Automated storage and retrieval market seen nearly doubling by 2035

The global automated storage and retrieval system market is projected to rise from $11.3 billion in 2025 to $27 billion by 2035 as e-commerce, labor shortages and warehouse automation reshape logistics. Growth is being driven by faster fulfillment demands, AI-enabled systems and wider adoption across retail, manufacturing and 3PL operations.

Why it matters: - The automated storage and retrieval system market is moving from a niche warehouse upgrade to core logistics infrastructure. - The projected expansion to $27 billion by 2035 shows how automation is becoming central to speed, density and labor efficiency in fulfillment. - The shift affects retail, food and beverage, automotive, pharmaceutical and third-party logistics operators that are under pressure to do more with less space and fewer workers.

What happened: - Market Research Future estimated the global automated storage and retrieval system market at $11.30 billion in 2025. - The market is projected to reach $12.33 billion in 2026 and $27.00 billion by 2035. - The forecast implies a 9.10% compound annual growth rate over the period. - The report said e-commerce fulfillment expansion and labor shortages are the two biggest growth drivers. - The report was published Aug. 31, 2026. - More information is available in the full report sample.

The details: - The market grew from about $6.51 billion in 2021 to an estimated $11.30 billion in 2025. - Global warehouse construction spending now exceeds $52 billion annually. - More than 6,000 large-scale fulfillment centers are expected to come online by 2030. - The report says legacy manual racking and forklift-heavy workflows are being replaced by AS/RS platforms tied to autonomous mobile robots, AI inventory orchestration and warehouse management systems. - A Gartner Supply Chain survey cited in the report found top-quartile distribution operators using unit-load or mini-load AS/RS with AI slotting optimization achieved 31% to 36% higher order throughput than peers using manual warehouses. - The report highlights goods-to-person systems, shuttle-based systems, vertical lift modules and carousel-based AS/RS as major growth areas. - It says predictive inventory positioning, cloud-connected fleet management, digital twins and predictive maintenance are becoming standard features. - The report segments the market by system type, function, industry vertical, component and organization size. - System types include unit-load AS/RS, mini-load AS/RS, vertical lift modules, horizontal carousels, vertical carousels and cube-storage grid systems. - Industry verticals include retail and e-commerce, food and beverage, automotive, pharmaceutical and healthcare, electronics and semiconductors, and third-party logistics. - Components include hardware, software and services. - The report lists Daifuku, Murata Machinery, Vanderlande, Dematic, Swisslog, SSI Schaefer, Mecalux, AutoStore, Knapp and Bastian Solutions among key players. - More information is available in the company’s report page.

Between the lines: - The report frames AS/RS as part of a broader re-engineering of warehouse operations, not just an equipment upgrade. - Rising SKU counts, same-day delivery expectations and cold-chain requirements are pushing operators toward higher-density automation. - Competition is shifting toward software, AI orchestration and integration with ERP, WMS and order management systems. - The report also points to sustainability, digital twins and energy efficiency as purchasing factors, not just technical features.

What's next: - E-commerce, grocery micro-fulfillment, pharmaceutical cold chain and automotive manufacturing are likely to remain the strongest demand pockets through 2035. - Asia-Pacific is expected to remain the fastest-growing major region, while the Middle East and Africa is projected to post the highest CAGR at about 9.1%. - Vendors are likely to keep expanding goods-to-person, AMR and AI-enabled software offerings as warehouse operators seek higher throughput and lower labor dependence. - Additional market details and purchasing access are available through the full report.

The bottom line: - Automated storage and retrieval systems are moving into a long growth cycle powered by labor constraints, e-commerce scale and the push for faster, denser warehouses.