Automated Storage and Retrieval System (ASRS) Market Share, Size, Trends, Industry Analysis Report, By Type (Unit Load, Mid Load, VLM, Carousel, Mini Load, Others); By Industry; By Region; Segment Forecast, 2023 - 2032
- Published Date:Oct-2023
- Pages: 116
- Format: PDF
- Report ID: PM2362
- Base Year: 2022
- Historical Data: 2019-2021
Report Outlook
The global automated storage and retrieval system (ASRS) market was valued at USD 7837.1 million in 2022 and is expected to grow at a CAGR of 8.1% during the forecast period.
The automated storage and retrieval system (AS/RS) market has witnessed significant growth in recent years, driven by the increasing need for efficient and space-saving storage solutions across various industries. This advanced technology has revolutionized the way businesses handle their inventory management, providing a seamless and automated approach to storing and retrieving goods.
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AS/RS is a computer-controlled system that automatically places and retrieves loads from specific storage locations. It utilizes a combination of technologies such as robotics, sensors, and software to streamline warehouse operations. The system optimizes storage space, reduces labor costs, minimizes errors, and enhances overall efficiency. Industries such as e-commerce, automotive, pharmaceuticals, and manufacturing have widely adopted AS/RS systems to enhance their supply chain operations.
The remarkable expansion of the e-commerce industry has played a pivotal role in driving growth in the market under consideration. Notably, the Asia-Pacific region has emerged as a global e-commerce powerhouse. It can be attributed to the rapid surge in retail e-commerce within the region, primarily fueled by the burgeoning middle-class populations in China, India, and Indonesia, along with the widespread adoption of mobile devices. It's worth noting that China alone accounts for approximately 40% of the world's retail e-commerce sales.
- For instance, in February 2021, the report of China Internet Network Information Center revealed that China led the world in terms of online buyers and sellers, aided by its status as the most populous nation globally.
E-commerce enterprises are actively establishing their delivery networks. For instance, Flipkart's logistics arm, known as "eKart," is a prime example of such initiatives in India. Conversely, logistics companies like Express Logistics specialize in delivering bulk shipments to retailers and distributors. These advancements are expected to significantly enhance the adoption of automated storage and retrieval systems (AS/RS).
Furthermore, the emphasis on sustainability and environmental conservation has also played a role in the adoption of AS/RS systems. By optimizing storage space and reducing the need for large warehouses, these systems contribute to lower energy consumption and a smaller carbon footprint, aligning with the green initiatives of many businesses.
The need for space optimization, the demand for faster and accurate operations, rising labor costs, technological advancements, and environmental concerns are the driving forces behind the increasing adoption of AS/RS systems. As businesses continue to seek innovative solutions to enhance their operational efficiency, the automated storage and retrieval system (ASRS) market is poised for further expansion in the coming years.
Industry Dynamics
Growth Drivers
Rising implementation of ASRS in distribution supply chains and inventory management
The implementation of automated storage and retrieval systems (ASRS) in distribution supply chains and inventory management has witnessed a remarkable surge in recent years, transforming the landscape of warehousing and logistics. This technological marvel, characterized by its efficiency, precision, and space optimization capabilities, has become a cornerstone for businesses striving to enhance their operational agility and meet the growing demands of the market.
One of the primary driving factors behind the rising adoption of ASRS is the urgent need for improved efficiency in the modern supply chain. With consumer expectations reaching unprecedented levels, businesses are under immense pressure to fulfil orders swiftly and accurately. ASRS systems, with their robotic precision and swift retrieval mechanisms, enable companies to optimize their order fulfilment processes. By automating the storage and retrieval of goods, ASRS significantly reduces the time taken to locate specific items within a warehouse. This acceleration in the order processing cycle translates into faster deliveries, thereby enhancing customer satisfaction and loyalty.
