Automated Storage and Retrieval Systems (AS/RS) Market Size, Share & Industry Analysis, By Type (Unit Load, Rack Configuration, Automated Pallet, Robotic, and Others), By Function (Assembly, Storage and Retrieval, Kitting, Distribution, and Others), By Industry (Automotive, Food & Beverages, Retail & E-commerce, Semiconductor and Electronics, Healthcare, General Manufacturing, and Others), and Regional Forecast, 2024-2032

The global automated storage and retrieval systems market size was valued at USD 8.63 billion in 2023 and is projected to grow from USD 9.08 billion in 2024 to USD 14.95 billion by 2032, exhibiting a CAGR of 6.4% during the forecast period. North America dominated the automated storage and retrieval systems market with a share of 39.04% in 2023.

Automated Storage and Retrieval Systems (AS/RS) are sophisticated warehouse systems designed to automate the process of storing and retrieving goods from inventory. It is a part of material handling equipment. They utilize a combination of technologies such as robotics, conveyor systems, and software to manage inventory within a warehouse and distribution center efficiently. In addition, several benefits are associated with these systems, such as increased storage capacity, improved inventory accuracy, enhanced picking efficiency, and reduced labor costs.

The rapid growth of e-commerce has led to a surge in the demand for efficient and automated warehouse operations, driving the adoption of AS/RS. In addition, this product helps to reduce labor shortages and decrease labor costs associated with manual material handling processes. Furthermore, rising demand from such systems in food and beverages, automotive, and e-commerce sectors has subsequently driven the demand for such products. Additionally, according to the report of American Trucking Association, the penetration rate of AS/RS in U.S. increased by 14% in 2023 compared to 7% in 2022. All such factors drive the growth of the global automated storage and retrieval system market.

The COVID-19 pandemic positively influenced the global market owing to a surge in the demand from e-commerce, healthcare, and automotive sectors. Additionally, increasing technological advancements in such products fueled the growth of the market.

Automated Storage and Retrieval Systems Market Trends

Technological Advancements in AS/RS Products to Fuel Market Growth

The major players, such as Kardex Group, Daifuku Co. Ltd, and Knapp AG, among others, are engaged in introducing new technological advancements based on Industry 4.0, Internet of Things (IoT), Artificial Intelligence (AI), and Big Data Analytics technology. This integration of technology enhances the efficiency and flexibility of ASRS by enabling predictive maintenance, real-time monitoring, and data-driven decision-making. In addition, the rising focus on scalability and modularity among various end users, such as automotive, e-commerce, and healthcare sectors, subsequently drives the market growth.

Major players are offering more flexible and customizable solutions to meet the unique requirements of different industries and applications. This trend involves the development of ASRS with adaptable configurations, interchangeable components, and software customization options. All such factors drive the growth of global automated storage and retrieval systems.

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Automated Storage and Retrieval Systems Market Growth Factors

Increasing Demand from E-commerce Sector to Drive the Market Growth

The rapid growth of e-commerce has led to a surge in the demand for efficient and automated warehouse operations, driving the adoption of AS/RS Systems. Additionally, the e-commerce industry has experienced tremendous growth in recent years, driven by changing consumer preferences, convenience, and the rise of online shopping platforms. This surge in e-commerce activities has significantly increased the demand for efficient and automated warehousing and order fulfillment processes.

Rising demand for such systems for the e-commerce sector is owing to factors such as faster delivery time, which allows warehouse and distribution centers to process orders quickly and accurately. Additionally, the growth in the e-commerce sector across the globe creates the demand for automated storage and retrieval systems for efficient material handling processes. For instance, according to a report by the International Trade Administration, the global B2B e-commerce sales are projected to grow at a CAGR of 14.4% from 2022 to 2027. Moreover, e-commerce offers scalability and flexibility, allowing warehouses to optimize space across various distribution centers and warehouses. All such factors drive the global automated storage and retrieval systems market growth.

RESTRAINING FACTORS

High Capital Initial Investment to Hinder the Market Growth

These AS/RS systems entail considerable capital investment for the installation and integration of hardware as well as software systems, as there are certain equipment, system design, civil engineering work, personnel training, and others that require high cost. This high upfront cost can be a significant barrier, especially for small and medium-sized enterprises (SMEs) or companies with limited budgets. The cost required for automated storage and retrieval systems ranges from USD 85,000 to USD 1,500,000. All such factors are restraints for the growth of global automated storage and retrieval systems demand.

Automated Storage and Retrieval Systems Market Segmentation Analysis

By Type Analysis

Unit Load Segment Dominated the Market Owing to Increasing Demand from Evolving Infrastructure

Based on type, the market is categorized into unit load, rack configuration, automated pallet, robotic, and others.

