The state of automation: How AGVs and AMRs are really used

At the Future of Electrification 2025 conference, Nicola Tomatis and Rachel Rayner of Bluebotics presented the Automated Vehicles in Material Handling Usage Report for 2024, offering an invaluable roadmap for Original Equipment Manufacturers (OEMs) and end-users grappling with these evolving trends. 

Spotlight on Automation

The "Automated Vehicles in Material Handling Usage Report for 2024," presented by Bluebotics, is a pivotal document providing unprecedented insights into the current state and future trajectory of automation. This second annual report, based on a global survey of 179 respondents from 24 countries and conducted by a neutral third party (Logistics Business Review) to ensure objectivity, offers a comprehensive and unbiased view of the material handling landscape. It directly compares current findings with previous data, revealing crucial shifts in perspectives and priorities.

The report highlights the key drivers, applications, and challenges in adopting automated vehicles:

• The overwhelming main reason for adopting automated vehicles is to increase operational efficiency. This directly addresses the global push for greater output with a smaller workforce, a critical challenge exacerbated by staffing shortages.
• Overcoming staffing shortages is closely linked and equally significant, reflecting the difficulty in securing adequate personnel. While reducing staff numbers is a factor, it is rarely the sole motivator, with only 7% of respondents citing it as their only reason.
• Safety is another significant driver, as manual vehicles are known to cause accidents. Notably, concerns about safety and security have significantly decreased in 2024 compared to 2023, possibly indicating better market education on AV safety.

• Forked vehicles remain indispensable, being used in almost 90% of setups. This dominance is expected to continue, even in regions with less pallet standardization.
• Customers typically require a variety of vehicle types, reflecting the diverse needs of material handling operations.
• The most common applications for AVs include picking pallets (43%) and picking from/to conveyors or palletizers (42%).

• Half of the surveyed users interface their AVs with a Warehouse Management System (WMS).
• Many also integrate with Enterprise Resource Planning (ERP) and Manufacturing Execution Systems (MES), demonstrating a clear trend towards orchestrating AVs within broader enterprise software landscapes.

Strategic Considerations: Choosing AVs and Overcoming Hurdles

The report also sheds light on strategic decision-making and the challenges encountered during automation adoption.

• Vehicle size and accuracy are paramount, rated as important or extremely important by around 80% of respondents.
• When selecting a supplier, price is a highly important factor (88%), a significant increase from 61% in 2023, likely influenced by global high interest rates affecting capital expenditure.
• However, a trusted brand (89%) and local support (86%) are rated even higher than price, underscoring the importance of reliability and on-the-ground assistance.
• The ability to customize automated vehicles also emerged as a significant factor in 2024, valued at 81%.

• Companies are generally taking a cautious approach to initial investments, with 85% planning to purchase five or fewer vehicles to start.
• However, there's a strong intent for future expansion: 84% of respondents plan to extend their fleet, with nearly half intending to do so before summer next year, and a further 39% by 2027. This signals a robust, ongoing commitment to automation.
  
  

Addressing Challenges and Future Outlook in Automation

Despite the clear momentum, the adoption of AVs and AMRs faces hurdles that the report meticulously details:

• Confidence in the technology itself remains a top challenge, often stemming from past experiences with solutions that did not deliver on promises.
• Calculating Return on Investment (ROI) and identifying the right application are also significant hurdles, as AV benefits are not always linear or easy to quantify.
• Access to capital has become more difficult, identified by 41% of respondents as a key challenge in 2024 (up from 16% in 2023).
• Fears about the cost of technology have also risen sharply (from 6% to 25%), potentially due to new business models like subscription fees increasing operational expenditure.

• Interestingly, the report found a significant increase in respondents with "no fears" about automation, rising from 6% to 20%. This may reflect better market education regarding the safety of AVs, as safety and security concerns have decreased.
• Concerns about new technology making existing investments obsolete are less pressing, given the slower pace of technological advancement in the critical and safety-driven automation market.

• The success of an automated vehicle program is primarily defined by increased productivity and a reasonable ROI.
• Crucially, the acceptance of AVs by current operators is a key implementation and staffing concern, emphasizing the importance of educating employees and making them allies in the automation journey.
  
  

Looking to the future, the report highlights several key trends and predictions:

• Productivity is Paramount: In a post-COVID world with staffing shortages, automation is crucial to deliver more with a smaller workforce.
• Forklifts are Here to Stay: They remain fundamental to material handling operations and are expected to grow.
• Market Maturity: The market is evolving towards more reliable, high-standard installations after a period of less mature newcomers.
• Interoperability: The ability for different vehicle types to work together seamlessly is becoming increasingly important as companies expand their automated fleets.
• Local Support is Fundamental: The success of an AGV system is directly proportional to the involvement and commitment of the local integrator.

AV technologies are not merely beneficial but are becoming indispensable for modern industrial operations. The Automated Vehicles in Material Handling Usage Report for 2024 provides invaluable, data-driven insights, offering a clear understanding of the current landscape and future directions. As industries accelerate towards an electrified and automated future, understanding these trends, embracing strategic implementation, and fostering strong partnerships with trusted suppliers will be crucial for gaining a competitive edge.