AUTOMATED STORAGE AND RETRIEVAL SYSTEM MARKET ANALYSIS

Automated Storage And Retrieval System Market Size and Trends

The automated storage and retrieval system market is estimated to be valued at US$ 9.30 Bn in 2024 and is expected to reach US$ 15.66 Bn by 2031, growing at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.

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The advent of Industry 4.0 and the increasing focus on warehouse automation are expected to drive the demand for AS/RS. Other factors such as growth in the e-commerce industry and demand for faster delivery of goods are also contributing to the growth of the automated storage and retrieval system market. Increasing labor costs are also prompting industries to invest in automated warehousing equipment for improved operational efficiency. Advancements in robotics and integration of automated guided vehicles with AS/RS are expected to provide growth opportunities during the forecast period.

Increasing adoption of automation in warehousing

With the rise of e-commerce and online shopping, warehousing operations have become more complex than ever. Companies are dealing with increasing order volumes, dynamic inventory needs, and competitive pressures of delivering items to customers faster. In this environment, relying only on manual labor is no longer a viable option. Automated storage and retrieval systems offer a solution to improve efficiency and optimize operations. The fixed routing and guided vehicle transport of AS/RS combined with tote-based storage and picking allows companies to store and retrieve high volumes of items much faster than traditional shelving handled by forklifts and workers. AS/RS condense footprints and allow companies to maximize cubic storage capacity within their existing facilities.

Rather than expand building footprints, companies can upgrade to AS/RS to boost throughput without adding new square footage. For companies operating multiple distribution centers, a centralized warehouse managed by AS/RS allows better load balancing across locations. Automated solutions also help alleviate labor shortages, which many industries now face. With fewer workers needed to handle same or higher throughputs, AS/RS reduce dependency on finding and retaining human workers. While upfront costs are higher versus traditional shelving, AS/RS prove their value through higher productivity, reduced labor costs and ability to scale up or down operations through software control. As logistics networks grow more complex globally, AS/RS will continue gaining popularity for their power to rationalize inventory storage and handling.

Market Concentration and Competitive Landscape

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As corporations and Third-party Logistics operators strive for maximal efficiency within their logistics networks, implementing lean practices has become indispensable. Techniques from Toyota Production System  is a unique manufacturing system developed by Toyota Motor Corporation. such as just-in-time manufacturing, continuous flow processes, single-piece flow, and pull systems are now equally relevant to warehousing operations. Companies realize tremendous benefits organizing materials and information flow to minimize waste of space, time, money, and resources throughout their distribution centers. One critical lean initiative involves creating space by consolidating and reorganizing inventory into designated locations. Traditional shelving storage with haphazard positioning of fast and slow-moving products prevents this consolidation. On the other hand, AS/RS utilize every cubic inch of wall-to-wall and floor-to-ceiling spaces for dense and organized product storage.

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One of the key challenges the automated storage and retrieval system market faces is the presence of established inventory management systems in industries. Migrating existing manual or semi-automated systems to fully automated solutions requires significant investments and operational challenges during transitioning. Further, designing elaborate automated solutions tailored to each unique warehouse layout and inventory profiling involves high costs. Standardization remains an issue, restricting scalability and interchangeability of parts.

Market Opportunities: Adoption across small and medium enterprises

With the growing e-commerce industry and demand for faster order processing, automated solutions provide means to achieve unprecedented efficiency. They allow 24/7 operations, minimizing seasonal fluctuations. Such systems also address current issues of labor shortages and help improve workplace safety. With technological advancements reducing costs, payback periods are getting shorter. This will drive wider adoption across industries aimed at optimization.

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Within the application segment of the automated storage and retrieval system market owing 31.6% in 2024, storage accounts for the largest share due to its critical role in maintaining adequate product inventory levels. Storage systems allow companies to maximize the use of existing warehouse space which has become increasingly important as supply chain networks grow in complexity. By automating storage processes, more products can be housed in the same physical footprint which boosts inventory capacity. This enables companies to store greater volumes and varieties of stock on site to meet unpredictable changes in demand. Storage systems also improve picking rates by consolidating products from across the warehouse onto discrete racks. This compaction of inventory streamlines the order fulfilment process and shortens processing times.

