The automated storage and retrieval system (ASRS) is a computer- and robot-assisted system that retrieves or stores goods in particular places. The system typically consists of pre-set locations where machines follow predefined paths to retrieve items. These systems handle various amounts and types of non-palletized inventory at varying speeds to meet varying processing requirements. ASRS is very useful in warehouse operations. These systems save a lot of floor space, which is important in warehouse operations. Hence, ASRS is being used in several sectors such as automotive, e-commerce, food and beverage, retail, pharmaceutical, and manufacturing to optimize space, enhance accuracy, productivity, and efficiency in the supply chain process. Owing to such factors, ASRS was valued at $7.4 billion in 2018 and is expected to reach $14.6 billion in 2025, growing at a CAGR of 10.3% during the forecast period (2019–2025).
Key Drivers of the Automated Storage and Retrieval System Market
Use of ASRS in the Retail Industry and E-Commerce
The retail and e-commerce industries are one of the major industries that are significantly focusing on automated solutions to leverage their operational capabilities. In these industries, an ASRS not only regulates SKU (stock keeping unit) demand fluctuations, but it also accelerates the fulfillment process, helping e-commerce and omnichannel enterprises to meet order delivery dates. This, in turn, increases client loyalty as well as companies’ revenues. Owing to this, various companies are including ASRS in their operations. For instance, in May 2022, The ZigZag Stripe, an online apparel boutique, selected the Infinity ASRS, a warehouse automation solution by Opex.
Integration of AI with ASRS
Artificial intelligence (AI) integration in ASRS informs workers when inventory is ready to expire and prioritizes shipments on a first-in, first-out basis, which reduces spoiling of items. It is a huge benefit for warehouses that handle cold-chain items such as vegetables, dairy, medicines, and even machine components where corrosion is a concern.
Honeywell International Inc. is the key provider of ASRS integrated with AI. In November 2021, the company launched its ASRS, which combined AI. Honeywell states that its ASRS can manage up to 20,000 SKUs while increasing throughput by 40% over manual picking procedures. This is accomplished by high-speed shuttles that are equipped with AI to optimize different parts of picking operations.
Growth of Warehouse
The growth of warehouse is expected to drive demand for ASRS as companies look for ways to optimize their operations, reduce costs, and improve efficiency. For instance, according to China’s Ministry of Commerce, in 2020, the number of offshore warehouses constructed by Chinese companies for cross-border e-commerce increased by 80%.
Investments in Warehouse Automation
The growth of automation in warehouses, logistics, and other operations in several industries is another factor that drives the market significantly. For instance, in April 2022, Amazon formed the Amazon Industrial Innovation Fund (AIIF), a $1 billion venture investment program that will be used to spur supply chain, fulfillment, and logistics innovation, with a special focus on automation and workplace robotics. Similarly, in 2021, Walmart announced a $14 billion investment plan with a focus on automation, supply chain, and other technological advancements in its operations, including warehouses.
Expansions and Innovations by Major Market Players
The ASRS market has significant contributors such as KUKA AG, KION Group, Murata Machinery, Ltd., TGW Logistics, Inc., Toyota Industries Corp., Daifuku Co., Ltd., Kardex Group, Honeywell International, Inc., Schaefer Systems International, Inc., and TGW Logistics Group, among others. These players assist in the market’s growth with the launch of new and innovative ASRS, collaborations, and investments. Some of the recent developments in the market include-
• In February 2023, Prozo, India's fastest-growing 'full-stack' supply chain startup, set new automation milestones with the introduction of the Mini-Load ASRS. Prozo has become the first 3PL business in India to integrate such advanced technology into its supply chain management services, taking another step toward 100% warehouse automation.
• In April 2022, Signode, the world's leading provider of automated packaging equipment, consumables, tools, packaging automation, and warehouse automation systems, showcased a wide range of innovative automation innovations at MODEX. The company launched an updated version of its StorFast ASRS system. The system now operates at double speed and offers improved control of the robotic carts for acceleration and deceleration.