Automated Storage and Retrieval System Market Size to Hit USD 18,120 Million by 2032

According to Precedence Research, the global automated storage and retrieval system market size was valued at USD 8,600 million in 2022 and is expected to hit around USD 18,120 million by 2032 with a CAGR of 7.8% from 2023 to 2032.

/EIN News/ -- Ottawa, Aug. 01, 2023 (GLOBE NEWSWIRE) -- The global automated storage and retrieval system market size will reach at USD 15,490 million in 2022. The computerized inventory management systems are preferred by a variety of manufacturing sectors, food storage services, and warehouses to manage high-volume loads at cheap costs. The ASRS technology proven to be a perfect solution for inventory holders struggling to manage high-volume stocks by offering ultra-high-speed load handling, precise placement results, and dependable foundation. When used in storage or warehouses, such cutting-edge technology offers increased storage capacity, excellent warehouse efficacy, lower total costs, little energy usage, and a life period of about 25 to 30 years. The AS/RS technology is available in a range of prices, dimensions, operating speeds, striking designs, and extremely effective placement and retrieving facilities. These sophisticated machine arrangements may be adjusted to specific areas.

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The AS/RS mechanization reduces travel time and makes it simple to handle a variety of product inventories. These interactive displays are part of computer-controlled systems that are utilized in applications that call for the automated placement, storing, and retrieval of small- to large-scaled loads inside the specified storage site. Additionally, the movement chain's loopholes are totally closed off by the presence of material handling equipment trucks.

Regional Snapshots

North America had the majority of the market share for automated storage and retrieval systems (ASRS) in 2022. Big data technology is being used increasingly often by businesses to enhance their consumer target marketing and risk management skills. The automated storage and retrieval system (ASRS) market would expand in the region during the predicted period because of increased investment growth and industrialization that allowed automated storage system manufacturers to increase their market penetration in a number of nations.

The market for automated storage and retrieval systems in Europe, which accounted for the largest market share in 2022, is anticipated to grow significantly over the course of the forecast period because of rising demand for automated systems and an expanding e-commerce sector in several key countries.

Due to targeted warehouse expansion initiatives carried out by top e-commerce titans throughout emerging nations, Asia Pacific is predicted to see the quickest growth during the projection period. Additionally, it is predicted that during the forecast period, increasing use of advanced technologies throughout the supply chain and logistics industry would fuel the growth of the worldwide automated storage & retrieval system market.

Global Automated System & Retreival System Market, by region ($Million)

Region	2022	2023	2029	2030	2031	2032	CAGR
North America	2,398.38	2,568.31	3,946.91	4,253.78	4,588.92	4,955.28	7.6	%
Europe	3,150.26	3,363.33	5,076.15	5,454.36	5,866.40	6,315.71	7.3	%
Asia Pacific	2,088.84	2,254.78	3,635.11	3,949.14	4,294.43	4,674.45	8.4	%
LAMEA	962.52	1,041.38	1,694.23	1,842.00	2,004.17	2,182.29	8.6	%

Report highlights

• The North American market for automated storage and retrieval systems maintained a sizeable market share of 27.89% in 2022. The market for automated storage and retrieval systems is anticipated to increase because of a rise in the use of big data technologies by businesses to improve their capacity for risk management and consumer target marketing.
• Since e-commerce businesses are investing in systems that can effectively manage a high volume of tiny, multiple item orders, the e-commerce industry is anticipated to see the highest CAGR of 9.37% throughout the projected period.
• Due to its ability to transport stored products to the operator while reducing walk and search time, the vertical lift module (VLM) market is expected to develop at a substantial CAGR of 8.7% over the projected period.
• As the need for automation has grown across all industrial sectors, the use of automated systems has expanded dramatically. Organizations are leaning toward using automation solutions to streamline their operations, expand their manufacturing capacity, and produce high-quality goods.
• Europe region has held revenue share of around 36.93% in 2022.
• By end users, the automotive industry has held market share 22.72% in 2022.
• By type, crane-based segment has accounted market share of 42.74% in 2022.
• By load, the unit load segment has captured 36.16% market share in 2022.

