Latin America & Africa Automated Storage Retrieval Systems Market size was valued at $862.9 million in 2020, and it is estimated to grow at a CAGR of 5.5% during 2021-2026. Growing implementation of material handling solutions in industries have provided opportunities for storage and material handling systems systems mainly vertical modules which drives the market in near future. Vertical lift modules are ideally suitable for storing and picking small parts in assembly plants of various industries and this further boosts the demand for Latin America & Africa Automated Storage Retrieval Systems industry. Emerging out of the high initial cost of AS/RS is the need to make profits. The costs for these vertical lift module (VLM) systems have come down significantly in the recent years but are not enough to convince the small and medium logistic operators to compel them to install it. Also, the AS/RS return on investment (ROI) generally lies in the period of 5 to 7 years which deters market significantly. In long-term, the AS/RS prove to be a significant value addition product by providing several advantages over a manual labor in terms of operating costs and productivity but the initial skepticism associated with AS/RS ROI still looms over the strategies of operators, thus acting as a hindrance to the market emergence.
Latin America and Africa Automated Storage and Retrieval Systems Market Segment Analysis – By Type
The Vertical lift module (VLM) segment has held significant market share of 35.1% in the forecast period as it is designed to deliver stored items to the operator by eliminating walk and search time. In addition, this module also increases productivity up to 67% and saves up to 85% of the floor space. Unit load AS/RS systems are majorly used for handling exceptionally large and heavy loads ranging from 1,000 to 5,000 pounds. Unit load AS/RS is mainly helpful when pallet level storage is limited and quick retrieval is critical as they are bigger systems. Increased labor cost and space requirements have created demand for the adoption of unit-load AS/RS which set to drive the market. Moreover, these systems can be used in collaboration with other material handling solutions including conveyors, robotic work stations and Automated Guided Vehicles (AGV) to completely automate the facility. These systems make the overhead space into productive storage space. Further they have a small footprint and thus are perfect choice for point-of-use storage space in assembly operations and value-added manufacturing. Hence these factors are analysed to drive the market growth in the forecast period 2021-2026.
Latin America and Africa Automated Storage and Retrieval Systems Market Segment Analysis – By Vertical
E-Commerce sector in automated storage systems is expected to witness the highest CAGR of 10.9% the forecast period 2021-2026. Growing demand for faster deliveries have been providing opportunities for E-Commerce companies in order to focus on enhancing the order fulfillment processes to meet customer demand. AS/RS also assists retailers and e-commerce companies in maintaining track of product expiry dates and inventory in the store. Increasing adoption of AS/RS for easy picking and placing pallet applications for efficient method of operations, and optimum use of resources is poised to fuel the market. The improved order fulfillment offered by these systems has resulted in their fast adoption in this industry. The growth of the semiconductor and electronics industry has spurred the demand for automated storage and retrieval systems in the region as well as globally. Furthermore, the growing demand for safety and control systems in the industrial and manufacturing sectors will significantly propel the market. The growing wages will also result in a shift to automation in order to reduce the compensation provided to the workers and this further propels the market. Moreover, the automotive industry is showing growth mainly due to the high demand for electric vehicles and demand for automobile parts. The growing automation in this sector is set to spur automated storage market.
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Latin America and Africa Automated Storage and Retrieval Systems Market Segment Analysis – By Geography
Latin America and Africa Automated Storage and Retrieval Systems Market in Latin America region held significant market share of 88% in 2020. Presence of major players and expansion of global companies in Latin America region have been driving the market owing to high investments and funding for the adoption of automation technology. Additionally, increasing automotive production in Brazil and in other Latin American countries further boost the market. There has been increasing adoption of automation technologies in various industries and this has been driving the AS/RS market. As automation technology can prevent major renovations to existing facilities by utilizing the vertical space, there is reduction in utilization of floor space by up to 85% and labor requirements up to 2/3. Increasing investments for automation technologies and adoption of high efficiency equipment is set to fuel the market.
