Automated Storage and Retrieval System Market is Anticipated to Witness High Growth Owing to Rising E-Commerce Demand
An automated storage and retrieval system (AS/RS) is a computer-controlled system used in warehouses for automatically placing and retrieving loads from specified storage locations. The key components of an AS/RS are lifts that move in both the horizontal and vertical direction to access storage locations, cranes with grippers or forks for transporting loads, control software to manage storage and retrieval processes, and storage racks to hold unit loads in a dense configuration. AS/RS are extensively used in industries such as automotive, food & beverage, e-commerce, third party logistics, and manufacturing to store and retrieve large volumes of unit loads at optimum speeds with minimal error.
The global AS/RS market is estimated to be valued at US$ 11328.29 Bn in 2024 and is expected to exhibit a CAGR of 22.% over the forecast period 2024 to 2031.
Key Takeaways
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. Murata Machinery and Daifuku collectively dominate the global AS/RS market share owing to their wide geographical presence and technologically advanced product offerings.
The e-commerce boom has opened significant opportunities for AS/RS solutions designed for fast fulfillment of online orders. Companies are increasingly adopting micro-fulfilment centers with compact AS/RS to enable same-day delivery. Industry 4.0 technologies such as artificial intelligence, robotics, and sensors are also being integrated with AS/RS to optimize storage capacity, increase productivity, and reduce retrieval time.
Automated solutions providers are focusing on expanding their global footprint by establishing production and service centers across major markets to address the growing demand from logistics hubs worldwide. Europe and Asia Pacific provide considerable prospects for AS/RS adoption, driven by rapid industrialization and warehousing infrastructure development.
Market Drivers: The growing e-commerce industry is driving the need for high-speed order fulfillment which is effectively addressed by AS/RS. They ensure 99% accuracy in order picking while maintaining maximum storage density. This helps companies to scale up their warehouse operations efficiently without increasing the footprint.
Market Restraints: Higher upfront investment costs compared to traditional manual warehouses is a major challenge limiting the adoption of AS/RS especially among SMEs. Integration of these complex automated systems also requires specialized expertise and maintenance support which increases operating expenses.
Segment Analysis
The Automated Storage And Retrieval System Market Demand can be segmented on the basis of type, loads, end user and geography. By type, the horizontal carousels dominate the market as they offer high density storage of small loads efficiently. The horizontal carousels allow storage of loads in compartments on continuously moving racks or shelves supported on an overhead rail or track in a circular layout. By loads, small loads dominate the market followed by medium loads. This is because small parts are widely used in industries. By end user, automotive dominates the market followed by electronics. Use of automated storage and retrieval systems helps in improving space utilization and productivity in the automotive and electronics industries where small components are involved.
Global Analysis
Regionally, Asia Pacific is expected to witness the fastest growth during the forecast period. This is due to rising demand from China, Japan and India. Increase in industrial activities in these countries is boosting demand for automated storage and retrieval systems. Countries like China and Japan have major automotive and electronics industries. Europe is the largest as well as the most advanced market for automated storage and retrieval systems currently due to presence of major players. However, the market here is quite matured. North America is another major region driven by high demand from the US market owing to strong presence of automotive, e-commerce and warehousing industries.
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