PUBLISHER: The Business Research Company | PRODUCT CODE: 1436790
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436790
A warehouse management system (WMS) is software designed to oversee inventory movement and track the location of final items and goods in order to fulfill orders. It provides visibility into a business's entire inventory and manages supply chain fulfillment operations from the distribution center to the store shelf.
The primary offerings of a warehouse management system (WMS) include both software and services. WMS software is utilized to oversee and regulate daily warehouse operations, managing inventory, picking, and shipping orders. It automates the picking and shipping process. WMS can be deployed either on-premises or in the cloud, and its functions encompass labor management, analytics, optimization, billing, yard management, and systems integration. WMS finds applications in various sectors such as transportation, logistics, healthcare, retail, manufacturing, food and beverage, among others.
The warehouse management system market research report is one of a series of new reports from The Business Research Company that provides warehouse management system market statistics, including warehouse management system industry global market size, regional shares, competitors with a warehouse management system market share, detailed warehouse management system market segments, market trends and opportunities, and any further data you may need to thrive in the warehouse management system industry. This warehouse management system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The warehouse management system market size has grown rapidly in recent years. It will grow from $3.07 billion in 2023 to $3.52 billion in 2024 at a compound annual growth rate (CAGR) of 14.7%. The growth experienced in the historic period can be attributed to several factors, including the expansion of e-commerce, labor shortages, and rising costs in the labor market. Additionally, increased complexity in global supply chains has played a role, along with consumer demand for faster delivery and improved efficiency in inventory management. These factors have collectively contributed to the growth observed in the historic period.
The warehouse management system market size is expected to see rapid growth in the next few years. It will grow to $5.97 billion in 2028 at a compound annual growth rate (CAGR) of 14.1%. The projected growth during the forecast period is fueled by several factors, including the growing complexity of cross-border trade, the adoption of mobile-first solutions, a focus on supply chain resilience, the introduction of green warehousing initiatives, and the expansion of robotics and automation. Key trends expected in this period include an increased emphasis on supply chain visibility and collaboration, a rising demand for scalability and flexibility, the growing importance of sustainability and green warehousing practices, the influence of omni-channel retailing, and the integration of AI and machine learning.
The rise in demand from e-commerce companies for larger warehouses equipped with advanced tracking and forecasting capabilities is anticipated to propel the warehouse management system market. The expanding e-commerce sector necessitates ongoing monitoring of equipment and accurate inventory forecasting to meet demand and manage substantial cargo flow efficiently. For example, according to a report by research firm Knight Frank, annual warehousing transactions in India are projected to surge from 31.7 million square feet in 2021 to 76.2 million square feet in 2026. Consequently, the upsurge in demand from e-commerce firms is forecasted to bolster the market in the coming years.
The warehouse management system market is anticipated to experience growth driven by the widespread adoption of cloud-based solutions. Cloud services encompass a diverse range of on-demand computing resources and applications delivered over the internet. These services are hosted on remote servers, often in data centers, and can be accessed and utilized by individuals, businesses, and organizations through the internet. Within the realm of warehouse management systems (WMS), cloud-based solutions have gained popularity due to their inherent benefits, including flexibility, scalability, accessibility, and cost-effectiveness. As an illustration, in September 2022, insights from a global study of 753 technical and business professionals, as shared by the AAG IT Support Service, a US-based digital transformation service provider, revealed a significant increase in cloud services usage. In 2022, 63% of respondents reported heavy usage, marking an increase from 59% in 2021 and 53% in 2020. Hence, the anticipated growth of the warehouse management system market is closely linked to the adoption of cloud-based solutions.
The warehouse management system market is witnessing a prominent trend focused on technological advancements. Technological advancements denote the discovery and implementation of knowledge that drives progress in technology. For example, in May 2020, a US-based provider of technology solutions for distribution centers introduced the Manhattan Active Warehouse Management solution. This solution stands as the world's first cloud-native enterprise-class warehouse management system (WMS). The innovative warehouse management system integrates all facets of distribution and incorporates unified control, enabling management team members to swiftly visualize, diagnose, and take action at any point within their supply chain. This signifies a pivotal leap in leveraging technology to streamline and optimize warehouse management processes, marking a significant trend in the industry.
Major players in the warehouse management system market are actively concentrating on the development of innovative technologies aimed at providing substantial benefits in terms of operational efficiency, cost-effectiveness, employee satisfaction, and future-proofing their operations. A noteworthy example is the rapid development, testing, and implementation of a warehouse management system across 10 North American warehouse sites within just eight months. This system boasts cloud capabilities, enabling cost savings and yearly updates, in contrast to the industry norm of updates occurring every five to seven years. A case in point is the initiative undertaken by Mars Inc., a US-based food company, in May 2023. Mars Inc. launched a new warehouse management system (WMS) with the objective of enhancing efficiency and realizing significant cost savings, aligning with the company's commitment to its core principles of quality, responsibility, mutuality, efficiency, and freedom. The newly implemented system features an optimized task interleaving process designed to streamline warehouse operations and improve overall productivity. This development has been well-received by Mars' warehouse teams, making a notable contribution to the company's enhanced efficiency and cost-saving efforts.
In September 2021, 3PL Central, a prominent US-based provider of cloud-based warehouse management systems (WMS), acquired Scout Software and Skubana for an undisclosed sum. This move is anticipated to bolster 3PL Central's position as a leader in cloud-based warehouse management, delivering top-notch solutions for third-party logistics and privately operated warehouses. Scout Software, a US-based company, specializes in a SaaS RFP and sourcing platform that includes warehouse management capabilities. Skubana, also based in the US, offers a commerce operations platform that drives fulfillment, inventory management, and business intelligence for retailers operating across multiple channels.
Major companies operating in the warehouse management system market report are IBM Corp., Oracle Corp., Honeywell International Inc., SAP SE, Zebra Technologies Corporation, Reply S.p.A., Infor Inc., Technology Solutions Ltd., PTC Inc., Mecalux S.A., Epicor Software Corporation, Manhattan Associates Inc., Blue Yonder Group Inc., JDA Software Group Inc., Tecsys Inc., Softeon Inc., HighJump Software Inc., Datex Corporation, Dovetail Systems Inc., Softrax Corporation, 3PL Central LLC, Made4net LLC, PSI Logistics GmbH, Synergy Ltd., Mantis S.A., Generix Group, Microlistics Pty Ltd., Cadre Technologies Inc., Fritz Schafer GmbH, Ivanti Wavelink
North America was the largest region in the warehouse management system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the warehouse management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the warehouse management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The warehouse management system market includes revenues earned by entities by providing services such as inbound logistics and outbound logistics tools for picking and packing processes, resource utilization, analytics, and others. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Warehouse Management System Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on warehouse management system market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for warehouse management system ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The warehouse management system market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.