Latin America and Africa Automated Storage and Retrieval Systems Market Drivers
Increasing adoption of AS/RS in automotive industry
Increasing adoption of automation technology in various industries such as automotive, aerospace, food and beverage, medical and other industries have been fueling the market. There has been shifting focus towards AS/RS applications from human based forklifts in automotive industry owing to integration of programmable logic controllers (PLC), machine level control simulation and other technologies. This has increased the demand for AS/RS systems in automotive sector thereby driving the market. Moreover, multichannel automated storage and retrieval systems have gained prominence in this sector due to their impeccable order fulfilment capabilities. Warehouse automation has been on the rise as automotive industry has high penetration of automated systems in recent years.
Multichannel supply-chain strategy in retail to drive the AS/RS market:
The multichannel supply chain strategy is an increasing trend in the current times, particularly among the retail sector. Under this strategy, the companies are aiming at creating an “in-house” distributing facility for order fulfilment operations instead of outsourcing it to third part logistics (3PL). By building an in-house distribution centres, companies are aiming at handling both store and individual orders in a same facility thus saving significant costs on distribution performance. In today’s world, the retail distribution centres are not limited to as an intermediate phase for storing and shipping the goods. The rise of retail sector facilitated by the boom in electronic commerce has already witnessed major changes in the retail distribution centres including mass personalization and up surged customer services requirements which has led to an exponential growth in the stock keeping units (SKUs). As the regional economy progresses gradually, the retail sector will observe a boost in the demand of goods that will require proper integration of new automation technologies to maintain demand and supply balance which will be a notable for the emergence of automated storage & retrieval systems market.
Latin America and Africa Automated Storage and Retrieval Systems Market Challenges
Delayed return on investment (RoI) model constricting the emergence of AS/RS
Set up of automated storage retrieval systems include high capital investment. In additional to these, there are other cost involved including technology, accompanying software, delivery and installation, updated training and regularly scheduled maintenance. For instance, the minimum cost of vertical carousels ASRS system is $70, 000, whereas unit load ASRS cost starts from $4,000,000. This restricts the adoption of AS/RS systems by small and medium sized companies, thereby hampering the growth of the market.
Latin America and Africa Automated Storage and Retrieval Systems Market Landscape
Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Latin America and Africa Automated Storage and Retrieval Systems Market. Automated Storage and Retrieval Systems top 10 companies include Bastian Solutions, Inc., Beumer Group, Daifuku Co., Ltd., Dematic, Honeywell Intelligrated, Kardex Group, KNAPP AG, Murata Machinery, Ltd., SSI Schaefer Group, TGW Logistics Group among others.
In 2019, Knapp partnered with kratzer Automation, logistic software company to enhance Knapp’s portfolio in the last mile area to make the supply chain (logistic facility) more efficient.
In 2019, TGW partnered with Kellner and Kunz, a tools and fastening technology Company to expand its automation services to Austria and also help Kellner and kunz to expand its warehouse by adding State of art automation.
Latin America and Africa Automated Storage and Retrieval Systems Market in Latim America region held significant market share of 88% in 2020. Rise in adoption of big data technologies among organizations to enhance the consumer target marketing and risk management abilities is expected to boost the growth of the automated storage and retrieval system market.
E-Commerce sector in automated storage systems is expected to witness a highest CAGR of 10.9% the forecast period as the e-commerce companies are investing in systems that can efficiently handle a high volume of small, multiple item orders.
The Vertical lift module (VLM) segment is growing at a significant CAGR of 10.7% in the forecast period as it is designed to deliver stored items to the operator by eliminating walk and search time.
The adoption of automated systems has multiplied significantly with the increase in need for automation in all industrial sectors. Organizations are inclining toward adopting automation solutions to automate their processes to deliver high-quality products, increase their manufacturing capabilities and efficiently manage their processes.
A. Automated Storage & Retrieval Systems Market
B. Automated Material Handling Market
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