Market Size of Latin America Automated Storage and Retrieval System Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 9.88 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Latin America Automated Storage & Retrieval System Market Analysis
The Latin America Automated Storage and Retrieval System market is expected to grow at a CAGR of 9.88% during the forecast period (2021-2026). The COVID-19 outbreak and lockdown restrictions across the globe have affected industrial activities across the world. Some of the effects of lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the production of the final product to inflate and go beyond budget, shipping problems etc. All businesses across the region with crucial assets for manufacturing goods and services offering revenue have been experiencing a rapid decline due to the COVID-19 pandemic. The management of such companies has been feeling extreme urgency and panic, thereby, more emphasis being paid to cutting costs. Since manufacturing activity was low, companies were tempted to eliminate maintenance, resulting in significant expenses in the coming future.
- Latin American nations have transformed themselves into a set of fast-growing, emerging economies. Companies with manufacturing plants in China are moving some production to Mexico and Brazil to reduce supply chain risk and serve the American market.
- Moreover, automation has revolutionized the warehouse business in the region, thereby helping companies reduce overhead costs and increase productivity with consistency and accuracy. Artificial intelligence plays a significant role in achieving this. Online retailers are making every effort to reduce the time it takes to deliver products to customers.
- Many automotive and electronic companies are investing in new technologies to reduce their cost and attain efficiency. For instance, Mecalux, a prominent vendor in the warehouse robotics market, installed automated stacker cranes for boxes in Continental's plant (Mexico), along with other conveyor systems and computerized operations at cargo entrance and exit. Such use cases of cranes as a complementing solution are expected to increase over the forecast period.
- The primary driving forces for the growth of the Latin America regional segment are the rising urbanization, rising e-commerce sales, and the significant presence of technology providers. These players invest in research and development activities to offer innovative solutions to stay competitive.
- Further, with virtually zero market access barriers and a highly developed industrial base, Mexico has evolved to become the largest purchaser of automation from the United States. The proximity of the Latin American region with Europe and North America has helped the emergence of component suppliers, impacting demand for AS/AR systems suited for such needs.
Latin America Automated Storage & Retrieval System Industry Segmentation
The Latin America region is one of the significant markets for automated storage and retrieval systems (ASRS) globally, which Mexico and Brazil lead. Moreover, the market is fragmented due to only many prominent players and is segmented by product type and end-user industries. The report provides vendor profiles operating in the market and the market share of each end-user sector and product type. Further, the market study also comprises details on the impact of COVID-19.
By Product Type | |
Fixed Aisle System | |
Carousel (Horizontal Carousel + Vertical Carousel) | |
Vertical Lift Module |
By End-User Industries | |
Airports | |
Automotive | |
Food and Beverage | |
General Manufacturing | |
Post and Parcel | |
Retail | |
Other End-user Industries |
By Country | |
Mexico | |
Brazil | |
Argentina | |
Rest of Latin America |
Latin America Automated Storage and Retrieval System Market Size Summary
The Latin America Automated Storage and Retrieval System (AS/RS) market is poised for significant growth, driven by the region's transformation into a hub for emerging economies and the increasing adoption of automation technologies. The market is experiencing a shift as companies relocate manufacturing operations from China to countries like Mexico and Brazil to mitigate supply chain risks and enhance efficiency. The integration of automation in warehouses has been pivotal, enabling businesses to reduce operational costs and improve productivity through consistent and accurate processes. The rise of e-commerce and urbanization, coupled with the presence of technology providers investing in innovative solutions, is further propelling the demand for AS/RS systems. The proximity to North America and Europe has facilitated the emergence of component suppliers, enhancing the market's growth prospects.
The automotive and retail sectors are key contributors to the AS/RS market expansion in Latin America. The automotive industry, particularly in Brazil and Colombia, is witnessing a positive transition with the introduction of automation to streamline production processes. The free trade agreement between Brazil and Argentina is expected to further boost automation in the automotive sector. In retail, companies like Amazon are investing heavily in new warehouses to meet the growing demand for faster deliveries, thereby increasing the adoption of AS/RS systems. The food and beverage industry is also embracing automation to enhance efficiency and ensure product safety. Despite the market's moderate concentration, with major players dominating, technological advancements are allowing smaller companies to expand their presence. Strategic collaborations and product innovations continue to shape the competitive landscape, driving the market forward.
Latin America Automated Storage and Retrieval System Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers
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1.3.3 Threat of New Entrants
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1.3.4 Intensity of Competitive Rivalry
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1.3.5 Threat of Substitute Products
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Fixed Aisle System
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2.1.2 Carousel (Horizontal Carousel + Vertical Carousel)
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2.1.3 Vertical Lift Module
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2.2 By End-User Industries
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2.2.1 Airports
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2.2.2 Automotive
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2.2.3 Food and Beverage
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2.2.4 General Manufacturing
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2.2.5 Post and Parcel
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2.2.6 Retail
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2.2.7 Other End-user Industries
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2.3 By Country
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2.3.1 Mexico
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2.3.2 Brazil
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2.3.3 Argentina
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2.3.4 Rest of Latin America
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Latin America Automated Storage and Retrieval System Market Size FAQs
What is the current Latin America Automated Storage and Retrieval System Market size?
The Latin America Automated Storage and Retrieval System Market is projected to register a CAGR of 9.88% during the forecast period (2024-2029)
Who are the key players in Latin America Automated Storage and Retrieval System Market?
Murata Machinery Ltd., KNAPP AG, Bastian Solutions, LLC, KION GROUP AG and Schaefer Systems International Pvt Ltd are the major companies operating in the Latin America Automated Storage and Retrieval System Market.