Automated Storage and Retrieval System Market

Market Overview

The global automated storage and retrieval system market size had a revenue holding of USD 8.57 billion in 2021. It is expected to reach USD 16.31 billion by 2030, growing at a CAGR of 7.41% during the forecast period (2022-2030).

ASRSs, automated storage and retrieval systems, are computer-controlled devices that store and retrieve goods from inventories or production lines. They are frequently used in manufacturing and distribution facilities because of their great precision, accuracy, and speed for inventory/warehouse management. They are operated from a workstation. A variety of loading units, including pallets, containers, boxes, and others, can be handled by these systems. As a result, businesses use these robotic systems to automate tasks like unloading, sorting, putting away, storing, picking orders, staging, and loading.

Storage racks, input/output systems, storage and retrieval (S/R) equipment, and computer management systems are the other four parts of ASRS. A key element anticipated to fuel market expansion is the surge in demand for ASRS in the manufacturing sector. This is attributable to the advantages of ASRS in production facilities, including highly dense storage that can conserve up to 85% of floor area. A few other variables anticipated to contribute to the market's expansion in the upcoming years include the rise in the demand to lower labor costs, achieve optimal space use, and boost the use of ASRS in distribution supply chains and inventory management.

Market Dynamics

Global Automated Storage and Retrieval System Market Drivers

Demand for ASRS in Aviation

The introduction of the ‘Industry 4.0’ revolution has led to improvements in manufacturing equipment, along with innovations like automated storage and retrieval systems that have aided in accelerating the production of manufactured goods in the industry. Due to its superb accuracy and significant productivity advantages, the manufacturing sector has dominated in terms of products produced by machines during such industrial revolutions. Additionally, businesses have realized the value of ASRS, particularly in manufacturing, for tasks like production, distribution, and inventory control. Thus, the demand for ASRS has increased over the past ten years due to industrial facility retrofitting.

Growing consumer spending power has driven several businesses to use ASRS products more frequently, including packing and delivery. This is due to the industrial sector's increased production volume. Using ASRS systems like Shuttle- and Bot-based AS/RS and Carousel-based AS/RS (Vertical, Horizontal, and Robotic), for instance, the effects of e-commerce and omnichannel delivery have been significantly controlled. Heavy load shuttles connected with workstations to maximize floor space and speed delivery are just a few advantages that ASRS utilization has brought to this economic sector.

Additionally, manufacturing automation technology has grown significantly recently, and ASRS products have become well-liked in the manufacturing sector. Further, mechanical systems that generate or manufacture goods with the same accuracy and quantity are in high demand. Every ASRS supplier has unique customization that suits a market requirement because the ASRS is available in a wide variety of customization options, which has an additional impact on market growth.

Global Automated Storage and Retrieval System Market Restraints

High Cost of Initial Investment and Customization Difficulty

The costs associated with consulting, implementing, and maintaining the machinery and technology are the vital cost-contributing elements of an ASRS solution. The majority of ASRS software offers simple inventory management controls. Still, for more complex operations, it can be integrated with an existing warehouse management system (WMS) or enterprise resource planning (ERP) system, which increases software costs and complicates the integration process while adding to installation time. Because of the high and complex expenses involved in integrating new technology into current processes, end users should carefully consider these costs before installing ASRS systems.

Global Automated Storage and Retrieval System Market Opportunities

The Automation in E-Commerce

Increased demand and high consumer expectations have motivated e-retailers to create operational changes for prompt order fulfillment and to maintain market competitiveness. This offers a significant possibility for automated equipment to experience quick acceptance in the e-commerce sector. Additionally, as the popularity of online and mobile shopping applications has reached its pinnacle and allows customers to purchase any goods at any time, the e-commerce sector has been accompanied by constant unpredictability in consumer demand. The ahead pick zones are constantly changing to satisfy the fluctuating item demand due to the varying e-commerce demand. This is a potential opportunity for the global market.

The implementation of ASRS in e-commerce warehouses is anticipated to increase due to omnichannel merchants' adoption of various advanced technologies to predict the rate of change in stock-keeping units (SKUs). This is done to keep up with the rapid changes in fill orders. A worker must travel throughout the entire warehouse to get a single requested product, which adds to the complexity of pick-up operations and slows down the fulfillment process. This is due to fluctuations in SKU demand. The demand for ASRS systems in the retail sector is anticipated to increase over the next few years due to ASRS systems' ability to optimize SKUs and enhance the fulfillment procedure.

Regional Analysis

The region-wise segmentation of the global automated storage and retrieval system market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and Europe will lead the regional market

The Asia Pacific is estimated to possess the predominant share while expanding at a CAGR of 10.13% during the forecast period. Due to increased industrial and infrastructure activity, particularly in China and India, Asia-Pacific has excellent growth potential. The Asia-Pacific market is expanding due to numerous industries spending extensively on automation solutions to maintain their competitiveness and lower operating costs.