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Scope of this report

Coverage	Details
Market size in 2030	USD 15,490 million
CAGR	7.8% from 2023 to 2032
Europe Market Share	36.63% in 2022
North America Market Share	27.89% in 2022
Asia Pacific Market Share	24.29% in 2022
LAMEA Market Share	11.19% in 2022
Key Players	TGW Logistics Group GmbH (Austria), Swisslog Holding AG (Switzerland), Daifuku Co. Ltd. (Japan), SSI Schaefer Group (Germany), Murata Machinery (Japan), Knapp AG (Austria), Mecalux SA (Spain), Vanderlande Industries (Netherlands), System Logistics Corporation (Italy), Bastian Solution (US), Beumer Group (Germany), Dematic GmbH & Co. KG (Germany), Kardex Group (Switzerland)

Market dynamics

Drivers

In order to guarantee consumer happiness around the globe, there is now a growth in the demand for quick, accurate, and effective fulfillment of in-store commerce. One of the main reasons propelling the market is this, coupled with the expanding industrial automation for enhancing productivity and quality while raising safety, lowering mistakes, and bringing flexibility to the production process. Additionally, ASRS is advancing technologically, helped by cutting-edge sensors. This is accelerating the market's growth, along with the rising need for improved storage systems across a number of industries. Additionally, many governments are making significant investments in creating digital infrastructure, which is helping the sector. In addition, the growing order volume in the e-commerce sector brought on by the ease of selling worldwide, retargeting clients, and customization of the purchasing process is providing industry investors with attractive development potential. In addition, the market is expanding because to the growing use of ASRS by small and midsize businesses (SMEs) to minimize human involvement.

Restraints

ASRS is a highly profitable automation system to be used in warehouses, but the initial installation of ASRS requires a huge capital investment. Pre purchase analysis of supply chain and inventory management are required before the actual purchase of the system. The implementation of ASRS involves the installation of racks, automated system and software. This entire system incurs a heavy cost. Setting up this system has to be accurate, and thus require skill labor. In addition, companies often experience significant ongoing costs for maintaining and updating various sub systems. Making such huge investment is difficult for small and medium sized enterprises

Opportunities

Growth in the E-Commerce Sector during the Coronavirus Outbreak is creating massive opportunities for the industry players. As COVID-19 spread, there was an increase in demand for ASRS in the e-commerce industry, which has been the primary factor in the growth of the ASRS market. Due to the exponential growth of online activities in the e-commerce industry, e-commerce has changed traditional activities and has become a massive platform. The considerable growth of the e-commerce industry is a result of the surge in B2B and B2C operations. The most suitable and effective method for handling orders is to use shuttles or micro loads to help transport a tote or case to a goods-to-operator (GTO) pickup station. Many distribution centers employ the operator-to-goods (OTG) principle, which calls for the operator to travel in order to get the good. Typically, ASRS is a mini-load or shuttle system that may autonomously convey cargo to the operators.

When choosing single orders over vast distances in a large distribution center, the Automated Storage and Retrieval System (ASRS) reduces travel time, boosting efficiency by 30% in a packed batch-pick environment and by up to 70% or more. As a result, it becomes simpler for e-commerce companies to efficiently meet growing consumer demand, which in turn fuels the rise of the ASRS industry.

Challenge

AS/development RS's is being restrained by a paradigm of delayed return on investment (RoI). The requirement to turn a profit stems from AS/significant RS's initial investment. Even if the price of these systems has decreased dramatically in recent years, small and medium-sized logistic operators are still not persuaded to adopt it. Additionally, the AS/RS return on investment (ROI) typically lasts between 5 and 7 years, which has a substantial negative market impact. The initial skepticism associated with AS/RS ROI still hangs over the strategies of operators, impeding the market's emergence. However, over time, the AS/RS prove to be a considerable value addition product by offering several advantages over physical labor in terms of operating costs and productivity.

