Automated Storage And Retrieval System Market

Global Automated Storage and Retrieval System Market Size (2024 to 2029)

The Global Automated Storage and retrieval system market is expected to reach USD 17.33 billion by 2029 from USD 12.30 billion in 2024, registering a CAGR of 7.1 % from 2024 to 2029.

Automated storage and retrieval systems have automated systems integrated under computer-controlled systems. It helps in placing and retrieving products/parts from defined storage locations such as manufacturing, distribution, retail, wholesale, and institutions. The system requires automated guided vehicles and AS/RS system software to coordinate the process. In order to store items, the automated storage and retrieval system records the details of products and allot suitable locations for items in the warehouse. Whereas for retrieving the products, automated systems give the product’s exact location and quantity available. Also, the software keeps on updating the inventory on a constant basis about items retrieved or stored. The AS/RS system is used in aviation, chemical, E-commerce, automotive, food and beverage, and healthcare industries.

Global Automated Storage and Retrieval System Market Drivers:

The growing demand for industrial automation to increase productivity and quality and reduce the risk of injuries in the manufacturing process is driving market growth. Even rising industries such as E-commerce and logistics are using the system to carry out functions precisely and efficiently. Further benefits such as better control over inventory, reclaiming unused vertical spaces, safer operations, and reduced labor costs are propelling the market growth. Moreover, technological advancements in ASSR systems coupled with government investments for promoting automation are fuelling market growth. Furthermore, the increase in the adoption of ASSR systems in small and middle-scale industries is bolstering the expansion of the automated storage and retrieval system market.

The rapid expansion of the E-commerce industry is offering lucrative opportunities to the automated storage and retrieval system market. The software aids the company in identifying and shipping the product from the warehouse facility with less human intervention. Further, an increase in Omnichannel distribution resulted in the need for tracking the stock-keeping units (SKU) in the warehouse. This provides a huge opportunity for the market. Moreover, the increase in integration of automated storage and retrieval systems in health care, E-commerce, and logistics companies are creating significant opportunities for market expansion.

Global Automated Storage and Retrieval System Market Restraints

The automated storage and retrieval system is a complicated system with integrated software, automated systems, and storage spaces. The installation of the system is costly as whole storage and distribution spaces should be automated. Further professionally trained personnel are required for the maintenance of the system. In addition, any inaccuracy and miscalculation can hamper the whole system and decline the market AS/RS sales. Moreover, software should be updated constantly, and periodical training for technicians will weigh on the company and hinder market expansion. Furthermore, the storage and distribution spaces should be designed with requirements like ease of maintenance, storage capacity, height limitations, and ease of integration with automated systems.

COVID-19 Impact on the automated storage and retrieval system Market:

COVID-19 has an economic impact and implications on global markets. Several projects of prime businesses in processing and non-processing industries are stalled and scrapped due to a lack of raw materials, limited workforce, government restrictions, and supply chain disruptions. Countries such as the U.K., Sri Lanka, Brazil, and Italy are facing economic crises and high inflation. Even every nation is facing the uncertainty of employment, rise in inflation, and unavailability of essential goods and services, globally. Further, several supply and demand mismatches in both developing and developed countries have negatively impacted interconnected economies globally. However, automated storage and retrieval systems have had positive growth during COVID-19. The increase in demand for handling systems remotely during the pandemic has contributed to the growth of the market. Manufacturers are actively opting for automated storage and retrieval systems by partnering with various automation companies, as the convenience of storing and retrieving the products without any misplacement is helping them to capture market share.

REPORT COVERAGE:

This research report on the global automated storage and retrieval system market has been segmented and sub-segmented based on type, function, industry, and region.

Global Automated Storage and Retrieval System Market - By Type:

• Autostore
• Carousel
• Mid Load
• Mini Load
• Unit Load
• Vertical Lift Module

The Unit load segment is expected to record the largest market revenue during the forecast period. The unit load method is normally used in handling heavy loads in industries like food and beverage, automotive, and heavy machinery. Large-scale industries mainly use this type of carrier due to the increase in commoditization. These factors are driving the automated storage and retrieval system market.

Global Automated Storage and Retrieval System Market - By Function:

• Assembly
• Distribution
• Kitting
• Order Picking
• Storage
• Others

The storage segment is predicted to grow at a CAGR of 4.7 % during the forecast period. Factors such as reclaiming unused vertical spaces, enhancing inventory management, and maximizing storage capacities are driving the automated storage and retrieval system market. The system also helps in recording details like the quantity and location of products in large warehouses. Sectors like E-commerce and logistics & distribution need to store the products precisely and avoid any misplacement is further driving the market growth.

Global Automated Storage and Retrieval System Market - By Industry Vertical

• Aviation
• Automotive
• Chemicals
• Retail & E-Commerce
• Food & Beverages
• Healthcare & Pharmaceuticals
• Metals & Heavy Machinery
• Semiconductors & Electronics
• Others

The Food & Beverage segment has the largest market revenue and CAGR growth of 9.5% during the forecast period. The government and exporting facilities have stringent rules and regulations for maintaining cleanliness &sanitation during the manufacturing and storage process. The food and beverage industry also has international regulations for less human intervention in the process. Thus, automation is widely used to store and ship products from production areas to distribution channels. These factors are driving the automated storage and retrieval system market in the period. Further significant growth is observed in the automotive segment owing to reduced excess expenditures and enhanced production logistics methods driving the market growth in the period.

Global Automated Storage and Retrieval System Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America 
• Middle East and Africa

The Asia-Pacific region is anticipated to register a healthy CAGR growth of 10.13% during the forecast period. The rise in industrial and infrastructural activity in Asian countries such as China, India, and Japan is driving the automated storage and retrieval market growth. The region is actively adopting automation in manufacturing and distribution facilities, which is further fuelling the market growth. Moreover, an increase in government investments to promote safer operations and reduce the risk of injuries is fuelling market growth in the Asia-Pacific region. Following a market growth of 5.50%, CAGR is registered by the European region. Several factors, such as modernization of infrastructure, government policies of industrial automation, and demand for warehouse maintenance technologies, are actively driving the market growth in the period.

KEY MARKET PLAYERS:

Major Key Players in the Global Automated Storage and retrieval system Market areBeumer Group GmbH & Co. KG, Daifuku Co. Ltd., Dematic (Kion Group AG), Honeywell International Inc., Kardex Group, Knapp AG, Mecalux S.A., Murata Machinery Ltd., Schaefer Systems International Pvt Ltd, System Logistics S.p.A. (Krones AG), TGW Logistics Group, Toyota Industries Corporation, Viastore Systems.

 RECENT HAPPENINGS IN THE MARKET:

• In 2023, System Logistics S.P.A attended LogiMAT 2023, an international trade fair for intralogistics solutions and process management held in Europe. In this event, companies will come out with a new set of technological standards.
• In 2022, Aurobindo Pharma USA implemented an AS/RS system in New Jersey, DC, to make it a distribution hub for the U.S. This helps the company to do operations efficiently and keep traceability of its products.