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2020

Automated Storage and Retrieval System Market

Automated Storage and Retrieval System Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Function, Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2020-2027

IC : Software and Services

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Author's: Sneha Korad and Rachita Rake | Onkar Sumant
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Automated Storage and Retrieval System Market Insights - 2027

The automated storage and retrieval system market size was valued at $7,351 million in 2019, and is projected to reach $12,928 million by 2027, growing at a CAGR of 7.2% from 2020 to 2027.

Automated storage & retrieval systems are inventory management systems commonly used in manufacturing centers, distribution facilities, and warehouses. They consist of variety of computer-controlled systems for automatically placing and retrieving loads from one site to another. These systems are used where high-volume loads are to be moved from one location to another, as they help provide quick, accurate, reliable, and low-cost solutions.

Automated-Storage-and-Retrieval-System-Market-2020-2027

Unit load automated storage retrieval systems are widely used in automotive, food & beverages, chemicals, e-commerce, semiconductors & electronics, and healthcare industries owing to accurate, safe, and stable handling of large items. The automated storage & retrieval system manufacturers aim to develop automated storage retrieval systems with maximized storage capacity, increased performance, reduced energy costs, and increased inventory accuracy and customer service. To cite an instance, Dematic Group launched mini-load AS/RS, which provides increased performance in the automated storage and handling of products in distribution centers and raw material stores, and these are specially designed for ultra-high-speed load handling.

Automated Storage and Retrieval System Market
By Type
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Unit Load is projected as one of the most lucrative segments.

The scope of automated storage retrieval systems market forecast is classified by type of ASRS product, function of ASRS systems, and industry verticals. Maximized storage capacity, increased warehouse efficiency, lower energy consumption, less waste, and lower maintenance costs, and potential lifespan of 20–25+ years drive the growth of automated storage & retrieval systems. In addition, surge in applications of mini-load and shuttle AS/RS in e-commerce industry owing to simplified ordering process fuels the growth of AS/RS systems. For example, when a customer purchases an item, the system automatically creates a picking ticket, thereby reducing the time required for order fulfilment.

Automated Storage and Retrieval System Market
By Function
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Storage is projected as one of the most significant segments.

The adoption of automated systems has multiplied significantly with the increase in need for automation in all industrial sectors. Organizations are inclining toward adopting automation solutions to automate their processes to deliver high-quality products, increase their manufacturing capabilities, serve customers better, and efficiently manage their processes. This factor further strengthens the growth of the automated storage and retrieval system market share. 

Automated Storage and Retrieval System Market
By Industry Vertical
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Automotive is projected as one of the most significant segments.

North America dominated the global automated storage and retrieval system market in 2019 and is expected to retain its position in the next few years. The growth of the region is attributed to the presence of a key market players, such as Microsoft Corporation, IBM Corporation, Amazon web services, and others. Moreover, rise in adoption of big data technologies among organizations to enhance the consumer target marketing and risk management abilities is expected to boost the growth of the automated storage and retrieval system market.

The report focuses on the growth prospects, restraints, and market analysis. The study provides Porter’s five forces analysis of the automated storage and retrieval system industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the market.

Automated Storage and Retrieval System Market
By Region
2027
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific would exhibit the highest CAGR of 9.9% during 2020-2027.

Segment review

The automated storage and retrieval system market is segmented into type, function, industry vertical, and region. On the basis of type, it is classified into autostore, carousel, mid load, mini load, unit load, and vertical lift module. On the basis of function, it is divided into on- assembly, distribution, kitting, order picking, storage, and others. By industry vertical, it is segregated into aviation, automotive, chemicals, retail & e-commerce, food & beverages, healthcare, metals & heavy machinery, semiconductors & electronics, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The market players operating in the automated storage and retrieval system market analysis include Bastian Solutions, Inc., Beumer Group, Daifuku Co., Ltd., Dematic, Honeywell Intelligrated, Kardex Group, KNAPP AG, Murata Machinery, Ltd., SSI Schaefer Group, and TGW Logistics Group. 

Top impacting factors

Surge in demand for ASRS in manufacturing industry is a major factor expected to drive the growth of the market. This is attributed to ASRS benefits in manufacturing facilities such as highly dense storage that save up to 85% of floor space. Moreover, rise in need to reduce labor costs and achieve optimum utilization of space and increase in implementation of ASRS in distribution supply chain and inventory management are some of the other factors expected to drive the automated storage and retrieval system market growth in the coming years.

