Automated Storage and Retrieval System Market - By System Type (Unit Load Cranes, Mini Load Cranes, Robotic Shuttle-based, Carousel-based, Vertical Lift Module, Robotic Cube-based), By Application, By Industry & Forecast, 2024 – 2032

Automated Storage and Retrieval System Market - By System Type (Unit Load Cranes, Mini Load Cranes, Robotic Shuttle-based, Carousel-based, Vertical Lift Module, Robotic Cube-based), By Application, By Industry & Forecast, 2024 – 2032

Automated Storage and Retrieval System Market Size

Automated Storage and Retrieval System Market was valued at USD 8.5 billion in 2023 and is estimated to register a CAGR of over 8% between 2024 & 2032. The increasing occurrence of warehouse fatalities and injuries has spurred a growing demand for automated storage and retrieval systems. These technologies offer enhanced safety features, reducing the risks associated with manual operations.

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According to the U.S. Bureau of Labor Statistics, in 2022, the number of nonfatal occupational injuries and illnesses in the transportation and warehousing industry went up to 276,300. This rise in workplace accidents has drawn attention to the need for automated solutions to improve worker safety while optimizing efficiency.

The rising demand for labor efficiency is a key factor propelling the automated storage and retrieval system market. These technologies facilitate repetitive warehouse tasks, such as storage, retrieval, and transportation, reducing reliance on manual labor. By optimizing workforce utilization, businesses can lower operational costs, improve productivity, and maintain consistent performance levels. Additionally, automated storage and retrieval systems enable round-the-clock operations without the need for extensive human supervision, further enhancing efficiency and responsiveness to fluctuating demand patterns.

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The high initial investment required for implementing automated storage and retrieval systems can pose a significant barrier to market growth. While automated storage and retrieval system solutions offer long-term benefits, such as improved efficiency, space optimization, and labor savings, the upfront costs for purchasing equipment, software, and integration can be substantial. This financial barrier may deter some businesses, particularly Small & Medium-sized Enterprises (SMEs), from adopting automated storage and retrieval systems technology, limiting market expansion. However, advancements in technology and the potential for long-term cost savings may mitigate this challenge over time.

Automated Storage and Retrieval System Market Trends

The escalating demand for enhanced storage density supports the growth of the automated storage and retrieval system industry. With businesses seeking to optimize warehouse space utilization, automated storage and retrieval system solutions offer compact storage configurations, maximizing storage capacity within limited footprints. For instance, in October 2023, Hai Robotics introduced three new products aimed at enhancing storage density and performance in warehouses with limited space. These include the telescopic Grapple Hook ACR, HaiPick System 3, and HaiPick A42T-E2. The Grapple Hook ACR can integrate seamlessly with the HaiPick System 3, offering improved performance and storage efficiency. Together, these innovations provide a compact yet high-performing solution for warehouse automation.

The exponential growth of e-commerce is reshaping supply chain dynamics, necessitating efficient storage and order fulfillment solutions. Automated storage and retrieval systems are increasingly vital for handling surges in product volumes while maintaining operational agility. As consumer expectations for fast delivery intensify, businesses are compelled to invest in automated storage and retrieval system technology to optimize warehouse operations. This trend highlights the lucrative growth potential for automated storage and retrieval system providers as they cater to the evolving needs of the e-commerce-driven landscape.

Automated Storage and Retrieval System Market Analysis

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Based on application, the market is divided into assembly, distribution, kitting, order picking, and storage. In 2023, the storage segment accounted for a market share of over 30%. The utilization of warehouse floor space is fueling growth in the storage application segment. Automated storage and retrieval system solutions optimize vertical space, maximizing storage capacity without expanding the physical footprint. This capability allows businesses to efficiently store more inventory within existing warehouse facilities.

