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Global Automated Storage & Retrieval System Market Size, Trend & Opportunity Analysis Report, by Function (Assembly, Distribution), Vertical (Healthcare, Automotive), and Forecast, 2025–2035

Published Sep 28, 2025
Length 285 Pages
SKU # KAIS20696513

Description

Market Definition and Introduction

The global automated storage & retrieval system (AS/RS) market, valued at USD 6.53 billion in 2024, is projected to attain USD 16.02 billion by 2035, expanding at a CAGR of 8.5% during the forecast period (2025–2035). Today, AS/RS solutions across various industries are gaining popularity as enterprises seek to enhance warehouse efficiency, reduce labor dependence, and manage the increased complexities of e-commerce and manufacturing. These systems, which are smart enough to undertake material movement, storage, and retrieval with a high degree of accuracy, are redefining the working architecture of contemporary supply chains. With their functional application ranges from manufacturing floors to distribution hubs, AS/RSs have come to be recognized as key enablers toward improving inventory accuracy, space utilization, and throughput efficiency.

As the expectations for same-day delivery and just-in-time manufacturing are established as industry-wide norms, AS/RS solutions are regarded as strategic investments for maintaining competitive agility. Advanced robotics, AI control systems, and IoT-enabled monitoring allow enterprises to eliminate order fulfillment and production bottlenecks. The technology will enable businesses to achieve operational continuity while minimizing risks from human errors, labor shortages, and wage pressure, concerns that continuously trouble the global logistics and manufacturing landscapes.

With ongoing digital transformation initiatives in the industries, the acceleration in the AS/RS deployments is further supported. Both governments and enterprises have funded several smart factory projects and Industry 4.0 adoptions, where automated material handling stands as a crucial enabler of these transformations. Consequently, AS/RS has been discarding the reputation of being an exotic warehouse solution and fostering investment into strategic infrastructure for the future, acting as the basis for the data-driven, integrated, and hyper-responsive industrial ecosystems.

Recent Developments in the Industry

In February 2024, Daifuku introduced its latest series of automated storage systems for ultra-high-density storage in ambient and cold-chain environments, mainly targeted at the food, pharma, and retail sectors.

SSI Schaefer Expands European Presence with New Logistics Hub in Poland

In May 2024, SSI Schaefer opened a modern logistics hub in Poznań, Poland, to improve delivery capabilities and reinforce its position within the European market.

Honeywell Intelligrated Integrates AI-Powered Vision Systems into AS/RS

In September 2024, Honeywell Intelligrated unveiled AI-enabled vision inspection modules for its automated storage systems, aiming to improve accuracy and predictive maintenance in high-throughput environments.

Market Dynamics

Exponential Increase in Global E-Commerce to Drive Accelerated Adoption of AS/RS in Fulfillment Centers

The rapid growth of global e-commerce has accentuated the need for more automation in warehouses, wherein AS/RS has been made vital to ensure the accuracy and quickness of required order fulfillment. Retailers and logistics providers set up high-velocity, automated means of managing the wide SKU variability, reducing order cycle times, and efficiently managing seasonal demand peaks.

Boosting Labor Shortage and Wage Inflation: Encouraging Investment in Automation

One of the reasons why companies have been spending heavily on AS/RS systems is the continuing shortage of qualified labor in warehouses, coupled with increasing wage costs. AS/RS systems reduce dependency on labor in operations, yet provide the same operational continuity expected in an area where labor turnover disrupts continuity.

Integration Innovations of Industry 4.0 and Smart Factory Transforming the Capabilities of AS/RS

Integration of AS/RS with IoT, AI, and advanced analytics is enabling the creation of self-modeling warehouse environments that can act and resolve their problems. Predictive maintenance, real-time inventory monitoring, and adaptive routing will facilitate unprecedented efficiencies and flexibility within organizations.

Growing Demand for Space Efficiency in Urban Logistics Centers

Given the rapid rise in prices of land in cities, companies maximize cubic space through vertical storage solutions from AS/RS to have higher density configurations, allowing distribution of larger scales in a smaller physical footprint.

