According to Stratistics MRC, the Global Automated Storage and Retrieval Systems Market is accounted for $7.95 billion in 2021 and is expected to reach $14.71 billion by 2028 growing at a CAGR of 9.2% during the forecast period. Automated storage and retrieval systems (ASRS) are a major part of many warehouse automation systems that have the ability to sort, sequence, buffer, and store a wide range of goods into virtually unlimited destinations. It mainly comprises of storage and retrieval machines, rack structure, conveyor interface, and warehouse control system. ASRS has a wide range of applications in warehouses and distribution centers such as finished goods storage, goods to person picking, order fulfillment and many more. Apart from all this, it also helps in managing all the functions of automated equipment and tracking load movements in and out of the system.
Driver: Rising demand for ASRSs in e-commerce industry
The e-commerce industry is experiencing a boom owing to the unprecedented rise in the number of online shoppers post the outbreak of COVID-19. The enforcement of social distancing norms, lockdowns, and other measures in response to the COVID-19 pandemic has led consumers to opt for online shopping. This has resulted in a spike in business-to-consumer (B2C) sales as well as an increase in business-to-business (B2B) e-commerce. The increase in B2C sales is particularly evident in online sales of pharmaceuticals, household goods, and food. However, such huge growth in the e-commerce industry has exerted immense pressure to deliver items on time. In the current scenario, the e-commerce industry is continuously under the pressure of procuring and delivering a huge number of articles within the stipulated time; thus, e-commerce companies have adopted automation in their facilities. The most efficient way to process orders is to use mini loads or shuttles, which bring a case or tote to a goods-to-operator (GTO) picking station. Most distribution centers operate on the principle of operator-to-goods (OTG), wherein the operator must travel to get the product. ASRS, usually a mini load or shuttle system, can automatically bring the product to the operator. By eliminating the travel time, the operator becomes 25% more efficient in a highly dense batch-pick environment and up to 75% or more in a large distribution center (DC) with single-order picking across long distances. ASRSs used in the e-commerce industry can manage a diverse mix of product stock keeping units (SKUs), large SKU ranges, and lead time. This allows e-commerce companies to fulfill the growing consumer demand in an efficient way.
Restraint: Large initial investments for new perforate
ASRS is a highly profitable automation system to be used in warehouses; however, the initial installation of ASRS requires a huge capital investment. Pre-purchase analysis of supply chain and inventory management is required before the actual purchase of the system. The implementation of ASRS involves the installation of racks, automated systems, and software. This entire system incurs a heavy cost. Setting up this system has to be accurate, and thus requires skilled labor. In addition, companies often experience significant ongoing costs for maintaining and updating various subsystems. Making such huge investments is difficult for small and medium-sized enterprises.