FERSMEK
Material Handling

AGV vs Conveyor: When Flexibility Wins Over Throughput

November 20257 min readBy the FERSMEK Engineering Team

Conveyors move material faster. AGVs move material more flexibly. That simplified framing misses most of the real decision criteria — but it's a useful starting point for a more structured analysis.

FactorFixed ConveyorAGV (e.g. NYTTI)
Peak throughputVery high — continuous flow possibleLimited by number of vehicles and speed
Route flexibilityFixed — changing layout requires reinstallationReprogrammable — new routes via software
Payload uniformityBest for uniform productsHandles variable loads and pallet types
Floor spacePermanent floor/ceiling footprintMinimal fixed infrastructure
Upfront costLower for simple, high-volume routesLower for complex or multi-route scenarios
MaintenancePredictable PM — belts, rollers, drivesMore complex — batteries, navigation, software
Future flexibilityLow — layout change = major projectHigh — add vehicles, change routes
Mixed-flow environmentsDifficult — requires complex switchingExcellent — vehicles route independently

When to Choose Fixed Conveyor

Fixed conveyors win decisively when: you have a single, high-volume product moving on a fixed route between two defined points, your production schedule runs the same product for long campaigns, and you have no expectation of layout change in the next 10 years.

Classic examples: beverage filling lines moving bottles from filler to packer, paper reel transport on a fixed route between a single winder and a single wrapper (though even here, AGVs are increasingly competitive). The cost per unit transported is lowest on fixed conveyors when utilisation is consistently high.

When to Choose AGV

AGVs win when production mix variability is high, when the layout is likely to change, when forklift safety is a concern, or when the transport requirement is between multiple origin/destination pairs that make fixed conveyor routing impractical.

Mixed-model production where load origins and destinations change by shift
Line-side kitting delivery where the destination depends on which model is running
Warehouses where racking locations change with inventory levels
Facilities undergoing phased expansion — AGV fleet grows with the operation
Environments where forklift-pedestrian interaction is a safety concern

The 10-Year Total Cost of Ownership

The most common mistake in this decision is comparing AGV purchase price to conveyor purchase price. The correct comparison is total cost of ownership over 10 years — including installation, modification costs, downtime, labour, and spare parts.

A fixed conveyor that requires one layout change over 10 years — moving from one production area to another — can cost as much as the original installation in reinstallation labour, civil work, and production downtime. AGV route changes happen via software in hours.

We recommend running a proper 10-year TCO model before any significant material handling investment. FERSMEK can build this model for your specific operation using your production data, floor plan, and expansion projections.

Want a 10-Year TCO Model for Your Material Handling Decision?

Bring us your production data, floor plan, and expansion plans. We'll build an honest comparison — including the modification costs most analyses ignore.