USA Automated Storage and Retrieval Systems Market Outlook to 2028

USA Automated Storage and Retrieval Systems Market Overview

In recent years, the USA automated storage and retrieval systems market has experienced substantial growth, this is reflected by the global automated storage and retrieval systems market reached a valuation of USD 8.77 billion in 2023.

The key players in the USA automated storage and retrieval systems market include companies such as Dematic, Daifuku Co., Ltd., Honeywell Intelligrated, Swisslog Holding AG, and Murata Machinery, Ltd. These companies are leaders in providing innovative ASRS solutions, offering a wide range of systems tailored to meet the needs of various industries.

In 2023, Honeywell Intelligrated announced the launch of its new AI-driven ASRS solution, which significantly improves the efficiency and accuracy of order fulfillment processes. This development underscores the ongoing innovation within the market and highlights the importance of advanced technologies in driving growth.

The state of California dominates the USA automated storage and retrieval systems market, primarily due to its large number of warehouses and distribution centres. The high demand for automation in these facilities, coupled with the state's strong technology infrastructure, has driven the widespread adoption of ASRS solutions.

USA Automated Storage and Retrieval Systems Market Segmentation

The USA automated storage and retrieval systems market can be segmented based on several factors. Like Product, Industry, and Region.

By Product Type: The USA automated storage and retrieval systems market is segmented by product type into Unit Load ASRS, Mini Load ASRS, Vertical Lift Modules (VLMs), and Carousel-based ASRS. In 2023, Unit Load ASRS dominated the market due to their ability to handle large and heavy loads, making them suitable for industries such as automotive and aerospace. These systems are designed to store and retrieve palletized loads, offering high-density storage and efficient space utilization.

By Industry: The USA automated storage and retrieval systems market is segmented by industry into Automotive, Food & Beverage, Retail, Pharmaceuticals, and Electronics. In 2023, automotive dominated the market, driven by the need for efficient inventory management and just-in-time (JIT) manufacturing processes. ASRS systems help automotive manufacturers streamline their supply chains and reduce lead times.

By Region: The USA automated storage and retrieval systems market is segmented by region into North, South, East, and West. In 2023, north region dominated the market due to the presence of large distribution centres and manufacturing hubs. The demand for efficient storage solutions in these industrial areas has driven the adoption of automated storage and retrieval systems market

USA Automated Storage and Retrieval Systems Market Competitive Landscape

Company

Establishment Year

Headquarters

Dematic

1819

Atlanta, Georgia, USA

Daifuku Co., Ltd.

1937

Osaka, Japan

Honeywell Intelligrated

2001

Mason, Ohio, USA

Swisslog Holding AG

1900

Buchs, Aargau, Switzerland

Murata Machinery, Ltd.

1935

Kyoto, Japan

In 2024, Murata Machinery, Ltd. introduced a new robotic ASRS system designed to handle hazardous materials in the pharmaceutical and chemical industries. This innovation addresses safety concerns and ensures compliance with regulatory requirements, showcasing the adaptability of ASRS technology.

Swisslog Holding AG announced a partnership with Walmart company in 2023 to implement an advanced ASRS solution in their new distribution center. This initiative is part of Walmart's broader strategy to create a more resilient and transparent supply chain, with the new system aiming to handle significant volumes of orders to meet consumer demand​

USA Automated Storage and Retrieval Systems Industry Analysis

USA Automated Storage and Retrieval Systems Market Growth Drivers:

E-commerce Expansion: The U.S. e-commerce market experienced significant growth from $281.58 billion in Q4 2021 to $299.12 billion in Q4 2022, marking an increase of 6.2%. This growth is driven by the rising demand for efficient inventory management and rapid order fulfilment, necessitating the adoption of Automated Storage and Retrieval Systems (ASRS) in e-commerce warehouses and distribution centres.

Labor Shortages: The specific employment figure for warehousing and storage was reported at 1,771,500 in June 2024, reflecting a 2.3% decrease from June 2023. This ongoing labour shortage has accelerated the adoption of automation technologies, including ASRS, which help mitigate the impact by automating repetitive tasks and reducing the reliance on manual labour.

Innovations in ASRS Systems: The integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML) into ASRS systems has significantly enhanced their efficiency and accuracy. According to the U.S. National Institute of Standards and Technology (NIST), the implementation of AI in ASRS can improve order picking accuracy by up to 99.5%.

USA Automated Storage and Retrieval Systems Market Challenges:

High Initial Investment Costs: The high upfront costs associated with implementing automated storage and retrieval systems solutions pose a significant barrier for small and medium-sized enterprises (SMEs). The average cost of installing an ASRS system ranges from USD 500,000 to USD 5 million, depending on the system's complexity and size. This substantial investment can be prohibitive for smaller businesses with limited capital.

Integration Complexities: Integrating automated storage and retrieval systems (AS/RS) with existing warehouse management systems (WMS) and enterprise resource planning (ERP) systems can be challenging. This complexity arises due to the need for seamless communication between different software platforms, ensuring that data flows accurately and efficiently.

USA Automated Storage and Retrieval Systems Market Government Initiatives:

Department of Energy's (DOE) Smart Manufacturing Innovation Institute: The DOE's Clean Energy Smart Manufacturing Innovation Institute (CESMII), part of the Manufacturing USA network, focuses on advancing smart manufacturing technologies, including automated storage and retrieval systems (ASRS). CESMII aims to enhance the integration of these systems into manufacturing processes to improve efficiency and reduce costs. The institute has received renewed funding, including an initial $6 million, with potential for further funding over the next four years, totalling up to $60 million when combined with industry contributions

Advanced Manufacturing Partnership (AMP) 2.0: The U.S. government continued its AMP 2.0 program in 2024, investing USD 500 million to promote the adoption of advanced manufacturing technologies. This program supports the integration of ASRS in manufacturing facilities to improve production efficiency and supply chain management.

USA Automated Storage and Retrieval Systems Future Market Outlook

The USA automated storage and retrieval systems market is expected to grow significantly by 2028, along with a respectable CAGR during the period of 2023-2028, driven by increasing technological advancements and expansion of e-commerce.

Future Market Trends:

Increased Adoption of AI and Machine Learning: Over the next five years, the integration of AI and machine learning in ASRS systems is expected to become more widespread. These technologies will enable predictive maintenance, optimizing system performance and reducing downtime. According to a report by NIST, AI-driven ASRS solutions are projected to substantially reduce operational costs by 2028.

Growth in Omnichannel Retailing: The rise of omnichannel retailing will drive the adoption of ASRS systems in fulfilment centres. Retailers are increasingly investing in ASRS to manage inventory across multiple channels and ensure quick and accurate order fulfilment. The U.S. Census Bureau projects a significant increase in the number of omnichannel retailers using ASRS by 2028, driven by the need for seamless integration of online and offline sales channels.
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