February 25, 2024
Automated Storage and Retrieval System Market

Automated Storage And Retrieval System Market Driven By Rising Demand For Improved Warehouse Management Systems

The Automated Storage and Retrieval System (ASRS) is a warehousing system that uses robotics, conveyors, and monitoring stations to store, retrieve, and transport cases, cartons, and bins around a warehouse with little or no human involvement. ASRS utilizes autonomous handling vehicles, floor robots, vertical carousels, and vertical lifts to transport orders quickly and accurately. It provides features such as reducing errors, improving floor utilization, simplifying tracking and inventory visibility. ASRS optimizes warehouse capacity while enhancing productivity, accuracy, and safety.

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 key trends:

One of the major trends driving the Global Automated Storage And Retrieval System Market Size is the increasing need for automation in material handling to improve efficiency and worker safety. ASRS provides the flexibility to automate warehouses without fixed aisles and maximize storage space. It streamlines warehouse operations by reducing travel times and order lead times. Additionally, the growing online retail sector is fueling demand for efficient real-time order fulfillment from distribution centers. ASRS addresses the challenges associated with fluctuations in inventory levels and order volumes faced by third-party logistics (3PL) operators. Manufacturers are integrating advanced technologies such as IoT, RFID, machine learning in ASRS to gain real-time analytics for predictive maintenance and demand forecasting. This is expected to gain traction over the forecast period.

Porter’s Analysis

Threat of new entrants: Low capital requirements and technology make the barrier for new entrants low. However, established players have strong brand awareness and economies of scale.

Bargaining power of buyers: Large buyers have higher bargaining power due to bulk purchase volumes. However, standardized products limit influence on pricing.

Bargaining power of suppliers: Suppliers of automation equipment and software have some bargaining power due to differentiated technology. However, the presence of multiple system integrators reduces suppliers’ influence over prices.

Threat of new substitutes: Products like conveyor systems are potential substitutes but lack advantages of high density storage and flexibility of AS/RS.

Competitive rivalry: High as major players compete on technology, quality, and service. Focus shifts to expanding product portfolio and global footprint.

Key Takeaways

The global Automated Storage and Retrieval System market is expected to witness high growth. North America dominates the market currently due to advanced warehouses and strong retailer base. Growth in Europe and Asia Pacific is also projected to be high driven by expansions in e-commerce and third-party logistics.

Regional analysis:

North America accounts for the largest share of the AS/RS market due to advanced warehousing and retail infrastructure. The US and Canada contribute significantly to growth. Meanwhile, Europe is the second-largest market led by markets like Germany and UK. Asia Pacific region is witnessing fastest gains driven by China, India, and Southeast Asian nations experiencing strong economic development.

Key players: Murata Machinery, Ltd., Honeywell Intelligrated, Bastian Solutions, Inc., Dematic, TGW Logistics Group, Daifuku Co., Ltd., KNAPP AG are some major players operating in the automated storage and retrieval system market. These companies are focusing on expanding product portfolio and global footprint through partnerships and mergers & acquisitions.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it