Automated storage and retrieval systems or ASRS are computer-controlled systems that automatically place and retrieve loads from specific storage locations in a three-dimensional block storage grid. ASRS are used across industries like e-commerce, automotive, food & beverage, and healthcare for warehouse inventory control and order fulfillment. They incorporate vertical or horizontal storage lifts, mobile robots, and integrated software for storage and retrieval of loads. ASRS offer benefits like high density storage, accuracy in inventory location, real-time inventory visibility, maximized floor space utilization, and increased labor productivity.
The global automated storage and retrieval system market is estimated to be valued at US$ 9833.58 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 Dynamics:
Increased adoption of ASRS across industries owing to benefits of automation is a key driver for market growth. Inventory control and order fulfillment in warehouses have become increasingly complex with rising e-commerce activities and just-in-time manufacturing trends. ASRS provide efficient solutions to deal with variable warehouse tasks through their computer controlled automated operation and increased storage density. Furthermore, growing labor costs and focus on optimizing warehouse floor space are also propelling the automated storage and retrieval system market forward. The industry 4.0 trend of automation and robotics being applied across sectors favors further growth of the ASRS market over the forecast period.
SWOT Analysis
Strength: The Automated Storage and Retrieval System reduces labor costs significantly by automating the storage and retrieval process with robotic shuttles and cranes. It improves inventory accuracy with scanning technology and decreases errors. It also improves productivity and efficiency by reducing walk times for employees.
Weakness: The high upfront investment costs of implementing automated storage and retrieval systems can be prohibitive for some companies. Small technical glitches or downtime in the systems can halt operations.
Opportunity: Growing e-commerce business is driving the need for efficient warehouse management systems. Automated storage and retrieval systems help optimize warehouse footprint and meet demand surges. Industries like automotive are adopting these to improve just-in-time manufacturing.
Threats: Technological changes may lead to requirements for upgrading systems frequently. Labor unions can oppose widespread adoption seeing it as a threat to jobs.
Key Takeaways
The Global Automated Storage And Retrieval System Market Size is expected to witness high growth over the forecast period owing to the growing demand from industries like e-commerce, automotive, and retail. North America dominates the market currently due to high technology adoption rates. However, the Asia Pacific region is expected to grow at the fastest pace with expanding warehousing sectors in countries such as China, India, and South Korea.
Regional Analysis
The Asia Pacific region is expected to be the fastest growing region for automated storage and retrieval systems during the forecast period. This can be attributed to increasing e-commerce sales, rising consumer goods demand, and expansion of warehousing facilities by major global retailers in the region. Countries such as China, India, South Korea are witnessing rapid economic growth and demand for efficient warehouse automation solutions is on the rise.
Key Players
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. These players are focusing on new product launches and partnerships to gain shares in regional markets.
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