The global market for automated forklifts is technologically mature
According to STIQ Ltd’s AGV & AMR Robotics 2024* report, the global market for automated forklifts is “technologically very mature”.
At the same time – with notable exceptions such as the automotive sector – overall total addressable market (TAM) penetration is not as strong as it could be.
According to the report, this is “mainly because many potential customers are not yet aware of the advantages of automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) or have clear visibility on a positive return on investment (ROI).”
So, what are the benefits of these automated forklifts and what are the best pathways to a positive ROI for those considering using them?
AGVs and AMRs
To answer these questions, we need to first draw a distinction between AGVs and AMRs.
“Both types of robotic systems are designed to move materials within facilities like warehouses and manufacturing plants,” says Nick Malewicki, general manager, autonomous vehicle division at Big Joe.
When used in dynamic environments, the adaptability of Big Joe's AMRs can lead to long-term savings
While the two types of systems share a common goal – namely, the automation of material handling processes – they differ significantly in terms of functionality and flexibility.
“AGVs rely on fixed paths defined by physical infrastructure, making them less adaptable to changing environments, while AMRs use advanced sensors and mapping technologies to navigate dynamically and autonomously,” says Malewicki.
“AMRs excel in flexibility, integrating more easily with evolving layouts and automation systems, whereas AGVs are more cost-effective for applications requiring consistent routes.
“Safety features also differ, with AGVs relying on physical barriers, sensors and predefined zones, while AMRs use sophisticated sensors and algorithms for obstacle avoidance.”
According to Malewicki, understanding these distinctions is crucial for organisations aiming to optimise their material handling and logistics operations.
“Selecting the appropriate system depends on specific operational requirements, including the need for flexibility, the complexity of tasks, and budget considerations,” he says.
While AMRs often involve higher initial costs, when used in dynamic environments, their adaptability can lead to long-term savings.
Big Joe’s User-Directed AMR is an example. Featuring dual-mode functionality, it allows forklifts to switch between manual and automated operations, according to requirements. It empowers operators by streamlining material movement, increasing efficiency, and reducing manual effort.
In this way, when introduced appropriately, it can lower overall costs and deliver the above-mentioned positive ROI.
"AMRs excel in flexibility, integrating more easily with evolving layouts and automation systems, whereas AGVs are more cost-effective for applications requiring consistent routes."
AGV innovations
As Jani Mähonen, vice president solutions offering at Mitsubishi Logisnext Europe Oy, points out, recent AGV innovations have begun to blur the distinction between the two types of automated forklifts.
According to Mitsubishi Logisnext Europe Oy, recent AGV innovations have begun to blur the distinction between them and AMRs
“Contrary to the popular belief that AMRs are easier to scale, AGVs can also be scaled up effortlessly,” he says, adding that, unlike AMRs, the fact that AGVs feature centralised control means there are no limits when scaling them.
Recent steps forward in AGV intelligence are also seeing exciting changes in functionality and features.
“At Rocla AGV Solutions, we have developed several advanced features in our software, such as the Automated Material Flow Control (AMFC) and Route Optimizer, to remain competitive and provide our customers with solutions that are both efficient and reliable,” says Mähonen.
Functions and benefits
Kari Johansson, vice president solutions management at Mitsubishi Logisnext Europe Oy, says the growing interest in creating safer and more efficient intralogistics operations means that it has started to encompass the entire warehouse environment.
“Besides conveyor pick-up/drop off, we currently provide AGV solutions for a wide range of applications for warehousing, packaging, manufacturing, paper and board, tyre and food and beverage industries,” he says.
More specifically, this includes selective racking, pallet gravity flow racking, mobile racking, block storage systems, and more.
One area in which automated systems perform particularly well is in rack and block stacking warehouse environments. According to Tony Raggio, general manager sales – ANZ mobile automation at Dematic, AGVs have become standard for many food and beverage companies in Australia and New Zealand.
Lion Beverages is one of several Australian companies that have invested in Dematic AGVs
“The greatest benefit with AGVs has always been in multi-shift environments where we are seeing a return on investment of 24-36 months,” he says. “They are also well suited to areas that are uncomfortable for manual forklift drivers to work in, such as temperature-controlled environments.”
Dematic’s third-generation freezer-rated model features advancements in sensor and navigation technology that exceed recently updated global safety standards. Designed and built in Australia, the company’s full range of AGVs – including high-reach and counterbalance – are now all rated for deployment in freezer environments.
“AGVs provide a solution for overcoming these complex challenges as well as the difficulties of sourcing labour,” says Raggio. “Dematic freezer-rated AGVs are built to operate automatically 24/7 in cold storage environments, without posing occupational health and safety risks to workers.”
Dematic also offers HR Series AGVs for high reach applications. Designed to handle single selective or double-deep high-bay storage, they ensure efficient use of vertical space and have the capacity to manage pallet loads up to 1,250 kg at 10 m.
“High Reach AGVs can be easily integrated into existing systems and scaled up as needed, providing flexibility for growing businesses,” says Raggio, adding that freezer and chiller-rated models are also available.
Customised solutions
Gözde Çimen, business development and marketing specialist at MND Robotics, emphasises the fact that success when employing automated forklifts depends on more than the technology itself.
The latest version of Forx by MND Robotics features 3D Lidar and specialised sensors
“At MND Robotics, we not only develop cutting-edge technologies but also focus on offering customised solutions tailored to the specific needs of our clients,” says Çimen.
“Our aim is to transform business processes through innovation and create sustainable value for our partners while shaping the future of logistics today.”
To achieve this the company, which specialises in AMRs, makes sure to keep up with the latest innovations and developments.