For instance, in February 2024, Skechers partnered with Hai Robotics for its new distribution center in Tokyo, Japan. The company implemented Hai's automated goods-to-person system to enhance warehouse efficiency, delivery speed, and order accuracy. Hai's solution optimizes storage, reducing real estate requirements, and can adapt to fluctuating demand, address labor shortages, and support future business expansion.

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Based on industry, the market is categorized into retail & e-commerce, healthcare, automotive, aerospace & defense, electronics & semiconductors, and metals & heavy machinery. In 2023, the retail & e-commerce segment accounted for a market share of around 25% and is projected to grow through 2032. The burgeoning demand for faster order fulfillment in the Retail & e-commerce industry is fueling the adoption of automated storage and retrieval systems. These systems streamline order processing by automating tasks, such as picking, packing, and shipping, reducing fulfillment times and enhancing customer satisfaction. Retailers recognize the importance of meeting consumer expectations for swift delivery, prompting investments in automated storage & retrieval system technology to optimize warehouse operations and ensure timely order processing, positioning them competitively in the fast-paced e-commerce landscape.

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North America dominated the global market with a major share of over 38% in 2023. The North America automated storage and retrieval system market is experiencing lucrative growth, driven by the rise of e-commerce and the focus on supply chain optimization. With the increasing demand for online shopping, these solutions are becoming crucial for handling high order volumes efficiently, enhancing warehouse productivity, and meeting consumer expectations for fast delivery. Moreover, ongoing technological advancements in robotics, Artificial Intelligence (AI), and data analytics are continuously improving automated storage and retrieval capabilities, making these systems more efficient, flexible, and scalable to address evolving market demands across various industries in the region.

In the Asia Pacific region, there's a noticeable surge in the adoption of automated storage and retrieval systems (ASRS) driven by the rapid growth of e-commerce, expanding manufacturing sectors, and increasing focus on warehouse optimization. With rising labor costs and the need for efficient logistics operations, businesses across various industries are embracing ASRS solutions to enhance productivity, streamline processes, and meet the demands of an evolving market landscape.

In Europe, particularly in France, Germany, and the UK, there's a pronounced inclination towards adopting automated storage and retrieval systems (ASRS) to address labor shortages, improve operational efficiency, and optimize warehouse space. With stringent regulations on labor and a growing emphasis on sustainability, businesses are turning to ASRS solutions to automate their logistics processes, reduce reliance on manual labor, and achieve greater sustainability in warehouse operations.

Automated Storage and Retrieval System Market Share

Daifuku Co. Ltd, Honeywell International Inc. and Knapp AG hold a significant market share of over 14% in the market. Daifuku Co. Ltd focuses on providing customized and integrated automated storage and retrieval solutions tailored to specific customer needs. It offers comprehensive services to deliver efficient & scalable systems that optimize operations and enhance productivity.

Honeywell International Inc. and Knapp AG’scompetitive strategy revolves around innovation and technological advancements. The company invests heavily in R&D to introduce cutting-edge automated storage and retrieval solutions that leverage advanced technologies such as robotics, AI, and IoT.
Automated Storage and Retrieval System Market Companies

Major players operating in the automated storage and retrieval system industry are

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

Automated Storage and Retrieval System Industry News

• In June 2023, Falcon Autotech introduced NEO, an advanced automated storage and retrieval system. Leveraging robotics, AI, and cutting-edge sensors, NEO streamlines goods storage and retrieval processes within warehouses. Comprising NEObots, NEOgrid, NEObins, NEOit, and NEOstations, this system utilizes an overlaid grid structure to optimize storage without complex engineering.
• In February 2023, Prozo introduced the Mini-Load ASRS, marking a significant milestone as the first 3PL company in India to integrate such advanced technology into its supply chain management services. This deployment represents a substantial step toward achieving 100% warehouse automation for Prozo.

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) and shipment (Units) from 2021 to 2032, for the following segments

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Market, By System 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

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

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Belgium
  • Russia
  • Sweden
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • Thailand
  • Vietnam
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA