The IoT in Warehouse market is expected to be valued at USD 10.376 billion in 2022 and will exceed USD 28.674 billion by 2032 with a CAGR of 12.0% during the forecast period (2022-2032). The growth of the IoT market is based on the demand of warehouse efficiency solutions in works such as workforce management, inventory management, electronic data interchange, and other daily operations requiring minimal or no human interference. It is expected that future warehouses will control their costs for operational logistics by utilising efficient automation technologies.
Figure 1: IoT in Warehouse Market Size, 2022-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
This report discusses the market overview, market dynamics, and its driving forces, possible opportunities. Additionally, it comprises of detailed analysis of the regional market, segment overview, competitive landscape and recent developments in the global market if IoT in warehouse.
The UAE is a strategic global trade and logistics hub location, with world-class logistics facilities contributing to the UAE’s GDP. While the logistics sector has increasingly embraced warehousing automation to enhance productivity, many logistic companies are struggling with the lack of 5G automation.
Although, covid 19 pandemic has affected industries all across the world negatively, it has helped Iot in warehouses to grow more through e-commerce. During the pandemic, the IoT in warehouses came in great help to the healthcare industry as it contributed in stocking and distributing the medical supplies and all the other healthcare products that were required to fight the pandemic. Recently, Iot in warehouse is in great demand because of the vaccine distribution required to reduce the impact of covid-19. The demand is expected to accelerate more in this period because of the brand owner's increasing usage of VDP (variable data printing) and personalised connection with their customer. In a nutshell, covid-19 has proven to be a favourable factor for the IoT in warehouse market. Moreover, it is likely to increase the demand in the market of e-commerce in the future as well.
Fetch Robotics Cart technology that can help workers and customers practice social distancing emerged in 2020 alongside intelligent automation, IoT, and 5G. Also, smart robotics solutions in warehousing and retail environments came onto the scene precisely at the right time. Zebra Technologies mentioned that employing its cobots to retrieve picked items & transport them to packing stations can reduce warehouse workers’ movements and interactions.
The market is witnessing a high rate of adoption for warehouse technology solutions and an increasing amount of connected devices, which are propelling the growth in the global IoT in warehouse industry hugely. Also, the managers of the warehouses are facing difficulties to cope up with the rising customer expectation, commoditization, and supply chain. Therefore, they are cutting operational costs and reducing inventory cycles and embracing a few new IoT in warehouse market trends following-complex global supply chain, omnichannel retailing, and consignment inventory.
Additionally, some other driving forces behind the IoT in warehouse market are- low electricity bills, low operating cost, and simple design. Electricity bills are automatically lowered by the elimination of expensive battery backup and having the latest grids. Government encouraging renewable energy production and installing solar panels can also give a boost to the market. The market is likely to be favoured by the introduction of subsidies and incentives.
All the budding e-commerce industries across the world are expected to offer a huge opportunity and demand in IoT in warehouse market. Additionally, the smart label printers and electric shelf label being rapidly adopted is only about to contribute to the growth of the market.
The major challenge of the IoT in warehouse industry is the unstable pricing and key components shortage for production requirements. A huge gap in the supply chain has been created due to the shut down of manufacturing companies forced by the covid-19 pandemic.
The price of the key components depends on their availability. Therefore, unstable stocking of the key components in making the pricing always fluctuating. Therefore, the increasing and decreasing of the pricing is acting as the restraining factor against the IoT in Warehouse Market Growth.
The IoT in warehouse market research is based on four segments- device, solution, industry, and region.
Based on solutions, the market of IoT in warehouse is further segmented into-
Based on device, the market is sub-segmented into-
Depending on the industry, the IoT in warehouse market is further classified into-
By region, the global market of IoT in warehouse is further segmented into-
On Apr.26, 2022, Amazon announced a venture investment program worth US$1 BN – the Amazon Industrial Innovation Fund (AIIF) for warehouse robotics to spur supply chain, fulfillment, and logistics innovation. The first round of financing will be used for wearable tech focusing on workplace safety, specifically automation and workplace robotics.
Amazon’s new fund would aid in developing solutions that can respond to a shifting market landscape, including increasing online shopping, expectations around delivery times, and online experiences. Amazon sees an opportunity to empower companies developing emerging technologies in customer fulfillment operations, logistics, and the supply chain.
North America is the dominant region among the global, regional market, and it is likely to maintain its place in the IoT in Warehouse Market Size, IoT in Warehouse Market Share. The region has prominent key players, robust cloud infrastructure, and skilled expertise. The presence and implementation of new strategies of players like Cisco Systems, Inc., Argos Software, Zebra Technologies are fostering the growth of the market. US is the largest market in the North American region which is likely to grow with the highest CAGR of 19.91% during the review period.
Europe holds the second-largest share of the global market of the IoT in warehouse. Factors like increasing online shopping sectors, eCommerce ventures, and infrastructure of strong and wireless networks are driving the market growth of the region.
