The global market for automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) is undergoing a significant shift, driven by advancements in artificial intelligence, robotics and evolving business models. While the sector, comprised of over six hundred suppliers worldwide, experienced a period of uncertainty in 2025 due to tariff concerns and disruptions in the automotive industry, a renewed sense of optimism is emerging, fueled by strong order backlogs and the anticipated realization of previously delayed projects. This transformation in the AGV and AMR robotics market is reshaping intralogistics—the coordinated, internal logistics of a facility or supply chain—across industries.
A key factor underpinning this positive outlook is the persistent shortage of available labor and rising wage costs. This challenge is particularly acute in countries like Japan, where demographic shifts are exacerbating the problem, leading to increased government subsidies for robotic solutions in warehousing and logistics. According to analysis from STIQ Ltd, the normalization of trade conditions, with businesses adapting to tariffs as a novel reality, is expected to unlock previously stalled investments. Many companies, having successfully completed pilot programs, are now planning substantial expansions of their robotic fleets, further bolstering positive expectations.
The Impact of Tariffs and Geopolitical Factors
The year 2025 was marked by a cautious approach from many potential buyers, as uncertainties surrounding international trade policies created a degree of paralysis. However, the report suggests that businesses are now adjusting to the new normal, and investment is beginning to flow again. A related issue, as highlighted in Industriemagazin.at, is the broader trend of disruption in customs procedures, driven by US tariffs, digitalization efforts, and new EU regulations, which is adding pressure on companies to streamline their supply chains.
Knapp’s Strategy: Local Presence as a Competitive Advantage
For companies like Knapp, a leading provider of logistics solutions, a strong international presence with local subsidiaries is proving to be a significant competitive advantage. Heimo Robosch, Executive Vice President at Knapp, emphasizes that this broad international footprint allows the company to operate flexibly and independently in each market. This enables them to offer competitive pricing, robust local service, and continuous optimization throughout the entire lifecycle of their systems to customers worldwide.
The Rise of Chinese Robotics Manufacturers
The global competitive landscape is also being reshaped by the increasing role of Chinese suppliers. The STIQ report notes that the Chinese domestic market is facing substantial overcapacity and price declines, prompting many manufacturers to aggressively pursue international markets, often competing fiercely on price. In Southeast Asia, tactics such as “one-plus-one” offers – where customers receive a second vehicle free with a purchase – are being employed to secure long-term customer loyalty. Even factoring in tariffs, the price difference between Chinese and Western products often remains significant, making Chinese solutions highly competitive.
Navigating Price Competition and Supply Chain Dynamics
This price competition is forcing Western manufacturers to innovate and focus on value-added services, such as software integration, data analytics, and customized solutions. The ability to provide comprehensive support and optimize robotic systems for specific customer needs is becoming increasingly crucial. The report suggests that companies that can successfully navigate these complex supply chain dynamics and offer differentiated solutions will be best positioned for success.
Looking Ahead: Automation and the Future of Work
The demand for automation in logistics is expected to continue growing, driven by factors such as labor shortages, rising costs, and the increasing complexity of supply chains. The integration of AI and machine learning into AGV and AMR systems is enabling greater flexibility, adaptability, and efficiency. As these technologies mature, they are likely to play an even more prominent role in transforming the way goods are moved and managed within warehouses, factories, and distribution centers. The STIQ report indicates that the market is poised for continued growth, but navigating the challenges of geopolitical uncertainty and intense competition will be critical for success.
The next key development to watch will be the release of updated market data from STIQ Ltd in late 2026, providing a more comprehensive assessment of the industry’s performance and future trends.
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