Coherent Market Insights

Automated Storage And Retrieval System Market to Surpass US$ 15.66 Bn by 2031

Automated Storage And Retrieval System Market to Surpass US$ 15.66 Bn by 2031 - Coherent Market Insights

Publish In: May 07, 2024

The automated storage and retrieval system market is estimated to be valued at US$ 9.30 Bn in 2024, growing at a CAGR of 7.7% over the forecast period (2024-2031). The market is primarily driven by the growth of the e-commerce industry and increasing labor costs for inventory management. Automated storage and retrieval systems help improve efficiency and optimize warehouse operations.

Market Dynamics:

Growing e-commerce sector is resulting in an rising demand for automation in warehouses to handle increasing volumes of inventory. Automated solutions help optimize inventory management and fulfillment while reducing labor costs. Furthermore, labor shortage issues and higher labor costs are encouraging companies to automate their warehouses. Automated storage and retrieval systems integrate robotics and software to store, retrieve, and manage inventory with minimal human intervention. This improves efficiency and space utilization. Leading manufacturers are focusing on developing advanced systems with improved controls, accuracy, and throughput. Rising investments by companies across industries to automate inventory management are expected to drive the adoption of automated storage and retrieval systems worldwide.

Market Drivers: Increased demand for warehouse automation

The automated storage and retrieval system market has seen significant growth in demand driven by the need for warehouse automation across industries. With rising labor costs and the shortage of labor, companies are increasingly adopting automated systems like AS/RS to efficiently manage inventory and fulfill orders without human intervention. Automated storage allows 24/7 operations, higher storage density, minimal errors, and improved productivity compared to traditional storage systems.

Market Driver: Growth of e-commerce sector

The booming e-commerce industry has further propelled the need for automated warehouse solutions. E-commerce companies deal with thousands of orders daily and need to maintain large inventories across distribution centers. Automated storage helps streamline inventory management and order fulfillment processes. It allows faster retrieval and transport of items to fulfill orders at a greater scale. Leading e-commerce players are major adopters of AS/RS to efficiently manage their warehousing operations and meet growing customer demands.

Market Restraints: High initial installation and maintenance costs

The initial investment required for installing an automated storage system is quite high due to various mechanical and electrical components involved. Additionally, maintenance and repairs of these complex automated systems also requires significant costs. This high upfront investment deters many small and medium enterprises from adopting AS/RS solutions for their warehouses. The ongoing costs also need to be carefully planned to get desirable return on investment.

Market Restraints: Lack of flexibility

Once installed, automated storage and retrieval systems have limited flexibility as they are designed and optimized to handle specific products, sizes, and operations. Any change in inventory, size of item, or operational requirements often demands significant revamping or upgrade of the system. This lack of flexibility poses challenges, specifically for companies dealing with variable operations and fluctuating inventory needs.

Market Opportunities: Growth in 3PL sector

The rise of third-party logistics has opened new growth avenues. 3PL companies are extensively using AS/RS in their multi-client warehouses to improve operational efficiencies and scalability. They offer cost-effective and automated warehousing solutions to many enterprises. This is expected to drive significant future demand for automated storage systems by 3PL players.

Market Opportunities: Adoption in non-traditional industries

While traditionally used in sectors like e-commerce, automotive, and electronics, automated storage systems are increasingly finding applications in other industries as well. Sectors like food & beverage, pharmaceuticals, and manufacturing are showing rising uptake of AS/RS driven by similar needs of better inventory management, improved productivity, and optimized warehouse space utilization. This opens significant untapped market potential.

*Link: https://www.coherentmarketinsights.com/market-insight/automated-storage-and-retrieval-system-market-5451

Key Developments:

  • In April 2023, ABB Robotics is a renowned global leader in robotics, automation, and industrial solutions. announced an upgrade to its logistics automation offerings with the introduction of the Robotic Item Picker. This innovative solution utilizes artificial intelligence and vision technology to accurately identify and pick items in warehouse and fulfillment center environments, even in unstructured settings. The Item Picker streamlines engineering efforts and speeds up time-to-market by seamlessly integrating into existing automated storage and retrieval solutions, such as shuttle, cubic, and 3D storage systems.
  • In December 2022, Daifuku is a global leader in providing material handling systems and solutions for various industries. announced its intention to establish a manufacturing facility in Telangana, India, with an investment exceeding USD 54 million. The facility's focus was on producing intra-logistics equipment, including sorting transfer vehicles, automated storage, and retrieval systems, conveyors, and sorters.

Key Players:

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, and Daifuku Co LtdSystem Logistics S P A

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports


Want to Buy a Report but have a Limited Budget?

We help clients to procure the report or sections of the report at their budgeted price. Kindly click on the below to avail


Logo

Credibility and Certifications

ESOMAR
DUNS Registered
Clutch
DMCA Protected

9001:2015

Credibility and Certifications

27001:2022

Credibility and Certifications

EXISTING CLIENTELE

Created billion dollars of revenue impact on thousands of clients

trusted clients logo
LogoCredibility and Certifications

Trusted Insights, Certified Excellence! Coherent Market Insights is a certified data advisory and business consulting firm recognized by global institutes.

© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.