The ability of storage systems to optimize space utilization while maintaining high product availability is invaluable for industries like consumer goods retail where uptime is paramount. These systems ensure warehouses never run out of fast-moving items by keeping replenishment cycles tightly aligned with demand patterns. Their dynamic storage capabilities let companies store product overflow or unexpected shipment volumes without disrupting operations. This flexibility protects revenue by fulfilling orders reliably during seasonal peaks or unexpected windfalls. Storage systems are therefore a mainstream application that raises inventory turns, satisfies customer expectations, and futureproofs warehouses against fluctuations in the marketplace.

Insights By, Load- Maximizing Pallet Utilization is Pivotal for Unit Load Growth

Within the load segment, unit load systems generate the highest revenue owing 37.8% in 2024 due to their focus on utilizing every inch of space when storing pallets. These systems are well suited to industries that depend on palletized transport and outbound shipments like general manufacturing, construction materials, and chemicals/bulk goods. Unit load racks can layer pallets deeply from floor to ceiling which is crucial for operations handling large volumes on pallets. Their dense storage cells minimize empty voids between loads to squeeze extra pallets into a given floor area. This optimizes space and pallet throughput within the four walls of the warehouse.

For manufacturers reliant on outbound pallet shipments, maximizing pallet storage density directly improves transportation efficiencies. Unit load systems consolidate more pallets onto fewer truck trailers and shipping containers to reduce loadouts. They help manufacturers deliver more product per load to customers scattered across wide geographies. Fewer partly full trucks on the road in turn curtails carbon emissions and transport costs. Furthermore, unit loads enable rapid pallet retrievals through their organized, multi-tiered storage formation. Speedy order processing and loading is a huge competitive edge for manufacturers supplying retail partners or project sites with tight delivery windows. Fast throughput maintains high service levels that lock in customer relationships. Overall, unit loads are unparalleled for pallet-centric operations needing to store the maximum number of pallets indoors.

Insights By, End Use- Productivity Gains Catalyze General Manufacturing & Logistics Growth

Within the end use segment, general manufacturing as well as retail and logistics claim the biggest slices owing 23.4% market share in 2024 due to significant warehousing activity. For these sectors, maximizing worker productivity through automation is paramount. Automated systems like shuttle-based solutions are perfectly suited as they consolidate inventory from across vast warehouses, accelerating order picking. Their sophisticated routing guidance directs pickers swiftly to needed locations while optimizing travel paths to boost productivity 2-3x. Similarly for retail distribution centers, these systems streamline order sorting by sequencing shipments efficiently for loading onto delivery trucks. This shaves hours off labor-intensive sorting processes each day.

Greater worker productivity translates directly to higher throughput and order volumes for manufacturing plants. It allows them to fulfill rising customer demands from existing warehouses before considering costlier expansion projects. For retailers and 3PLs, accelerated order processing supports ambitious one or two-day delivery promises. Time savings from automation can be reallocated to extra delivery runs each day, enhancing customer service and retention. Overall, general manufacturing and logistics rely on optimizing people, processes and tools to continuously improve operational efficiencies. Automated systems address this pressing need by turbocharging workflows in storage, order picking, sorting and more. No other technology boosts productivity and capacity like these systems.

Regional Insights

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The North America region currently dominates the global automated storage and retrieval system market. This region accounts for over 41.3% in 2024 of the total market share due to strong presence of major players across various end-use industries. The U.S. alone contributes to more than 70% of the regional market owing to high demand from industries such as e-commerce, automotive, food & beverage etc. These industries are undergoing rapid modernization to enhance operational efficiency. This has led to significant adoption of AS/RS across different facilities to handle large inventory and fulfill material movement needs.

Besides strong infrastructure to support manufacturing sector, the region also emphasizes on technological innovation. North American players are investing heavily in research activities to develop advanced AS/RS solutions tailored as per needs of specific applications. Many new startups are also entering the market with focus on Industry 4.0 technologies like Internet of Things (IoT), big data, 3D printing, etc. This has fueled the development of smart automated warehouses. Rising demand for smaller inventory sizes combined with highly fluctuating order profiles is encouraging industries to integrate AS/RS for better space utilization. International trade between Mexico and the U.S. also contributes significantly to regional market growth.