Asia-Pacific has seen an ongoing increase in the installation of automated systems, which can be attributed to rising industrial activity, e-commerce trends, advancements in technology, and a need for automation. Increasing automotive manufacturing in developing countries like China and India is anticipated to benefit the market. The demand for ASRS in this region is fueled by an increase in the adoption of automated systems in the industrial sectors, better and safer working conditions, and technological breakthroughs in robotic systems, wireless technologies, and driverless cars. The Indian government is placing a strong emphasis on safety and security on the factory floor, accelerating ASRS's manufacturing sector expansion.

Europe is predicted to have a share of USD 4,812 million, growing at a CAGR of 5.15%. Many European industries have developed and implemented a strategy based on research and innovation, which can accelerate the industrial transformation to value-added products, processes, and services and secure high-skilled employment in the upcoming years of a knowledge-driven economy thanks to initiatives like European Technology Platform Manufuture. Most automated storage and retrieval system businesses with global operations have their headquarters in Europe.

Automated systems are being installed due to the expansion of the European automobile industry and government rules requiring cleanliness and sanitation in the food and beverage sector. Leading companies like Kion Group AG, Kuka AG, and others are creating unit load automated guided vehicles with higher load capacities, safety, and greater space utilization. The e-commerce sector's expansion, modernization of infrastructure, and expansion of manufacturing facilities are all predicted to contribute to the automated storage and retrieval systems market's expected moderate rise in the upcoming years. The demand for these technologies in warehouse automation has surged due to recent e-commerce success. However, it is anticipated that the rising use of robotic systems in Europe will bring about profitable prospects in the future.

Segmental Analysis

The global automated storage and retrieval system market is segmented across the type, function, industry vertical, and region.

Per the type, the fragments are auto store, carousel, mid load, mini load, unit load, and vertical lift module.

The unit load section is predicted to have the most significant revenue holding and grow at a CAGR of 5.2%. Increased customer demand for commoditization in its products and services has led to increased industrialization among large-scale manufacturing facilities, which is a key driver driving the segment's growth. Large-scale organizations frequently use these systems due to their functionality in handling heavy loads. Furthermore, unit load ASRS systems are more popular among the food and beverage industries when seeking automation solutions because they can work in challenging or fluctuating temperatures.

The mini-load section will have the second-largest share. Mini Load ASRS is the most efficient technology for picking and storing items in cases. Therefore, the expansion of the market is driven by businesses that run their warehouses using case-sized storage. Additionally, SMEs choosing small warehouse space are anticipated to adopt mini-load ASRS at a high rate because these systems use a fast, automatic crane that can move through a very narrow aisle at a slower pace than other automated systems and retrieve the suitable cases following operational needs that are updated in real-time.

Per the function, the categories include assembly, distribution, kitting, order picking, storage, and others.

The storage section is predicted to have the highest shareholding and grow at a CAGR of 4.7%. Storage systems maximize storage capacity, save space, and enhance inventory management. Fewer shortages, lower labor costs, and improved security result from better inventory management. Automated storage systems offer dense inventory storage to make the most of the available floor space. Several businesses integrate automated hardware and software into their storage systems for precise selection and refilling. By delivering products to the operator at a convenient height and improving ergonomics, these systems would also benefit from prolonged order cutoff times and eliminate time lost in other operations.

The distribution channel will hold the second-largest share. Materials are stored using bulk material handling devices such as bucket elevators, stackers, conveyor belts, and reclaimers. High-lifting capacity bulk ASRS systems have been developed by well-known industry players for more explicit material handling and transportation. Additionally, the increase in demand for conveyor belts, loaders, and warehouse reclaimers is crucial to the segment's growth.

Per the industry vertical, the fragments are aviation, automotive, chemicals, e-commerce, food & beverages, healthcare, metals & heavy machinery, retail, semiconductors & electronics, and others.

The food & beverage section is predicted to have the largest market share, growing at a CAGR of 9.5%. In the food & beverage industry, automated guided vehicles transport items during food processing, such as when loading food; however, their high cost burden the sector. Thus, computerized technologies like conveyor belts are used to move the food through various production processes. Production facilities use various automated systems, including conveyors, robotic systems, automated storage & retrieval systems, and guided vehicles, because each type has advantages in a particular operation. This is then anticipated to fuel the market's expansion in this sector.

The automotive section will have the second-largest share. Due to the sector's intense competition and companies' efforts to reduce excessive expenditures, the automotive industry is one of the top users of automated storage and retrieval systems. Better production logistics methods automate the production process, which expands the use of ASRS in the automotive sector. A significant increase in the deployment of ASRS systems is anticipated in this industry due to how industry 4.0 has transformed vehicle assembly systems.

Recent Developments

• In 2022, the Bastian Solutions SmartPickTM robotic piece-picking solution will be unveiled at this year's PACK EXPO International, which takes place from October 23–26, 2022. Bastian Solutions is a Toyota Advanced Logistics firm.