The Automated Storage and Retrieval System (ASRS) Market was valued at USD 7.18 billion in 2019 and is expected to reach USD 9.16 billion by 2025, at a CAGR of 10.18% over the forecast period 2020

New York, Feb. 22, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automated Storage and Retrieval System (ASRS) Market - Growth, Trends, and Forecast (2019 - 2024)" - https://www.reportlinker.com/p05865813/?utm_source=GNW
18% over the forecast period 2020 - 2025. ASRS are most beneficial in warehouse applications. These systems save a large floor space, which is a crucial factor in warehouse operations. With the evolution of technology, the flow and control of materials have become better. The equipment offers better visualization, and the ability to handle variability, variety, and volume at higher speeds, thus, generating increased value.

- The workforce is a company’s greatest asset as productivity depends entirely on the well-being of its workforce. Hence, the safety of the workplace, which deals with the prevention of any injury or incident, becomes critical. The industrial automation offers a safe environment to the workers driving the growth for the ASRS market.
- The industries are focusing on gaining a higher cost realization by achieving higher efficiency and cost reduction in the overall operation. Labor wage is one of the large chunks of expense for any manufacturer. Hence, by adopting an automated storage and retrieval System, manufacturers gain efficient and cost-effective material handling solutions.
- The growing e-commerce retail industry across the globe is giving rise to the installation of warehouses and its management in the multiple regions for better and optimized logistics. The need for frequent, safe, and fast handling of packages in this sector is also fueling the growth for ASRS market globally.
- However, due to the lack of a skilled workforce and the concern of replacing manual labor is restricting the market growth to an extent; especially in developing countries like India and China where the cheap workforce is available.

Scope of the Report
The scope of the study for automated storage and retrieval systems market is limited to the hardware product systems offered by various vendors for their applications in a wide range of end-user vertical globally. The after sales services and maintenance are not considered for market estimation.

Key Market Trends
Retail Segment to Grow Significantly

- The retail industry has undergone drastic changes, with a significant number of countries witnessing a considerable growth rate. The competition faced by companies has made the industries improve their processes and become more efficient to cater to the customers’ needs.
- The purchasing pattern is shifting toward online shopping. Faster delivery channels and the strategic locations of distribution centers and warehouses are now necessities rather than an option. Given the trend of e-commerce, globally, the demand for ASRS is expected to increase in the retail industry during the forecast period.
- The growing retail industry across the globe is giving rise to the installation of warehouses and its management in the multiple regions. For instance, Costco Wholesale Corporation has been installing its warehouses every year with a consistent growth of 3-5%.
- Increased real estate cost around the existing facilities acts as a stimulus for the sectors to opt for these systems, as ASRS offers additional benefits, like optimum space utilization and increased control over inventory.

Asia-Pacific to Witness the Fastest Growth

- Depending upon the wage rate, productivity, and economy status, the demand for automated storage systems in different countries in Asia-Pacific is quite diverse. The increasing technological advancements have enabled the integration of ASRS without affecting the current operation, which is stressed with the rising demand from the e-commerce industry.
- Approximately 400 million people out of 632 million of the population with internet access participated in online shopping. E-commerce is expected to reach USD 1 trillion by the end of 2019. Grocery purchase is a new, emerging trend in online shopping.
- Many automotive companies are expanding their production plants in the region. For instance, Hyundai has planned to open a new factory in Indonesia for electric cars. Also, Tesla has acquired land in Shanghai, China, in 2018 for developing its new electric car factory. The new automotive plants will drive the demand for ASRS solutions in the region.
- In China, automation is occurring at a rapid rate, despite the wage rate being lower (as compared to the European nations and North America, since there has been an increase in wage rate for the past decade) and is expected to continue for the next decade.

Competitive Landscape
As the new entrant needs a high capital cost for the setup and a good understanding of the industries, the barrier to entry is high. Hence, the market for Automated Storage and Retrieval System (ASRS) is consolidated with the presence of major players like Daifuku and Murata Machinery. The existing players are also adopting merger and acquisition strategies to gain more market share.

- November 2019 - Mecalux partnered with Master Gift Import to install pallet racks and two blocks of compact racks with the Mecalux Pallet Shuttle system. The warehouse will be filled with pallet racks that will provide direct access to more than 27,000 pallets housed there. To ensure this, two blocks of high-density racks will also be installed and operated using the Pallet Shuttle system, where these racks will store more than 3,400 pallets.
- April 2019 - Daifuku Co., Ltd. announced the acquisition of India-based Vega Conveyors & Automation Private Limited. Vega is involved in the consulting, design, manufacture, installation and after-sales service of conveyors and other material handling equipment within its domestic Indian market.

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