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MAY 2, 2024

Market Analysis: AGV Lithium Battery Market Overview

A brief review of the current state of the AGV lithium battery market to provide context for the technology discussion.

I. Overview of Overseas Market Demand

Demand Drivers: 

            PACE analysis the overseas market demand for AGV (Automated Guided Vehicle) lithium batteries is driven by several factors, such as the trend towards automation and intelligence, and the advancement of Industry 4.0.

  • Trend Towards Automation and Intelligence: With the continuous advancement of industrial automation and intelligence, AGVs, as a key technology to improve logistics efficiency and reduce labor costs, are experiencing a sustained increase in demand globally.
  • Industry 4.0: The rise of Industry 4.0 has promoted the development of smart manufacturing and intelligent logistics, with AGV lithium batteries serving as the energy source for these systems, thus increasing their demand.
  • Growth of E-commerce: The rapid development of global e-commerce has driven the demand for efficient logistics and warehousing solutions, where AGV lithium batteries play a significant role.

Industry Demand:

            PACE analyzes which industries have the strongest demand for AGV lithium batteries, such as logistics, manufacturing, and warehousing.

Market Segmentation:

  • By AGV Type: Different types of AGVs, such as forklift AGVs, towing AGVs, and carrying AGVs, have varying demands for lithium batteries.
  • By Application Scenario: Different application scenarios, such as indoor warehouses, outdoor logistics parks, or special environments (like cold storage), have different performance requirements for AGV lithium batteries.

Geographical Distribution:

            There are differences in demand for AGV lithium batteries across regions, such as North America, Europe, and Asia.

            North America: The North American region, especially the United States, has a high demand for AGV lithium batteries due to its large market size and mature e-commerce system.

            Europe: The European market has strict requirements for environmental protection and energy efficiency, thus showing a significant demand for AGV lithium batteries.

            Asia: Asia, particularly China, Japan, and South Korea, is experiencing rapid growth in demand for AGV lithium batteries due to the rapid development of the manufacturing industry.

2.Growth Trends

Historical Growth:

            Reviewing the historical growth data of the AGV lithium battery market to identify growth patterns.

            The market for lithium-ion batteries for AGVs will continue to grow in the coming years. According to LP Information, the global lithium-ion batteries for AGVs market size was $610.4 million in 2023 and is expected to reach $1088.2 million by 2030, growing at a compound annual growth rate (CAGR) of 8.6% over the period 2024-2030. Moreover, QYResearch’s study also reveals that the global lithium-ion batteries for AGVs market accounted for RMB 4.2 billion in sales in 2023 and is expected to reach RMB 7.3 billion by 2030, at a CAGR of 8.3%.

Forecast Growth:

            Based on the current market situation and industry forecasts, the market is expected to continue growing in the coming years.

            The Chinese market plays an important role in this trend. According to CMR Industry Alliance, the Chinese market will see AGV sales of 93,000 units and sales of RMB 18.5 billion in 2022, a year-on-year increase of 46.83%, and AGV sales will grow to 102,000 units in 2023, with a market penetration rate of more than 50% for lithium-ion AGVs. This indicates that the demand for lithium batteries for AGVs in the Chinese market is rapidly increasing.

Technical Advancements:

            Explore how technological advancements are impacting the growth of the AGV lithium battery market.

            From a technology development perspective, advances in lithium-ion batteries in terms of increased energy density, fast charging and seamless battery replacement will further drive AGV performance. These technological advances not only reduce AGV downtime, but also improve their overall efficiency and application range.

Key Drivers:

  • Government Policies and Support: Government departments are increasing their regulatory efforts in the lithium-ion battery industry, and local governments are standardizing battery production and manufacturing.
  • Technological Progress and Increased Application Demand: The development of 5G technology has accelerated the arrival of the global intelligent networking era, creating demand for lithium batteries in new types of intelligent hardware devices.
  • Economic Benefits and Cost Advantages: PACE lithium batteries are widely used in AGVs and Autonomous Mobile Robots (AMRs) due to their high energy density, lightweight design, and rechargeable capabilities.

