Automated Storage and Retrieval System Market Size, Share & Analysis

Updated on : Sep 12, 2024

[261 Pages Report] The ASRS market is estimated to be worth USD 8.7 billion in 2023 and is projected to reach USD 12.7 billion by 2028, at a CAGR of 7.9% during the forecast period. The growing demand for ASRS in healthcare, food & beverages, and automotive verticals, coupled with rapid advancements in robotics and artificial intelligence technologies, is contributing to this market growth.

ASRS Market Growth

Automated Storage and Retrieval System Market Forecast to 2028

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ASRS Market Trends

Driver: ASRS demand surges due to better space optimization and high labor costs

Due to the increasing gap between demand and supply, real estate prices are rising in several developed countries such as the US and China. The availability of real estate for warehouses in Europe is almost saturated, and the demand is still rising. Also, developed countries in Asia Pacific and North America must optimize space utilization. This has become imperative considering the ever-growing population and demand for consumer goods. Thus, the issue of warehousing requirements is resolved by adopting ASRS. The ASRS technology provides considerable space savings and can save up to 85% of floor space by removing the wasted aisle space with the utilization of the full ceiling height of the warehousing facility. This technology also offers high-density storage in a compact space, calculates the true cost of storage space, and helps reduce the excessive costs incurred due to manual processing. Different facility centers, warehouses, and distribution centers require labor to carry out logistics and delivery processes. One worker using ASRS can handle the picking assignments of multiple operators in a manual system, reassigning as many as two-thirds of manual picking labor to other, non-picking tasks—without a loss of throughput. Thus, implementing automated storage solutions can compensate for scarce or unreliable labor.

Restraint: High installation and maintenance cost

Implementing ASRS systems requires substantial upfront capital investment, encompassing the cost of equipment, software, infrastructure modifications, and professional installation services. Additionally, ASRS systems require regular maintenance and skilled technicians to ensure their smooth operation, which adds to the long-term operational expenses. These high initial and ongoing costs can deter some businesses, particularly smaller enterprises, from embracing ASRS technology despite its potential benefits, creating a significant restraint in its adoption across industries. Repairing AS/RS equipment requires special expertise, which means that the repairing costs of ASRS may be more than the cost spent on repairing traditional warehouse equipment, such as forklifts or conveyor systems. Therefore, companies implementing AS/RS solutions should consider the cost of downtime and production interruptions in the case of equipment breakdowns. Companies that lack an on-staff maintenance technician experience longer downtimes while waiting for outside technicians to respond. All these factors can incur tremendous costs for companies.

Opportunity: Growing demand for cold chain systems in Asia Pacific

The frozen food market is expected to witness substantial growth in Asia Pacific in the coming years. The increased popularity of chilled and frozen food items in Asia Pacific reflects changing food preferences as consumers become more affluent, leading to the expansion of the infrastructure to support cold chain operations in the region. The growth of the cold chain sector can be largely attributed to globalization, which enables the import and export of perishable foods, technological advancements in cold chain storage and transport, and the growing acceptance of frozen foods among consumers. The latest generation of ASRS provides a uniquely flexible and modular design, with multi-load remote pallet handling capability ideal for deep-freeze warehouse automation at its coldest (−28°C). This type of ASRS allows rapid configuration to fulfill the right storage and retrieval needs for several processes involved in the food & beverages industries. It provides single-deep, double-deep, triple-deep, and multi-deep storage configurations from floor level up to 40 m (131 feet) high, with the flexibility to handle one and multiple loads simultaneously. High-bay deep freeze warehouses are ideal for precisely and efficiently tracking frozen food products because of their highly automated and computer-controlled systems.

Challenge: Rapid technology advancements are resulting as a risk for ASRS systems to become obsolete

Rapid technological advancements do indeed present a potential risk for ASRS (Automated Storage and Retrieval System) systems to become obsolete. As technology evolves at a swift pace, newer and more advanced automation solutions may emerge, offering improved capabilities, efficiency, and cost-effectiveness. This could lead to the depreciation of existing ASRS systems, making it challenging for organizations to keep pace with the latest innovations and potentially rendering their investments outdated. To mitigate this risk, companies must plan for scalability and flexibility in their ASRS implementations, ensuring that they can adapt to and integrate with emerging technologies or consider regular upgrades to stay competitive and maintain system relevance in the fast-evolving industrial landscape.

