An automated storage and retrieval system (ASRS) is a sort of warehouse automation system that is specially intended to buffer, store, and retrieve products and inventory on demand. There are several types of ASRS available in the Indian market, including unit-load ASRS cranes (fixed-aisle and moveable aisle), mini-load ASRS cranes (fixed-aisle), shuttle, carousel-based ASRS (vertical, horizontal, and robotic), vertical lift module (VLM), micro-load (stocker), and vertical sequence systems (VSM).
ASRS technology provides several advantages to businesses that employ it, including optimizing floor space usage, maximizing storage density, and improving safety and ergonomics in the workplace. By automating inventory storage and retrieval tasks, businesses can increase productivity, reduce labor costs, and overcome labor shortages. ASRS is often modular and flexible, which allows businesses to adapt to changing storage and retrieval needs. Additionally, the technology improves order picking accuracy, enhances product security, and provides better visibility of inventory. ASRS is very useful in warehousing operations. These systems save a lot of floor space, which is important in warehouse operations. The flow and control of materials have improved as technology has advanced. The technology provides improved vision as well as the capacity to manage variability, diversity, and volume at greater rates, resulting in enhanced value. Owing to such advantages of ASRS, it is employed in several industries such as automobile; chemical, metals and heavy machinery; food and beverages; healthcare; retail, third-party logistics, and e-commerce; and others. Hence, the Indian ASRS market is expected to grow at a CAGR of 13.2% during the forecast period (2023-2030).
Key Drivers of the Indian ASRS Market
Integration of AI in ASRS
Artificial intelligence has advanced to the point where a properly programmed ASRS can notify workers when inventory is ready to expire and prioritize shipments on a first-in, first-out basis, thus decreasing spoilage. It is a substantial benefit for cold chain facilities that handle vegetables, dairy, medicines, and even machine components where corrosion is a concern.
Retail Sector Growth
The growth of the retail sector in India has driven the demand for efficient and automated storage solutions. ASRS systems have been widely adopted by retailers like BigBasket and Walmart India to manage their inventory and optimize their supply chain operations. Additionally, the retail sector is continuously growing in the country. According to India Brand Equity Foundation (IBEF), in terms of retail, India is the world's fifth-largest worldwide destination. The United Nations Conference on Trade and Development's Business-to-Consumer (B2C) E-commerce Index 2019 placed India 73rd. India is the world's fifth-largest retail destination, ranking 63 in the World Bank's Doing Business 2020 report. Hence, as the retail sector grows, the demand for warehousing operations will increase as well, resulting in the increased demand for ASRS.
Increasing Demand for Automation
With the increasing demand for automation in various industries, ASRS systems have become a popular choice for businesses looking to streamline their operations. For instance, E-commerce companies in India such as Flipkart and Amazon have invested heavily in ASRS systems to automate their warehousing operations, reducing the need for manual labor and increasing efficiency. Additionally, in April 2023, Walmart announced that it plans to automate 65% of its operations by 2026. According to the company, by January 2026, approximately 55% of items processed through its fulfilment centers will be transported through automated facilities, improving unit cost averages by around 20%. Such initiatives by companies will further boost the market’s growth.
Expansions and Innovations by Major Market Players
The Indian ASRS market has significant contributors such as Bastian Solutions, LLC, Pennar Industries Ltd., Kardex Group, KION Group AG, Daifuku Co., Ltd., Godrej Consoveyo Logistics Automation Ltd., KUKA AG, Murata Machinery Ltd., and Toyota Industries Corp., among others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. Some of the recent developments in the market include-
• In April 2023, Prozo, a leading supply chain company in India, launched its mini-load automated storage and retrieval system (mini-load ASRS) in partnership with Craftsman Automation Ltd. With this deployment, Prozo has become the first 3PL company in India to incorporate such advanced technology into its supply chain management services, bringing new benchmarks in automation. The mini-load ASRS system can carry out 200-300 cycles of placement and retrieval of bins weighing up to 35 kgs per hour, which is expected to enhance the quality of operations at the Prozo facility. This deployment is an important milestone for Prozo in its ongoing efforts to achieve complete automation of its warehouses.
• In January 2022, Addverb Technologies, a leading Indian robotics company, partnered with Reliance in a deal where Reliance will invest up to $132 million to become the company's largest shareholder. This investment will accelerate Addverb's expansion in Europe and the US and enable the establishment of the biggest robotic manufacturing facility at a single location, which will be completely automated. The move is expected to make India a world leader in the robotic sector. Addverb also plans to launch an innovation lab with bases in the US, Europe, and India, where top minds can collaborate to solve complex problems in the field of Human-Robotic interaction. Addverb's "Bot-Valley" manufacturing facility in Noida has a capacity to manufacture up to 10,000 robots of various kinds per year, including mobile robots, sorting robots, pallet shuttles, carton shuttles, Mother-Child ASRS, and Pick-to-Lights, which are used for transporting and moving material in factories and warehouses.