Moreover, the escalating costs of labor have pushed businesses to seek innovative solutions to minimize their dependence on human resources. ASRS addresses this challenge by automating repetitive, labor-intensive tasks, such as picking and storing items. By doing so, it not only reduces labor costs but also mitigates the risks associated with human errors, ensuring the accuracy of inventory records. Businesses, therefore, find ASRS systems to be a cost-effective alternative, enabling them to allocate their workforce to more value-added tasks that require human expertise, such as strategic decision-making and customer engagement.
Report Segmentation
The market is primarily segmented based on type, industry, and region.
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By Type |
By Industry |
By Region |
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By Type Analysis
In 2022, the unit load segment held the largest revenue share
The unit load segment held the largest revenue share of 23.8% in 2022. It represents a pivotal advancement in warehouse management, handling diverse loads such as cases, pallets, and bulky items weighing from 1,000 to 5,000 pounds, with higher capacities available upon analysis. These systems offer substantial benefits, including enhanced labour efficiency through automation, allowing staff to focus on value-added tasks. Safety is significantly improved, reducing accidents, workplace injuries, and product damage compared to manual forklift operations. Inventory accuracy is bolstered as the system ensures precise storage and retrieval, eliminating misplacement issues.
Unit-Load AS/RS is particularly advantageous for space-constrained operations, providing up to 85% space savings by optimizing vertical height and reducing aisle space. In controlled environments like refrigerated storage, automation improves efficiency and minimizes errors, given human limitations in such conditions. Moreover, Unit-Load AS/RS brings additional functionality, from buffering to sequencing, enhancing operational efficiency and throughput.
By adopting Unit-Load AS/RS, businesses benefit from streamlined operations, heightened safety, space optimization, increased accuracy, and versatility, making it an invaluable asset in modern warehouse management strategies. Unit load, a term referring to the consolidation of multiple items into a single, manageable unit for handling, transportation, and storage, has become pivotal in optimizing supply chains.
By Industry Analysis
The e-commerce segment expected to witness the fastest market during the forecast period.
The e-commerce segment expected to witness the fastest market of 8.8% during the forecast period. The technology that has significantly reshaped the way e-commerce operates is the automated storage and retrieval system (ASRS). This ingenious solution has emerged as a cornerstone of modern warehousing and distribution centres, revolutionizing the storage and retrieval of goods with unparalleled precision and speed. The main function of ASRS lies in its ability to automate the storage and retrieval processes.
In traditional warehousing setups, employees navigate aisles, searching for specific items, a process prone to errors and time inefficiencies. ASRS eliminates this challenge by employing a network of robotic arms, conveyors, and sensors, ensuring seamless automation of these tasks. When an order is placed on an e-commerce platform, the ASRS swiftly identifies the product based on its unique identifier, retrieves it from its designated storage location, and prepares it for shipping, all within a matter of minutes.
This level of efficiency not only expedites order fulfilment but also minimizes the risk of errors, thereby enhancing customer satisfaction. The driving factors behind the rapid adoption of ASRS in e-commerce are manifold. Firstly, the explosive growth of online shopping has led to a surge in demand for streamlined logistics solutions. ASRS, by virtue of its ability to handle a vast array of products and SKUs, caters to the diverse inventory needs of e-commerce businesses.
Regional Insights
North America dominated the largest market in 2022
North America dominated the largest market of 33.5% in 2022 due to a well-established and extensive retail industry, marked by the significant presence of omnichannel suppliers. These suppliers, in particular, represent the largest consumers of material handling solutions like automated storage and retrieval systems (ASRS). Various companies in the region, including Westfalia Technologies, Inc., are actively providing comprehensive automated solutions that encompass storage/retrieval machines, warehouse management software, telescopic fork load extraction devices, control software, and triple rail support AS/RS rack structures. In terms of technological implementation, the AS/RS systems significantly benefit from the growth of B2B e-commerce and B2C sales. The North American landscape hosts over 150 warehouses for Amazon Corporation, which, astonishingly, operates in nearly 450-550 facilities across the United States. Consequently, the market is poised to witness substantial growth.
