Latin America, Middle East and Africa Automated Guided Vehicles Market Size (2024 - 2029)

Latin America, MEA Automated Guided Vehicles Market Analysis

Latin America, the Middle East, and Africa's automated guided vehicle market are expected to register a CAGR of 32.8% over the forecast period (2021 - 2026). The COVID-19 outbreak and lockdown restrictions across the globe have affected industrial activities across the world. Some of the effects of lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the production of the final product to inflate and go beyond budget, shipping problems etc. All businesses across the region with crucial assets for manufacturing goods and services offering revenue have been experiencing a rapid decline due to the COVID-19 pandemic. The management of such companies has been feeling extreme urgency and panic, thereby, more emphasis being paid to cutting costs. Since manufacturing activity was low, companies were tempted to eliminate maintenance, resulting in significant expenses in the coming future.

• The region holds good potential for growth. However, the precarious political situations in the region are expected to hinder the growth. For instance, in the last 12 months, Mexico, Cuba, and Brazil have elected new leaders, and Argentina is preparing for elections. Venezuela continues to face upheaval the face of Nicolas Maduro's re-election. Despite such recent developments, the region's strong economies such as Brazil, Columbia, Mexico, and Chile are expected to drive growth in various industries.
• Moreover, the region holds a significant share of automotive and food & beverage industries across the globe, especially in automotive industry countries such as Mexico and Brazil produced more vehicles than Russia and Canada.
• With rising labor costs and supply chain pressure for better accuracy, speed, and responsive operations in the middle east, automated sortation systems are gaining prominence in supply chains for delivering productivity, throughput capacity, efficiency, and accountability for business's cost-effective and efficient flow of goods to consumers. Manufacturers of many fast-moving consumer goods use sortation systems, primarily for handling cantonized products. Also, South Africa is widely recognized for sophisticated construction work, with less floor space to operate for construction activities. Thus, particular purpose automated guided vehicles are gaining popularity in the construction sector.
• Further, Brazil, which is expanding, resourceful, and demographically buoyant, is a promising market for automation. The burgeoning population of upper and middle classes in Brazil is expected to result in increased consumption rates. However, due to a rapid increase in labor costs, many business models are likely to change.
• In addition, the high initial costs and the long period of return on investment involved in the adoption of the automated systems are expected to challenge the market growth over the forecasted period. However, the added benefits and customer satisfaction associated with adopting such systems are expected to benefit the organizations.

Latin America, MEA Automated Guided Vehicles Industry Segmentation

Automated guided vehicles (AGVs) are fully automated transport systems that function with unmanned vehicles. Automated guided vehicles offer many advantages, such as reducing operational cost, enhanced workforce safety, and decrement in production time. The growing implementation of mobile robots across the region and measures to enhance workplace safety and productivity are other factors leading to the adoption of AGV. Further, the study also considers the impact of COVID-19 in the market.