April 18, 2024

Automated Storage and Retrieval System Market is driven by Rising E-commerce Industry

The automated storage and retrieval system is used to store and retrieve inventory items such as raw materials, work-in-progress, and finished products in various manufacturing, distribution, retail, and warehouse environments. Automated storage and retrieval systems help to efficiently store and retrieve a large number of inventory items using computer-controlled robotic cranes or shuttle vehicles. Automated storage and retrieval systems help businesses reduce labor costs, improve inventory accuracy, maximize the use of valuable warehouse space, and shorten product retrieval times compared to conventional storage racks.

The global automated storage and retrieval system market is estimated to be valued at US$5.7 billion in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The growth of online shopping has created pressures on warehousing and fulfillment operations to improve productivity and efficiency. Automated storage and retrieval systems help e-commerce companies and their third-party logistics providers to maximize storage space, reduce product retrieval times, improve order fulfillment accuracy, and meet rising customer expectations of fast delivery. The ability of automated systems to pick, sort, store, and retrieve large volumes of stock in a compact space is fueling their adoption in the e-commerce sector. E-commerce companies are integrating automated storage and retrieval systems in their fulfillment centers to support their expansion plans and scaling up of operations.

Porter’s Analysis
Threat of new entrants: The automated storage and retrieval system market has moderate threat of new entrants. High capital requirement and technological expertise creates entry barriers.

Bargaining power of buyers: Buyers have moderate bargaining power as there are several established players in the market offering automated systems. However, presence of substitutes increases buyers leverage.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to differentiated products and availability of substitutes. Swapping of components is easy for buyers.

Threat of new substitutes: Threat of substitutes is moderate as manual warehouses provide cheaper alternatives. However, automated systems offer benefits of productivity, higher storage capacity and accuracy.

Competitive rivalry: The market has strong competitive rivalry among major global players. Companies focus on differentiation through technological innovation, quality and cost competitiveness.

Key Takeaways
The Global Automated Storage And Retrieval System Market Size is expected to witness high growth during the forecast period.

Regional analysis comprising the automated storage and retrieval system market in Asia Pacific region is also expected to grow at a fastest pace during the forecast period. Countries like China, Japan and India are witnessing increasing adoption of automated systems due to growing e-commerce industry and need for operational efficiency.

Key players operating in the automated storage and retrieval system market are Daifuku Co., Ltd., SSI Schaefer Group, Murata Machinery, Ltd., Knapp AG, TGW Logistics Group GmbH, Kardex Group, Swisslog Holding AG, Mecalux S.A., Vanderlande Industries BV, System Logistics Corporation, Bastian Solutions, Inc., Beumer Group, Dematic GmbH & Co. Kg, and Witron Logistik + Informatik GmbH.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it