Automated Storage & Retrieval Systems Market - By Type, By Equipment, By End User, By Function, By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Automated Storage & Retrieval Systems Market Overview

Automated Storage & Retrieval Systems Market size is estimated to reach $13.62 billion by 2030, growing at a CAGR of 6.0% during the forecast period 2024-2030. The growth of the semiconductor and electronics industry has spurred the demand for automated storage & retrieval systems globally. Furthermore, the growing demand for safety and control systems in the industrial and manufacturing sectors will significantly propel the market. The growing wages will also result in a shift to automation in order to reduce the compensation provided to the workers and this further propels the market. Moreover, the automotive industry is showing growth mainly due to the high demand for electric vehicle and demand for automobile parts globally. The global market for Automated Storage and Retrieval Systems (ASRS) is experiencing a significant surge in demand, propelled by the robust expansion of the automobile industry and the growing need within the e-commerce sector. The automobile industry's continuous growth is contributing to an increased requirement for efficient storage and retrieval systems, prompting the adoption of ASRS to streamline operations and enhance overall productivity. Simultaneously, the expanding e-commerce landscape, marked by the surge in online retail activities, is driving the need for advanced automation solutions. The growing automation in this sector is set to spur automated storage market.

The Automated Storage & Retrieval Systems (ASRS) market is experiencing substantial growth, driven significantly by the escalating demand for automation across diverse industries. Notably, the surge in e-commerce, automotive, pharmaceuticals, and other sectors has fueled an increased need for efficient and sophisticated storage and retrieval solutions. The growth of e-commerce and the surge in online purchasing are particularly influential factors, as they drive a higher demand for automated systems capable of efficiently managing vast numbers of orders and handling complex order fulfillment requirements. The market for ASRS is also propelled by continuous advancements in technology, rendering automated systems more economical, efficient, and user-friendly.

Report Coverage

The report “Automated Storage & Retrieval Systems Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of Automated Storage & Retrieval Systems Market.

By Type: Vertical Lift Modules (VLM), Carousels (horizontal Carousels, Vertical Carousels), Unit Load AS/RS (Unit Load Crane (Confine Axis, Movable Axis), Unit Load Shuttle), Mini Load AS/RS, Micro Load.

By Function: Storage, Order Picking, Kitting, Assembly, Consolidation, Replenishment, Others.

By Equipment: Storage Asiles, Rack Structure, Storage/Retrieval Machine (Telescopic Fork Lift, Manual Fork Lift, Switch Reach Trucks, Trucks, Narrow Aisle Forks, Rotating Forks, Others

By Application: Warehousing & Distribution, Manufacturing, Retail, Pharmaceutical & Medical Supplies, Automotive Parts Storage, Industrial Equipment Storage, Consumer Goods, Others

By Geography:  North America, South America, Europe, APAC, and RoW.

Key Takeaways

·        In the evolving landscape of the Automated Storage & Retrieval Systems (ASRS) market, North America emerged as a key player, commanding a substantial market share of 28% in 2023. This prominence is indicative of the region's robust technological infrastructure, coupled with a proactive approach towards adopting innovative solutions to address the dynamic needs of various industries. A noteworthy driver of the growth observed in the ASRS market in North America is the escalating adoption of big data technologies among organizations. The strategic integration of big data aims to enhance consumer target marketing and risk management capabilities, propelling the demand for advanced storage and retrieval systems.

·       The Automated Storage & Retrieval Systems (ASRS) market is poised for significant growth, particularly within the E-Commerce sector, which is anticipated to witness the highest Compound Annual Growth Rate (CAGR) of 9.37% during the forecast period. This notable surge can be attributed to the strategic investments made by e-commerce companies in advanced storage systems capable of efficiently managing the escalating volume of small, multiple-item orders. As the e-commerce landscape continues to evolve and consumer preferences shift towards online shopping, the need for streamlined and agile warehouse operations becomes increasingly crucial. ASRS technologies offer a solution to this demand by providing automated storage and retrieval solutions that enhance the speed, accuracy, and overall efficiency of order fulfillment processes

·     The Vertical Lift Module (VLM) segment is experiencing remarkable growth, marked by a substantial Compound Annual Growth Rate (CAGR) of 8.7% during the forecast period. This growth is attributed to the inherent efficiency and innovative design of Vertical Lift Modules, which are tailored to reduce operational complexities and enhance productivity. A key distinguishing feature of VLMs is their ability to deliver stored items directly to the operator, thereby eliminating the need for extensive walk and search time within the warehouse. This streamlined approach not only significantly reduces the time spent on manual retrieval but also optimizes the overall material handling process.

