Investing in Autonomous Forklifts? Don’t Forget About Pallets
I was at a modern facility in Malmo, Sweden when I had my first encounter. Visible through the office window, there were five or six self-driving lift trucks in action, each with a blinking light on top. They were methodically picking up pallets of folded plastic crates from the end of the processing line, transporting them across the floor, and stacking them three loads high on the far side of the warehouse. I was apprehensive when the manager asked me to follow her onto the floor and across their travel path.
But sure enough, the driverless AGVs detected us and stopped, then altered their route to avoid a collision. In minutes, I became as comfortable as I would be in any busy warehouse with veteran operators. That was a decade ago. Since then, with ongoing investment and R&D, and buoyed by chronic labor availability challenges, autonomous forklifts have continued to gain traction.
Autonomous forklifts, AKA automated guided vehicles (AGVs) or autonomous mobile robots (AMRs), are still in their infancy relative to the overall forklift market, but adoption is on the rise. The promise of increased efficiency, labour relief, damage reduction and improved safety is becoming increasingly attractive to material handling decision makers.
The Growth of the Autonomous Forklift Market
Headline announcements by Walmart, Amazon and others have served notice that the technology is being taken seriously. In July 2024, for example, Walmart was said to be planning for a$200 million spend on self-driving forklifts as part of broader efforts to automate more warehouse operations.
As of 2023, autonomous forklifts represented a small but rapidly growing segment of the global forklift market. Precise figures vary, but estimates suggest that autonomous forklifts now account for approximately 5% to 10% of total forklift sales. According to Global Market Insights, autonomous forklift sales reached USD 5.3 billion in 2023 and are anticipated to grow by 12% annually 2024 and 2032. Autonomous forklift shipments in Europe and North America are expected to double between 2024 and 2025.
Autonomous forklifts are increasingly deployed in industries like e-commerce, automotive, food and beverage, and manufacturing, where repetitive material handling tasks are common. The “low-hanging fruit” for these machines lies in controlled environments with standardized processes. Examples include shuttling goods between conveyor belts, stacking pallets in racks, and handling repetitive tasks in loading zones. These use cases allow autonomous forklifts to operate at peak efficiency by leveraging clear pathways, standardized pallets, and predictable workflows.
Image source: Global Market Insights
Why Pallets Matter in Autonomous Forklift Operations
Variability is the enemy of automation. While autonomous forklifts bring immense potential, their performance can be compromised by inconsistent pallet presentation. Pallets are the interface between goods and forklifts. For autonomous systems, the ability to quickly and accurately lift, transport, and place pallets hinges on a predictable pallet interaction.
Damaged or inconsistent pallets can lead to misalignment, causing problems. Even for sophisticated lift trucks equipped with computer vision and AI to help navigate pallet entry, that process can cause delays as the forklift pauses to assess and adjust to the situation. Over the course of a shift, these minor delays can accumulate into significant productivity losses.
The Bottom Line
The allure of autonomous forklifts is undeniable, offering a glimpse into a more efficient and safer future for material handling. However, the success of these systems depends on much more than the technology itself. Overlooking the role of pallets can lead to missed opportunities to optimize performance and ROI.
If you are thinking of investing in autonomous forklifts or other forms of automated pallet handling machinery, make pallets part of your procurement conversation. Contact us today to find out more.
