Market Research Report
Automated Storage and Retrieval Systems Market Forecasts to 2028 - Global Analysis By Category (Standalone, Integrated), Equipment (Rack Structure, Conveyor Interface, Warehouse Control System) and By Geography
|Automated Storage and Retrieval Systems Market Forecasts to 2028 - Global Analysis By Category (Standalone, Integrated), Equipment (Rack Structure, Conveyor Interface, Warehouse Control System) and By Geography|
Published: January 1, 2022
Stratistics Market Research Consulting
Content info: 200+ Pages
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According to Stratistics MRC, the Global Automated Storage and Retrieval Systems Market is accounted for $7.95 billion in 2021 and is expected to reach $14.71 billion by 2028 growing at a CAGR of 9.2% during the forecast period. Automated storage and retrieval systems (ASRS) are a major part of many warehouse automation systems that have the ability to sort, sequence, buffer, and store a wide range of goods into virtually unlimited destinations. It mainly comprises of storage and retrieval machines, rack structure, conveyor interface, and warehouse control system. ASRS has a wide range of applications in warehouses and distribution centers such as finished goods storage, goods to person picking, order fulfillment and many more. Apart from all this, it also helps in managing all the functions of automated equipment and tracking load movements in and out of the system.
The e-commerce industry is experiencing a boom owing to the unprecedented rise in the number of online shoppers post the outbreak of COVID-19. The enforcement of social distancing norms, lockdowns, and other measures in response to the COVID-19 pandemic has led consumers to opt for online shopping. This has resulted in a spike in business-to-consumer (B2C) sales as well as an increase in business-to-business (B2B) e-commerce. The increase in B2C sales is particularly evident in online sales of pharmaceuticals, household goods, and food. However, such huge growth in the e-commerce industry has exerted immense pressure to deliver items on time. In the current scenario, the e-commerce industry is continuously under the pressure of procuring and delivering a huge number of articles within the stipulated time; thus, e-commerce companies have adopted automation in their facilities. The most efficient way to process orders is to use mini loads or shuttles, which bring a case or tote to a goods-to-operator (GTO) picking station. Most distribution centers operate on the principle of operator-to-goods (OTG), wherein the operator must travel to get the product. ASRS, usually a mini load or shuttle system, can automatically bring the product to the operator. By eliminating the travel time, the operator becomes 25% more efficient in a highly dense batch-pick environment and up to 75% or more in a large distribution center (DC) with single-order picking across long distances. ASRSs used in the e-commerce industry can manage a diverse mix of product stock keeping units (SKUs), large SKU ranges, and lead time. This allows e-commerce companies to fulfill the growing consumer demand in an efficient way.
ASRS is a highly profitable automation system to be used in warehouses; however, the initial installation of ASRS requires a huge capital investment. Pre-purchase analysis of supply chain and inventory management is required before the actual purchase of the system. The implementation of ASRS involves the installation of racks, automated systems, and software. This entire system incurs a heavy cost. Setting up this system has to be accurate, and thus requires skilled labor. In addition, companies often experience significant ongoing costs for maintaining and updating various subsystems. Making such huge investments is difficult for small and medium-sized enterprises.
The frozen food market is expected to witness substantial growth in Asia Pacific in the coming years. The increased popularity of chilled and frozen foods in the region reflects changing food preferences as consumers become more affluent; this is 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 growing acceptance of frozen foods among consumers. The latest generation of ASRS provides a uniquely flexible and modular design, which has multi-load remote pallet handling capability, ideal for deep-freeze warehouse automation at its coldest. This type of ASRS allows rapid configuration to the right storage and retrieval need for almost any application. It provides single-deep, double-deep, triple-deep, and multi-deep storage configuration from floor level up to 40 m high, with the flexibility to handle one as well as multiple loads at a time. High-bay deepfreeze warehouses are ideal for the precise and efficient tracking of frozen food products because of their highly automated and computer-controlled systems.
ASRS is a complex system operating in synchronization with many sensors, motors, and equipment guided by programming software. Any technical issue related to sensing element in ASRS may halt an entire operational process, which leads to additional time and cost to the company. Any fault in the software programming will also lead to improper functioning of the ASRS, thereby delaying the entire production process and increasing the downtime of the facility. This downtime can range from a few minutes to several days. Therefore, system failures adversely affect the process and result in diminishing profits. An ASRS would not be able to contribute to a company's profitability unless it is properly maintained. This poses a challenge for the players operating in the ASRS market.
