Automated Storage & Retrieval System Market Size
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Automated Storage & Retrieval System Market Analysis
The automated storage and retrieval system (ASRS) market is expected to record a CAGR of 11.07% over the forecast period. Automated storage and retrieval systems (ASRS) are computer- and robot-aided systems designed to retrieve or store items in specific locations. The system usually comprises predefined areas where machines can follow established routes to get items. These systems handle different volumes and types of non-palletized inventory at variable speeds to accommodate different throughput demands.
- ASRS is most beneficial in warehouse applications. These systems save ample floor space, which is a crucial factor in warehouse operations. With the evolution of technology, the flow and control of materials have improved. The equipment offers better visualization and the ability to handle variability, variety, and volume at higher speeds, thus generating increased value.
- Artificial intelligence has progressed to the point where a correctly programmed ASRS can alert workers when inventory is about to expire and prioritize shipments on a first-in, first-out basis, preventing spoilage. It is a significant benefit for warehouses that handle cold chain products such as vegetables, dairy, pharmaceuticals, and even machine components where corrosion is a worry.
- As more businesses turn to automation to boost efficiency, lower costs, and stay competitive in the market, they also make the workplace safer for employees. One of the main motivations for the automated storage and retrieval systems market is improving working and safety conditions.
- The need for skilled operators to enable the adequate functioning and maintenance of automated material-handling systems could be a major impediment in emerging countries. However, automated material-handling vendors have been trying to offset this issue by offering periodic maintenance. In addition to high initial costs, the need for skilled workers to perform various activities throughout the vehicles' shelf life is widely considered a major concern in the market studied.
- Post-COVID-19, due to the rising demand for AS/RS products, companies are developing new products or partnering with various end users to capture the market share. For instance, in February 2021, Kardex Holding AG and Autostore AS entered a global partnership agreement. AutoStore is a high-performance, space-saving storage and packing solution that uses autonomous robots to expedite the processing of small parts orders. The technology, which has been utilized effectively in the market for several years, expands Kardex's product and service offerings, particularly in comprehensive order fulfillment solutions.
Automated Storage & Retrieval System Industry Segmentation
Automated storage and retrieval systems (abbreviated ASRS) have undergone technological innovations, such as incorporating onboard processors and actuators and new forms of control processors, to enable better performance and system utilization.
The automated storage and retrieval system market is segmented by product type (fixed aisle system (stacker crane (unit load, mini load), shuttle system (pallet loads, totes, crates)), vertical lift modules), end-user industry (manufacturing environments (automotive, food and beverages, life sciences), non-manufacturing environments (general merchandise, logistics and warehousing, airports)), and geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Latin America (Brazil, Mexico, Rest of Latin America), Middle East & Africa (United Arab Emirates, Saudi Arabia, South Africa, Rest of Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
|By Product Type|
|Vertical Lift Module|
|By End-user Industry|
Automated Storage & Retrieval System Market Trends
This section covers the major market trends shaping the Automated Storage & Retrieval System Market according to our research experts:
Growth of E-commerce in Developing Countries to Drive the Market
- The immense growth in the e-commerce industry is a significant growth driver for the market studied. Asia-Pacific emerged as one of the world's largest e-commerce hubs. The region witnessed rapid growth in retail e-commerce due to the rising middle-class population in China, India, and Indonesia and the popularity of mobile gadgets. China accounts for approximately 40% of the world's retail e-commerce sales.
- According to the 47th Statistical Report on China's Internet Development Published in February 2021 by the China Internet Network Information Center, China had the most online buyers and sellers assisted by being the world's most populous nation.
- E-commerce businesses are forming their delivery networks. Flipkart's logistics, referred to as "eKart" in India, is one such example. On the other hand, Logistics companies such as Express Logistics deliver bulk shipments to retailers and distributors. Such developments are anticipated to boost the penetration of AS/RS systems.
- According to Google and Temasek Holdings' studies, by 2025, the GMV for the Singaporean e-commerce market is projected to reach USD 5 billion, while the Malaysian and Indonesian markets may reach USD 7 billion and USD 53 billion, respectively.
- The e-commerce firms from other regions are acquiring stakes in the Kuwait e-commerce firms to expand their presence in different regions and capture the wide market share.
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Asia-Pacific Accounts for the Largest Market Share
- The Asia-Pacific region is witnessing an increasing focus on automation by warehousing companies, which is anticipated to drive the automated storage and retrieval systems market. According to IBEF, the grade-A warehousing market has grown steadily in the recent past due to the growth of e-commerce in the country. It is expected to grow at a rate of 15% by 2025.
- China is a significant adopter of Industry 4.0, and the country is home to some of the most advanced manufacturing facilities in the world, ahead of the European Union, the United States, and Japan. For instance, according to the World Economic Forum, of the 69 factories across the world now considered leaders using Industry 4.0 technologies, China is now home to 20, followed by 19 in the European Union, 7 in the United States, and 5 in Japan. Besides being the foundation for plant-wide automation, the automated storage and retrieval system also serves as a foundation for Industry 4.0.
