Automated Storage And Retrieval System Market To Experience Significant Growth Owing To Rising E-Commerce Industry And Need For Optimum Warehouse Management
Automated storage and retrieval systems, commonly known as AS/RS, are computer-controlled systems used in warehouses or distribution centres for automatically placing and retrieving loads from specific storage locations. Automated storage and retrieval systems utilize sophisticated software and controls as well as various types of mechanized equipment like cranes, carousels, and shuttles to efficiently store and retrieve palletized or non-palletized loads. AS/RS helps reduce labor costs and improves inventory tracking and order fulfillment times by consolidating and optimizing warehouse operations and space utilization.
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 22.5% over the forecast period of 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers fueling the growth of the automated storage and retrieval system market is the rising e-commerce industry globally. Changing retail landscape and growth of online shopping have necessitated the need for warehouses and distribution centers that are highly efficient, scalable, and offer optimum utilization of available space to handle the increasing storage and order fulfillment requirements. Automated storage and retrieval systems help improve productivity and throughput of warehouses and distribution centers by automating storage and retrieval processes through advanced robotics and software controls. Their use allows 24-hour operations with a small workforce and significantly higher storage density. This helps e-commerce companies and retailers optimize their logistics network and deliver orders to customers faster.
SWOT Analysis
Strength: Automated storage and retrieval systems have high storage density and maximize warehouse space utilization with three dimensional storage. They provide accurate order fulfillment and eliminate errors through their automated features. These systems improve productivity and labor utilization by reducing manual handling tasks.
Weakness: High initial investment costs are required for implementing automated storage and retrieval systems. Training employees to operate and maintain these complex systems also requires substantial resources and time. System downtimes can disrupt warehouse operations and inventory management.
Opportunity: Growing e-commerce sectors in major economies is driving demand for efficient warehouse automation to handle large volumes of stockkeeping units. Industry 4.0 technologies present opportunities to integrate automated storage and retrieval systems with other material handling equipment through IoT and data analytics. Emerging economies offer potential for market expansion as organizations aim to optimize warehouse infrastructure.
Threats: Technological obsolescence is a key threat as automated storage and retrieval systems need frequent upgrades to integrate new innovations. Changing customer order patterns and supply chain dynamics can reduce ROI for static automated systems not designed for flexibility. Labor unions may resist widespread automation impacting jobs.
Key Takeaways
The global Automated Storage And Retrieval System Market Demand is expected to witness high growth. 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 22.5% over the forecast period of 2023 to 2030.
North America currently dominates the market owing to rapid e-commerce growth and adoption of warehouse automation by third party logistics companies to enhance supply chain efficiency. Asia Pacific is expected to be the fastest growing region with rising consumption, flexible labor laws supporting wider automation, and growing organizational focus on supply chain optimization in major economies like China and India.
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 companies offer comprehensive product portfolios including mini-load, unit-load, mid-load and vertical lift module systems. They are focusing on integrating automated storage and retrieval systems with material handling technologies like conveyor systems, sortation systems, automated guided vehicles and warehouse management systems to provide complete turnkey solutions.
Explore more related article on this topic: https://www.pressreleasebulletin.com/the-global-automated-storage-and-retrieval-system-market-analysis/
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