North America Automated Storage and Retrieval System Market Size

North America Automated Storage & Retrieval System Market Analysis

The North America Automated Storage and Retrieval System market was valued at USD 3809.9 million in 2020 and is expected to reach USD 5864.6 million by 2026, at a CAGR of 9.01% over the forecast period 2021 - 2026. Further, more than 50 Amazon warehouses in the United States reported cases of workers affected with COVID-19. The company operates in more than 500 such facilities nationwide. In response, employees at Amazon fulfillment centers in Michigan and New York staged protests over worker safety amid the COVID-19 pandemic. This situation is likely to augment calls for more industrial automation to keep workers safe from catching the coronavirus. Robots are best suited for dull and dangerous tasks, and this factor may lead to more demand for the ASRS solution.

• North America is one of the largest markets for automated storage and retrieval systems (ASRS) globally, led by the United States. The region's manufacturing sector, which is a vast source of demand for the ASRS solutions, hinges on the dominant US economy, accounting for 82% of the region's economic output.
• Moreover, with the rapid growth in stock-keeping units (SKUs), wholesalers and distributors find it difficult to make informed decisions about the operations. This factor is driving the need for more innovative usage of labor, equipment, and technology. The significant factors driving automated material-handling systems are cost savings, labor efficiency, and space constraints.
• In the current market landscape, there is an increase in available products and demand for more frequent and smaller deliveries. The automated distribution operations can immediately increase an organization's order accuracy, from half a percent up to several percentage points.
• Other prominent factors, such as steady growth in wages paid to workers in the country, have made warehouse operators look forward to alternate solutions for warehouse management and are expected to drive the demand for automation in several end-user industries that are highly dependent on the workforce, such as manufacturing and retail, among others.
• Furthermore, the United States, over the forecast period, is expected to witness robust growth in several domestic robotic solutions, owing to government policies that aim at increasing domestic production rather than importing finished goods.
• Moreover, enterprises are focusing 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.