Automated storage and retrieval systems or AS/RS are computer-controlled systems used for automatically placing and retrieving loads from specified storage locations. They are commonly used in warehouses, distribution centers and industries like e-commerce, automobile, food & beverages and pharmaceuticals for improved order processing efficiency. AS/RS use robotic handling equipment to increase storage density and tracks goods-to-person picking for faster order fulfillment.
The global Automated Storage and Retrieval System Market is estimated to be valued at US$ 15 Billion in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The rapid growth of the automated storage and retrieval system market is attributed to increased adoption in the e-commerce industry. E-commerce giants are increasingly automating their warehouses with AS/RS to handle the surge in online orders volume and improve operational efficiency. AS/RS allow e-commerce companies to store up to four times greater volume of inventory in the same floor space and consolidate inventory picking to save on labor costs and shipping time. This is driving the demand for AS/RS worldwide. Additionally, AS/RS offer accuracy levels above 99.9% by eliminating human errors in order fulfilment. They ensure faster retrieval of goods, optimized inventory placement and reduced product damage compared to traditional shelving. The dual advantages of space optimization and order processing efficiency fuel the uptake of AS/RS across industries.
SWOT Analysis
Strength: Automated storage and retrieval systems provide enormous efficiencies in storage space utilization. They enable very high density storage of items without requiring an aisle for each storage bin. This maximizes the use of valuable warehouse space. Automated storage and retrieval systems also improve productivity through faster retrieval and storage of items compared to conventional shelving. The robotic systems ensure accurate placement of items in their designated storage locations with minimal errors.
Weakness: Setting up automated storage and retrieval systems requires substantial capital investments in physical infrastructure and technology. The mechanical and software components also need continuous maintenance and upgrades to optimize performance. Any downtime or technical glitches can disrupt warehouse operations. There is also a learning curve for workers to get familiar with the new systems.
Opportunity: E-commerce growth is driving increasing volumes of items needing to be stored and retrieved to fulfill online orders. This is creating more demand for automated solutions to efficiently handle the higher throughput. Automated storage and retrieval systems also enable gaining greater control over inventory through real-time visibility of stock levels and storage locations. This facilitates demand-driven replenishment and reduces out-of-stock costs.
Threats: Technological changes like robotics and artificial intelligence are rapidly evolving storage and logistics solutions. This could make existing automated storage technology less competitive over time if not continuously enhanced. Trade issues or an economic slowdown impacting sectors like retail and manufacturing can dampen capital investments in warehousing infrastructure upgrades.
Key Takeaways
The Global Automated Storage And Retrieval System Market Size is expected to witness high growth. Rapid adoption of e-commerce and need to optimize warehouse space and labor are driving increased deployment of automated solutions.
North America currently dominates the market owing to strong penetration of robotics in material handling across industries like retail and automotive in the region. Asia Pacific is projected to be the fastest growing market for automated storage and retrieval systems driven by expanding manufacturing and thriving e-commerce sectors in countries like China, India and Japan.
Key players operating in the automated storage and retrieval system market are Daifuku, SSI Schaefer Group, Murata Machinery, Knapp AG, TGW Logistics Group, Kardex Group, Swisslog Holding AG, Mecalux SA, Vanderlande Industries, System Logistics Corporation, Bastian Solutions, Beumer Group, and Dematic GmbH & Co. KG.
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