- In Japan, the growth of the automotive industry is expected to drive the studied market. According to JADA, in 2022, Toyota, the leading car manufacturer in Japan, sold around 1.25 million vehicles domestically. Despite a decrease of 12.1% compared to the prior year, Toyota reported more than twice as multiple unit sales as the runner-up. Suzuki, which came in second, sold slightly over 600 thousand vehicles in 2022.
- India has been a prominent contributor to the growth of the ASRS market in the Asia-Pacific region. The increasing demand for ASRS products across industries, such as manufacturing, retail, automotive, and e-commerce, boosts the market's growth.
- The rest of Asia-Pacific comprises South Korea, Thailand, Australia, Indonesia, Singapore, and Malaysia. Indonesia is categorized as an aggressive automation-adopting nation. The country has recorded increased AMH usage for industrial work. Since Japan is both its supplier and consumer, Indonesia is expected to benefit from trade with Japan, thus increasing the demand for automation in the region.
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Automated Storage & Retrieval System Industry Overview
The growing presence of major manufacturers in the automated storage and retrieval sector is expected to intensify competitive rivalry during the forecast period. Market incumbents, such as Daifuku and Schaefer Systems International Pvt Ltd, considerably influence the overall market.
- In December 2022, Daifuku revealed plans to set up a manufacturing facility in Telangana, India, with an investment of INR 450 crore (~USD 54.27 million). The facility is expected to produce intra-logistics equipment such as automated storage and retrieval systems, sorting transfer vehicles, conveyors, and sorters.
- In June 2022, Daifuku announced the reopening of HiniArata Kan, one of the world's largest full-scale material handling and logistics demo centers, located within the company's manufacturing plant, Shiga Works. The center showcases 54 models of material handling systems and equipment, including automated storage and retrieval systems. The center was closed to the public because of the COVID-19 pandemic.
Automated Storage & Retrieval System Market Leaders
Daifuku Co. Ltd
Schaefer Systems International Pvt Ltd
Dematic (Kion Group AG)
Murata Machinery Ltd
*Disclaimer: Major Players sorted in no particular order
Automated Storage & Retrieval System Market News
- September 2022 - Mitsubishi LogisnextAsia Pacific Pte Ltd partnered with xSQUARE, a Singapore-based intelligent warehousing solution company, to address the growing demand for warehousing solutions. The companies will provide solutions to overcome labor shortages while increasing warehouse productivity and operational efficiency by developing a new line of Automated Guided Vehicles (AGV) based on Logisnext'sbrand of forklifts.
- August 2022 - Maersk announced that it had successfully acquired LF Logistics, a contract logistics business based in Hong Kong, for USD 3.6 billion. After the acquisition, Maersk will expand its portfolio by 223 warehouses, increasing the total facilities spread across 9.5 million sq. m to 549.
Automated Storage & Retrieval System Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Emphasis on Workplace Safety
5.1.2 Growth of E-commerce in Developing Countries
5.2 Market Challenges/Restraints
5.2.1 Need for Skilled Workforce and Concerns over Replacement of Manual Labor
6. MARKET SEGMENTATION
6.1 By Product Type
6.1.1 Fixed Aisle System
188.8.131.52 Stacker Crane
184.108.40.206.1 Unit Load
220.127.116.11.2 Mini Load
18.104.22.168 Shuttle Systems
22.214.171.124.1 Pallet Loads
126.96.36.199.2 Totes, Crates, and Others
6.1.2 Vertical Lift Module
6.2 By End-user Industry
6.2.1 Manufacturing Environments
188.8.131.52 Food and Beverages
184.108.40.206 Life Sciences
220.127.116.11 Other Manufacturing Environments
6.2.2 Non-manufacturing Environments
18.104.22.168 General Merchandise
22.214.171.124 Logistics and Warehousing
126.96.36.199 Other Non-manufacturing Environments
6.3 By Geography
6.3.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
6.3.4 Latin America
22.214.171.124 Rest of Latin America
6.3.5 Middle East and Africa
126.96.36.199 United Arab Emirates
188.8.131.52 Saudi Arabia
184.108.40.206 South Africa
220.127.116.11 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Daifuku Co. Ltd
7.1.2 Schaefer Systems International Pvt. Ltd
7.1.3 Dematic (Kion Group AG)
7.1.4 Murata Machinery Ltd
7.1.5 Mecalux SA
7.1.6 Honeywell Intelligrated Inc.
7.1.7 KUKA AG
7.1.8 Knapp AG
7.1.9 Kardex AG
7.1.10 Toyota Industries Corporation
7.1.11 Viastore Systems GmbH
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Automated Storage & Retrieval System Market Research FAQs
What is the study period of this market?
The ASRS Market is studied from 2018 - 2028.
What is the growth rate of ASRS Market ?
The ASRS Market is growing at a CAGR of 11.07% over the next 5 years.
Which region has highest growth rate in ASRS Market ?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in ASRS Market ?
North America holds highest share in 2022.
Who are the key players in ASRS Market ?
Daifuku Co. Ltd, Schaefer Systems International Pvt Ltd, Dematic (Kion Group AG), Murata Machinery Ltd, Mecalux SA are the major companies operating in ASRS Market .
ASRS Market Industry Report
Statistics for the 2023 ASRS market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. ASRS analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.