|Study Period:||2019- 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Automated Storage and Retrieval System (ASRS) Market was valued at USD 16576.2 million in 2020 and is expected to reach USD 29,244.73 million by 2026, at a CAGR of 9.95 % over the forecast period 2021 - 2026. The COVID-19 outbreak and lockdown restrictions across the globe have affected industrial activities across the world. Some of the effects of lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the production of the final product to inflate and go beyond budget, shipping problems etc. All businesses worldwide having crucial assets for manufacturing goods and services offering revenue have been experiencing a rapid decline due to the COVID-19 pandemic. The management of such companies has been feeling extreme urgency and panic, thereby, more emphasis being paid to cutting costs. Since manufacturing activity was low, companies were tempted to eliminate maintenance, resulting in significant expenses in the coming future.
- Enterprises are focusing more and more on adopting diverse technologies for their business operations to reduce their overall costs and gain a competitive advantage over their rivals. Vendors of material handling solutions have gradually veered toward the modern approach of helping end-users focus on the space and time utility of their operations by manufacturing flexible systems that can seamlessly integrate with other systems as a part of the overall material handling plan.
- For instance, AS/RS have emerged as one of the most dynamic solutions in material handling equipment and are mainly deployed in warehouses and distribution centers. Despite gaining initial traction in the manufacturing sector, other sectors such as food & beverage, life sciences, etc., have gradually realized the benefits of using AS/RS across various phases in the supply chain, ranging from mundane to complex tasks.
- Moreover, material handling is incomplete without efficient storage systems. Automated storage systems enhance the efficacy of an organization by providing users with increased inventory control and tracking and greater flexibility to address changing business conditions. These systems also help reduce labor costs and workforce requirements and increase workplace safety.
- With the increasing manufacturing activities and expanding the transportation and logistics industry globally, companies are adopting advanced manufacturing techniques. Firms are also looking to expand and upgrade their factories, warehouses, and existing facilities. This drives the adoption of new AS/RS to improve productivity and efficiency and reduce labor costs. Vendors aim to design advanced control systems that provide an interface between AS/RS equipment and higher-level software applications.
- This interface facilitates exchanging information and data between various supporting equipment, such as conveyors and data-rich software, and warehouse management systems. Depending on the type of products to handle and the physical environment, vendors offer numerous AS/RS with different configurations.
- Further, the need for skilled operators to enable the proper functioning and maintenance of AS/RS systems could be a significant impediment in emerging countries. However, AS/RS 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 a wide range of activities throughout the shelf life of the vehicles is widely considered to be a significant concern in this market.
- It is observed that the companies might not immediately shift to automation at the cost of the labor force, owing to the high initial costs involved. Labor costs are more competitive than the investment and returns attached with automation, especially in some emerging markets such as India. Although labor costs and wages are expected to rise and drive the automation market, it will only happen gradually. Many companies are looking to go for short-term returns rather than long-term returns that might serve as a backlog for the growth of this market.
Scope of the Report
Automated Storage and Retrieval Systems (abbreviated AS/RS) have undergone technological innovation, ranging from the incorporation of onboard processors, actuators to new forms of control processors to enable better performance and system utilization. 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 become better. The equipment offers better visualization and the ability to handle variability, variety, and volume at higher speeds, thus, generating increased value. The scope of the study for the automated storage and retrieval systems market is limited to the hardware product systems offered by various vendors for their applications in a wide range of end-user verticals globally. The after-sales services and maintenance are not considered for market estimation.
|By Product Type|
|Carousel (Horizontal Carousel + Vertical Carousel)|
|Vertical Lift Module|
|By End-user Industry|
|Food and Beverages|
|Lifesciences and Laboratory Automation|
|Other End-user Verticals|
|Middle East and Africa|
Key Market Trends
Retail Industry is Expected to Hold Significant Market Share
- The retail industry has undergone drastic changes, with a significant number of countries witnessing a considerable growth rate. The competition faced by companies has made the initiatives improve their processes and become more efficient to cater to the customers’ needs.
- Moreover, the purchasing pattern is shifting toward online shopping. Faster delivery channels and the strategic locations of distribution centers and warehouses are now necessities rather than an option. Given the trend of e-commerce globally, the demand for ASRS is expected to increase in the retail industry during the forecast period.
- Further, the growing retail industry across the globe is giving rise to the installation of warehouses and their management in multiple regions. For instance, Costco Wholesale Corporation has installed its warehouses every year with a consistent 3-5% growth.
- Increased real estate cost around the existing facilities is a stimulus for the sectors to opt for these systems, as ASRS offers additional benefits, like optimum space utilization and increased control over inventory.
- Moreover, the US warehouses face 600,000 unfilled jobs and a 25% turnover rate, as per Honeywell Intelligrated. Finding and training replacement costs the warehouse owners much more in terms of lost productivity, stress, training time, and reduced efficiency. Recently, Vanderlande has deployed its ADAPTO, a 3D shuttle-based AS/RS system, to Udea Wholesaler, who chose to automate its processes at a single, omnichannel food distribution center. Moreover, Kubota Canada’s automated parts distribution center increased productivity and recovered 83% floor space by employing six horizontal carousels and 4 VLMs.
