Automated Storage and Retrieval System Market Size - By Type (Unit Load Cranes, Mini Load Cranes, Robotic Shuttle-based, Carousel-based, Vertical Lift Module, Robotic Cube-based), Application, Industry Vertical, Regional Outlook & Forecast, 2023 - 2032

Automated Storage and Retrieval System Market Size

Automated Storage and Retrieval System Market size was valued at USD 8.1 billion in 2022 and is estimated to register a CAGR of over 8% between 2023 and 2032. The rising number of workplace fatalities in warehouses has intensified the urgency for safer, automated solutions. Automated storage and retrieval systems reduce the need for manual labor, minimizing the risks associated with accidents. According to the U.S. Bureau Of Labor Statistics, around 46 workplace fatalities, injuries & illnesses occur per 100 full-time workers. These statistics have heightened awareness of workplace safety and prompted companies to seek advanced technologies to protect their workers, accelerating the adoption of automated storage and retrieval systems.
 

Automated storage & retrieval systems offer numerous benefits to warehouse facilities and the market. They optimize storage space, maximizing efficiency by effectively utilizing vertical space. Automated storage & retrieval systems minimize human intervention, reducing labor costs, enhancing accuracy, and ensuring a safer work environment. These systems enable rapid retrieval, speeding up order fulfillment and improving customer satisfaction. These solutions also support sustainability efforts by reducing energy consumption and waste. Overall, these advantages are driving the automated storage and retrieval system market growth while revolutionizing warehouse operations through increased productivity and profitability.

The high initial investment required for automated storage and retrieval systems often poses a significant challenge for businesses. The substantial cost involved in purchasing, installing, and integrating automated storage & retrieval system technology into existing warehouse infrastructure can strain financial resources, particularly for small- & medium-sized enterprises. This financial hurdle may deter companies from adopting automated storage and retrieval systems, hindering their ability to benefit from the system's efficiency and productivity gains.
 

COVID-19 Impact

The COVID-19 pandemic accelerated the adoption of automated storage and retrieval systems as businesses sought to enhance efficiency and safety in their operations. With social distancing measures and labor shortages, companies turned to automation to maintain productivity. E-commerce experienced a surging demand, further boosting the need for automated storage and retrieval systems in fulfillment centers. The pandemic underscored the importance of resilient supply chains, driving investments in advanced warehouse automation and positively impacting the market.
 

Automated Storage and Retrieval System Market Trends

The surging demand for e-commerce warehouse facilities has become a major factor propelling growth in the automated storage and retrieval system industry. E-commerce businesses, striving for efficient operations and rapid order fulfillment, are increasingly investing in automated storage & retrieval system technology. For instance, in August 2023, In space, a prominent owner and operator of last-mile logistics parks in South Africa, transformed a conventional warehouse property in Cape Town into an e-commerce fulfillment and outsourced warehouse facility. This conversion was a response to the increasing demand for such services. The need to meet the escalating demands of online retail has driven the adoption of automated storage and retrieval systems, creating a thriving market for these solutions.
 

The emphasis on space utilization is a significant factor driving growth in the automated storage and retrieval system market. As available warehouse space becomes increasingly expensive, businesses are focusing on maximizing storage efficiency. Automated storage and retrieval system solutions excel in this area, utilizing vertical space effectively. By automating vertical storage and retrieval processes, these systems optimize warehouse layouts, enabling companies to store more products in a smaller footprint. This emphasis on efficient space utilization has spurred the adoption of automated storage and retrieval systems, propelling the market forward.
 

Automated Storage and Retrieval System Market Analysis:

Based on application, the storage segment accounted for 25% of the market share in 2022. The continuous innovation in automated storage and retrieval system solutions, specifically focusing on enhancing storage density, is driving the storage application segment growth. These advancements enable businesses to effectively optimize warehouse space, accommodating more items in limited areas.
 

For instance, in October 2023, Hai Robotics introduced a unique telescopic ACR, the all-new HaiPick A42T-E2, along with the HaiPick System 3. These innovations boost storage density and performance in a smaller warehouse space. The telescopic Grapple Hook ACR seamlessly integrates with the HaiPick System 3, forming a synergy that enhances storage density and significantly improves the overall operational performance. The evolution of automated storage and retrieval system technology in maximizing storage density propels its adoption, making it a crucial component in modern warehouse management strategies.
 

Based on industry vertical, the retail & e-commerce segment held over 29% of the automated storage and retrieval system market share in 2022. Efficient order fulfillment, a key factor propelling the retail & e-commerce industry in the automated storage and retrieval systems market, ensures swift and accurate processing of customer orders.
 

Automated storage and retrieval system technology automates the retrieval of products, reducing human errors and the time required to pick & pack items. Real-time inventory tracking and intelligent order processing optimize the workflow, allowing businesses to fulfill customer requests swiftly. This efficiency enhances customer satisfaction and enables retailers to handle a large volume of orders seamlessly, fostering growth and loyalty in the competitive e-commerce landscape.
 

North America automated storage and retrieval system market recorded more than 38% of revenue share in 2022. The integration of sophisticated robotics, Internet of Things (IoT) capabilities, and Artificial Intelligence (AI) algorithms has revolutionized warehouse automation. These innovations enhance the efficiency, speed, and precision of automated storage & retrieval systems during operations. Real-time data analytics optimize inventory management, predicting demand patterns and minimizing errors. Moreover, AI-driven predictive maintenance ensures system reliability. The rapid adoption of cutting-edge technologies in automated storage and retrieval system solutions future-proofs businesses while significantly elevating operational productivity and competitiveness in the dynamic North American market.
 

Automated Storage and Retrieval System Market Share

Major companies operating in the automated storage and retrieval system industry are:

• Bastian Solutions, LLC
• Daifuku Co. Ltd
• Dematic (Kion Group AG)
• Honeywell International Inc.
• IHI Corporation
• Kardex Group
• Knapp AG
• KUKA AG
• Murata Machinery Ltd
• Schaefer Systems International Pvt Ltd

Daifuku Co. Ltd and Knapp AG are dominating the automated storage and retrieval system industry. The major companies operating in the market continually invest in research and development to enhance their system capabilities. This includes developing more efficient and flexible solutions, improving integration with other warehouse technologies, and incorporating advanced features such as robotics and artificial intelligence.
 

Automated Storage and Retrieval System Industry News

• In June 2023, Falcon Autotech, a provider of intralogistics automation solutions, introduced NEO, an Automated Storage and Retrieval System (ASRS). NEO utilizes robotics, artificial intelligence, and advanced sensors to automate the storage & retrieval processes of goods, showcasing a significant advancement in warehouse automation technology.
   
• In November 2021, Honeywell International Inc. launched an innovative automated storage & retrieval system by integrating artificial intelligence and machine learning. This advanced technology enables warehouse & distribution center operators to effectively manage the surge in e-commerce demand, ensuring seamless operations amid unprecedented growth in online retail.
   

The automated storage and retrieval system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Type

• Unit load cranes
• Mini load cranes
• Robotic shuttle-based
• Carousel-based
• Vertical lift module
• Robotic cube-based

Market, By Application

• Assembly
• Distribution
• Kitting
• Order picking
• Storage
• Others

Market, By Industry Vertical

• Retail & e-commerce
• Healthcare
• Automotive
• Aerospace & defense
• Electronics & semiconductors
• Metals & heavy machinery
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia