A number of industrial facilities and warehouses are increasing the use of automated solutions to enhance their profits, warehouse operations, comfort as well as worker safety. 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 thereby overcome the space constraint issues faced by several end-users. These kinds of systems are of use mainly at manufacturing sites, distribution centers, retail, wholesale, and institutions. ASRS helps in automatically bringing items directly to the operator, and can be operated as a standalone system, as well as integrated into a linked system. Some of the common operations of ASRS include consolidation, order picking, buffering, kitting, inventory storage, parts handling, and buffer storage, among others. Mainly designed for these tasks, ASRS systems eliminate walk and search time, thereby increasing productivity and efficiency. Space-efficient ASRS systems also help in reducing underutilized floor space by storing all the materials in one compact area, thus provide larger storage capacity in comparison to shelving and racking in aisles. Furthermore, it helps in reducing labor costs since the automation of processes helps in reducing the involvement of several individuals, and it generally requires one person to operate such systems.
Kardex Holding Ag, Mecalux Sa, Ssi Schafer, Bastian Solutions Llc And Daifuku Co Ltd Are Among The Key Market Players Operating In The Automated Storage and Retrieval Systems (ASRS) Market.
ASRS systems also play an essential role in robotics, where they are used to guide the autonomous robots called ‘self-navigating robots.’ Various industries such as electronics, automotive, aerospace, food & beverage, pharmaceuticals, and electronics are pretty concerned about reducing labor-intensive processes, increasing accuracy and speed for the task of storage, and retrieval of their products whenever required. A variety of ASRS systems are available in the market, out of which many systems are highly flexible and can be relocated. Other benefits include improved ergonomics, better inventory control, workplace safety, and others. However, the high cost associated with the installation, along with the overall maintenance cost, is hindering the market growth as it is often not affordable for small facilities to incur such costly automation.
The automated storage and retrieval system (ASRS) market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). The APAC region is expected to witness the highest CAGR during the forecast period. The rapid growth in healthcare, retail, food & beverage, and automotive industry is expected to fuel the demand for ASRS.
The industries in the APAC region are rapidly adopting automation, resulting in the growth of the ASRS market. The growth of the e-commerce industry in the APAC region is another significant factor impacting the ASRS market. Several automotive players are expanding their manufacturing capabilities in the region. For example, Hyundai announced plans to open a new facility in Indonesia for electric cars. Moreover, Tesla is developing its new electric car factory in China. These developments in the automotive industry are expected to boost the ASRS market in the APAC region.
The European region is estimated to lead 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.
The top ten companies in the market include 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. The above listing of key players is derived by considering multiple factors such as overall revenue, new product launches, market initiatives, investment in technology up-gradation, mergers & acquisitions, and other joint activities. A few of the industry’s important market initiatives and product developments are mentioned below. A few of the important market initiatives and product developments from the industry are mentioned below:
| Year | News |
| 2020 | In February 2020, Swisslog Holding AG received a major order from IKEA Supply Located at Malaysia, the distribution center is operated by Inter IKEA, and it would be its largest regional distribution center in the APAC region. The distribution center would be equipped with a projected storage capacity of 192,800 cubic meters with Vectura pallet stacker cranes and Swisslog’s SynQ warehouse management system. |
| 2020 | Alinatur, a manufacturer of dry food for dogs and cats, has selected Mecalux, S.A., to install its Pallet Shuttle automated warehouse solution, which would offer storage capacity for 5,000 pallets. The solution would be used to manage all operations. |
| 2019 | SSI SCHAEFER Group has finished a retrofit project for the Office Depot to modify systems in the existing distribution center in Germany. The intelligent material flows, the expansion of the picking stations, as well as the growth of the storage capacities, efficiently enhanced the efficacy of the logistics center. |
| 2019 | In April 2019, Daifuku Co. Ltd. acquired Vega Conveyors & Automation Private Limited, an India-based company. Vega Conveyors & Automation Private Limited is highly involved in the designing and manufacturing of material handling equipment. This acquisition would enable Daifuku to gain huge customers in the Indian market. |
| 2018 | In May 2018, Toyota Advanced Logistics, with its subsidiary Bastian Solutions, acquired Peach State Integrated Technologies, a US-based company. This acquisition would enable both the company to better serve automated solutions to its current and future customer base. |