Feverishly Surging Investment by Cold Chain and the Healthcare Industry in AS/RS

The health and cold-chain businesses are massively drifting towards the adoption of AS/RS to provide product integrity, temperature compliance, and strict traceability standards, especially for products like pharmaceuticals, vaccines, and perishables.

Attractive Opportunities in the Market

E-commerce Expansion – Rising online retail volumes accelerate AS/RS demand for rapid order processing.
Cold Chain Growth – Temperature-controlled AS/RS adoption increases to maintain product quality.
AI and Robotics Integration – Intelligent automation improves speed, accuracy, and predictive capabilities.
Healthcare Modernization – Hospitals and pharma facilities deploy AS/RS for secure, efficient inventory control.
Automotive Assembly Optimization – Automated systems streamline parts storage and delivery in just-in-time manufacturing.
Compact Urban Warehousing – High-density storage addresses space constraints in metropolitan areas.
3PL Partnerships – Logistics providers adopt AS/RS to scale operations for diverse client portfolios.
Sustainability Goals – Energy-efficient systems reduce environmental footprint while boosting productivity.

Report Segmentation

By Function: Assembly, Distribution

By Vertical: Healthcare, Automotive

By Region: North America (U.S., Canada, Mexico), Europe (UK, Germany, France, Spain, Italy, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific), LAMEA (Brazil, Argentina, UAE, Saudi Arabia (KSA), Africa Rest of Latin America)

Key Market Players

Daifuku Co., Ltd., SSI Schaefer Group, Murata Machinery, Ltd., TGW Logistics Group, Swisslog Holding AG, Kardex Group, Bastian Solutions (Toyota Advanced Logistics), Vanderlande Industries, Honeywell Intelligrated, and Dematic Group.

Report Aspects

Base Year: 2024
Historic Years: 2022, 2023, 2024
Forecast Period: 2025-2035
Report Pages: 293

Dominating Segments

The distribution function has become the single largest application of automated storage and retrieval systems.

More fulfillment centers and logistics hubs are being automated to pick, sort, and dispatch. With thousands of orders being processed a day, distribution automation is becoming a major focus of companies for accuracy and speed.

The automotive segment is one of the largest users of AS/RS systems to foster just-in-time manufacturing.

The automotive sector is utilizing AS/RS technology to manage its parts and ensure that they get to the production line on time. These systems can greatly reduce downtime, enhance inventory accuracy, and help with lean manufacturing initiatives that are vital to automotive competitiveness.

Healthcare is another fast-growing vertical for AS/RS, ensuring regulated and safe storage of sensitive goods.

Hospitals, laboratories, and pharma producers have begun installing AS/RS systems to guarantee a secure storage environment for medical devices, medicines, and vaccines. Compliance pressures within the sector are demanding specialized AS/RS systems that also have environmental and access controls.

Key Takeaways

E-commerce Boom – Online retail drives rapid adoption of high-throughput AS/RS solutions.
Distribution Dominance – Fulfillment operations account for the largest AS/RS deployments.
Automotive Efficiency – Just-in-time manufacturing benefits from automated inventory handling.
Healthcare Compliance – AS/RS secures regulated goods in the medical and pharma sectors.
Smart Integration – AI, robotics, and IoT enhance operational precision.
Cold Chain Demand – Temperature-controlled AS/RS meets pharmaceutical and perishable needs.
Space Optimization – Vertical storage supports urban logistics challenges.
Global Expansion – Emerging markets accelerate AS/RS deployment in modern warehousing.
3PL Growth – Contract logistics providers scale with automation investments.
Sustainability Drive – Energy-efficient systems align with green supply chain goals.

Regional Insights

High Automation Rates and an Advanced Logistics Infrastructure Keep North America on Top

North America continues to actively head the global AS/RS market through its powerful ecosystem in e-commerce, extensive manufacturing industries, and increasing investments in warehouse automation. The extent of fulfillment automation among most retailers and logistics service providers in the United States is uncommonly high.

