growth in 2020 alone.
Performance
Operators in the Automated Guided Vehicle (AGV) Manufacturing sector have seen rapid growth in the five years leading up to 2020. AGV systems, which consist of robots that transfer material and perform freight handling, among other routine activities, are designed, manufactured, and installed by industry operators.
Consumer spending has steadily increased as the United States economy has grown. As a result, there is a greater need for products to be transported between production and distribution facilities.
The demand for AGVs grew as a result of this trend. Furthermore, technological advances have improved the possible productivity improvements provided by AGVs, resulting in high demand.
As a result, market revenue is forecast to grow at a 25.5 percent annualized rate to $804.5 million in the five years leading up to 2020. This involves a 10.7% increase in anticipated growth in 2020, as market determinants remain favorable.
Outlook
Revenue for the Automated Guided Vehicle (AGV) Manufacturing industry is expected to continue rising in the five years to 2025, but at a more steady pace than in the previous century. Demand for industrial goods is expected to rise due to increased manufacturing and transportation activity, as well as a continuing focus on productivity.
Furthermore, as operators change their AGVs to accommodate more markets, their use throughout the economy will increase. Operators are still reporting record levels of backorders going into the season, so rapid growth is likely to accelerate the amount of new demand.
These orders will most likely be delivered in the five years leading up to 2025, bringing in more sales for the industry. During this time, however, both the pace of growth in e-commerce revenues and the proportion of services performed online are projected to slow.
As a result, industry markets would not need to expand their purchasing as quickly as they did previously. Despite this, sales are expected to rise at a 10.7% annualized rate to $1.3 billion in the five years leading up to 2025.
Industry
Automated led vehicles (AGVs) are mobile robots that are used for material processing, monitoring, and routine activities in this field. In commercial environments, these vehicles maneuver by following markers or using vision or lasers.
Investment
The capital intensity of the Automated Guided Vehicle Manufacturing business is low. The average industrial business will invest $0.07 in capital equipment for every dollar spent on salaries.
Some of the industry’s goods, notably AGV systems and software, need a large degree of skilled human labor in their design and manufacture. Skilled personnel is also needed to monitor manufacturing lines, conduct research and development, advise clients on the best material handling equipment for their needs, and execute maintenance and repairs.
Specific efficiency benefits that these manufacturers can deliver, as well as a reasonable return on investment, are a key component of their sales process. As a result, custom-made items or solutions are essential.
Furthermore, while rising demand has prompted companies to invest in new manufacturing lines, many industrial items are custom-built and manufactured in small batches. As a result, trained people continue to do the majority of industrial jobs, such as assembly.
Volatility
The Automated Guided Vehicle (AGV) Manufacturing business has had a lot of revenue fluctuation in the five years leading up to 2020. Over the last five years, this industry has experienced remarkable expansion.
AGVs have been subjected to rapid increases in shipping quantities, according to research from the Material Handling Industry of America and the International Federation of Robotics. This rapid expansion has led to the industry’s high volatility.
Furthermore, the low amount of AGV manufacturing contributes to the instability. Because there are only a few goods manufactured each year, the execution of a single large contract may have a significant impact on income for both individual firms and the sector as a whole.
For example, revenue increased 181.3 percent in 2017 but fell 11.5 percent in 2018. When Amazon bought Kiva Inc. in 2012, it meant that a major provider of logistics-focused AGVs would stop selling them. Kiva’s contracts with external firms were not renewed by Amazon, hence the items were only utilized in Amazon warehouses.
This, combined with rising demand from e-commerce and technology advancements, resulted in significant growth in the number of firms joining the business. As a result of these improvements, per-unit costs fell, resulting in a larger market for items. Volatility has been driven higher as a result.