The Global Warehouse Management System Market was valued at USD 2.5 Bn in 2020 and is expected to reach USD 6.8 Bn by 2027, with a growing CAGR of 15.5% during the forecast period.
Global Warehouse Management System Market Definition
A Warehouse Management System (WMS) is a software program solution that provides visibility into an enterprise's complete inventory and manages supply chain fulfilment operations from the distribution centre to the store shelf. Warehouse Management (WMS) solutions additionally permit businesses to maximize their labor and space usage and equipment investments through coordinating and optimizing aid utilization and material flows. Specifically, WMS systems are designed to support the needs of an entire global supply chain, which includes distribution, manufacturing, asset-intensive, and service businesses.
Global Warehouse Management System Market Dynamics
The rapid growth in the e-commerce industry is one of the prominent factors that drive the growth of the warehouse management system market during the forecast period. The increasing consumer inclination towards online shopping for various products such as cosmetics, groceries, fashion, electronics and others. Due to this e-commerce industries as well as logistics companies adopted warehouse management system software to manage their inventory and supply management. For instance, according to secondary sources, the global retail e-commerce sales accounted USD 4.28 trillion in 2020 and is projected to grow USD 5.4 trillion in 2022. However, the lack of awareness about warehouse management systems in small scale industries is one of the major challenges that hamper the growth of the market during the forecast period.
The Global Warehouse Management System Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in the warehouse management system market are:
Based on components, the software segment is expected to hold the highest revenue share during the forecast period owing to the high demand for WMS software in various industries
Based on the component, the warehouse management system market has been segmented into software and services. The software segment of the warehouse management system market is expected to hold the highest revenue share during the forecast period owing to the high demand for WMS software in various industries such as healthcare, transportation & logistics, retail and others. The high demand of warehouse management syatem is due to the ability of WMS software to provide visibility into the entire inventory of a business and manage the supply chain and fulfilment operations. Moreover, the WMS software optimizes operations that provide various benefits such as reduced operating expenses, enhanced security, efficient labor management, and others.
Based on the deployment, the cloud segment expected to grow at the highest CAGR during the forecast period due to the growing demand from SMEs
Based on the deployment, the warehouse management system market is segmented into cloud and on-premises. The cloud segment is expected to grow at the highest CAGR during the forecast period. The growth in the segment is attributed to the high demand from SMEs. Due to the growing awareness about cloud software offering such as cost-efficient are anticipated to drive the growth of this segment. Moreover, the cloud-based WMS offers visibility, scalability, flexibility, and security. It also offers consumers the ability to receive automatic software updates without any capital expenses. Thus, drive the cloud segment growth throughout the forecast period.
Based on region, the Asia Pacific region is expected to grow at the highest CAGR during the forecast period
The Asia Pacific region is expected to grow at the highest CAGR during the forecast period owing to the rapid growth in the e-commerce industry especially in developing economies such as China and India. The growth in the e-commerce industry is due to the increasing inclination towards online shopping as well as the growing penetration of smartphones in the region. For instance, according to NASSCOM, despite COVID-19 pandemic challenges or disruptions, the Indian e-commerce industry continues to grow at 5%, with expected sales of USD 56.6 Bn in 2021. Moreover, the growing application of WMS across various industries such as healthcare, transportation & logistics, and retail to maximize output and meet the increasing consumer demand is expected to propel the growth of the warehouse management system market in the region.
The report also provides an in-depth analysis of warehouse management system markets dynamics such as drivers, restraints, opportunities, and challenges
COVID-19 Impact on the Warehouse Management System Market Analysis
The COVID-19 pandemic impacted various industries such as manufacturing, retail, and others owing to the strict lockdown imposed by the government to curb the spread of the virus. The supply chain of products and services was disrupted owing to the production halt from the different industries. However, the COVID-19 pandemic is expected to positively influence the growth of the warehouse management system market owing to the high growth in the e-commerce industry and increased awareness among users about the benefits of WMS helped this market to grow at a steady pace. Moreover, this crisis accelerated the adoption of warehouse automation tools such as WMS among industries. Furthermore, there will be an acceleration in automation to protect the companies against supply chain disruptions in the future. The growth of the WMS market is driven by industries such as e-commerce, 3PL, healthcare, and food & beverages. Thus, the COVID-19 pandemic positively influences the growth of the warehouse management system market.
The report also provides an in-depth analysis of key trends in the warehouse management system market
|1||The growing trend of robotic automation in warehouse technology. This robotic automation integrates the use of robotics, AI, and machine learning to create a much faster way of picking up or putting back products onto shelving.||Positive|
|2||The increasing adoption of advanced data analytics such as big data to run warehouses effectively. Advancements in data collection and tracking allow more insights into the business as well as boost predictive analytics.||Positive|
The report also provides an in-depth analysis of recent news developments and investments
The unique insights provided by this report also include the following:
Ask for free product review call with the author
Share your specific research requirements for a customized report
Request for due diligence and consumer centric studies
Request for study updates, segment specific and country level reports