The global Warehouse Management Systems market size is expected to be worth around US$ 9.1 billion by 2030, according to a new report by Vision Research Reports.
The global Warehouse Management Systems market size was valued at US$ 2.64 billion in 2020 and is anticipated to grow at a CAGR of 25.3% during forecast period 2021 to 2030.
Growth Factors
Growing transition towards cloud-based management systems in the warehouse industry is anticipated to boost the demand for warehouse management systems (WMS) based on the Software-as-a-Service (SaaS) model. Advancements in cloud-based technologies are estimated to fuel the adoption of WMS software irrespective of the organization’s size and complexity where these solutions are used. Surging demand for cloud-based systems can primarily be attributed to medium- and small-sized businesses that do not require the implementation of advanced warehouse technologies and high-speed automation.
Large-scale companies are also switching to cloud-based WMS as it allows organizations to offload exhausting tasks, such as maintenance, infrastructure administration, timely upgrades, and other tasks that are carried out on the on-premise software. Cloud enables businesses running on conventional on-premise technologies to transit to a platform that will support and cater to their clients’ needs more efficiently. Low upfront cost and shorter implementation time are key factors that are encouraging companies to adopt cloud-based systems.
In the healthcare ecosystem, a WMS ensures that medical equipment and medicines are supplied on time. Also, it continuously updates the database of the inventory moving in and out of a warehouse, which prevents the shortage of inventory. Furthermore, in the healthcare domain, continuous sharing of information and transparency of all processes are the critical factors for efficient warehouse management. Warehouse management system enables complete transparency of logistic activities and enables proper tracking of medical devices and medicines. Similarly, in the food & beverage industry, it ensures optimized picking, directed put away, and rotation of stock based on its expiry date.
Report Highlights
The services segment held the highest revenue share of more than 82% in 2020 in the global WMS market. The services segment includes consulting, system integration, operation, and maintenance services. Warehouse management can be provided as a service by third-party vendors, which is outsourced by WMS providers. Vendors sell their products by either offering them as a service, which helps the clients to focus on their core business operations or selling the software to the client without the service.
The software segment is expected to register the fastest CAGR of over 17% from 2021 to 2028. The growth can be attributed majorly to the increasing adoption of WMS software by Small- and Mid-sized Enterprises (SMEs) worldwide. The software is hosted via a cloud-based computing system. Furthermore, factors, such as rising demand in the retail & manufacturing sectors and high consumer disposable incomes, are expected to support the segment growth. In addition, WMS software can be a standalone system or part of a supply chain execution suite and is widely used as a tactical tool by businesses to meet the unique customer requirements of their supply chain and distribution channel.
The cloud segment held the highest revenue share of more than 55% in 2020 and is expected to emerge as the fastest-growing segment from 2021 to 2028. Cloud-based technology has revolutionized the way businesses function. When deployed on the cloud, WMS offers a reduction in the upfront costs of companies and drastically increases warehouse efficiency. Over the years, cloud deployment has become as secure as the on-premise system on account of data sovereignty and successful curbing of data thefts. Companies are now able to customize and provide a WMS service based on the client’s requirements.
For instance, the cloud-based WMS enables clients to scale or downsize the level of operations based on their seasonal demand. The on-premise deployment has been prominent since the advent of WMS. However, it is estimated to register sluggish growth as it is characterized by huge servers and high maintenance costs, ultimately increasing the company’s expenditures. These upfront costs and ownership of maintaining the on-premise server are incredibly high compared to the cloud-based technology. Moreover, the on-premise solutions have a lengthy and time-consuming implementation process as compared to the cloud-based solutions.
Systems integration & maintenance was the largest segment and accounted for a revenue share of over 32% in 2020. Functions, such as inventory receiving and put away, optimization of picking and shipping of orders, guidance in inventory replenishment, are carried out by WMS.
Order picking functionality is one of the most crucial features in a warehouse management optimization suite that is designed to automate the paper-based picking process. The material handling process and picking are affected by many factors, including warehouse layout, customer requirements, order type, and product velocity. A WMS capable of accommodating fulfillment requirements irrespective of individual warehouse characteristics is more beneficial than a WMS with a limited scope of application.
