Over the next few years, we will be witnessing some major upgrades to manufacturing facilities and warehouses. The machines that can be found in almost any warehouse, such as pallet trucks and forklifts, will soon be converted to battery-powered, automated guided vehicles (AGVs). In an MHI guest blog, we explore the driving factors that have companies around the world making this conversion. Read on to learn how lithium-ion (Li-ion) batteries will help make monumental improvements to the material handling industry.
By the middle of this decade, warehouse and manufacturing facilities will be on pace to upgrading their material handling equipment to automated guided vehicles (AGVs). Machines such as forklifts, stackers and pallet trucks, will be replaced by independently guided machines as firms continue to invest in automation.
Take a look at manufacturing and material handling in Asia, Europe, and U.S., and they’re all defined by three disparate priorities: production safety, sustainability, and efficiency, respectively. Despite their differences, AGV emerges as a common solution. In their own way, each of these priorities will contribute to their widespread usage over the next four years. According to Research and Markets, that growth is expected to reach $5.4 billion at a rate of 13.6% a year.
The fastest growing region of the AGV market can be found in the Asian-Pacific market, thanks to the rapidly emerging economies in China, India and South Korea, according to a report by Markets and Markets. Government policies in these regions are increasingly emphasizing safety and security on production floors, and the safety features in this equipment help companies achieve these goals.
All the same, Europe is still the front-runner in AGV adoption and growth, thanks to European Union mandates to achieve a carbon neutral economy by 2050. Forecasts show a 31% expected growth of AGV use in European firms.
Though U.S. industries tend to prioritize efficiency, AGV investment is getting noticed by consumer-packaged goods firms, though adoption is slower compared to the Euro and APAC markets. Some 15% of survey respondents increased their automated conveyance capabilities in 2020, according to the annual survey published in Modern Materials Handling, with 32% planning to automate conveyance processes in their warehouse operations in the next two years.
One thing that makes AGV adoption attractive to U.S. firms is the across-the-board efficiency they offer, reducing indirect spend in meaningful areas.
AGVs are operable in no-light and low-light environments, saving on utilities, plus their automated safety features are designed to reduce collisions with other vehicles, walls, racks, and other obstacles, which saves costs associated with damage.
But one significant indirect cost savings is realized by the AGV’s power source, which comes from rechargeable, long-running, long-lasting lithium-ion (Li-ion) batteries. Not only do these battery systems increase energy efficiency with more rapid and less frequent charging times, they also come with many built-in efficiencies that reduce the cost of ownership and offset the higher upfront costs. Here’s a look at some of these areas:
Whether a company prioritizes energy efficiency, safety, or cost reduction, AGVs will become increasingly commonplace in manufacturing spaces and warehouses as we reach the middle of the decade. At Inventus Power, we specialize in the design and manufacture of Li-ion batteries and continue to expand our market expertise into the material handling sector. Contact us today to learn more about our new line of PROformance Li-ion Batteries which are ideal for AGVs.