The global Automated Storage and Retrieval System Market is estimated to be valued at US$ 9,833.58 Mn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Automated Storage and Retrieval System (AS/RS) is an computer-controlled system used in material handling and inventory storage inside factories and warehouses. It includes a combination of technologies like shuttles, cranes or vehicles that provides storage and retrieval of loads efficiently and precisely. AS/RS helps manufacturers and logistics providers improve warehouse productivity by increasing throughput and reducing labour costs. It provides maximum utilization of vertical space without limitation to floor space and optimizes the overall material handling process.

Market Dynamics:
The increasing demand for efficient and low-cost material handling solutions from logistics and warehousing industries is a key factor driving the growth of Automated Storage and Retrieval System market. AS/RS handles a large number of SKUs, batches, and replenishments accurately at a faster rate compared to conventional storage systems. It also minimizes damages and errors during storage and retrieval operations. Moreover, growing need to streamline warehouse operations, reduce order cycle times and improve inventory management are further influencing adoption of AS/RS. Another driver is the capability of AS/RS to handle large volumes of goods with higher precision and effectiveness, which is boosting its demand across industries like e-commerce, pharmaceuticals, food & beverages. However, high initial investment required for installation and maintenance of AS/RS systems remains a major challenge for market growth.

SWOT Analysis

Strength: Automated Storage and Retrieval System reduces labor costs significantly as it requires minimal human intervention. It provides high density storage by efficiently utilizing vertical space. Automated Storage and Retrieval System improves productivity and throughput as it can pick and store items much faster than manual methods.

Weakness: High initial investment is required to install Automated Storage and Retrieval System which impacts cash flows of organizations. Upgradation of existing manual systems to Automated Storage and Retrieval System requires substantial capital expenditure.

Opportunity: Growth of e-commerce has increased need for efficient warehouse management. Automated Storage and Retrieval System optimizes warehouse operations and meets demand of omnichannel fulfillment. Rising labor costs make Automated Storage and Retrieval System an attractive alternative to manual systems.

Threats: Slowdown in global economy may hamper capital expenditure of companies on warehouse automation projects. Technical failures and downtime of Automated Storage and Retrieval System impact business continuity of warehouses.

Key Takeaways
The Global Automated Storage And Retrieval System Market Demand is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing need for efficient warehouse operations. Rapid growth of ecommerce and pressure to provide faster delivery has increased demand for Automated Storage and Retrieval System from logistics companies.

Regional analysis: North America currently dominates the global Automated Storage and Retrieval System market and is expected to continue its dominance during the forecast period. Presence of major Automated Storage and Retrieval System suppliers and rapid adoption of warehousing automation drive the region's market. Asia Pacific is expected to grow at the highest CAGR during the forecast period. Increasing disposable income, rapid industrialization and rising labor costs are some factors fueling adoption of Automated Storage and Retrieval System in Asia Pacific region.

Key players operating in the Automated Storage and Retrieval System market are Murata Machinery, Ltd., Honeywell Intelligrated, Bastian Solutions, Inc., Dematic, TGW Logistics Group, Daifuku Co., Ltd., KNAPP AG, Beumer Group, SSI Schaefer Group, and Kardex Group. These players are focusing on new product launches and partnerships with logistics companies and technology providers to strengthen their market position.

Read More:

https://insightskies12.blogspot.com/2023/12/warehouse-automation-is-fastest-growing.html