Furthermore, order allocation is another essential feature of any robust WMS. As soon as a sales order is received, it is entered into the Enterprise Resource Planning (ERP) system and gets immediately updated in the WMS software. Order management is expedited as there is no time lapse between the product being received in the warehouse and being available for order allocation. The analytics & optimization segment is expected to register the fastest CAGR from 2021 to 2028.
The manufacturing segment held the highest revenue share of over 24% in 2020. The manufacturing companies initially integrated their ERP and WMS solutions. They are integrating their logistics & transport management systems too to gain full control of the supply chain. In addition, the use of cloud-based technology is enhancing the efficiency and performance of supply chain management in the manufacturing sector.
Transportation & logistics is expected to emerge as the fastest-growing application segment from 2021 to 2028. The growth can be attributed to the increased popularity of e-commerce portals coupled with growing disposable income levels of consumers, especially in emerging nations, such as India and China. Logistics and supply chain companies are rapidly adopting WMS to improve their operations and increase warehouse efficiency and productivity. Also, rising awareness about the benefits of having a well-integrated WMS, such as efficient warehouse operations to meet the rising demand will support segment growth.
The healthcare segment is anticipated to emerge as a prominent adopter of WMS as providers are building facilities taking into consideration the pre-requisites of the healthcare sector. For instance, DHL’s Cherwell European healthcare center is the largest user-shared logistics center in the U.K. that offers a healthcare WMS. The facility uses the OBS Logistics system, and its services include inventory management for a wide range of temperature-controlled pharmaceutical products, diagnostic reagents, and medical devices.
Europe led the global market and accounted for over 33% of the overall revenue share in 2020. The advancement in the WMS and increasing awareness about cloud-based WMS are primary factors driving the regional market. Led by the U.S., North America accounted for the second-highest revenue share in the same year. The presence of wide networks of(3PL) companies & large-scale companies with global distribution operations and warehousing and sustained growth in the e-commerce industry are propelling the market growth in North America. Moreover, the strong presence of ERP vendors in the U.S. supports the overall growth of the regional market. In addition, the country has a high demand for food and beverages, which requires continuous supply from warehouses as it adds quality control, efficiency, and consistency to the process.
Asia Pacific is projected to be the fastest-growing regional market during the forecast period owing to its high-growth economies, such as China, India, and the Philippines. With the increasing purchasing power of consumers, developing countries are witnessing a growth in the demand for end-use products. This is positively influencing the demand for WMS for an uninterrupted supply of products. Moreover, since Asia Pacific is a price-sensitive region, SaaS is highly preferred by companies using the WMS technology. Advantages, such as lower entry cost and risk, cost-effective growth, access to the best technology, and dynamic & advanced software features, offered by the model are seizing manufacturers’ attention.
Key Players
Epicor
Körber AG (HighJump)
Infor
Made4net
Manhattan Associates
Oracle
PSI Logistics
Reply
SAP
Softeon
Synergy Ltd.
Tecsys
Market Segmentation
Component Outlook
Software
Services
Deployment Outlook
On-Premise
Cloud
Function Outlook
Labor Management System
Analytics & Optimization
Billing & Yard Management
Systems Integration & Maintenance
Consulting Services
Application Outlook
Transportation & Logistics
Retail
Healthcare
Manufacturing
Food & Beverage
Others
Regional Outlook
North America
U.S.
Canada
Mexico
Europe
U.K.
Germany
Asia Pacific
China
India
Japan
South America
Brazil
Middle East & Africa
The Warehouse Management Systems market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Warehouse Management Systems market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Warehouse Management Systems market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Warehouse Management Systems market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Warehouse Management Systems market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Warehouse Management Systems capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Warehouse Management Systems by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Warehouse Management Systems market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Warehouse Management Systems market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Warehouse Management Systems market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Warehouse Management Systems industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The Warehouse Management Systems market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Warehouse Management Systems market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Warehouse Management Systems market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Warehouse Management Systems market. These factors have benefited the growth of the global market for Warehouse Management Systems. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Warehouse Management Systems. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Warehouse Management Systems are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
Research Methodology:
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
Primary Sources
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
To strategically profile the key players and comprehensively analyze their growth strategies.
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