In November 2019, Bastian Solution, Inc. formed a partnership with Tompkins Robotics with the goal of expanding the delivery of its powerful t-Sort solution and product line. This move is aimed at helping clients enhance their warehouse capacity and efficiency. The thriving manufacturing industry in the region remains the preliminary driver of employment, innovation, and wealth. IoT is gaining increasing prominence, prompting businesses in the United States to explore its integration with automated storage solutions, further enhancing efficiency and productivity.
The Asia Pacific region is poised to experience fastest growth in the global automated storage and retrieval system (ASRS) market throughout the forecast period. This growth is attributed to the expansion of infrastructure and industrial activities, particularly in countries like India and China. Additionally, the increasing adoption of automated systems in the industrial sector, substantial investments in automation solutions to reduce operational costs, and the advancements in wireless technologies, robotic systems, and autonomous vehicles are contributing to the market's expansion in the region.
The rapid industrialization, thriving e-commerce sector, and the need for enhanced efficiency in manufacturing and logistics have led to a heightened demand for ASRS technology in Asia Pacific. Both governments and businesses in this region are making substantial investments in automation to address labor shortages, boost productivity, and decrease operational expenses. Furthermore, government initiatives aimed at promoting automation and technological advancements are playing a significant role in the ASRS market's growth. As businesses in Asia Pacific increasingly recognize the benefits of automation, including improved operational efficiency, reduced labor costs, and heightened competitiveness, the adoption of ASRS is expected to witness substantial growth in the coming years.
Key Market Players & Competitive Insights
The ASRS industry is highly competitive, with companies striving to innovate and offer more efficient, flexible, and cost-effective solutions to meet the evolving needs of businesses in various sectors. several key market players compete to provide innovative solutions and meet the growing demand for automated warehousing and logistics. These companies offer a range of ASRS products and services, each with its own strengths and focus areas.
Major players operating in global market includes;
- Beumer Group
- Daifuku
- Honeywell International Inc.
- Kardex
- KNAPP
- Mecalux
- Murata Machinery, Ltd
- SSI Schaefer
- Swisslog
- System Logistics
- TGW Logistics Group
- Toyota Material Handling
- UNARCO Material Handling, Inc.
- Vanderlande
- Witron
Recent Developments
- In May 2023, SSI SCHAEFER has established the SSI Piece Picking application, an innovative and fully automated system designed for piece picking. This solution, supported by specialized intelligent software, features advanced components like pick-and-place functionality, object recognition, patented gripping point determination, and gentle product handling by ASRS technology to enable this automated and efficient piece-picking system.
- In November 2021, Honeywell International Inc. launched a new AS/RS system powered by machine learning and artificial intelligence algorithms. The system optimized the warehousing operation by adjusting to the user's needs through decision intelligence. Also, Honeywell's AI-powered AS/RS can manage 20,000 stock-keeping units (SKU) with 40% more throughput.
- In August 2019, Murata Machinery, Ltd partnered with a US supplier of material handling systems to enhance the utilization of automated storage and retrieval systems (ASRS).
Automated Storage and Retrieval System (ASRS) Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 8346.5 million |
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Revenue forecast in 2032 |
USD 1,6804.7 million |
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CAGR |
8.1% from 2023 – 2032 |
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Base year |
2022 |
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Historical data |
2019 – 2021 |
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Forecast period |
2023 – 2032 |
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Quantitative units |
Revenue in USD million and CAGR from 2023 to 2032 |
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Segments Covered |
By Type, By Industry, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
The automated storage and retrieval system (ASRS) market report covering key segments are type, industry, and region.
Automated Storage and Retrieval System (ASRS) Market Size Worth $1,6804.7 Million By 2032.
The global automated storage and retrieval system (ASRS) market is expected to grow at a CAGR of 8.1% during the forecast period.
North America is leading the global market.
key driving factors in automated storage and retrieval system (ASRS) market are rising implementation of ASRS in distribution supply chains and inventory management
