An ASRS consists of several computer-controlled methods that enable the placement of loads and picking up a function of the load from a storage location. They best serve their purpose at places where high volumes of capacity need to be moved, stored, or retrieved more economically. These systems increase the storage density of loads and overcome the space constraint issues faced by several end users. These systems are used mainly at manufacturing sites, distribution centers, and institutions. ASRS helps in automatically bringing items directly to the operator. It can be operated as a standalone system or integrated into a linked system. Common operations of ASRS include consolidation, order picking, buffering, kitting, inventory storage, parts handling, and buffer storage. ASRS systems eliminate walk and search time, thereby increasing productivity and efficiency. Space-efficient ASRS systems also help reduce underutilized floor space by storing all the materials in one compact area, thus, providing larger storage capacity than shelving and racking in aisles. Furthermore, it helps reduce labor costs since the automation of processes reduces the involvement of several individuals, and it generally requires one person to operate such systems.
The automated storage and retrieval systems (ASRS) market in North America is segmented into Canada, the US, and Mexico. The US accounted for the largest share in the automated storage and retrieval systems (ASRS) market in North America. Unavailability of cheap labor and growing automation in factories are mainly driving the automated storage and retrieval systems (ASRS) market in US. Additionally, the revival of the automotive industry owing to cheap gas prices has bolstered the demand for automated storage and retrieval systems (ASRS) in the automotive industry. Moreover, the aerospace industry has been continuously spending huge amounts on research and development, which comprises careful handling of fragile and critical spare parts and components. Owing to all these factors, the automated storage and retrieval systems (ASRS) market in the US is expected to grow during the forecast period.
North America is an early adopter of emerging technologies due to favorable government policies to boost innovation and reinforce infrastructure capabilities. According to MAERSK, the chemical industry was down by 3.1% in March 2020 compared to 2019. The automotive industry in North America has a potential influence on the country’s economy. Unfortunately, the US was one of the worst-affected countries due to the COVID-19 pandemic, and the crisis led to a cascading impact on multiple industries, which severely impacted automated storage and retrieval systems (ASRS) market. The operations of the automotive industry were put on hold, which hampered the business dynamics in the first half of 2020. In North America, a total of 43 states had lower auto exports in 2020 than in 2019. In March 2020, American Honda Motor Co., Inc. announced that it had halted North American production, due to which the company saw a production loss of ~40,000 vehicles. Disruption in the supply chain due to travel restrictions was limiting supply and production activities, including ASRS solutions, during the pandemic. All these factors negatively impacted the automated storage and retrieval systems (ASRS) market growth in North America during the pandemic.
ASRS allows storing more pallets in a smaller cubic area, which reduces energy operating costs used for refrigeration in cold storage. According to Gubba Cold Storage, ASRS enables the storage of more pallets in a smaller cubic area, which helps reduce the total energy cost on refrigeration. It further reduces the thermal transfer impact through the roof and wall area, thus, reducing energy consumption. Moreover, ASRS requires limited lighting; and it eliminates the need for large doors to be repetitively opened and closed for forklift access, which helps reduce energy consumption. Thus, adoption of ASRS in cold storage helps to reduce cost spend on energy which is propelling the demand for ASRS in cold storage. Furthermore, employee turnover in cold storage or freezer environments is generally higher compared to typical warehouses. Since all the pallet handling tasks are controlled automatically by ASRS in cold stores, it is not needed for the operational staff to work in a harsh cold environment. Furthermore, the staff employed in cold storage are required to take constant breaks from working in sub-zero conditions, which may reduce productivity and increase operational costs. Thus, growth in demand for cold chain ASRS will act as a trend in the automated storage and retrieval systems (ASRS) market in the future.
The regional trends and factors influencing the Automated Storage and Retrieval Systems (ASRS) Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Automated Storage and Retrieval Systems (ASRS) Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 2.72 Billion |
| Market Size by 2028 | US$ 4.68 Billion |
| Global CAGR (2022 - 2028) | 7.0% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2028 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Automated Storage and Retrieval Systems (ASRS) Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Automated Storage and Retrieval Systems (ASRS) Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
Based on end user industry, the automated storage and retrieval systems (ASRS) market is segmented into automotive, food & beverages, electronic & semiconductors, e-commerce , chemicals, aerospace, retail, pharmaceuticals, and others. The market for the e-commerce segment is growing at a high pace, particularly in developing economies. ASRS enables the optimum utilization of space, which is one of the significant needs for any e-commerce company. E-commerce companies have to maintain a large inventory for the proper flow of goods and to meet the delivery time expected by their customers, making each shipping decision highly critical for these companies. ASRS aids in decreasing supervisory needs, thus, enabling efficiency and helping companies achieve faster deliveries. ASRS not only helps companies reduce labor costs as most of the work is automated but also minimizes the risk of product damage caused by human-related incidents. The rapid increase in the growth of e-commerce has resulted in a customer trend toward smaller orders, and companies are facing problems related to the cost of packing and shipping these smaller or single orders. ASRS enables companies to easily accommodate the increase in single orders while utilizing automation to decrease handling and packaging costs intensely. All these factors are driving the automated storage and retrieval systems (ASRS) market growth for the e-commerce segment.
Players operating in the automated storage and retrieval systems (ASRS) market mainly adopt inorganic growth strategies to stay competitive in the automated storage and retrieval systems (ASRS) market ecosystem.
Integration of robotics is one of the major trends in the ASRS market.
Bastian Solutions, Inc., Daifuku Co., Ltd., KION GROUP AG, Kardex Group, Knapp AG, Mecalux, S.A., SSI Schaefer Group, Swisslog Holding AG, System Logistics Spa, and Vanderlande Industries are the leading companies in the ASRS market.
Optimized and space efficient storage systems and its efficiency in supply chain augments the growth of the ASRS market.
Increasing demand for automation in the e-commerce industry is creating growth opportunity for the market players operating into the market.
The European region is estimated to dominate the ASRS market in 2021. The growth in Europe is attributed to the presence of several ASRS players in the region, coupled with a substantial customer base. Also, significant investments made by automotive players in the automated material handling equipment is driving the installation of ASRS. Even the cost of implementing automation is declining in Europe, along with the increase in labor costs.