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The warehouse management systems market size is forecast to increase by USD 3.13 billion, at a CAGR of 13.64% between 2023 and 2028. The growth of the market depends on several factors, including the rising need for inventory control, the growing need for efficient forecasting models, and the emergence of an omnichannel distribution network. The growing demand for better inventory control is a major factor driving the expansion of the warehouse management systems (WMS) market. A warehouse management system is a software tool designed to manage and optimize warehouse activities, including inventory tracking, order fulfillment, and shipping. Having effective inventory control is crucial for businesses to ensure they have the correct products in the appropriate quantities available at the right times. By deploying a WMS, companies can gain real-time insight into their inventory levels, monitor stock movement, and make the most of their warehouse space to boost efficiency and cut costs. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is driven by increasing demand for digital technologies and automation to streamline complex warehouse operations. With the rise of small-scale industries and growing requirements from the retail sector and logistics companies, efficient WMS solutions are essential to meet delivery KPIs and ensure optimal product delivery speed. The adoption of smart devices like smart tablets, mobile phones, and RFID technology enhances warehouse efficiency. However, challenges include addressing resource-constrained operations and integrating WMS with existing enterprise resource planning systems to deliver industry-specific solutions while maintaining data integrity and security. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising need for inventory control is one of the key drivers fueling the Warehousing and Storage market growth. A warehouse management system (WMS) is a software application used to manage and streamline warehouse operations such as inventory management, order processing, and shipping. Effective inventory control is essential for any business to ensure that it has the right products in the right quantities available at the right time. By implementing a WMS, businesses can gain real-time visibility into their inventory levels, track inventory movement, and optimize their warehouse space to increase efficiency and reduce costs. This integration of advanced technology in warehousing and storage enhances operational transparency and responsiveness, catering to the growing demands for seamless logistics management in diverse industries.
Moreover, as businesses continue to expand their operations globally and e-commerce continues to grow, the demand for effective inventory control is increasing. Hence, this has led to a rise in the adoption of WMS by businesses of all sizes, driving the growth of the global WMS market in the forecast period.
The growth of e-commerce is one of the key trends propelling the warehouse management systems (WMS) market growth. The major trend driving the growth of the market is the growing dominance of e-commerce. As online shopping becomes more popular, businesses are under pressure to manage inventory efficiently and fulfill orders quickly. WMS software enables companies to streamline their warehouse operations, from receiving and storing to picking and shipping, by automating and streamlining various processes. With the advent of e-commerce, WMS solutions have become essential tools for businesses to manage their supply chain and meet customer demand.
Moreover, the pandemic has accelerated the growth of e-commerce as consumers increasingly turn to online shopping for convenience and safety. As a result, businesses are investing in WMS solutions to keep up with the surge in online orders and to maintain efficient warehouse operations. In addition, WMS solutions can help e-commerce companies improve efficiency and productivity in their warehouse operations, which can result in faster order fulfillment, reduced labor costs, and increased customer satisfaction which will help the segment growth in the forecast period.
The high implementation cost of on-premises WMS is one of the factors hindering the warehouse management systems (WMS) market growth. The implementation value of on-premises WMS is higher relative to the setup fee in other enterprise software. Furthermore, the salaries of IT staff and the infrastructure value of on-premises WMS are major obstacles to the market in focus. In growing economies, the lack of high-quality Internet renders cloud-based WMS unreliable. Hence, these factors are a key reason hindering the growth of the market in focus. Further, perpetual licensing is regularly used by carriers that provide on-premises WMS while the subscription model is used in the SaaS model.
Though the SaaS model is less expensive, the lack of high-quality Internet hinders the adoption of these structures in the developing economies of APAC and Africa. The fee burden of WMS at once influences SMEs, which account for a foremost share of the world economy. High implementation charges is difficult as SMEs are focusing on implementing and adopting new technologies to enhance their grant chain and warehousing operations and to increase productivity. The high implementation price of on-premises WMS limits its adoption throughout growing economies and SMEs. This is estimated to be a key challenge for the market in focus all during the forecast period, which will tend to lower the growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the software segment will be significant during the forecast period. The global warehouse management system market segment for software refers to the market for software applications that enable businesses to efficiently manage and control their warehouse operations.
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The software segment was valued at USD 1.80 billion in 2018. Warehouse management software is designed to automate and streamline various processes related to inventory management such as receiving, storing, picking, packing, shipping, and inventory tracking. The warehouse management software market is driven by the growing demand for efficient supply chain management solutions across various industries such as retail, e-commerce, healthcare, and manufacturing. Technological advances such as the internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) have also led to the development of more mature and sophisticated warehouse management software solutions. Such factors will increase segment growth during the forecast period.
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Europe is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies is North America. North America has been an early technology adopter in all industries, making the region an attractive market for enterprise software adoption. Various industrial sectors are technologically advanced and are characterized by the presence of developed countries such as the United States and Canada. This is rapid adoption of the technology as companies switch to using WMS which is cloud-based. This creates demand for on-cloud WMS.
Therefore, North America has a larger share of WMS market in the world compared to Europe and her APAC. Furthermore, various technological developments have helped in the adoption of WMS, such as the use of connected devices and sensors to manage the required quantity of products at the right price, time, and place. Thus, the WMS market is estimated to register steady growth in the region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is evolving rapidly due to the increasing adoption of renewable sources such as solar energy to power electric automotive fleets. This shift is impacting various product markets and driving the need for efficient B2B distribution and manufacturing companies. WMS solutions, available as cloud-based services or on-premise solutions, facilitate supply chain models and enable seamless inbound and outbound freight management, including cross-docking. With features like business analytics and slotting management, WMS optimizes yard management and enhances production efficiency. Amidst challenges like shutdowns and movement restrictions faced by industries like travel and entertainment, WMS ensures trade compliance and navigates labor restrictions, ultimately enhancing end customer satisfaction. Major players like FedEx leverage digital twin technology and cloud-based systems to offer robust, standalone WMS solutions.
Further, the market is witnessing significant growth, driven by the increasing demand for efficient warehouse operations in various sectors, including retail, logistics companies, and small-scale industries. WMS solutions offer digital technologies to optimize delivery KPIs such as lead time and product delivery speed. They enable automation of complex warehouse processes, addressing challenges in resource-constrained operations. With features like on-premise WMS and industry-specific solutions, businesses can streamline their warehousing facilities and improve overall efficiency. Integration with smart devices such as smart tablets, mobile phones, and handheld devices enhances real-time monitoring and management, while RFID technology and cameras ensure accurate inventory tracking and security.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.64% |
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Market Growth 2024-2028 |
USD 3.13 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.73 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 37% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
3PL Central LLC, Blue Yonder Group Inc., Cantaloupe Inc., Daifuku Co. Ltd., Dassault Systemes SE, Datapel Systems, E2open Parent Holdings Inc., Epicor Software Corp., Infor Inc., International Business Machines Corp., Manhattan Associates Inc., Mantis Informatics S.A, Oracle Corp., PSI Software AG, PTC Inc., Reply Spa, SAP SE, Softeon, Tecsys Inc., and Vinculum Solutions Pvt. Ltd. |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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