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.

To learn more about this report, Request sample copy

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.

To learn more about this report, Request sample copy

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.