Market Ecosystem-

ASRS Market: Key Trends

Daifuku Co., Ltd (Japan), Murata Machinery, Ltd. (Japan), SSI SCHAEFER (Germany), TGW Logistics Group GmbH (Austria) and Kardex Holding AG (Switzerland) are the top players in the ASRS market. These ASRS companies boast material handling trends with a comprehensive product portfolio and solid geographic footprint.

Vertical lift module (VLM) type ASRS to grow at the highest CAGR during 2023-2028.

VLM systems offer improved ergonomics and safety, integrating seamlessly with warehouse management systems and providing a competitive edge in today's fast-paced business environment. VLMs maximize the vertical height by utilizing an independent tray storage system to create a dense solution far exceeding traditional storage methods. VLMs are witnessing substantial expansion thanks to their outstanding space utilization, making them a perfect solution for optimizing storage capacity within confined areas. Their capacity to automate inventory control, trim labor expenses, and boost operational efficiency has rendered them extremely appealing to sectors like e-commerce and logistics.

E-commerce vertical to grow at the highest CAGR during forecast period.

The e-commerce vertical has evolved tremendously over the past few years. With the surge in online shopping, there is a critical need for efficient order fulfillment and rapid product delivery. ASRS systems offer a solution by automating warehousing and retrieval processes, reducing errors, and enabling faster order processing. The e-commerce vertical is evolving on a mobile platform as many end users are influenced by it. A person's average screen time on a mobile is the highest among all other screens. Hence, advertising through this medium is beneficial for e-commerce. The development of mobile payments and linking bank accounts with phone numbers have also simplified the buying process for end users.

Asia Pacific is expected to grow at the highest CAGR in the ASRS market during the forecast period.

Asia Pacific’s rapid industrialization, booming e-commerce sector, and the need for increased efficiency in manufacturing and logistics have driven the demand for ASRS technology. Governments and businesses in Asia Pacific are investing heavily in automation to address labor shortages, improve productivity, and reduce operational costs. Additionally, government programs aimed at fostering automation and technological progress are contributing to the expansion of the ASRS market. As businesses in the Asia Pacific region increasingly appreciate the advantages of automation, such as improved operational efficiency, reduced labor expenses, and heightened competitiveness, there is anticipation of significant growth in ASRS adoption in the years ahead.

Automated Storage and Retrieval System Market by Region

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Top Companies ASRS - Key Market Players

The major companies in the ASRS companies include

• Daifuku Co., Ltd (Japan),
• Murata Machinery, Ltd. (Japan),
• SSI SCHAEFER (Germany),
• TGW Logistics Group GmbH (Austria) and
• Kardex Holding AG (Switzerland). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the ASRS market.

Scope of the ASRS Market Report

Automated Storage and Retrieval System Market Highlights

In this report, the overall ASRS market has been segmented based on type and region.

Recent Developments

• In May 2023, The BEUMER Group GmbH & Co. KG acquired Hendrik Group Inc., one of the leading companies for air-supported belt conveyors. With this acquisition the BEUMER Group GmbH & Co. KG is expanding its portfolio in the field of bulk material transport.
• In January 2023, TGW Logistics Group GmbH has partnered with Frisco.pl to build a highly automated fulfillment center in the Polish capital of Warsaw. This project will establish the groundwork for online grocery retailers aiming for dynamic growth in the competitive Polish market in the upcoming years.
• In April 2022, TGW Logistic Group GmbH engineered an energy-efficient and robust sorting solution suitable for diverse applications and industries. At the heart of this system lies the Natrix shoe sorter, which offers three different capacity levels. Its modular design allows for customization to meet the specific requirements of any client.

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