3.Market Share

Primary Markets:

            To determine which regions or countries have the largest market share for lithium AGV batteries.           

            China occupies a significant share in the AGV lithium battery market, being the largest producer and exporter of lithium batteries globally and holding an important position in the AGV lithium battery market.

            Specifically, China’s power lithium battery shipments reached 630GWh in 2023, accounting for more than 70% of the global share, while energy storage lithium battery shipments exceeded 200GWh, accounting for more than 90% of the global share. In addition, the Chinese market, which has changed rapidly over the past few years, accounted for about a percentage of the global market in 2023 and is expected to grow further by 2030. China’s heavy-duty AGV market accounts for about a certain percentage of the global market share, is one of the world’s leading consumer markets, and the growth rate is higher than the global average.

            While Australia is the world’s largest producer of lithium, this does not directly equate to AGV lithium battery market share. China’s dominance in the AGV lithium battery market is due to its strong production and export capabilities, as well as its rapid response and fulfillment of the demand in this market.

            In summary, China has the largest market share for lithium batteries for AGVs.

Market Segmentation:

            To analyze the market share of different segments (e.g., different types of AGVs, different application scenarios).

  • The Automated Guided Vehicles (AGV) market can be segmented on the basis of technology, application scenario and product type. The market shares of different segments are analyzed below:On the basis of technology, the AGV market can be segmented into wired navigation, guide belt navigation, laser target navigation, and magnet navigation, among others. Among these, laser target navigation held the largest share in 2022 and is expected to register the highest CAGR in the coming years.
  • Application Scene Segmentation Market, AGV has a wide range of applications in different application scenarios:
  1. Manufacturing: AGV is mainly used in the manufacturing industry for material handling, loading and unloading and inter-process transfer, which effectively improves the production efficiency and flexibilization of the production process.
  2. Warehouse logistics: AGVs are used in warehouses for loading, unloading, picking and transportation of goods, improving the automation level of warehouse operations.
  3. Special application scenarios: AGVs are also used in some hazardous industries such as nuclear materials, hazardous goods storage and other scenarios, solving the problem that these environments are not suitable for human work.
  • Product Type Segmentation Market, AGVs can be further segmented on the basis of product type:
  1. Transport AGVs: Designed for carrying and loading and unloading functions, suitable for cargo loading and unloading and internal warehouse transportation tasks.(Recommended Battery Sizes: PACE 24V67AH or 48V30AH These two battery sizes can provide enough energy to support the AGV to complete several short distance transportation tasks in a day’s work.)
  2. Picking AGVs: Used for picking tasks in warehouses, capable of automatically selecting and placing goods on shelves.(Recommended Battery Sizes: PACE 24V105AH or 48V67AH these battery sizes provide longer operating time and higher energy output to support additional loads that may be required during the picking process.)
  3. Heavy-load AGVs: Specifically designed for carrying heavy items, suitable for scenarios requiring the transport of heavy objects.(Recommended Battery Sizes: 48V100AH or higher capacity batteries, e.g. 48V210AH these high capacity batteries can support AGVs for heavy-duty handling over longer operating hours and larger operating areas.)
  • eFrom the perspective of global market distribution, the Asia-Pacific market share is more than half of the market in 2022, amounting to 52.71%, becoming the largest application market for AGV robots, followed by the Americas market and the European market. AGV companies in China, Europe and the United States are the main players in the market, and the market competition is becoming increasingly fierce, with frequent price wars.