Europe Strengthening AS/RS Adoption thanks to Industry 4.0 Initiatives and Space-Efficient Warehousing

Europe's overall, more or less mature industrial base, supported by stringent environmental regulations, is probably going to drive the adoption of energy-efficient AS/RS solutions. The countries leading the additions of high-density automated facilities into their manufacturing, as well as distribution networks, are Germany, the UK, and the Netherlands.

Asia-Pacific is the fastest-growing market, resulting from the manufacturing and e-commerce growth.

AS/RS deployments are turning out to be the fastest growing in Asia because of the manufacturing bases being created across China, India, and Southeast Asia, and the boom in e-commerce across the region. Further supplementing the momentum of setting up these systems are government-sponsored smart industry initiatives and rapidly widening logistics networks.

Latin America and Middle East & Africa: Integrate AS/RS to Modernize Supply Chains

While this adoption is still in the very nascent stage of traction, Latin America and MEA are investing heavily in AS/RS for augmenting supply chain efficiencies while minimizing manual dependence and risk of falling short of international logistics standards. Automotive, retail, and pharmaceutical sectors lead in considerable investment in this regard.

Core Strategic Questions Answered in This Report

Q. What is the expected growth trajectory of the automated storage & retrieval system market from 2024 to 2035?

The global automated storage & retrieval system market is projected to grow from USD 6.53 billion in 2024 to USD 16.02 billion by 2035, registering a CAGR of 8.5% during the forecast period (2025–2035). This growth is driven by rising e-commerce volumes, manufacturing optimization needs, and increasing automation adoption across multiple sectors.

Q. Which key factors are fuelling the growth of the automated storage & retrieval system market?

Key growth drivers include surging e-commerce demand, labor shortages, Industry 4.0 integration, space optimization needs, and expansion in sectors like healthcare, automotive, and cold chain logistics.

Q. What are the primary challenges hindering the growth of the automated storage & retrieval system market?

Challenges include high upfront installation costs, complex integration requirements with existing systems, and the need for skilled personnel to operate and maintain advanced automation technologies.

Q. Which regions currently lead the automated storage & retrieval system market in terms of market share?

North America leads the market due to its advanced logistics infrastructure, large manufacturing base, and early adoption of warehouse automation, followed closely by Europe’s Industry 4.0-driven growth.

Q. What emerging opportunities are anticipated in the automated storage & retrieval system market?

Opportunities include AI-enabled automation, growth in temperature-controlled AS/RS, demand for urban warehousing solutions, and expansion of automation in emerging manufacturing and logistics markets.

Key Benefits for Stakeholders

The report offers a quantitative assessment of market segments, emerging trends, projections, and market dynamics for the period 2024 to 2035.
The report presents comprehensive market research, including insights into key growth drivers, challenges, and potential opportunities.
Porter's Five Forces analysis evaluates the influence of buyers and suppliers, helping stakeholders make strategic, profit-driven decisions and strengthen their supplier-buyer relationships.
A detailed examination of market segmentation helps identify existing and emerging opportunities.
Key countries within each region are analysed based on their revenue contributions to the overall market.
The positioning of market players enables effective benchmarking and provides clarity on their current standing within the industry.
The report covers regional and global market trends, major players, key segments, application areas, and strategies for market expansion.