The unit load segment dominated the market in terms of revenue in 2023, owing to rising demand from various industries, including the automotive, manufacturing, e-commerce, and healthcare sectors. Unit load systems consist of mini load systems. Additionally, they require less space than other AS/RS models, which drives the market growth.

The rack configuration segment exhibited significant growth in 2023 and is set to maintain its growth rate during the forecast period. This is owing to the rising adoption of automated storage and retrieval systems among distribution centers, warehouses, and manufacturing facilities. This system is designed to store and retrieve loads of fixed racks either vertically or horizontally. It provides features such as maximizing storage capacity, improving inventory accuracy, and increasing the operational efficiency of the products.

Automated pallet and robotic system segments are projected to grow moderately during the forecast period, owing to factors such as growing demand for automation solutions in distribution centers and warehouses and increasing adoption of industry 4.0 practices among manufacturing facilities.

The others segment consists of vertical lift modules and carousel-based systems. This segment is projected to grow decently during the forecast period owing to these systems designed specifically for handling and storing palletized loads using advanced automation technology and robotic solutions. All such factors contributed positively to the global automated storage and retrieval systems market share.

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By Function Analysis

Storage and Retrieval Segment Dominated the Market Owing to Rising Penetration of Industry 4.0 Practices among End Users

Based on function, the market is segmented into assembly, storage and retrieval, kitting, distribution, and others.

The storage and retrieval segment dominated the market in terms of revenue in 2023, owing to increasing automation in all industry verticals, such as automotive, healthcare, and the e-commerce sector. This system includes products for storing and retrieving various types of loads, such as pallets, cases, and totes. It offers high-density storage and efficient inventory management.

The assembly segment grew significantly in 2023 and is projected to maintain its growth rate during the forecast period. These systems are designed specifically for use in assembly lines or manufacturing processes. They improve efficiency and reduce overall inventory and operational costs. This function is generally used in the aerospace, automotive, electronics, and machinery manufacturing sectors.

The kitting and distribution segment is projected to grow moderately during the forecast period, owing to its use in various industry verticals for efficient inventory management. It is designed to maximize vertical storage spaces, reduce manual labor, and eliminate potential errors during the manual picking and assembly process.

By Industry Analysis

Retail & E-commerce Sector Set to Observe Significant Growth Owing to Increasing Demand from E-commerce Sector

Based on industry, the market is segmented into automotive, food & beverage, retail & e-commerce, semiconductor and electronics, healthcare, general manufacturing, and others.  

The automotive segment dominated the market in terms of revenue in 2023. This is owing to the rising penetration rate of Industry 4.0 practices in the automotive industry and growth in warehouse automation, which fuels the global automated storage and retrieval systems market growth.

The retail & e-commerce segment is set to grow significantly during the forecast period. This is owing to rising demand for automated storage and retrieval systems from the e-commerce sector to enhance accuracy, efficiency, and speed in warehouse operations. Moreover, growth in the e-commerce sector, enhances the demand for such products for effective material handling, drives the growth of the global automated storage market.

The food and beverage segment will grow moderately during the forecast period, owing to systems equipped with temperature-controlled storage units that maintain the freshness and quality of perishable goods. It helps in maintaining inventory & reducing errors during the material handling process.

The semiconductor & electronics and healthcare segments grow moderately during the forecast period, owing to rising demand for such systems to maintain inventory and eliminate errors.

The general manufacturing segment is projected to grow decently during the forecast period, owing to rising demand for automation and cost reduction in warehouses and distribution centers, driving the market growth.

REGIONAL INSIGHTS

The market covers five major regions, mainly North America, Europe, Asia Pacific, the Middle East and Africa, and South America.

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North America dominated the market in 2023 in terms of revenue market share. This is owing to the technologically advanced manufacturing sector, rising demand for automation, and growth in the e-commerce sectors across the U.S., Canada, and Mexico. For instance, according to the report of the U.S. Census Bureau, the e-commerce sector growth in the U.S. grew by 7.5% in 2023 compared to 2022. In addition, the shortage of skilled labor and increasing labor costs in North America are incentivizing companies to invest in AS/RS systems to automate repetitive tasks and reduce reliance on manual labor. All such factors drive the growth of automated storage and retrieval systems in the market.

U.S. Set to Observe Significant Growth Due to Rising Automation in Warehouses and Distribution Centers

The U.S. is one of the largest markets owing to its robust manufacturing sector, extensive logistics networks, and rising automation in various warehouses and distribution centers to fuel the market growth. In addition, increasing the penetration rate of warehouse automation across the U.S. will provide lucrative opportunities for market growth. Additionally, the U.S. government planned to invest in the implementation of the AS/RS system, which creates the demand for various end users to drive market growth. For instance, in December 2023, Instock Inc. raised funding of around USD 6.2 million for developing AS/RS systems for various manufacturing sectors. This development consists of autonomous mobile robots and modular racking systems. All such factors drive the growth of the market.

