The automated storage and retrieval system (AS/RS) market is expected to witness a CAGR of 10.18% during the forecast period 2019-2024, according to a study published by Mordor Intelligence, Boston.
With the evolution of technology, today’s AS/RS offer better visualization and the ability to handle variability, variety and high volume at higher speeds.
- Labor wages are one of the bigger expenses for any manufacturers. Adopting an AS/RS helps food and beverage manufacturers gain efficient material handling solutions.
- The growing e-commerce retail industry across the globe prompts a rise in installation of warehouses to better manage multiple regions for better and optimized logistics. The need for frequent, safe and fast handling of packages also fuels growth for AS/RS market globally.
- However, 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 cheap workforce is available.
Retail segment is projected to significantly grow
- The retail industry has undergone drastic changes, with a significant number of countries witnessing a considerable growth rate. The competition forces companies to improve their processes and become more efficient.
- 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 AS/RS 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 management in multiple regions.
- Increased real estate cost around existing facilities acts as a stimulus for sectors to opt for AS/RS, which deliver additional benefits such as 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 AS/RS in different countries in Asia-Pacific is quite diverse. The increasing technological advancements have enabled the integration of AS/RS without affecting current operations, which is stressed with the rising demand from the e-commerce industry.
- Approximately 400 million people with internet access participate in online shopping. And, global food e-commerce sales are forecast to nearly triple through 2023, rising to $321 billion and accounting for nearly 5% of total e-commerce revenues, according to Packaged Facts, Rockville, Md.
- In China, automation is occurring at a rapid rate, despite the wage rate being lower (as compared to the European nations and North America), and is expected to continue for the next decade.