Table of Contents

285 Pages
Chapter 1. Market Snapshot
1.1. Market Definition & Report Overview
1.2. Market Segmentation
1.3. Key Takeaways
1.3.1. Top Investment Pockets
1.3.2. Top Winning Strategies
1.3.3. Market Indicators Analysis
1.3.4. Top Impacting Factors
1.4. Application Ecosystem Analysis
1.4.1. 360’ Analysis
Chapter 2. Executive Summary
2.1. CEO/CXO Standpoint
2.2. Strategic Insights
2.3. ESG Analysis
2.4. Market Attractiveness Analysis (top leader’s point of view on the market)
2.5. Key Findings
Chapter 3. Research Methodology
3.1. Research Objective
3.2. Supply Side Analysis
3.2.1. Primary Research
3.2.2. Secondary Research
3.3. Demand Side Analysis
3.3.1. Primary Research
3.3.2. Secondary Research
3.4. Forecasting Models
3.4.1. Assumptions
3.4.2. Forecasts Parameters
3.5. Competitive breakdown
3.5.1. Market Positioning
3.5.2. Competitive Strength
3.6. Scope of the Study
3.6.1. Research Assumption
3.6.2. Inclusion & Exclusion
3.6.3. Limitations
Chapter 4. Industry Landscape
4.1. Market Dynamics
4.1.1. Drivers
4.1.2. Restraints
4.1.3. Opportunities
4.2. Porter’s 5 Forces Model
4.2.1. Bargaining Power of Buyer
4.2.2. Bargaining Power of Supplier
4.2.3. Threat of New Entrants
4.2.4. Threat of Substitutes
4.2.5. Competitive Rivalry
4.3. Value Chain Analysis
4.4. PESTEL Analysis
4.5. Pricing Analysis and Trends
4.6. Key growth factors and trends analysis
4.7. Market Share Analysis (2024)
4.8. Top Winning Strategies (2024)
4.9. Trade Data Analysis (Import Export)
4.10. Regulatory Guidelines
4.11. Historical Data Analysis
4.12. Analyst Recommendation & Conclusion
Chapter 5. Global Automated Storage & Retrieval System Market Size & Forecasts by Function 2024-2035
5.1. Market Overview
5.1.1. Market Size and Forecast By Function 2024-2035
5.2. Assembly
5.2.1. Market definition, current market trends, growth factors, and opportunities
5.2.2. Market size analysis, by region, 2024-2035
5.2.3. Market share analysis, by country, 2024-2035
5.3. Distribution
5.3.1. Market definition, current market trends, growth factors, and opportunities
5.3.2. Market size analysis, by region, 2024-2035
5.3.3. Market share analysis, by country, 2024-2035
Chapter 6. Global Automated Storage & Retrieval System Market Size & Forecasts by Vertical 2024–2035
6.1. Market Overview
6.1.1. Market Size and Forecast By Vertical 2024-2035
6.2. Healthcare
6.2.1. Market definition, current market trends, growth factors, and opportunities
6.2.2. Market size analysis, by region, 2024-2035
6.2.3. Market share analysis, by country, 2024-2035
6.3. Automotive
6.3.1. Market definition, current market trends, growth factors, and opportunities
6.3.2. Market size analysis, by region, 2024-2035
6.3.3. Market share analysis, by country, 2024-2035
Chapter 7. Global Automated Storage & Retrieval System Market Size & Forecasts by Region 2024–2035
7.1. Regional Overview 2024-2035
7.2. Top Leading and Emerging Nations
7.3. North America Automated Storage & Retrieval System Market
7.3.1. U.S. Automated Storage & Retrieval System Market
7.3.1.1. Function breakdown size & forecasts, 2024-2035
7.3.1.2. Vertical breakdown size & forecasts, 2024-2035
7.3.2. Canada Automated Storage & Retrieval System Market
7.3.2.1. Function breakdown size & forecasts, 2024-2035
7.3.2.2. Vertical breakdown size & forecasts, 2024-2035
7.3.3. Mexico Automated Storage & Retrieval System Market
7.3.3.1. Function breakdown size & forecasts, 2024-2035
7.3.3.2. Vertical breakdown size & forecasts, 2024-2035
7.4. Europe Automated Storage & Retrieval System Market
7.4.1. UK Automated Storage & Retrieval System Market
7.4.1.1. Function breakdown size & forecasts, 2024-2035
7.4.1.2. Vertical breakdown size & forecasts, 2024-2035