4.Market Participants

  • Leading Companies: Identifying the main players in the market, including leading battery manufacturers and AGV manufacturers.
  1. North America Automated Guided Vehicles Market size is estimated to be USD 1.48 billion in 2024 and is projected to reach USD 2.66 billion by 2029, at a CAGR of 12.43% during the forecast period (2024-2029).
  2. Key players include PACE, Toyota Material Handling, Swisslog Holding AG (KUKA AG), Daifuku Co. Ltd, and others.
  • Market share: analyze the market share and market influence of these companies.

  1. Shenzhen PACE Electronics Co.,Ltd

            PACE founded in 2004, is a leading value-added service provider in the new energy industry with products as the core, services as the purpose, and technology as the driving force. With integrated circuit supply, sales, and self-developed BMS Battery management system as the cornerstone, Pace focuses on power battery customization, and integrates design, research, development, and manufacturing, The company has established a development pattern based on products, technology, market, and services. Pace specialized in manufacturing and exporting customized lithium batteries over the world,our products are widely used in fields such as Golf carts, AGVs, Forklifts.With strong R&D capabilities,reliable product quality and competitive price,Pace Lithium Battery has gained a good reputation in the industry.

           2.Seegrid Corporation

            Seegrid Corporation is the leader in Autonomous Mobile Robots (AMR) for material handling. According to Interact Analysis’ 2021 Mobile Robotics Report, Seegrid is ranked No. 1 in the U.S. for all mobile robots and No. 1 in global market share for automated tractor-trailers. The report evaluates data through 2020 and focuses on material handling applications in manufacturing and logistics environments.Seegrid’s Palion AMR has safely and efficiently performed tasks in dynamic and high-traffic customer environments for more than 5 million miles without a single personnel safety incident.Seegrid expanded its Palion Lift AMR with the introduction of its first product portfolio and plans to continue to expand and strengthen its foothold in global markets.

5.Market Restraints

Cost issues:

            Analyze the impact of cost on the AGV lithium battery market, including raw material cost and production cost.

  • Cost of raw materials:
  1. Lithium iron phosphate battery cost: lithium iron phosphate battery has a place in the AGV lithium battery market because of its safety and long cycle life. According to, lithium iron phosphate cathode material is mainly synthesized by lithium carbonate and iron phosphate, where 1 ton of lithium iron phosphate requires 0.24 tons of lithium carbonate and 0.85 tons of lithium iron phosphate. Raw material price fluctuations have a direct impact on costs, for example, price changes in lithium carbonate and lithium iron phosphate will directly affect the cost of the final product.
  2. Li-ion ternary battery cost: Li-ion ternary batteries are often used in AGV applications that require lightweight and high energy due to their high energy density. Ternary cathode material requires lithium carbonate as a synthetic material, 1GWh ternary lithium battery requires 570-738 tons of lithium carbonate.
  3. Other raw materials: electrolyte, anode materials, diaphragm and lithium copper foil are also important cost factors. For example, 1GWh lithium iron phosphate battery requires about 1400 tons of electrolyte.
  • Production costs:
  1. Manufacturing costs: The manufacturing costs involved in the production of AGV lithium batteries include material manufacturing costs, labor costs, equipment depreciation and so on. According to, manufacturing and labor costs in lithium battery cost a certain percentage, and with the expansion of production scale, these costs may change.
  2. Equipment investment: The investment cost of AGV lithium battery production line is also part of the production cost. For example, the investment cost of a company’s 50GWh 280Ah cell production line is 13 billion yuan, and the investment cost per GWh is about 260 million yuan.
  3. Market penetration: With the growth of AGV/AMR market, the market demand for Li-ion batteries is also increasing. According to, China’s AGV/AMR industry Li-ion battery shipments will be about 49,000 sets in 2022, with a market size of about 230 million dollars, which suggests that increased market penetration may affect production costs.
  • Global market impact
  1. Price sensitivity: In the global market, the price sensitivity of AGV lithium batteries is high, because the cost is directly related to the competitiveness of the product. Price competition may lead manufacturers to seek ways to reduce costs, such as using more cost-effective materials or improving production processes.
  2. Customization Requirements: The global market may have higher customization requirements for AGV lithium batteries, which may increase production costs as customized products usually require more R&D and manufacturing resources.
  3. After-sales service costs: After-sales service costs in the global market may also affect overall costs, especially if the product requires special maintenance or operates under specific conditions.

