Global automated storage and retrieval system (ASRS) market expected to reach more than USD 11,900 million by 2025 and is expected to grow at a CAGR of more than 9% between 2017 and 2025. The key factors that are driving the automated storage and retrieval system (ASRS) market are the growing need for space optimization and reducing human labor.
Automated Storage and Retrieval System Market
ASRS is a computer-controlled system which is basically used for retrieving loads and automatically placing goods from predefined storage locations. ASRS is adopted by various industries such as textile, automotive, chemicals, e-commerce, food & beverages, and others. Automated storage and retrieval systems reduce the labor cost and increase the productivity and efficiency of the business.
Automated storage and retrieval systems provide benefits such as:
The global automated storage and retrieval system (ASRS) market was valued at around USD 5,400 million in 2016 and it is expected to reach more than USD 11,900 million by 2025. The global automated storage and retrieval system (ASRS) market is expected to grow at a CAGR of more than 9% between 2017 and 2025.
Drivers and Restraints
The key factors that are driving the automated storage and retrieval system (ASRS) market are the growing need for space optimization and reducing human labor. The major factor driving the growth of the global automated storage and retrieval system (ASRS) market is increasing demand for consumer electronic products across the world. Continuous innovation and technological advancements such as artificial intelligence, IoT and virtual reality in consumer electronic products have boosted the demand for this industry. The high demand for consumer electronic products across the globe has created the need for automated storage and retrieval system in consumer electronics industry for managing inventory and picking and storing materials. In addition, automotive industry is anticipated to propel the growth of automated storage and retrieval system market in near future. Increasing demand for electric car is the key driving factor for the growth of the automotive industry. In India, 11 cities are shortlisted by the ministry of heavy industries for the introduction of electric vehicles (EVs) in their public transport systems under the FAME (faster adoption and manufacturing of and electric vehicles in India) scheme.
The high initial investment required for automated storage and retrieval system can limit the growth of the market. However, automated storage and retrieval system can improve productivity and efficiency of the company and also reduces the labor cost.
By type, autostore segment is expected to register the highest growth of 13% between 2017 and 2025. Autostore system is a storage solution which provides complete configurability and flexibility. Autostore increases the speed and improves the quality of the internal logistics. However, unit load ASRS generated the highest revenues of around USD 1,715 million in 2016.
On the basis of function, the market is segmented into assembly, kitting, order picking, distribution, storage, and others. Among this, order picking segment is anticipated to grow with highest CAGR of 12% between 2017 and 2025. ASRS is broadly used for picking orders in warehouses, manufacturing plants, and distributions centers. This automated storage and retrieval system picks up the finished orders from the manufacturing plants and transports it to warehouses and distribution centers.
The industry segment includes automotive, chemicals, aviation, electronics and semiconductor, e-commerce, food and beverages, healthcare, metal and heavy machinery, and others. Automotive industry held the largest market share of around 25% owing to increasing continuous demand from the automobile sector. Latest innovation in the automotive industry like driverless car is anticipated to boost the automotive industry. In addition, high investment in electric vehicle by major players such as Forbes, Maruti, Honda, and others are expected to change the scenario of the automotive industry in coming years. Considering these factors, the automotive segment will continue to dominate the market.
Asia Pacific ASRS market is estimated to register the highest CAGR growth during the forecasted period. Growing e-commerce industry is expected to trigger the growth of the automated storage and retrieval system (ASRS) market. The rising trend of online shopping, increased automotive industry, and innovation in consumer electronic products anticipates propelling the growth of the market.
The report also covers detailed competitive outlook including company profiles of the key participants operating in the global automated storage and retrieval system (ASRS) market. The key players included in this market are Arkrobot, Automation Logistics Corporation, Bastian Solutions, Inc., Beumer Group, Daifuku Co., Ltd., Dematic GmbH & Co. Kg, Flexe, Inc., Green Automated Solutions, Kardex Group, Knapp AG, Kubo Systems, Mecalux S.A., Murata Machinery, Ltd., SSI Schaefer Group, Swisslog Holding AG, System Logistics Corporation, TGW Logistics Group GmbH, and Vanderlande Industries BV.
The prominent market players maintain the competitive edge in the global market by making investments in the mergers and acquisitions and by increasing their product portfolio. In November 2015, Wynright Corp. a subsidiary of Daifuku North America Holding Company and a leading U.S.-based provider of intelligent material handling systems announced the launch of the AS-30 Sliding Shoe Sorter.