The automated storage and retrieval systems market size is expected to advance at a CAGR of 7.4% during 2022–2030, to reach USD 15,012 million by 2030.
The consistent evolution in the logistics industry via the adoption of advanced software and systems has resulted in a tremendous improvement in warehouse productivity. Most advanced trends revolve around warehouse robotics, which refers to the use of machines and specific software in a storage system to reorganize operational procedures. The advent of robotics, particularly ASRS, in the warehousing industry has proved to be a boon for streamlining the inventory processes. It helps in automating tedious and manual tasks, offers a high level of accuracy in order fulfillment, and performs various tasks, ultimately, streamlining inventory processes.
Tech-savvy warehousing firms leverage robotics systems for improved inventory management, to stand out amidst the cut-throat competition for delivering goods as quickly and efficiently as possible. Such systems help bring down the time and resources spent on retrieving and transferring items around the warehouse floor, in turn, enabling human workers to remain focused on more-complicated processes, such as packing and shipping the orders.
Based on function, the storage category dominated the market, with more than 40% market share, in 2022 and is projected to grow at a significant CAGR during the period of 2022–2030. The reason being the boom in e-commerce shopping platforms, which leads to a high demand for innovative systems among distributors. Further, the demand is bolstered by the growing necessity to reduce product damage and the frequency of industrial accidents. Additionally, the on-time delivery of the goods without wear and tear is a crucial aspect propelling the requirement for ASRS. Moreover, the expanding demand for automated cold-chain storage for critical healthcare products is expected to support the rapid growth of this category during the forecast period.
The automated storage and retrieval systems market growth prospects are further strengthened by the rising demand for these solutions in the APAC region, due to the flourishing retail & e-commerce, pharmaceuticals, automobile, and semiconductor industries. The rising sales of fast-moving goods through e-commerce platforms are impelling the retail sector to keep their inventory levels up, for order fulfillment.
Along with the growth of the e-commerce sector, the participation of third-party logistics (3PL) providers has been another major accelerator of the warehousing industry that is contributing to the market development. Unit-load systems are beneficial for such service providers as they enable better storage and retrieval management of heavy goods, such as electronics and white goods. Therefore, 3PL companies have started investing in ASRS due to the innovation of diverse types of loading systems that facilitate better utilization of the vertical space of the building. These robotic warehousing facilities significantly improve picking accuracy, as the required or ordered item is delivered to an associate directly. Further, with the advent of cube and shuttle-based facilities, more robots can be easily and quickly welcomed into the system, with the aim of increasing the pick rates during periods of high activity.
Other advantages of automated warehouses include enhanced material handling and better inventory management, which make the ASRS market lucrative for investors. Several giant logistics market players have already started investing in building in-house automated warehouses, to enhance distribution and achieve much-faster deliveries.
Based on industry, ASRSs, particularly unit-load variants, are substantially used in the automotive sector, for assembling and distribution. The system consists of conveyors, racking systems, VLMs, and other technologies for the gathering, manufacturing, and distribution of the final goods. Therefore, with the increase in the production of automobiles, the requirement for such systems continues to rise.
The biggest automated storage and retrieval system (ASRS) market players are Bastian Solutions LLC, BEUMER Group GmbH & Co. KG, Daifuku Co. Ltd., Honeywell International Inc., Kardex Holding AG, KION GROUP AG, KNAPP AG, Kuka AG, Mecalux SA, and Murata Machinery Ltd.