Automated Storage & Retrieval System (ASRS) Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

Automated storage and retrieval systems (AS/RS) are computer and robot aided systems that can retrieve items or store them in specific locations. The system is usually comprised of predefined locations where machines can follow established routes to get items. They include a range technology like load based ASRS, vertical lift, carousel based, shuttle & crane-based lifts and others. They these advanced robots and control systems to automate the movement of goods, enhancing inventory accuracy and significantly reduces retrieval times.  

MARKET OVERVIEW

The market valuation of Automated Storage & Retrieval System (ASRS) market was valued at approximately USD 7.1 billion in 2023 and is projected to reach USD 18.6 billion in 2034 exhibiting a CAGR of 7.5% during the forecast period of 2024-2034. Automated storage & retrieval system (ASRS) reduces labor costs while minimizing human error, enhancing the operational efficiency. The market is aligned with diverse sectors, which makes it a sustainable and growing market. 

GROWTH DRIVERS

The rapid growth of the e-commerce industry is driving the demand for efficient and scalable storage solutions like ASRS in order to handle high volumes of inventory and ensure fast order fulfillment. According to Shopify, global e-commerce sales are expected to total USD 6.33 trillion worldwide in 2024. This number is expected to continue growing over the next few years, proving that the e-commerce business model is becoming an increasingly lucrative option for companies. 2024’s number also marks an 8.8% annual increase, the third-fastest global e-commerce sales growth rate in the forecast period between 2021 and 2027.

The ASRS systems reduce the reliance on manual labor, leading to significant cost savings and improved operational efficiency. According to Kardex, the obvious advantage of automated storage and retrieval systems is the labor savings.  ASRS units deliver the required item directly to the operator via the “goods to person” concept, dramatically reducing operator walk and search time. Often workers are traveling miles during a shift (use a pedometer to check your walking times); and that walking time translates into wasted time. In a manual operation, where workers must travel to the stored items, associates frequently spend as much as 60-65% of their shifts walking. Further, upon arrival at a picking destination, a worker must visually search the shelves, looking for the correct item and matching up part numbers, a process that can take several minutes or more.

These systems enhances the inventory accuracy and reduce the risk of human error, ensuring better inventory control and management. These systems can be seamlessly integrated with other warehouse technologies like warehouse management systems and automated guided vehicles for a fully automated and efficient warehouse operation. For instance, Swisslog ASRS and SynQ software enhance transparency and delivery of quality products in new Walmart milk processing facility. According to Walmart, the automated storage and retrieval solution (ASRS) will bolster the company’s capacity to meet consumer demand for milk. It continues the company’s commitment to building a more resilient and transparent supply chain to deliver high-quality products. This is Walmart’s second milk processing facility.

MARKET SEGMENTATION:

·         By Type- Load Based ASRS (Unit Load and Mini Load), Vertical Lift, Carousel Based (Horizontal and Vertical), Shuttle and Crane Based and others 

·         By Sales and Distribution- Direct Sales, Distributors, Online Sales

·         By Industry Verticals- Automotive, Food and Beverages, Retail and E-commerce, Healthcare, Aerospace, Manufacturing, Logistics and Warehousing, Electronics and others

·         By Region- North America, Europe, Asia Pacific, Middle East and Africa, South America

Automated Storage & Retrieval System (ASRS) Market Segment By Type Review:

 In the load based ASRS segment, the unit load handles large heavy loads, typically stored on the pallets or in large containers. They are designed for high throughput and storage density, making them suitable for warehouses and distribution centers dealing with large volume of goods. The mini load systems are designed for handling smaller loads such as totes, trays or cartons. They are ideal for applications requiring high throughput for smaller items such as e-commerce and retail distribution centers. The vertical lift modules are automated storage systems that store items in trays within a tall, enclosed system. The trays are automatically retrieved and presented to the operator at an ergonomic height.

In the carousel-based systems, the horizontal system consists of a series of bins or shelves that rotate horizontally to bring items to the operator. They are often used for storing small to medium size items in high density storage. Whereas the vertical carousel operates similarly to horizontal carousels but rotates vertically. They are well suited for storing small items in a compact vertical system. The shuttle systems use automated shuttles to move items within the storage area, typically in conjunction with ranking systems. They're highly flexible and can be used for various load sizes. Crane based systems uses automated cranes to move items within the storage area, often reaching high vertical storage heights. They are ideal for handling large and heavy loads in high density storage environments.

Automated Storage & Retrieval System (ASRS) Market Segment By Sales and Distribution Review:

The directs sales manufacturer selling ASRS systems directly to the end users without intermediaries, this approach often includes customized solutions tailored to specific customer needs. The direct interaction with customers allows manufacturers to understand specific requirements and provide tailored solutions. The distributor acts as a middleman between manufacturers and end users, handling the sales, marketing and often the installation and support of the ASRS systems. They typically operate in specific geographic regions or industrial sectors.