The Asia Pacific region is considered as one of the fastest growing markets for automated storage and retrieval systems globally. The growth can be attributed to rapid industrialization and expansion of warehousing facilities across Southeast Asian countries like China, India, and Japan to accommodate growing import-export activities. As a major trade partner for North America and Europe, Asia Pacific is emerging as a production powerhouse catering to global supply chains. Different economic policies adopted by governments to boost "Make in India" and "China Manufacturing 2025" initiatives have created immense potential for material handling equipment market like AS/RS in the region.

Countries in Asia Pacific also display price sensitivity compared to their European or American counterparts. This has fueled local manufacturing of affordable AS/RS and emergence of new regional players. Ongoing trade wars have further accelerated the regional transition towards self-reliance in terms of production. Major industries spearheading adoption of AS/RS include electronics, automotive, consumer goods, pharmaceuticals among others. Rapid urbanization is also catalyzing growth of e-commerce sector which extensively leverages automated warehouses for superior order management.

Market Report Scope

Automated Storage And Retrieval System Industry News

• In July 2023, the Kraft Heinz Company is one of the largest food and beverage companies globally, known for its iconic brands. revealed plans to invest over USD400 million in constructing one of the largest automated distribution centers for consumer packaged goods (CPG) in North America. This facility will feature a 24/7 automated storage and retrieval system, capable of handling double the volume for Kraft Heinz customers. It will manage the distribution of over 60% of the company's food service business and around 30% of all dry goods.
• In June 2023, Hy-Tek Intralogistics is a company specializing in providing innovative automation and material handling solutions for warehousing, distribution, and manufacturing operations. and Hai Robotics is a leading provider of robotics solutions for the logistics and warehousing industry. joined forces to develop an automated storage and retrieval system (ASRS) for a manufacturing and engineering company in Ohio, specifically for a GTP buffer system application. The new system utilizes Hai Robotics' self-governing case-handling robots, which are compact and tall, designed for retrieving totes autonomously within a storage grid. These robots can reach heights of over 32 feet to manage goods storage efficiently. Noteworthy features of this solution include racking at three different heights, accommodating two sizes of totes within the same system, and enabling double deep tote storage.
• In November 2021, Honeywell International Inc. is a multinational conglomerate known for its diversified range of products and services across various industries. introduced a new high-tech storage system to assist warehouses and distribution centers with handling the increasing volume of online orders. This system helps speed up order processing and accuracy while also potentially cutting down on environmental impact.
• In February 2021, Toyota Industries Corporation is renowned for its expertise in automotive manufacturing, producing a wide range of vehicles including automobiles, engines, and components. launched a small fuel cell module that combines multiple components into one compact unit

*Definition: The automated storage and retrieval system market involves machines or robots that automatically place and retrieve loads from specified storage locations. These systems help reduce labor requirements and lead times compared to traditional shelved-based warehouses. Automated storage and retrieval systems use robotics and software controls to efficiently store and organize inventory and supplies with little to no human involvement. They allow for more productive use of three-dimensional warehouse space and can improve inventory accuracy.

Market Segmentation

• Application Insights (Revenue, US$ BN, 2019 - 2031)
  • Storage
  • Order Picking
  • Kitting
  • Buffering
  • Others
•  Load Insights (Revenue, US$ BN, 2019 - 2031)
  • Unit Load
  • Mid Load
  • VLM
  • Carousel
  • Mini Load
•  End Use Insights (Revenue, US$ BN, 2019 - 2031)
  • Automotive
  • Semiconductor and Electronics
  • General Manufacturing
  • Retail and Warehousing Logistics
  • Aviation
  • Chemicals
  • Rubber and Plastics
  • Healthcare
  • Food and Beverage
• Regional Insights (Revenue, US$ BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • Honeywell International Inc
  • Murata Machinery Ltd
  • SSI Schaffer Group
  • Hairobotics
  • Exotec
  • Opex Corporation
  • Toyota Industries Corporation
  • Bastian Solutions
  • Vanderland Industries BV
  • Swisslog Holdings AG
  • Kardex
  • Autostore Holdings Ltd.
  • Kuka Ag
  • Knapp AG
  • Daifuku Co LtdSystem Logistics S P A