The retail industry has undergone drastic changes, with a significant number of countries witnessing a considerable growth rate. The competition faced by companies has made the initiatives improve their processes and become more efficient to cater to the customers' needs. Moreover, the purchasing pattern is shifting toward online shopping. Faster delivery channels and the strategic locations of distribution centers and warehouses are now necessities rather than an option. Given the trend of e-commerce globally, the demand for ASRS is expected to increase in the retail industry during the forecast period.
Further, the growing retail industry across the globe is giving rise to the installation of warehouses and their management in multiple regions. For instance, Costco Wholesale Corporation has installed its warehouses every year with a consistent 3-5% growth. Increased real estate cost around the existing facilities is a stimulus for the sectors to opt for these systems, as ASRS offers additional benefits, like optimum space utilization and increased control over inventory. Moreover, the US warehouses face 600,000 unfilled jobs and a 25% turnover rate, as per Honeywell Intelligrated. Finding and training replacement costs the warehouse owners much more in terms of lost productivity, stress, training time, and reduced efficiency. Recently, Vanderlande has deployed its ADAPTO, a 3D shuttle-based AS/RS system, to Udea Wholesaler, who chose to automate its processes at a single, omnichannel food distribution center.
Unit load ASRSs are used for storing large-size articles and also provide real-time information on inventory making them more preferable type in several industries compared to other types of ASRS. Moreover, unit load ASRS is a high-density heavy payload ASRS that enables accurate, efficient, safe, and stable handling of full pallets. The market growth is also supported by their wide range of applications in consumer goods, automotive, electronics, food & beverages, pharmaceuticals & medical supplies, and retail & apparel industries.
Asia Pacific is projected to hold the largest market share owing to the adoption of automation in manufacturing. The shortage of skilled labor, complicated by the one-child policy and an aging workforce, requires job activities to be eased to maintain work productivity in China. Moreover, startups, such as Syrius Robotics, based out of Shenzhen, are building autonomous mobile robots to integrate them into two model warehouses of JD Logistics for further testing and optimization for last-mile deliveries. AMH systems are expected to experience demand from the manufacturing industries, with increased throughput, warehouses, and distribution centers. Any segment directly or indirectly affected by the spike in demand in the e-commerce and retail markets is expected to escalate the need for AMH in the country. Automation in other sectors is increasing productivity. For instance, in October 2020, Tencent-backed food delivery service, Meituan-Dianping, introduced its first-ever innovative AI retail store, MAI Shop, within Beijing's Shougang Park. The store is equipped with a combination of AI and robotics, which are regularly seen in "New Retail" formats across supermarkets, convenience stores, and more in China. The combined technology brings an unmanned delivery retail experience as Meituan integrates a fully automated warehouse and distribution to maximize its takeout delivery capacity. Further, an increase in infrastructure investment by the government and investments from industries coupled with the 'Make in India' initiative is expected to drive AMH systems' demand. In September 2020, in preparation for the festive season, Amazon India had announced the expansion of its sort center network. Amazon India uses technology and automation in its sortation networks, such as Auto Sorters and Sort Slides. Sort Slides will ensure fast manual sortation of packages, and Auto Sorters are entirely automated machines that perform end-to-end sorting of packages. This expanded and automated network is expected to significantly increase the speed of transporting packages for sellers and customers in the country. Along with the new centers, Amazon India will also expand eight existing sort centers, which will increase the sortation area to 2.2 million square feet spread across 19 states.
Europe is projected to have the highest CAGR due to the presence of a large number of key players in this region, along with the large customer base. The region has an exceptionally high labor cost; therefore, manufacturers in European countries have been adopting automated solutions to reduce the overall operational costs. Implementing these solutions helps manufacturers maintain a competitive edge by facilitating efficient management of overall warehousing operations. Furthermore, the presence of large companies with global warehousing and distribution operations, and sustained growth of the e-commerce industry are driving the growth of the ASRS market in Europe.
Some of the key players profiled in the Automated Storage and Retrieval Systems Market include: SSI Schafer AG, Daifuku Co., Ltd., TGW Logistics Group, Toyota Industries Corporation, Honeywell Intelligrated, Dematic, Swisslog Holding AG, Beumer Group GmbH, Knapp AG, Murata Machinery, Ltd, Material Handling Systems, System Logistics S.P.A., Witron Logistik + Informatik GmbH, Kardex Holding AG, and Viastore Systems GmbH.
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Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.