7.4.2. Germany Automated Storage & Retrieval System Market
7.4.2.1. Function breakdown size & forecasts, 2024-2035
7.4.2.2. Vertical breakdown size & forecasts, 2024-2035
7.4.3. France Automated Storage & Retrieval System Market
7.4.3.1. Function breakdown size & forecasts, 2024-2035
7.4.3.2. Vertical breakdown size & forecasts, 2024-2035
7.4.4. Spain Automated Storage & Retrieval System Market
7.4.4.1. Function breakdown size & forecasts, 2024-2035
7.4.4.2. Vertical breakdown size & forecasts, 2024-2035
7.4.5. Italy Automated Storage & Retrieval System Market
7.4.5.1. Function breakdown size & forecasts, 2024-2035
7.4.5.2. Vertical breakdown size & forecasts, 2024-2035
7.4.6. Rest of Europe Automated Storage & Retrieval System Market
7.4.6.1. Function breakdown size & forecasts, 2024-2035
7.4.6.2. Vertical breakdown size & forecasts, 2024-2035
7.5. Asia Pacific Automated Storage & Retrieval System Market
7.5.1. China Automated Storage & Retrieval System Market
7.5.1.1. Function breakdown size & forecasts, 2024-2035
7.5.1.2. Vertical breakdown size & forecasts, 2024-2035
7.5.2. India Automated Storage & Retrieval System Market
7.5.2.1. Function breakdown size & forecasts, 2024-2035
7.5.2.2. Vertical breakdown size & forecasts, 2024-2035
7.5.3. Japan Automated Storage & Retrieval System Market
7.5.3.1. Function breakdown size & forecasts, 2024-2035
7.5.3.2. Vertical breakdown size & forecasts, 2024-2035
7.5.4. Australia Automated Storage & Retrieval System Market
7.5.4.1. Function breakdown size & forecasts, 2024-2035
7.5.4.2. Vertical breakdown size & forecasts, 2024-2035
7.5.5. South Korea Automated Storage & Retrieval System Market
7.5.5.1. Function breakdown size & forecasts, 2024-2035
7.5.5.2. Vertical breakdown size & forecasts, 2024-2035
7.5.6. Rest of APAC Automated Storage & Retrieval System Market
7.5.6.1. Function breakdown size & forecasts, 2024-2035
7.5.6.2. Vertical breakdown size & forecasts, 2024-2035
7.6. LAMEA Automated Storage & Retrieval System Market
7.6.1. Brazil Automated Storage & Retrieval System Market
7.6.1.1. Function breakdown size & forecasts, 2024-2035
7.6.1.2. Vertical breakdown size & forecasts, 2024-2035
7.6.2. Argentina Automated Storage & Retrieval System Market
7.6.2.1. Function breakdown size & forecasts, 2024-2035
7.6.2.2. Vertical breakdown size & forecasts, 2024-2035
7.6.3. UAE Automated Storage & Retrieval System Market
7.6.3.1. Function breakdown size & forecasts, 2024-2035
7.6.3.2. Vertical breakdown size & forecasts, 2024-2035
7.6.4. Saudi Arabia (KSA Automated Storage & Retrieval System Market
7.6.4.1. Function breakdown size & forecasts, 2024-2035
7.6.4.2. Vertical breakdown size & forecasts, 2024-2035
7.6.5. Africa Automated Storage & Retrieval System Market
7.6.5.1. Function breakdown size & forecasts, 2024-2035
7.6.5.2. Vertical breakdown size & forecasts, 2024-2035
7.6.6. Rest of LAMEA Automated Storage & Retrieval System Market
7.6.6.1. Function breakdown size & forecasts, 2024-2035
7.6.6.2. Vertical breakdown size & forecasts, 2024-2035
Chapter 8. Company Profiles
8.1. Top Market Strategies
8.2. Company Profiles
8.2.1. Daifuku Co., Ltd
8.2.1.1. Company Overview
8.2.1.2. Key Executives
8.2.1.3. Company Snapshot
8.2.1.4. Financial Performance (Subject to Data Availability)
8.2.1.5. Product/Services Port
8.2.1.6. Recent Development
8.2.1.7. Market Strategies
8.2.1.8. SWOT Analysis
8.2.2. SSI Schaefer Group
8.2.3. Murata Machinery, Ltd.
8.2.4. TGW Logistics Group
8.2.5. Swisslog Holding AG
8.2.6. Kardex Group
8.2.7. Bastian Solutions (Toyota Advanced Logistics)
8.2.8. Vanderlande Industries
8.2.9. Honeywell Intelligrated
8.2.10. Dematic Group
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