By Load Insights

Unit Load

Unit Load automated storage and retrieval systems have a broad range of applications in various domains such as automotive, consumer goods, distribution, publishing, food & beverages, electronic, retail & apparel, pharmaceuticals & medical supplies, and others. Major advantages offered by unit load ASRSs include reduction in work-in-progress (WIP) inventory, enhanced product quality, improved productivity, and real-time inventory control. Unit load ASRSs provide improvement in order accuracy, increase in workforce productivity, and also ensures high throughput, strong reliability, and damage-free operations.
Unit Load AS/RS technology is useful for larger load handling that particularly weighs more than 400 lbs. The Unit Load crane can store as well as retrieve products automatically from an engineered rack system which is as high as 120 feet or above. Significant applications of Unit-Load AS/RS include high-density pallet storage, handling special loads, cold & freezer storage, buffering, and staging.

In April 2022, Coca-Cola opened its new bottling plant in Guian New Area of southwest China's Guizhou Province. The 1st phase of the bottling plant involves a total investment of ¥270 million (about $40.8 million) and covers a wide space of around 10.5 hectares with an arranged production capacity of approximately 170,000 tons.

In December 2021, Toyota Motor North America reported that North Carolina Greensboro-Randolph Megasite is selected as the site for Toyota's new automotive battery production plant. The plant involves investment of $1.29 billion and is going to have 4 production lines to deliver sufficient lithium-ion batteries for about 200,000 vehicles. Toyota further plans to expand the manufacturing to 6 production lines. Thus, expanding beverages and automotive sector majorly enhances the growth of the unit load segment.

Global Automated System & Retreival System Market, by Load ($Million)

Load	2022	2023	2029	2030	2031	2032	CAGR
Unit Load	3,109.66	3,353.35	5,374.06	5,832.51	6,336.16	6,890.00	8.3	%
Mid Load	1,019.65	1,087.52	1,631.49	1,751.28	1,881.69	2,023.77	7.1	%
VLM	1,723.44	1,851.10	2,896.42	3,130.99	3,387.83	3,669.29	7.9	%
Carousels	677.04	720.65	1,068.12	1,144.24	1,226.97	1,316.96	6.9	%
Mini Load	2,070.20	2,215.17	3,382.32	3,640.25	3,921.27	4,227.71	7.4	%

By Application

Storage

The increasing demand for autonomous and electric vehicles has pushed automobile manufacturers to enhance the production of vehicles and their spare parts. Hence, effective storing capabilities are highly essential for timely supply of required spare parts during manufacturing process. Proper storing of material is very crucial during the production of electric vehicle batteries. In March 2023, Tata Motors reached out to the United Kingdom government for seeking financial help. As per British Reports, Tata Motors is requiring $600 million for setting up an electric vehicle (EV) battery manufacturing plant.

In the cold chain industry, the automated storage and retrieval system (ASRS) is highly useful in storing, handling, and retrieving materials accurately, quickly, and precisely as per specific requirements. In June 2022, Conagra Brands, Inc., one of top branded food companies announced to open a new state-of-the-art vegetable processing plant in Waseca, Minn. This new processing plant is spread across the area of 245,000 sq. ft. and involves investment of about $300 million. The processing plant has the capacity to process 45 million pounds of peas, 120 million pounds of cut and cob corn, and over 20 million pounds of rice every year. Growing frozen food sector drives the requirement for various ASRS notably.

Pharmaceutical companies often need products to be stored under controlled conditions. An ASRS can comply with respective controlled environment conditions and offer compact storage at a lower cost. In 2021, China had more than 5,000 pharmaceutical manufacturers, and the Chinese Government is promoting the consolidation of the pharmaceutical industry very strongly. The storage segment is expected to have a high growth rate in China in near future.