“For example, in the latest version of our autonomous forklift robot Forx, we integrated 3D Light Detection and Ranging (3D Lidar) and specialized sensors, significantly improving both safety and navigation capabilities,” says Çimen.
“Modular designs allow for enhanced adaptability to various production and storage needs, while swarm capabilities enable multiple forklifts to work in coordination within the same space.”
As Çimen explains, some of the company’s clients, particularly in heavy industries and defence, had requested manual control options.
“To meet this demand, we have designed Forx with dual-mode functionality, allowing it to operate in both automatic and manual modes,” she says.
“For an automotive client, we deployed our AMR-based autonomous forklift to handle high-demand order fulfilment processes. This solution accelerated transportation operations and allowed the workforce to focus on more strategic tasks.
“As a result, the client experienced a 35% improvement in operational efficiency and a significant reduction in safety incidents.”
Considerations and adjustments
It is important to note that unlocking the full potential of automated forklifts is about more than selecting a suitable type and model. There are some key factors, which all materials handling operations that are considering introducing them, need to keep in mind.
The WMF-CDD16 from Wellwit Robotics can operate at a maximum speed of 2m/s when unloaded and does not experience speed reduction when fully loaded
“Warehouses and factories need to employ digital infrastructure, such as warehouse management systems (WMS) and enterprise resource planning (ERP) systems,” says Henry Peng, CEO of Wellwit Robotics. “And pallets and carriers need to reach a certain level of consistency.”
Similarly, they need to consider connectivity and the implementation of communication technologies, such as wi-fi, or radio frequency identification (RFID), as well as possible physical adjustments like the mapping of clear pathways for automated forklifts, designated pedestrian routes, and so on.
On top of this, as Peng notes, safety must always be a top priority.
“Currently, automated forklifts are equipped with 360 degree laser radar, safety radar, emergency stop switches, anti-collision strips, photoelectric detection switches, and a series of safety circuits to ensure their safety,” he says.
Safety as an evolving process
As Joe Coleman AGV specialist at Combilift points out, the navigation and safety technology employed by these systems has evolved over time.
Combilift AGVs at Central Steel & Wire use natural feature navigation to map and store specific metal containers, without manual adjustments
“AGV navigation technology has advanced from simple guided paths to sophisticated natural feature navigation that allows AGVs to operate more independently and adaptively,” he says.
Modern AGVs use laser sensors, cameras and machine learning to map environments, recognise changes, and detect and counteract obstacles.”
Asked for an example, Coleman points to Central Steel & Wire’s new warehouse and metals service centre (at University Park, IL.), in which AGVs use natural feature navigation to map and store specific metal containers, eliminating manual adjustments.
“Enhanced sensors for obstacle detection and advanced software for task management have made AGVs more reliable, adaptable, and safe,” he notes.
As Coleman points out, many AGVs feature onboard sensors that detect objects and slow or stop, when something unexpected is encountered in their path or from overhanging objects in aisles.
“These safety measures are especially crucial in facilities with pedestrian traffic to avoid collisions,” he says.
Additionally, frequent evaluations and adherence to industry standards, such as ANSI and ISO guidelines for industrial robots and automated systems, are essential for maintaining AGV safety.
Where such standards are maintained, the automated precision and consistency of AGVs lead to reduced error rates, minimising damage to goods and risks to personnel.
“AGVs are engineered to perform tasks accurately within narrow spaces,” Coleman adds. “They are able to handle challenging, heavy loads within aisles only slightly wider than the AGVs themselves.
“By eliminating manual handling of large loads, AGVs reduce the risk of workplace injuries and contribute to a safer working environment.”
"AGV navigation technology has advanced from simple guided paths to sophisticated natural feature navigation that allows AGVs to operate more independently and adaptively."
The future
Returning to the AGV & AMR Robotics 2024 report and its finding that market penetration is not as strong as it could be, it is worth asking what the immediate future holds for automated forklifts.
Backed by an established network of agents across major countries and regions, Hangcha Intelligence offers a range of AGVs
Zhenyu Wang, overseas sales leader at Hangcha Intelligence, sees a bright future.
“As costs decrease, we can expect to see expansion of these technologies into smaller businesses,” he says, “And we can also expect more integration with the Internet of Things (IoT) and increased adoption of machine learning.”
At the same time, there are challenges to overcome.
Wang nominates the size of initial investment costs, the need for change management in traditional industries and the need to balance human-robot collaboration, as the key barriers to growth.
Thanks to its established network of agents across major countries and regions, Hangcha is one organisation that is well placed to meet these challenges.
“We are committed to utilising advanced technology and high-quality services to build efficient and intelligent logistics systems for our customers, helping enterprises achieve new heights in smart development,” says Wang.
Looking more broadly across the market, the picture becomes a little less clear.
Vendors surveyed for AGV & AMR Robotics 2024 forecast a very healthy performance for 2023, and by 2024, this figure had risen to 80%.
However, the report adds that “while there were some positive suggestions for 2025, few were able to provide a clear signal, hinting at an increasingly opaque market outlook.”
Time will tell if these “positive suggestions” prove accurate and more materials handling operations come to understand the above-mentioned benefits of this impressive technology.
* Source: STIQ Ltd, “AGV & AMR ROBOTICS 2024”, 2024.
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For this report we interviewed the following industry specialists:
Jani Mähonen
Vice President Solutions Offering
Mitsubishi Logisnext Europe Oy
Read more.
Kari Johansson
Vice President Solutions Management
Mitsubishi Logisnext Europe Oy
Tony Raggio
General Manager Sales – ANZ Mobile Automation
Dematic