Automated Storage and Retrieval System (ASRS) are warehouse automation systems consisting of computer-controlled racks, automated guided vehicles, cranes and conveyor belts for handling loads with high efficiency and productivity. ASRS allow efficient storage and retrieval of inventory items without humans. They are widely used in warehouses for storage and categorizing different types of products and inventory items. ASRS offer advantages like increased productivity, optimized use of warehouse space, reduced loading/unloading times, accuracy in order fulfillment and inventory tracking. With growing e-commerce sector and demand for faster delivery services, the need for efficient logistics and warehouse automation has been increasing significantly.
Market key trends:
One of the major trends driving the growth of Automated Storage and Retrieval System market is the growing adoption of Industry 4.0 technologies like IoT, AI and robotics in warehouse automation. Integration of ASRS with advanced technologies enables real-time monitoring, predictive maintenance, inventory optimization and analytics. This enhances operational efficiency and productivity multifold. Growing penetration of technologies like pick-by-light/put-to-light, voice picking and autonomous mobile robots is further revolutionizing ASRS operations. Transition towards automated fulfillment centers by major retailers and 3PL companies to meet rising e-commerce demand is also propelling the demand for advanced ASRS globally.
Threat of new entrants: Low capital requirement and technological advancements have lowered the threat of new entrants. However, established players have strong brand image and economies of scale.
Bargaining power of buyers: Large buyers have significant bargaining power due to the availability of substitutes. However, AS/RS offers advantages of improved space utilisation and productivity.
Bargaining power of suppliers: Major components such as racks, shuttles, control software etc are available from multiple global suppliers. This has reduced the bargaining power of suppliers.
Threat of new substitutes: Advancements in robotics and automation have increased threat from new substitutes. However, customisability and total cost of ownership provides competitive edge to AS/RS.
Competitive rivalry: Presence of numerous global and regional players have increased competitive rivalry. Focus on customisability, technology and services differentiation are some of the factors.
The Global Automated Storage And Retrieval System Market Demand is expected to witness high growth, exhibiting a CAGR of 7.1% over the forecast period, due to increasing emphasis on warehouse automation and optimized inventory management.
Regional analysis: Asia Pacific region dominated the global market in 2023 with a share of over 30%, owing to strong manufacturing activity and rapid industrialization in China, India and other emerging countries. North America and Europe are also major markets driven by strong demand from discrete and process manufacturing industries.
Key players operating in the Automated Storage And Retrieval System are Murata Machinery, Ltd., Honeywell Intelligrated, Bastian Solutions, Inc., Dematic, TGW Logistics Group, Daifuku Co., Ltd., KNAPP AG, Beumer Group, SSI Schaefer Group, and Kardex Group. Key players are focusing on development of Industry 4.0 compatible solutions to gain competitive advantage.
- Source: Coherent Market Insights, Public sources, Desk research
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