Growth of Semiconductor and Electronics Industry Has Spurred the Demand for Automated Storage and Retrieval Systems Globally

Distribution Operations in E-Commerce Industries are Being Optimized eith Reliable Automation Tools and Robotic As/Rs Based Picking Systems to Drive More Flexibility in Warehouse Operations in Automated Storage and Retrieval Systems Market during the Forecast Period 2021-2026. Automated Storage and Retrieval Systems Market Size is forecast to reach $10.7 billion by 2026, at a CAGR of 6.9% during 2021-2026.

Automated Storage and Retrieval Systems Market Size is forecast to reach $10.7 billion by 2026, at a CAGR of 6.9% during 2021-2026. The increasing technological advancements and the use of automated systems is enhancing the automotive industry. The acceleration of automotive industry is leading to the growth of automated storage and retrieval systems market. The growing automation in this sector is set to spur automated storage market. Further the key players operating in the global AS/RS market are adopting various strategies such as product launch, expansion, partnership, and acquisition to mark their presence in the global market. For instance, on December 2019, Dematic announced the partnership with Dot Foods on providing fully automated warehouse which will be fully operational by 2021.

Global B2C e-commerce has reached more than $2.5 trillion sales in 2020; rapid growth is projected in coming years as online shoppers are increasing day by day. AS/RS are very essential tools to be applied in warehouse or distribution centres for e-commerce-based Business-to-Consumer relations. Many automation equipment manufacturers are utilizing this opportunity from past decade and have contributed well in introducing more number of automated equipment`s with customizable features according to the business requirements. For instance Dematic, a supplier of intra-logistics systems for factories, warehouses and distribution centres, has introduced a suite of new solutions for retailers and wholesalers looking to optimize their e-Commerce order fulfilment capabilities. Dematic has designed multiple pick, pack and ship solutions to accommodate e-Commerce requirements, such as small order sizes, seasonal/promotional peaks in order volume and reduction in processing time. Further rising labour cost is strongly promoting the growth of AS/RS market. According to the Prologistix, in 2019, the hourly wages of the warehouse workers has increased by 6.9%. Also according to Bureau of Labour Statistics, it is found that the average increase in the year over year wages in the U.S accounts to be 2.7%. In the survey conducted for 16000 warehouse workers between Februarys to March, it was found that there is a rise in the hourly wages by $13.30 since 2012. Also, according to the Prologistix, the logistics unit of EmployBridge, it is found that 19,000 U.S. warehouse workers, rising to about 22,000 during peak season. As average hourly earnings will hike further amidst the rising global inflation with weekly hours to remain constant or decline in the coming years, the warehouse operating costs are bound to advance. Apart from this, the developing nations have seen a constant growth in the ageing workforce resulting in issues related to safety, quality control and productivity. Thus, the automation of warehouses has become a notable means to tackle the rising wages and workforce age. This has resulted in the warehouse operators to rely upon the automated material handling equipment to provide a convenient and efficient way of reducing the operational costs while simultaneously maintaining the productivity at optimum levels.

Automated Storage and Retrieval Systems market in North America region held significant market share of 40% in 2020. Automation has been the forefront in North American manufacturing sector. The rising infrastructure and industrial development allowed the automated storage system manufacturers to expand their penetration in these countries. The growing safety and control demand in industrial and manufacturing sectors in the U.S, Canada and Mexico will significantly propel the market for these systems. Further the growing wages will also result in a shift to automation in order to reduce the compensation provided to the workers in several end-user industries that are highly dependent on the workforce, such as manufacturing and retail, among others. North America is one of the largest markets for automated storage and retrieval systems (ASRS) in the world, led by the United States. The region's manufacturing sector, which is a huge source of demand for the ASRS solutions, hinges on the dominant US economy, which accounts for 82% of the region's economic output. Hence these factors are analyzed to drive the market growth in the forecast period 2021-2026.

Distribution centers and Warehouses continue to be under significant operational pressure and a frequent target for executives looking to reduce supply chain and logistics costs. Automation has been one of the key solutions after considering all the pressing issues of cost, labor, speed and efficiency. Industries have been proactive in adopting to the new era of robotics and automated equipment`s. The global warehouse robotics market has been significantly growing so are the other equipment’s such as AS/RS, conveyor systems and others. Low temperature cofired ceramic (LTCC) type materials are likely play a major role in some integrated systems containing MIMO antennas. Automatic Storage & Retrieval (AS/RS) systems in general have been in the market for several decades, these systems are generally used to manage full pallet loads. Evidently there are two types of these systems: the traditional mini-load AS/RS, a category which has seen significant improvements in recent years, and a new type of AS/RS system similar to mini-load AS/RS hey are also known as a Crane-less AS/RS. The mini-load AS/RS systems are mostly found in applications where smaller load sizes are used, such as in manufacturing and industrial applications. The increasing focuses on distribution have driven the manufacturers of these AS/RS systems to contribute Crane-less AS/RS systems for case picking and other applications. While there have been advances in the speed and flexibility of traditional mini-load AS/RS systems for case picking, the relatively large upfront cost of these systems and relatively low throughput capacity has in practice meant that their deployment in distribution applications has been minimal, further significant advancements in designs and engineering of these systems have made them much more feasible in distribution operations. There have been a few implementations of another version of AS/RS based case picking, mostly in Europe, in which the crane automatically moves a human order picker in some type of arrangement to a series of full pallet storage locations for case picking. The growing demand for AS/RS systems in various industries across different regions such as Europe, Americas and APAC is estimated to increase the market for AS/RS systems.

Major players in Automated Storage and Retrieval Systems include Beumer Group, Daifuku Co., Ltd., Dematic, Honeywell Intelligrated, Kardex Group, KNAPP AG, Murata Machinery, Ltd., SSI Schaefer Group, and TGW Logistics Group among others. In August 2020, Swisslog Holding AG, a global warehouse automation specialist, successfully planned, installed, and implemented a fully-automated retrieval solution for Mai Dubai, a leading Dubai-based bottled drinking water company. This has resulted the implementation of a fully automated and data driven intralogistics system that is in line with industrial revolution 4.0.