Automated Storage and Retrieval Systems Market Report

Commercial equipment leasing and finance will keep growing as long as American firms increase their capital equipment investment. During its first phases, automated storage & retrieval systems usually incur significant installation training, and service costs. Small and medium warehouse owners are often discouraged from implementing AS/RS into their facilities due to the high costs, but increased support for equipment leasing, as demonstrated in European Law Faculties Association (ELFA) statistics, has allowed operators to obtain these systems in new ways. By leasing the equipment, distribution centres may benefit from the efficiency, quality control and lower operating costs of these systems while also seeing an immediate return on their investment. As a result, the ASRS market will see a rise in demand as equipment leasing in the sectors becomes more widely available.

However, the floor robots are expected to dominate the industry. The expanding usage of floor robots in the e-commerce industry, the growing requirement for floor robots for effective product delivery operations, and the growing need to optimise supply chain management all contribute to the largest share of this market. However, the vertical lift modules industry is expected to grow at the fastest rate throughout the forecast period. The retail industry's requirement for vertical lift modules for storage and picking applications, the growing demand for larger storage capacities, the rising need for efficient inventory management, and the rising number of VLM deployments by leading automated storage and retrieval systems are all factors that have helped in the segment's fast growth.

Industries need to adapt to the changes in their operations and processes due to the constantly shifting global market developments. Automobile, electronics, food and beverage, and e-commerce industries are experiencing significant market advancements, as a result, they want adaptable and scalable ASRS solutions to meet their present and future business demands. Storage capacity, height limitations, control technology, simplicity of maintenance, energy efficiency, and ease of integration with existing infrastructure are all requirements. However, due to the continuous evolving technology in the material handling ecosystem, manufactures have a problem in delivering a flexible and scalable solution. Furthermore, high initial costs pose a significant challenge for small to mid-sized enterprises with limited budgets in the automated storage and retrieval systems market. The intricate nature of ASRS technology requires specialized skills for installation, operation, and maintenance, which may not be readily available in all regions. Additionally, the evolving demands of sectors such as retail and healthcare for flexible and adaptable inventory solutions further complicate the adoption of ASRS systems.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In February 2024, Skechers USA, a major global footwear and apparel brand, collaborated with Hai Robotics, a prominent automated storage and retrieval systems (ASRS) provider, to enhance its new distribution center in Minato City, Tokyo. By implementing Hai’s advanced automated goods-to-person technology, Skechers aims to significantly boost operational efficiency, accelerate fulfilment processes, and improve order precision. This development highlights a growing trend in the ASRS market, emphasizing the increasing demand for sophisticated automation solutions to optimize warehouse management and logistics.

Furthermore, in May 2023, Nowaste Logistics, a leading Nordic 3PL provider and part of Dole Plc, partnered with Kardex to enhance their automation capabilities. To meet the needs of a new customer specializing in hobby materials, Kardex implemented a customized solution integrating Vertical Carousel Modules, Vertical Lift Modules, and the Kardex Color Pick System. This upgrade enabled Nowaste to double their operational efficiency, minimize storage footprint, and achieve rapid ROI, addressing key challenges in managing diverse customer portfolios.

The growth of the automated storage and retrieval systems (ASRS) market in North America is mainly due to e-commerce boost and necessity for better supply chain efficiency. Online shopping growth raises demand for ASRS solutions that handle a lot of orders, improve warehouse operations and help in faster delivery. Innovations in robotics, artificial intelligence (AI), and data analytics are constantly augmenting these systems’ capabilities, flexibility and scalability, often making them critical across different sectors in line with changing global market flexibility.

In the Asia Pacific region, the adoption of automated storage and retrieval systems (ASRS) is accelerating due to the booming e-commerce sector, growing manufacturing base, and an emphasis on warehouse efficiency. This shift is driven by escalating labour costs and the imperative for streamlined logistics. Companies are increasingly leveraging ASRS to boost productivity, optimize operations, and address the demands of a dynamic market. As businesses seek to enhance operational efficiency, ASRS solutions are becoming integral to meeting evolving market needs and managing logistics more effectively.