Automated Storage and Retrieval Systems Market - Forecasts from 2023 to 2028

The global automated storage and retrieval system market is expected to grow at a CAGR of 6.29%, from an initial value of US$6.782 billion in 2021, and is estimated to reach a market size of US$10.393 billion in 2028.

Automated storage and retrieval systems are a variation of computer-controlled systems that are used for controlling, handling, storing, and retrieving materials with higher speed and accuracy. The system finds major applicability in manufacturing and distribution facilities for increasing productivity and safety through the storage and retrieval of items in specific locations.

Drivers:

Growing warehouse establishments & automation projects

The growing industrial productivity in major countries has created a demand for the establishment of warehouse and storage facilities. For instance, according to the U.S. Bureau of Labor Statistics, in Q1 of 2021, the number of warehouse and storage facilities in the US stood at 19,696 units which represented an increase of 3.7% in the establishment in comparison to 2020. Launches of warehouse automation projects to upgrade shipment and delivery operations are also boosting the demand for automated storage and retrieval systems in the warehouse centers. For instance, in March 2022, Beckhoff USA launched its warehouse automation project where the company will use OPEX® Corporation’s Infinity™ Automated Storage and Retrieval System that would enable the company to deliver automated products to its customers in a short time frame. Moreover, in September 2022, Anta in collaboration with HAI Robotics launched its third warehouse automation project in the company’s new warehouse in the Guangdong Province in South China.

Growing e-commerce sector

Moreover, the growing online retailing and purchases have provided unprecedented growth to the e-commerce sector, which is projected to increase warehousing and distribution activities, thereby boosting the demand for an efficient system for handling items in such centers.

Key developments

Market players in the industry are making efforts to improve their manufacturing capabilities to manufacture innovative products in the market. For instance:

• In November 2021, Honeywell International Inc announced its new automated storage and retrieval system for distribution and warehouse centers. The new system uses machine learning and AI that would enable the operators to manage more than 20,000 SKUs thereby providing a throughput increase of 40% over traditional manual picking.
• In February 2021, Fanuc America and Rockwell Automation announced forming a coalition for an apprenticeship program with an aim to educate workers and help develop their skills for automation and robotics in storage and distribution.
• In February 2020, ABB and Covariant announced a partnership in order to bring AI-enabled storage solutions to the market, starting with a completely autonomous warehouse order fulfillment solution. The partnership brought together the two companies with a shared vision for robotics enabled by AI.

Based on end users, the global automated storage and retrieval systems market is segmented into manufacturing, healthcare, chemical, paper, food and beverage, warehousing, and others. The manufacturing segment is estimated to constitute a major market share in 2021 as ASRS increases inventory capacity and reduces labor costs, and their modular designs provide maximum flexibility, increased speed and accuracy, and product security which is the reason why these automated storage and retrieval systems are used in the manufacturing industry. In the manufacturing segment, there are various market payers developing advanced automated storage and retrieval systems with innovative technologies for industrial use to cut back on errors, lower processing costs, and reduce repetitive tasks.

Based on geography, the ASRS (Automated Storage and Retrieval Systems) market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia-Pacific. The automated storage and retrieval systems market in North America is growing due to the increasing prevalence of automation in the country. The market is expected to show considerable growth in the region due to its increasing requirement in supply chain and logistics, manufacturing, and trading. According to Federal Reserve System USA, the industrial production index in September 2022 was 105.2 which was a 0.4% increase from previous estimates. The manufacturing sector in industrial production grew by 2.9% with an index of 102.8 in September 2022. Further, with the growing retail industry in the USA, market growth is likely to be propelled. According to the US Department of Commerce, retail sales are forecasted to show positive growth in the coming years. This growth of the retail sector is thus expected to conversely increase the demand for automated storage and retrieval systems as well.

Market Segmentation:

By Product Type

• Mini Load
• Carousels
• Vlm
• Robotics As/Rs
• Others

By End-User

• Manufacturing
• Healthcare
• Chemical
• Paper
• Food And Beverage
• Warehousing
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia
• Taiwan
• Others