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The Europe market will grow steadily during the forecast period, owing to the increasing adoption of automation in various industries and the need for efficient warehouse operations. The increasing adoption of Industry 4.0 and smart factory concepts, the need for labor optimization, and the growing demand for efficient inventory management are among the key drivers fueling the growth of the AS/RS market in Europe. In addition, growth in the e-commerce and automotive sectors enhances the demand for ASRs to drive market growth. For instance, according to a report by Germany-based Autovista Group, the car market in Germany observed growth of 18.1% in July 2022 compared to July 2021. Such growth in the automotive sector drives the market growth.

The Asia Pacific region grew significantly in 2023 and is expected to maintain its growth rate during the forecast period. This is owing to several factors such as the increasing adoption of automation in warehousing and logistics operations, the rise of e-commerce, and the need for efficient inventory management. China, Japan, India, South Korea, and Australia are among the major markets for AS/RS in the Asia Pacific region, with China being the largest market due to its massive manufacturing and logistics sectors.

Middle East & Africa and South America will grow decently during the forecast period, owing to rising demand from various end-users such as the automotive, healthcare, and food and beverages sectors. Additionally, expansion in the e-commerce sectors across Brazil, the GCC, and South Africa fuels the market growth.

List of Key Companies in Automated Storage and Retrieval Systems Market

Major Players Engaged in Adopting Various Strategies to Strengthen the Competitive Landscape

Key players such as Daifuku Co Ltd, Murata Machinery, Kion Group, Knapp AG, and Kardex Group, among others, are adopting acquisitions, product developments, and product launches as key strategic moves to gain an edge over competitors. For instance, in December 2023, Daifuku Co. Ltd opened a new testing facility in Shiga, Japan. This testing facility was completed with USD 9.5 million. The basic aim of this opening facility was to accelerate the development and testing of its latest automated storage and retrieval systems across North America, Europe, and Asia Pacific regions.

List of Key Companies Profiled:

• Daifuku Co. Ltd (Japan)


• Murata Machinery Ltd (Japan)


• Kion Group (Dematic) (Germany)


• Vanderlande Industries (Netherlands)


• Knapp AG (Austria)


• Toyota Industries Corporation (Bastian Solutions) (Japan)


• KUKA AG (Swisslog Holdings) (Germany)


• TGW Logistics Corporation (Austria)


• Kardex Group (Switzerland)


• Honeywell International Inc (U.S.)

KEY INDUSTRY DEVELOPMENT:

• March 2024: Dematic, a subsidiary of Kion Group, signed a partnership agreement with PepsiCo, which deals in the convenience food and beverages sector. The basic aim of this agreement was to install AS/RS systems in the production and logistics center at Rojana, Thailand. This system has a capacity of storing 16,520 pallets. This system has advantages such as reducing the number of forklift trucks, reducing accidents, and reducing injuries to people.  


• February 2024: Groupe Robert, based in Canada, signed a partnership with Dematic, a subsidiary of Kion Group. The partnership was established to open a new Quebec distribution center in North America. The facility is equipped with one of the tallest cranes, 130 feet for AS/RS systems, which support the fulfillment of frozen and fresh foods from highly controlled cold storage. These systems have a storage capacity of 60,000 pallets - 30,000 for fresh foods and 30,000 for frozen pallets.


• August 2023: Dematic, a subsidiary of Kion Group, signed a partnership with South West Healthcare, based in Victoria, U.S., that deals in providing healthcare-related services. The basic aim of the partnership was to bring automation to logistics operations. This system consists of installing an Autostore system to improve the healthcare product portfolio.    


• August 2023: Dematic, a subsidiary of Kion Group, installed a new pallet buffer system for Vectura AS, based in Norway, which deals with logistics companies for alcoholic beverages. This system is installed over 700 square meters. This system can store 460 pallets per hour and retrieve 150 pallets per hour.


• June 2023: Vanderlande Industries provides Fastpick solutions to VF Corporation, based in Ontario, California, and deals in footwear, apparel, and accessories enterprise. This machine can ship 485,000 pallets every day. This machine can handle 10,500 parcel orders every hour.

REPORT COVERAGE

The report provides an in-depth analysis of the dynamics of automated storage and retrieval systems in the industry and the competitive landscape. The report also provides market estimation and forecast based on type, function, industry, and region. It provides various key insights into recent industry developments in the market, such as mergers & acquisitions, macro and microeconomic factors, SWOT analysis, and company profiles.

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