However, ASRS systems require high initial investment and are difficult to customize once implemented, which limits their use in changing manufacturing industries. This limits the market growth. Furthermore, rise in awareness regarding ASRS in industries, such as automotive and electronics, where precision and accuracy play a major role, use automated systems to meet international quality standards is further expected to create significant growth opportunities for the growth of the automated storage and retrieval system market.

Surge in demand for ASRS in Aviation industry

Aviation industry have recognized the need for ASRS mainly in manufacturing for applications such as production, distribution, and inventory management. Thus, retrofitting a manufacturing facility has proliferated the demand of ASRS over the past decade. Currently, increase in production volume of manufacturing sector due to growth in consumption value of individuals has compelled various industries such as packaging and delivery to opt for ASRS products at a higher rate. For example, the impact of e-commerce and omni-channel delivery has significantly been managed through ASRS system such as Shuttle and Bot-based AS/RS and Carousel-based AS/RS (Vertical, Horizontal, and Robotic). The use of ASRS has helped this industry with benefits such as heavy load shuttles integrated with workstation to optimize floor space and speed delivery.

Impact of COVID-19 on Automated Storage and Retrieval Systems Market:

  • The growth of automated storage and retrieval systems market is expected to decline due to restriction on mobility cross the globe and disrupted supply chain amid lockdown due to Covid-19 pandemic outbreak.
  • Amid lockdown due to Covid-19 pandemic the inventory management system in industries like food & beverages, automotive, e-commerce, chemicals, healthcare, and semiconductors & electronics has been affected with huge economic implications. This is likely to decline the growth of automated storage and retrieval systems market.

Key Benefits For Stakeholders

  • This study includes the automated storage and retrieval system market trends, opportunity, analysis, and future estimations to determine the imminent investment pockets.

  • The report presents information related to key drivers, restraints, and opportunities of the automated storage and retrieval system industry.

  • The automated storage and retrieval system market share is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.

  • Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the automated storage and retrieval system market.

Automated Storage and Retrieval System Market Report Highlights

Aspects Details
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By Type
  • Autostore
  • Carousel
  • Mid Load
  • Mini Load
  • Unit Load
  • Vertical Lift Module
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By Function
  • Assembly
  • Distribution
  • Kitting
  • Order Picking
  • Storage
  • Others
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By Industry Vertical
  • Aviation
  • Automotive
  • Chemicals
  • Retail & E-Commerce
  • Food & Beverages
  • Healthcare & Pharmaceuticals
  • Metals & Heavy Machinery
  • Semiconductors & Electronics
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (Germany, UK, France, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

KARDEX GROUP, BEUMER GROUP, TGW LOGISTICS GROUP, DEMATIC, SSI SCHAEFER, MURATA MACHINERY, LTD., DAIFUKU CO., LTD., KNAPP AG, HONEYWELL INTELLIGRATED, BASTIAN SOLUTIONS, INC.

Analyst Review

The use of automated storage and retrieval systems (ASRS) vary from manufacturing and distribution. Industries opting for these solutions are in favor of automation in industries and the way ASRS revolutionizes the operating, inventory, or even warehouse processes. The market for automated material handling equipment has witnessed significant growth over the last few years owing to the advent of technologies such as robotics, wireless technologies, and driverless vehicles. Major players in this market focus on the development of affordable, small, compact, and energy-efficient storage, and retrieval solutions to reach a wider customer base. For instance, System Logistics S.p.A. in 2020, achieved significant optimization in its Tosano Supermercati client’s entire storage, palletization & shipment operations, reduced working times, and improved the working conditions of the operators in a hostile environment.

Recent boom in e-commerce is a major driver for the industry, with widespread demand for process automation worldwide. E-commerce industry players aim on improving the quality of their service through minimal waste generation. In developing nations, industrialization and modernization primarily support the market growth. Moreover, the effect of new technologies is moderate in the current market scenario; however, its impact is anticipated to increase in future due to intense competition and innovations in technological advancements in the ASRS systems.

The key players operating in the global automated storage and retrieval systems market include Bastian Solutions, Inc., Beumer Group, Daifuku Co., Ltd., Dematic, Honeywell Intelligrated, Kardex Group, KNAPP AG, Murata Machinery, Ltd., SSI Schaefer Group, and TGW Logistics Group. Prominent market players are exploring new technologies and applications to meet the increase in customer demands. Product launches, collaborations, and acquisitions are expected to enable them to expand their product portfolios and penetrate different regions. Emerging economies provide lucrative opportunities to market players for growth and expansion.
 

Author Name(s) : Sneha Korad and Rachita Rake | Onkar Sumant

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Automated Storage and Retrieval System Market

Global Opportunity Analysis and Industry Forecast, 2020-2027