Automated Guided Vehicles (AGVs) are becoming essential tools in transforming commercial and industrial operations. But despite their growing importance, AGVs still face several technical and operational challenges.
1. Why is the AGVs market growing so rapidly?
Back in the 1950s, car manufacturers were among the first to use AGVs in their factories to transport mechanical components. Since then, many methods have been developed to guide these motorized robots. Today, about half a dozen technologies are commonly used in AGVs, such as:
- Autonomous navigation
- Fixed rail guidance
- Floor-marked path guidance
- Geolocation-based sensor guidance
- Laser-guided navigation
- Ultrasonic guidance
These technologies are all categorized under the umbrella of AGVs. According to a report by MarketsandMarkets, the global AGV market is expected to grow from USD 2.56 billion in 2024 to USD 3.78 billion by 2029, at a compound annual growth rate (CAGR) of 8.1%.
A significant part of this growth is driven by e-commerce companies adopting new technologies to streamline internal logistics and speed up deliveries. Amazon, for example, was one of the pioneers in AGV adoption, developing its smart vehicles. Manufacturers are also using AGVs in automated warehouses to solve space constraints efficiently.
These internal logistics robots are increasingly used in “goods-to-person” models, where AGVs deliver goods directly to workers. This approach is part of “cobotics”—a model in which collaborative robots assist humans by handling repetitive and physically demanding tasks.
2. Key benefits of AGVs in logistics
With the rise of e-commerce, logistics services need innovative solutions to meet growing demands. AGVs offer clear advantages across the supply chain:
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Improved productivity, speed, and accuracy:
AGVs help workers handle larger volumes of goods consistently and accurately. Compared to manual handling, AGVs can be up to 30% faster and significantly reduce errors. This results in faster order fulfillment and increased safety for people and products.
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Better working conditions:
AGVs assist with mechanical tasks, reducing the strain on workers and lowering the risk of musculoskeletal disorders and accidents. This aligns with the cobotics principle—helping humans while maintaining their central role in operations.
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Space optimization:
AGVs can also help save warehouse space by enabling more efficient layouts. With rising real estate costs, maximizing every square meter can yield long-term financial benefits.
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Faster return on investment:
Thanks to operational efficiencies, businesses can often recover their investment in AGVs within just 1 to 2 years.
3. Engineering challenges in AGVs design
Before AGVs can fully meet logistics demands, manufacturers must overcome several technical hurdles. AGVs must be highly durable and reliable, capable of running non-stop for at least two years without requiring maintenance. Any unplanned downtime can disrupt the entire logistics chain and cause significant financial losses.
Additionally, AGVs need a compact design to suit smaller warehouses, helping businesses reduce space and operational costs. Despite their small size, these vehicles must still be powerful enough to carry heavy loads, which demands high power density. Achieving both compactness and performance in the drive system is a key engineering challenge.
4. Maxon Motor – A Trusted Partner for AGV Manufacturers
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Space-saving design:
Maxon Motor offers compact motors that still deliver high torque and speed density, such as the EC Flat and EC-i series. These motors not only save space but also consume less energy compared to many other options on the market—an important advantage for companies looking to cut costs and embrace energy transition trends.
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Smart communication systems:
To minimize maintenance, AGV drive systems must be network-ready. Maxon’s IDX motors feature integrated electronics and support both EtherCAT and CANopen communication protocols, along with IoT connectivity. This allows remote programming and centralized control of your entire AGV fleet.
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Custom mechatronics solutions:
Every project has unique technical requirements. Maxon’s experienced mechatronics engineers will work with you from initial specs to final product delivery, providing tailored, high-performance solutions. And even after deployment, Maxon’s technical support remains available whenever you need it.
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Maximum flexibility for AGV designers:
To offer ultimate design freedom, Maxon has developed a modular compact drive system—the IDX line—designed to meet even the most demanding specifications. These drives deliver up to 20% higher performance than comparable systems, and are safe, customizable, and easy to install—ideal for any drive system requirement.

Servo Dynamics – Official Distributor of Maxon in Vietnam
Servo Dynamics is the official distributor of Maxon in Vietnam, offering a full range of motors, drive systems, and advanced mechatronics solutions. With a highly skilled technical team and dedicated support, Servo Dynamics is committed to providing the most optimal, reliable, and suitable automation solutions for customers across Vietnam.

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