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The global warehouse management system market size was valued at USD 2.75 billion in 2022 and is projected to grow from USD 3.07 billion in 2023 to USD 7.30 billion by 2030, exhibiting a CAGR of 13.2% during the forecast period. A Warehouse Management System (WMS) is a solution that helps businesses in increasing visibility in supply chain operations and inventory across all the store shelves from the distribution center. The system manages and tracks the product till it reaches the end customer. Thus, industries focused on customer services are significantly investing in the system. Similarly, the ease of integrating the modules such as enterprise resource planning and supply chain is further expected to boost market share. Also, the key players are offering industry-specific solutions to cater to the rapidly growing need for warehouse management and inventory. For instance,
Significant Changes in Demand Cycle Across Industries Amid Pandemic Boosted Market Growth
The pandemic significantly impacted the operational activities of all industries. Organizations shifted to online solutions and implemented warehouse solutions with the support of cloud-based technologies. These cloud-based solutions save costs with a lower initial investment, boost implementation time, and enhance scalability and flexibility in adapting to business variations and growth. The increasing implementation of digital technologies such as digitization, automation, and cloud across manufacturing industries amid the COVID-19 pandemic boosted the warehouse management system market.
The swift rise in the e-commerce sector and increased awareness among companies about warehouse solutions supported the market expansion. Further, the pandemic accelerated the industry's adoption of warehouse automation tools to enhance business operations. Similarly, businesses implemented the system to track end-to-end operations from product entry to order delivery. For instance,
Thus, to manage the change in the supply and demand chain, businesses significantly invested in warehouse management systems amid the pandemic.
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Introduction of Smart Devices to Increase Sale of WMS
Several types of smart devices, comprising smart tablets, mobile phones, and handheld devices, such as readers, scanners, and tags, are utilized in warehouse management to make the procedure easy. Tablets and smartphones make data inflowing and delivery easy. Once the device connects to a warehouse management system, operators can rapidly post details, such as picklists and shipping labels, from anywhere. In addition, handheld devices such as barcode scanners maintain accurate inventory counts and scan the inventory.
Smart devices equipped with Wi-Fi, RFID technology, and cameras are used to minimize the injuries experienced by workers and make warehouse staff work effectively.
Thus, with the advancement in smart devices, the demand for the system is expected to gain traction.
Rapid Growth of e-Commerce to Drive the Market Growth
Rising demand from e-commerce organizations for warehouses with better forecasting and monitoring is expected to fuel the warehouse management system market growth. The growing e-commerce sector needs constant inventory and equipment tracking to maintain the demand and significant cargo movement. It records and tracks inventories, goods, and orders; manages the shelf, bin, and pallet locations; and maintains a better returns record. For instance,
The demand for e-commerce products frequently varies, which results in a large number of backorders. Automating the procedure for proper distribution, packaging, and dispatch of orders is crucial. Thus, the demand for WMS is growing with the e-commerce industry.
Adoption of Digital Technologies in Supply Chains to Fuel Market Share
Digital technology is helping warehouse management in various applications. The always-on e-commerce industry is significantly investing in digital solutions to enhance response speed with fewer errors. According to the MHI Annual Industry Report, 2021, almost 80% of respondents agreed that the digital supply chain will grow in future. The real-time data offered through digital technologies is further expected to fuel the warehouse management system to track the overall supply chain process.
The interconnection between warehouse, supply chain, and the consumer is likely to fuel digitalized warehouse management systems. Digital technologies such as artificial intelligence, Internet of Things, digital twin, and more have surged the demand for smart warehousing techniques. Thus, with the adoption of digitalization in the supply chain, the demand for warehouse management systems is expected to gain traction.
High Installation Costs and Lack of Technical Expertise to Hinder Market Growth
Warehouse management software integration can be time-consuming and permitting authorized access to workers may risk the privacy of company's data. In addition, small and medium-sized organizations' lack of awareness about the systems can challenge various manufacturers.
Furthermore, several limitations comprise higher installation costs associated with the on-premise and the requirement of a significant initial investment may hinder the market growth.
Cloud-based System Demand to Rise on Account of Ease of Module Integration
By deployment, the warehouse management system market is segmented into on-premise and cloud. The cloud segment is anticipated to grow at the highest CAGR over the study period. Cloud solutions provide real-time data transfer for supporting quick business operations. The demand for cloud is growing considering the increase in supply chain and enterprise resource planning integration with the system is easy.