Global Automated System & Retreival System Market, by Application ($Million)

Application	2022	2023	2029	2030	2031	2032	CAGR
Storage	4,446.48	4,775.84	7,472.76	8,077.97	8,740.59	9,466.78	7.9	%
Order Picking	1,837.81	1,979.86	3,154.02	3,419.67	3,711.27	4,031.66	8.2	%
Kitting	1,096.40	1,174.09	1,804.30	1,944.59	2,097.79	2,265.27	7.6	%
Buffering	580.13	619.99	941.39	1,012.54	1,090.13	1,174.80	7.4	%
Others	639.17	678.02	979.94	1,044.51	1,114.13	1,189.22	6.4	%

By End User

Automotive

With efficient throughput and improved storage capacity, automated storage/retrieval systems (AS/RS) are highly beneficial for automotive manufacturers. In large manufacturing plants, materials can be stored over each other up to the rafters. By using advanced technology for AS/RS, material selection can be done efficiently and correctly every time, which also reduces search time. Automated storage/retrieval systems support production to keep running even if the feeding system turns down. For controlling the decision making of the overall system, GE Digital’s software interfaces with AS/RS hardware.

GE Digital’s ASRS offering provides supervisory routing of the AS/RS hardware including cranes and conveyors. The software is used to keep a digital image of the storage inventory for directing conveyor and crane operation. During implementation for an automotive OEM, the AS/RS application can use CIMPLICITY HMI/SCADA for visualizing and monitoring real-time status. This helps in managing the inbound and outbound routing.

In February 2023, a leading automotive manufacturer, Tata Motors planned to operationalize Ford's Sanand plant in India in next 12-18 months to scale up the production. In March 2023, Tesla Inc. announced to construct a new assembly plant in Northern Mexico. Tesla Inc. is investing over $5 billion for this new assembly plant. In December 2022, Mercedes-Benz announced its plans to invest more than €1 billion ($1.04 billion) for establishing a factory in Poland. This new factory is the company’s first plant that is exclusively intended for producing electric vans. Thus, the construction of new automotive manufacturing plants is majorly driving the automotive segment growth under end-use.

Global Automated System & Retreival System Market, by End User ($Million)

End User	2022	2023	2030	2031	2032	CAGR
Automotive	1,954.34	2,084.42	3,356.63	3,606.57	3,878.89	7.1	%
Semiconductor and Electronics	1,535.64	1,641.15	2,680.26	2,885.64	3,109.77	7.4	%
General Manufacturing	1,038.20	1,117.33	1,916.47	2,077.82	2,254.94	8.1	%
Retail and Warehousing or Logistics	1,360.45	1,469.98	2,592.57	2,822.05	3,074.83	8.5	%
Healthcare	753.78	807.18	1,336.90	1,442.23	1,557.37	7.6	%
Food and Beverages	851.25	917.96	1,596.61	1,734.48	1,886.09	8.3	%
Others	1,106.35	1,189.78	2,019.84	2,185.13	2,365.83	7.9	%

Recent developments

• In order to improve the efficiency of the supply chain (logistic facility), Knapp teamed with Kratzer Automation, a provider of logistic software, in 2019.

• In order to expand its AI - based solutions to Austria and assist Kellner and Kunz grow its warehouse by incorporating state-of-the-art automation, TGW teamed with the tools and fastening technology company Kellner and Kunz in 2019.

Market Segmentation

By Application

• Storage
• Order Picking
• Kitting
• Buffering
• Others
  

By End Use

• Automotive
• Semiconductor and Electronics
• General Manufacturing
• Retail and Warehousing or Logistics
• Aviation, Chemicals
• Rubber, and Plastics
• Healthcare
• Food and Beverage
• Postal and Parcel
  

By Type

• Vertical Lift Modules
• Carousels
• Crane-Based
• Vertical Buffer Modules
• Robotic Shuttles
• Floor Robots

By Load

• Unit Load
• Mid Load
• VLM
• Carousel
• Mini Load
  

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)
  

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