An Automated Storage and Retrieval System (ASRS) is a computer-controlled system used to automatically place and retrieve loads from specified storage locations. ASRS incorporates robots that continuously shuttle loads between storage racks and picking areas. The systems are designed to optimize warehouse space, maximize storage capacity, and shorten order picking times.
The global Automated Storage and Retrieval System Market is estimated to be valued at US$ 9833.58 Mn 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 Opportunity:
Reduced Operational Costs- Automated Storage and Retrieval Systems have the potential to reduce operational costs significantly by streamlining warehouse processes compared to conventional storage systems that rely on human labor. ASRS eliminate the need for additional hiring during peak seasons and optimize workforce deployment by automating the load handling and storage activities. They enable facilities to operate 24/7 with minimum staff requirement and cut costs related to health insurance, payroll taxes etc. associated with human labor. The systems pay for themselves through operational cost savings over the long term.
Porter's Analysis
Threat of new entrants: Low, as establishing an automated storage and retrieval system requires large capital investments and integrating advanced technologies.
Bargaining power of buyers: Moderate. Buyers can negotiate on prices and demand additional features as there are many system providers.
Bargaining power of suppliers: Moderate. Suppliers have bargaining power due to their technical expertise but switching costs are low.
Threat of new substitutes: Low as there are no close substitutes that provide same functionalities at scale.
Competitive rivalry: High due to presence of many global and regional players investing in innovations.
SWOT Analysis
Strengths: Increased productivity, reduced labor costs, improved inventory visibility and accuracy.
Weaknesses: High initial investments, complex integration with legacy systems, requires specialized maintenance.
Opportunities: Growth in e-commerce, need for automation in industries like food processing, pharmaceuticals.
Threats: Economic slowdowns reducing capital expenditures, trade wars increasing system costs.
Key Takeaways
The global Automated Storage And Retrieval System Market Demand is projected to reach $17832.68 million by 2030, registering a CAGR of 22%. North America accounts for over 30% share currently due to rapid e-commerce growth and factory automation. However, Asia Pacific is expected to overtake led by China, India, Japan due to rising industrialization and consumerism.
Regional analysis of APAC comprises China dominating with over 25% share with strong presence of key players like Murata Machinery expanding rapidly. Countries like India and Southeast Asian nations offer high growth potential with rising manufacturing and warehousing sectors.
Key players operating in the automated storage and retrieval system market 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. They are focused on innovations like robotics, AI, integrated software to develop customized, scalable solutions and gain market share.
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