Carousel Systems is the New Market Horizons and Revenue Streams

Carousel Systems, distinguished by their high-density storage rack system and specialized inventory management software, represent a transformative approach to warehouse operations. Unlike traditional methods where operators manually retrieve stock or materials, automated storage and retrieval systems bring stored items or materials directly to the operator through innovative storage and retrieval machines. This not only optimizes storage space but also enhances overall productivity and efficiency. The increasing adoption of automated storage and retrieval systems (AS/RS), particularly in the retail sector, is driven by the need to fully maximize available space and expedite order processing. Notably, the Department of Commerce reported a significant surge in online purchases, constituting nearly 14% of retail sales, amounting to $252.1 billion in 2022—an impressive 7.4% increase from the previous year. This shift in consumer behavior has profound implications for the market for warehouse space, fueling a heightened demand for Carousel Systems. In 2022, this segment generated a substantial revenue of $1.34859 billion, and it is poised for further growth. Projections indicate that by 2030, the Carousel Systems segment is expected to reach a remarkable revenue of $2.35483 billion, demonstrating a robust compound annual growth rate (CAGR) of 7.1% during the forecast period from 2024 to 2030. Carousel System has the fastest growth with CAGR of 7.1 % during forecast period 2024-2030. This underscores the pivotal role that Carousel Systems play in meeting the evolving demands of modern warehouse management and their increasing significance in the broader landscape of automated storage and retrieval systems.

By Geography - Segment Analysis

Asia Pacific Automated Storage & Retrieval Systems Market generated a revenue of $3.3 billion in 2023 and is projected to reach a revenue of $5.1 billion by 2030 growing at a CAGR of 6.8% during 2024-2030. Asia Pacific Region Have the largest growing region of market share 36% in 2023. The Asia Pacific region stands out as the preeminent and dominating force in the Automated Storage & Retrieval Systems (AS/RS) Market. Renowned for its rapid economic development, technological advancements, and burgeoning industrial landscape, Asia Pacific has emerged as a key player in the adoption and implementation of cutting-edge warehouse automation technologies. The region's dominance in the AS/RS market is attributed to a confluence of factors, including the growing e-commerce sector, a robust manufacturing industry, and an increasing emphasis on operational efficiency across various sectors. Countries such as China, Japan, and South Korea have been at the forefront of integrating AS/RS solutions into their logistics and supply chain systems. The rise of online retail, coupled with the need for streamlined and agile warehouse operations, has fueled the demand for automated storage and retrieval systems in the Asia Pacific region. With a thriving market and a continued commitment to technological innovation, Asia Pacific is expected to maintain its leadership position, shaping the trajectory of the global AS/RS market for the foreseeable future.

Drivers – Automated Storage & Retrieval Systems Market

Rising shift from retail & e-commerce companies towards automating warehouse & distribution operations

The increasing trend towards automating work processes, particularly in the retail and e-commerce sectors, has had a profound impact on warehouse distribution facilities, leading to a positive transformation in order fulfillment operations. The surge in e-commerce activities has brought about significant changes in retail distribution centers, marked by a shift towards mass personalization and heightened customer service requirements. This shift has resulted in an exponential growth in the number of stock-keeping units (SKUs), necessitating the integration of new automation technologies to effectively manage the balance between demand and supply. This demand is further fueled by the necessity to keep up with the escalating labor costs in the face of challenges and scarcities in the workforce. The Honeywell Intelligrated Automation Investment Study of 2020 highlights the significant intent among e-commerce companies, with about six out of ten planning to invest in AS/RS within the next year concrete example of this trend can be seen in the case of The ZigZag Stripe, an online women's apparel boutique. In May 2022, the boutique revealed its adoption of Infinity's Automated Store and Retrieval System (ASRS), developed by OPEX Corporation. This strategic move was driven by the boutique's aim to enhance efficiency and meet the growing demands of order fulfillment. The deployment of this automated warehouse solution was designed to offer unparalleled storage density, configurability, and flexibility, addressing the unique warehouse automation challenges faced by companies engaged in micro-fulfillment, omni-channel distribution, store replenishment, and e-commerce operations. This exemplifies a broader industry shift towards embracing advanced automation technologies to optimize warehouse operations and meet the evolving needs of modern retail and e-commerce landscapes.