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Asia-Pacific is Expected to Account For Significant Market Share
- By adopting automation in manufacturing, China is expected to cut manufacturing costs by 30% by 2025. The shortage of skilled labor, complicated by the one-child policy and an aging workforce, requires job activities to be eased to maintain work productivity.
- Moreover, startups, such as Syrius Robotics, based out of Shenzhen, are building autonomous mobile robots to integrate them into two model warehouses of JD Logistics for further testing and optimization for last-mile deliveries. AMH systems are expected to experience demand from the manufacturing industries, with increased throughput, warehouses, and distribution centers. Any segment directly or indirectly affected by the spike in demand in the e-commerce and retail markets is expected to escalate the need for AMH in the country. Automation in other sectors is increasing productivity.
- In October 2020, Tencent-backed food delivery service, Meituan-Dianping, introduced its first-ever innovative AI retail store, MAI Shop, within Beijing's Shougang Park. The store is equipped with a combination of AI and robotics, which are regularly seen in "New Retail" formats across supermarkets, convenience stores, and more in China. The combined technology brings an unmanned delivery retail experience as Meituan integrates a fully automated warehouse and distribution to maximize its takeout delivery capacity.
- Further, an increase in infrastructure investment by the government and investments from industries coupled with the 'Make in India' initiative is expected to drive AMH systems' demand. The Government of India aims to increase the manufacturing sector's gross domestic product (GDP) share to 25% by 2022, from 17% in 2018. Thus, manufacturers are expected to incorporate Industry 4.0 and other digital technologies to achieve this target.
- In September 2020, in preparation for the festive season, Amazon India had announced the expansion of its sort center network. The five new centers will be launched in Vishakhapatnam, Farukhnagar, Bangalore, Mumbai, and Ahmedabad. Amazon India uses technology and automation in its sortation networks, such as Auto Sorters and Sort Slides. Sort Slides will ensure fast manual sortation of packages, and Auto Sorters are entirely automated machines that perform end-to-end sorting of packages. This expanded and automated network is expected to significantly increase the speed of transporting packages for sellers and customers in the country. Along with the new centers, Amazon India will also expand eight existing sort centers, which will increase the sortation area to 2.2 million square feet spread across 19 states.
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The automated storage and retrieval system market is competitive and covered by many significant players. Moreover, vendors provide a deep product portfolio catering to the customer's needs in the region. Key players include Daifuku Co. Ltd, SSI Schaefer AG, Dematic Group - KION Group AG, Murata Machinery Ltd, Mecalux SA, etc. Some of the recent developments in the market are -
- August 2020 - Murata Machinery Ltd has signed a contract with Alpen Co. Ltd to construct Japan's first 3D robot warehousing system, "ALPHABOT." ALPHABOT will be introduced at the Alpen Komaki Distribution Center, one of Alpen Group's main distribution centers, to complement its storage capacity and reduce picking, sorting, and packaging operations by approximately 60%. The system is scheduled to go into the process in July 2021.
- July 2020 - Honeywell Intelligrated is planning to increase automation due to the COVID-19 situation. The global pandemic caused a sudden and seismic shift in the worldwide supply chain, driving distribution centers to embrace remote operations and social distancing work processes.
- February 2021 - Rockwell Automation and Fanuc America announced a coalition for an apprenticeship program to educate and help develop workers' skills for robotics and automation in storage and distribution.
- July 2020 - Interroll has completed construction on its second plant in Hiram (Atlanta), Georgia. The USD 11 million investment gives Interroll a substantial increase in capacity for the region. At Interroll, the Americas region continues to see a high level of project activities. At the same time, the company is quickly introducing innovative solutions to the markets.
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 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 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 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
126.96.36.199 Stacker Crane
188.8.131.52 Shuttle System
6.1.2 Carousel (Horizontal Carousel + Vertical Carousel)
6.1.3 Vertical Lift Module
6.2 By End-user Industry
6.2.4 General Manufacturing
6.2.5 Food and Beverages
6.2.6 Lifesciences and Laboratory Automation
6.2.7 Other End-user Verticals
6.3 By Geography
6.3.1 North America
6.3.3 Asia Pacific
6.3.4 Latin America
6.3.5 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
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Frequently Asked Questions
What is the study period of this market?
The Automated Storage and Retrieval System Market market is studied from 2019 - 2026.
What is the growth rate of Automated Storage and Retrieval System Market ?
The Automated Storage and Retrieval System Market is growing at a CAGR of 9.95% over the next 5 years.
Which region has highest growth rate in Automated Storage and Retrieval System Market ?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automated Storage and Retrieval System Market ?
North America holds highest share in 2020.
Who are the key players in Automated Storage and Retrieval System Market ?
Daifuku Co. Ltd, Dematic (Kion Group AG), Murata Machinery Ltd, Mecalux SA, Schaefer Systems International Pvt Ltd are the major companies operating in Automated Storage and Retrieval System Market .