Market Trends of Middle East and Africa Automated Storage and Retrieval System Industry
This section covers the major market trends shaping the MEA Automated Storage & Retrieval System Market according to our research experts:
Food and Beverages is Expected to Hold Significant Market Share
- The growing trend of single-point manufacturing with a global supplier of products, especially in the food and beverage industries, has led to the advent of large-scale storage and distribution centers. The eliminated contamination risk, reduced labor costs, and tracking manufacturing data are some of the major drivers for the usage of AS/RS in the food and beverage industry.
- Moreover, the industry aggressively uses palletizing solutions to reduce handling costs and improve handling. The use of AS/RS helps in handling inventories. Further, various food distribution companies embrace automatic storage and retrieval systems (AS/RS) in the region.
- Another factor pushing the market for AS/RS is their ability to provide alert capabilities that notify the user about a product kept in the inventory for too long and possibly reaching its expiration date. The notification function is enabled by the inventory management software available with the AS/RS, and it allows the companies to achieve cost-effective operations by reducing wastage.
- In October 2020, Swisslog completed constructing a fully automated storage and retrieval system (ASRS) for a drinks company in Dubai. Following implementing the data-driven intralogistics ASRS, Mai Dubai has benefited with a double production, storage capacity, and reduced labor costs, as stated by the companies.
- Moreover, in July 2020, Union Coop, the largest consumer cooperative in the UAE, opened 'Coop Factory' – one of the largest commodity warehouses in the Middle East and its wholesale branch to sell food and non-food commodities. The total area of the warehouse and the Union Coop branch is around 424,442 sq ft. The facility is equipped with the best modern technology to secure a sustainable commodity stock that meets all needs in different circumstances. All such developments are expected to increase the growth of ASRS in the industry's food and beverages industry.
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South Africa is Expected to Account For Significant Market Share
- South Africa is one of the largest economies on the African continent. Moreover, the increasing number of industries and manufacturing units is expected to drive the demand for automation in the region.
- Further, the Intra-Africa trade is on the rise. African countries signed a trade agreement called the African Continental Free Trade Area Agreement (AfCFTA), which permitted countries to remove tariffs on 90% of goods, progressively liberalize trade in services, and address a host of other non-tariff barriers. These kinds of agreements are expected to increase the need for automation to easier the management of goods.
- Being a major tourist attraction in Africa, South Africa is investing heavily in airports and is the single largest and fastest-growing segment in the MEA. Three South African Airports, Cape Town, Durban, and Johannesburg’s international airports, were considered the best airports globally.
- Moreover, Retail is one of the significant industries requiring conveyors, and sortation is essential. It especially helps online retailers to sort goods and increase good delivery efficiency. Furthermore, retail companies are also adopting this technology to perform last-mile delivery.
- Additionally, the rapid growth of e-commerce companies, which maintain large warehouses for numerous types of products, created a massive demand for automated storage and retrieval systems in the retail industry. E-commerce is expected to drive the growth for AS/AR, as it constitutes a significant portion of the consumers in the country.
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