Increased emphasis on workplace safety due to rising fatalities is driving the need for automating industrial operations 

The escalating number of workplace fatalities has spurred a heightened emphasis on workplace safety, particularly in industrial settings such as manufacturing, logistics, distribution, chemicals, and automotive industries. Manual operations in these environments pose risks of workforce accidents and injuries due to various factors, including distraction, fatigue, psychological stress, and more. To mitigate these risks, there is a growing need for the automation of industrial operations, and automated storage and retrieval systems (ASRS) are emerging as a crucial solution. Initiatives by industry associations, such as the Confederation of Indian Industry (CII), prioritize the prevention of industrial accidents, with effective safety and health initiatives expected to reduce injuries or illnesses at the workplace. These initiatives are crucial for encouraging industrial plant operators to adopt ASRS solutions, ultimately improving long-term workplace safety standards. The concerning statistics from the U.S Bureau of Labor Statistics, reporting approximately 24,900 incidents of injured warehousing and storage workers in 2020, underscore the imperative need for enhanced workplace safety measures. The majority of these cases involved issues such as sprains, strains, tears, and fractures, emphasizing the vulnerability of laborers in these environments. In response to this heightened risk, the adoption of automated storage and retrieval systems (ASRS) has become pivotal in driving storage automation, aiming to elevate workplace safety standards for laborers

Challenges – Recycled Polyethylene Terephthalate Market  

High costs or requirement of high initial investment of ASRS for installation, maintenance & repair, shipping, skilled.

The utilization of Automated Storage and Retrieval Systems (ASRS) presents several advantages over traditional warehouse systems, including enhanced operational productivity, increased efficiency, and a reduction in manual expertise requirements. However, the ongoing costs associated with periodic maintenance and repair can make ASRS expensive in comparison to conventional warehouse equipment like forklifts or conveyor systems. ASRS systems may necessitate partial or complete shutdowns of operations for maintenance, requiring skilled technicians, leading to costs associated with downtime and production interruptions due to equipment breakdowns. Various factors contribute to the overall cost of implementing an ASRS, including the cost of the system itself, storage space requirements, desired throughput, complexities related to machine controls and software, integration with existing processes, shipping, delivery, and installation costs. Additional expenses may arise from special handling needs and customization or reconfiguration of the facility and equipment to maximize benefits. These factors collectively contribute to higher purchasing costs, posing initial investment challenges for smaller operations with limited access to capital. According to Kardex Remstar, the cost of ASRS varies widely, ranging from approximately $70,000 for a standalone vertical carousel module managing Maintenance, Repair, and Operations (MRO) parts to around $3 million for a fully integrated ASRS mini-load system managing over 80,000 Stock Keeping Units (SKUs).

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in Automated Storage & Retrieval Systems Market. in 2023, The major players in Automated Storage & Retrieval Systems Market are:

• Dematic/Kion

• Daifuku Co. Ltd

• SSI Schaefer Group

• Murata Machinery, Ltd

• Honeywell Intelligrated

• Bastian Solutions, Inc

• Knapp AG

• IHI Corporation

• Jungheinrich AG

• Swisslog Holding AG

Developments:

• In December 2022, Daifuku Co., Ltd. had announced an initial investment of US$25.2 million to construct a new manufacturing plant in Hyderabad, Telangana, India. The new plant was expected to begin operations in 2024.
• In January 2023, Jungheinrich AG completed the acquisition of Storage Solutions group for a notable sum of US$375 million. This strategic move represents a significant expansion for Jungheinrich AG, providing them with a substantial foothold in the U.S. warehouse automation market. The acquisition not only underscores Jungheinrich's commitment to enhancing its market presence but also positions the company to capitalize on the growing demand for advanced storage and retrieval solutions in the United States. By integrating Storage Solutions group into its portfolio, Jungheinrich AG aims to leverage synergies, foster innovation, and strengthen its position as a key player in the evolving landscape of warehouse automation.

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