The distributors extend the market reach for manufacturers, allowing them to tap into new regions and customer segments. They have a deep understanding of local markets, regulations, and customer preferences, enabling effective sales strategies. The online sales involves the marketing and the sale of ASRS systems through digital platforms. This channel leverages e-commerce websites, online marketplaces, and company websites to reach a broader audience. It allows customers easy access to information, specification, pricing and others facilitating informed purchasing decisions.

Automated Storage & Retrieval System (ASRS) Market Segment By Industry Verticals Review:

Automated storage and retrieval system market expands multiple industry verticals each with unique requirements. In the automotive industry it is used for efficient parts storage and just in time delivery driven by the push towards automation and the need to manage complex supply chain. The food and beverage sector benefits from ASRS through temperature control and inventory management, driven by stringent safety regulations and high turnover rates. In retail and e-commerce, it streamlines order fulfillment and maximizes warehouse space, fueled by rapid growth of online shopping and higher customer expectations. The healthcare industry utilizes it for secure storage and precise inventory management, driven by regulatory compliance and the need for accuracy.

The aerospace sector leverages automated storage and retrieval system to handle large parts and tools, driven by the need to manage high value inventory and enhanced production efficiency. In manufacturing, it supports lean manufacturing by ensuring material availability and reducing excess stock driven by cost reduction and operational efficiency goals. The logistics and warehousing sector utilize it for precise inventory management and streamlined order fulfillment. The electronics industry relies on it for secure storage of delicate components driven by the need to manage high value inventory and improve production efficiency. Additionally, there are other industries like textiles, consumer goods and more that use this system for specialized storage and customized solutions.

Automated Storage & Retrieval System (ASRS) Market Regional Analysis:

North America is a significant market driven by factors like the region is a leader in technology adoption. The region's strong focus on innovation and automation in supply chain management drives the adoption of the market. Moreover, the rapid growth of e-commerce in North America has led to increased demand for efficient warehousing solutions in order to handle high orders volumes and fast delivery expectations. Europe is a valuable market driven by the factors like stringent regulations regarding workplace like OSHA safety and efficiency that drives the adoption of ASRS systems in Europe.

Asia Pacific is a rapidly growing market driven by the rapid industrialization and urbanization in countries, which has increased the demand for efficient storage solutions. These systems help manage the high volume of goods produced and consumed in this market. The Middle East and Africa is a promising market driven by infrastructure development, including logistics hubs and free trade zones. South America is a market is expected to grow, driven by rising from the consumer goods sector and industrialization. 

Key Challenges:

The implementation of ASRS involves significant upfront cost for equipment installation and system integration. This may be a substantial financial burden, especially for small and medium enterprises. These systems must be seamlessly integrated with the existing warehouse management systems and enterprise resource planning systems, this integration may be complex and time consuming. Moreover, the need for specialized knowledge and skills to manage and maintain these systems may be a barrier, particularly for companies lacking in-house technical expertise.

Competitive Landscape:

In the highly competitive Automated Storage & Retrieval System (ASRS) market, companies are investing heavily in research and development to innovate and improve their products and services. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share. The news and development include - in November 2021, Honeywell International Inc. launched a new AS/RS system powered by machine learning and artificial intelligence algorithms. The system optimized the warehousing operation by adjusting to the user's needs through decision intelligence. Also, Honeywell's AI-powered AS/RS can manage 20,000 stock-keeping units (SKU) with 40% more throughput.

In May 2023, Kardex Group commissioned a customized solution for Nordics, a leading 3PL provider. The solution was designed specifically to the requirements and was developed combining a vertical lift module, vertical carousel module, and color pick system. In June 2023, Hy-Tek Intralogistics and Hai Robotics collaborated to develop ASRS for a manufacturing and engineering compnay in Ohio. In November 2021, Honeywell International Inc. has announced the launch of a new automated storage and retrieval solution that employs artificial intelligence and machine learning to help warehouse and distribution center operators keep up with unprecedented e-commerce development.In March 2022, Murata Machinery USA Inc. has expanded its automated guided vehicles product offering and is partnering with AGVE AB. The company has added seven standards. A-Series models to its Muratec Premex Series. The automated guided vehicle (AGV) models are customizable for a wide range of load capacities, lift heights, navigation methods, temperature ratings, and software applications.

Global Key Players:

·         Daifuku

·         Kardex Group

·         Dematic Group

·         Mecalux

·         Bastain Solution

·         KUKA

·         Honeywell International

·         Toyota Industries

·         Swisslog Holdings

·         Exotec

·         SSI Schaffer

·         Murata Machinery

·         Other Players