The Asia Pacific, owing to the increasing demand and investment in energy resources and solar projects, holds the largest share in the market. Constant efforts on reducing the dependency on fossil fuel can add a great boost to the IoT in Warehouse Market Trends.
The market has been highly competitive, and the lockdown has only contributed to enhancing it. Many well-established, strong, and prominent players being in the market makes the competition only tougher. Moreover, many new market players are trying to get hold of the market with aggressively low pricing. The objective is to undercut the already established players in the IoT in warehouse industry market. On the other hand, the old players are focusing on strategies like R&D investments, M&A activities, and product facility expansion.
April 2024:
In conjunction with Huawei, the Indonesian telecoms carrier Telkomsel has opened a 5G Smart Warehouse and 5G Innovation Center in the Bekasi Regency of West Java. The business claims that this facility is the first of its kind in Indonesia. According to Telkomsel, this facility demonstrates the potential of 5G technology to revolutionize warehouse management, hence increasing operating efficiency and generating new possibilities for the logistics sector.
In its statement regarding the inauguration, Telkomsel stated, "We are optimistic that the deployment of the 5G Smart Warehouse alongside the 5G Innovation Center's conceptual solutions will inaugurate a transformative era for professionals within the logistics sector, particularly by enhancing managerial competencies and amplifying the operational efficacy of warehousing systems."
Telkomsel was quoted as saying that the 5G Smart Warehouse makes use of cutting-edge technologies such as the Internet of Things (IoT) and big data analytics in order to simplify operations, improve safety and security, boost efficiency, and cut down on energy usage as well as any unexpected losses. In addition, warehouse managers can make use of digital twins and real-time data analysis in order to improve inventory management and avoid stockouts.
Additionally, the 5G network allows staff members and autonomous guided vehicles (AGVs) to communicate in a timely and precise manner, maximizing the efficiency of the flow of products. Furthermore, the business said that clever security systems driven by video and infrared sensors safeguard the safety of the warehouse.
In addition, the 5G BTS technology used to power the warehouse uses just 5 Watts, which is the same amount of energy saved by a single energy-saving light bulb. This makes it a sustainable option for the future.
As part of its efforts to modernize warehouse management in order to promote the digital economy and get closer to the Golden Indonesia Vision 2045, Telkomsel has said that this technological advancement is happening.
Jan 23, 2024: Walmart partners with Cisco: Walmart partners with Cisco to deploy AI-powered cameras and sensors for real-time inventory tracking and theft prevention.
Jan 15, 2024: Honeywell launches new software: Honeywell launches a new software platform that integrates data from various IoT devices for warehouse optimization and predictive maintenance.
Report Overview
The global market of IoT in warehouse research report consists-
| Report Attribute/Metric | Details |
| Â Â Market Size | Â Â 2032: USD 28.674 Billion |
| Â Â CAGR | Â Â 12.0% (2022-2032) |
| Â Â Base Year | Â Â 2019 |
| Â Â Forecast Period | Â Â 2022-2032 |
| Â Â Historical Data | Â Â 2018 |
| Â Â Forecast Units | Â Â Value (USD Million) |
| Â Â Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Â Â Segments Covered | By Solution, By Device |
| Â Â Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Â Â Key Vendors | Omnitracs LLC (US), IBM Corporation (US), Software AG (Germany), Cisco Systems Inc. (US), UltraShipTMS (US), TECSYS Inc. (Canada), HCL Technologies Limited (India), Intel Corporation (US), PTC Incorporation (US), Eurotech SpA (Italy), Oracle Corporation (US), Zebra Technologies (US), Infor Inc. (US) |
| Â Â Key Market Opportunities | The use of IoT in warehouse management is predicted to grow in the recent future on the back of more businesses using them to efficiently manage their inventory. |
|   Key Market Drivers | Recent vaccine distribution drives worldwide are pressing the need for IoT, warehouse automation that can help reduce COVID-19’s impact on the supply chain.This trend is expected to continue even in the later stages of vaccination drives. |
IoT in Warehouse Market Highlights:
Frequently Asked Questions (FAQ) :
The global IoT in Warehouse market will be valued at USD 28.674 billion by 2032. The global IoT in Warehouse industry is estimated to witness substantial growth during the forecast period.
The global IoT in warehouse market is projected to register a moderate 12.0% CAGR in the forecast period.
The workforce management segment is slated to expand as the fastest-growing segment.
The sensing devices segment is slated to expand as the fastest-growing segment.
A few major market players operating in the global IoT in warehouse market are Schaeffler Technologies AG & Co. KG (Germany), BorgWarner Inc. (U.S.), Delphi Technologies, Inc. (U.K.), and Allison Transmission (U.S.), among others.
The IoT in warehouse market in North America recorded a value of 2.6 billion over the review period.
The APAC region is expected to witness the fatest growth at a 23.06% CAGR by 2025.
The global IoT in warehouse market is expected to record a substantial market valuation due to the growing need for fuel efficiency consequently leading to fuel cost efficiency.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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