Technical limitations:

            Explore the limitations of current technology, such as battery energy density, cycle life, etc.

  • Battery energy density: The energy density of the battery refers to the energy that can be provided per unit volume or per unit mass, which directly affects the load and range of the AGV. At present, although the energy density of lithium batteries has been significantly improved compared to traditional batteries, there is still room for improvement. High energy density batteries can provide longer range, but at the same time may also face increased costs and increased safety risks.
  • Cycle life: The cycle life of a battery refers to the number of cycles in which the battery can maintain a certain performance after repeated charging and discharging.The cycle life of AGV lithium batteries is affected by a variety of factors, including the aging decline of the battery material, charging and discharging regimes, temperatures, and the consistency of the monobloc, etc. The cycle life of a battery can be extended by increasing the frequency of replacement. The extension of battery cycle life can reduce the frequency of replacement and lower the long-term cost of use.
  • Fast Charging Capability: AGVs often require fast charging to improve efficiency. However, fast charging may cause damage to the battery, such as lithium precipitation at the negative electrode, which can shorten battery life and pose safety risks. Therefore, the development of battery technologies that can support fast charging while ensuring battery life and safety is a current technological challenge.
  • Environmental adaptability: AGVs are used in different working environments, including high temperature, low temperature, humidity and other conditions, which puts demands on the environmental adaptability of batteries. Batteries need to maintain stable performance in a variety of environments, and the performance of some batteries in extreme temperatures is still to be improved.
  • Safety: With the increase in energy density, the safety of batteries is becoming more and more prominent. Batteries may encounter overcharging, over-discharging, short-circuiting and other problems during use, all of which may cause safety accidents. Therefore, improving the safety of batteries is an important aspect in the development of technology.
  • Cost issues: Although the cost of lithium batteries is gradually decreasing, cost is still an important consideration for industrial applications such as AGVs. The cost of the battery directly affects the overall price and market competitiveness of the AGV.
  • Standardization and customization: The AGV lithium battery industry currently lacks uniform industry standards, which has led to increased demand for customization. While customization can meet specific needs, it also increases the complexity of design and production, limiting the scale of the industry.
  • Low-temperature performance: In a low-temperature environment, the performance of the battery will be affected, such as increased internal resistance and reduced discharge capacity. For AGVs that need to work in low-temperature environments such as cold chains, the low-temperature performance of the battery is an important technical limitation.

Policies and regulations:

            Consider the impact of policies and regulations on the market, such as environmental regulations, safety standards, etc.

  • Environmental regulations: With the increasing awareness of environmental protection, the EU and other regions have begun to implement new battery regulations, such as the Battery and Waste Battery Regulations, which will be mandatory from February 18, 2024 onwards. These regulations are not only related to the production and sale of batteries, but also include battery recycling and disposal, which has a direct impact on the AGV lithium battery market, driving the industry in a more environmentally friendly and sustainable direction.
  • Safety standards: AGV lithium batteries, as energy storage devices, are critical to their safety. Safety standards specify safety requirements during battery design, testing and manufacturing to prevent safety accidents that may result from overheating, overcharging, short circuiting and other safety incidents. These standards improve the safety of battery products and increase consumer confidence in AGV lithium batteries.
  • Recycling and waste management regulations: Many countries and regions have regulations on battery recycling and waste management that require batteries to be disposed of properly at the end of their life cycle. This drives the development of battery recycling technologies and promotes a circular economy.
  • International regulations and agreements: international trade, international regulations and agreements will also affect the global trade and market of AGV lithium battery. For example, the rules of the World Trade Organization, various free trade agreements.

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