The on-premise segment has recorded stable demand amid the rise of cloud solutions along with their enhanced capabilities. Majorly, small enterprises are investing in on-premises considering its in-house safety and easy management.
Supply Chain Module Segment Share to Dominate Owing to Growing Demand for Inventory Capabilities
By type, the market is subdivided into enterprise resource planning module, standalone, and supply chain module.
The supply chain module segment is poised to hold a dominant share during the projected period. The increasing complexities in supply chains are driving the adoption of the system. The integrated supply chain module helps in managing inventory at an optimum level.
The enterprise resource planning module segment is expected to witness a rapid growth rate over the forecast period. The integration helps in unifying the internal business, which helps in scaling revenue growth.
Similarly, the standalone segment is likely to showcase a steady growth rate during the forecast period owing to the growing demand for advanced storage and logistics solutions across small and medium enterprises.
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Growing Focus on Efficient Business Process to Lead to Manufacturing Segment’s Dominance
Based on industry, the market is split into retail, logistics, healthcare, manufacturing, food & beverages, chemical, and others.
The manufacturing segment witnessed rapid growth rates and is expected to be the dominant segment during the forecast period. Manufacturers focused on enhancing logistics speed and delivery accuracy to optimize business growth. Thus, the growing demand for advanced warehouse management solutions in the manufacturing industry to maintain business operations will boost the market share.
Food & beverages, logistics, and retail segments are expected to gain a steady growth rate during the forecast period. The industry players are offering specifically industry-based solutions to cater to the unique requirements in warehouse operations of process industries such as chemical, pharmaceutical, food and beverages, and others.
North America Warehouse Management System Market Size, 2022 (USD Billion)
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In terms of region, the warehouse management system market is analyzed across North America, Europe, South America, Asia Pacific, and the Middle East & Africa. They are further segmented into countries.
North America is likely to dominate the warehouse management system market share during the forecast period. The logistics industry in the U.S. accounts for 10.0% of the total GDP and was expected to reach around USD 175.0 trillion in 2022. The demand for warehouse tools will also increase in the coming years as.
Asia Pacific is expected to showcase rapid growth rate during the forecast period. The major factors driving the regional growth constitute evolving industry verticals, including BFSI, manufacturing, transportation management, and logistics. Several key vendors in the region are focused on developing advanced warehouse management system solutions to cater to the growing demand for robust supply chain operations among these verticals.
The Europe market is driven by the rise of Industry 4.0 and IoT. According to the Federal Statistical Office of Germany, the rising need for effective production process management and the early adoption of automation resulted in 82% of large organizations utilizing supply chain management solutions surge the warehouse management system demand.
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The rapid growth in digital solutions in industries in South America and increasing focus on on-time deliveries to meet customer expectations are likely to expand the WSM market share in the region. Similarly, growing investments in logistics and supply chains in the Middle East & Africa are set to boost the market growth.
Key Players Focus on Business Expansion to Strengthen Market Position
The top players are focused on expanding across global boundaries by introducing industry-specific solutions. These players are strategically collaborating and acquiring local players to gain strong grip in the regions. The market players aim to develop their products based on emerging technologies, such as Artificial Intelligence (AI), IoT, cloud, and others, to solve the issues faced by the companies.
An Infographic Representation of Warehouse Management System (WMS) Market
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The warehouse management system market report covers prominent areas across the globe to get a better knowledge of the industry. Furthermore, the report provides insights into the most recent industry and market trends as well as an analysis of technologies that are being adopted quickly worldwide. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.
Value (USD Billion)
CAGR of 13.2% from 2023 to 2030
By Deployment, Type, Industry, and Region
The global WMS market size was valued at USD 2.75 billion in 2022 and is projected to grow to USD 7.30 billion by 2030.
In 2022, the market stood at USD 2.75 billion.
The global WMS market is projected to grow at a CAGR of 13.2% in the forecast period to reach USD 7.30 billion by 2030.
By deployment, the cloud segment is likely to lead the market.
The adoption of digital technologies in supply chain management is expected to fuel the market growth.
Microsoft Corporation, Oracle Corporation, Infor Inc., SAP SE, Manhattan Associates, Inc., and others are top players in the market.
North America is expected to hold the highest market share.
By industry, the manufacturing segment is expected to grow with the highest CAGR over the forecast period.
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