Warehouse management system Market Size was valued at USD 2.6 Billion in 2022. The Warehouse management system market industry is projected to grow from USD 3.2 Billion in 2023 to USD 9.9 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 17.7% during the forecast period (2024 - 2032). The e-commerce sector's rapid expansion and rising demand for cloud WMS solutions are propelling the market's expansion. In addition, the market for warehouse management systems is expanding due to the rapid adoption of multichannel distribution networks.
Figure1: Warehouse management system Market, 2018 - 2030 (USD Billion)
E-commerce growth and Supply chain management changing dynamics boosts market growth.
The demand for warehouse management systems (WMS) has increased due to the growth of e-commerce. As e-commerce sales continue to grow globally, businesses are under increased pressure to efficiently manage their warehouse operations to meet the demand for fast and accurate order fulfillment.
E-commerce has changed the way that businesses manage their warehouses, with an increased focus on order processing speed and accuracy. This has led to a greater need for automation and optimization of warehouse operations, which is where WMS solutions come in. A WMS can help businesses to streamline their warehouse operations, automate inventory management, and optimize order processing, ultimately leading to faster and more accurate order fulfillment.
Moreover, e-commerce has also driven the need for businesses to manage inventory across multiple channels and warehouses. A WMS can provide real-time inventory visibility across all channels, which helps businesses to ensure that they have the right inventory in the right place at the right time.
E-commerce market has shown a great surge due to COVID and now becoming the foremost sales channel in any country. The market for e-commerce is expected to grow at a CAGR of 18.8% from 2023 to 2030.
Supply chain management has increased the demand for warehouse management systems (WMS) as businesses seek to optimize their warehouse operations and improve their supply chain efficiency.
Effective supply chain management requires real-time visibility of inventory levels and the ability to track orders and shipments. A WMS provides this visibility by automating warehouse processes such as inventory management, order processing, and shipping. By implementing a WMS, businesses can improve inventory accuracy, reduce order processing times, and minimize shipping errors, which ultimately leads to better customer satisfaction and increased profitability.
Moreover, with the rise of e-commerce and the growth of online shopping, the demand for faster and more efficient order fulfillment has increased, driving the need for WMS solutions. A WMS can help businesses to process orders, manage inventory across multiple warehouses, and optimize the use of warehouse space, all of which are essential for meeting the demands of today’s customers quickly and accurately.
Based on component type, the warehouse management system market segmentation includes services and software. The services segment dominated the market with a share of 75.7% in 2023 and is expected to dominate the market through the forecast period. Moreover, services including consultation, system integration, operation, and maintenance are included in the services segment. Warehouse management can be outsourced by WMS providers to third-party suppliers as a service. Due to the adoption of network virtualization by many enterprises, professional services had the biggest market share during the historical period. Demand for NFV technologies contributed to a rise in market adoption and demand for v-CPE infrastructures.
The region's market shares are also increasing with the rising use of on-demand cloud services. The European markets with the highest rate of growth include Germany, the UK, France, and Italy. The warehouse management system market also comprises revenues made by companies that offer services like inbound and outbound logistics tools for picking and packing procedures, resource utilization, analytics, and others.
Figure 2: Warehouse management system Market, by Component Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The software segment is anticipated to grow at a CAGR of 14.97% during the forecast period, and is expected to expand more in Asia-Pacific region. The expansion is mainly due to the growing use of WMS software by small and mid-sized businesses around the world. With a cloud-based computing system, the program is hosted. The market may benefit from the requirement for flexible software that can handle barcodes, smart scales, and the transportation of commodities from one site to another with equal expertise and cooperation.
February 2023: - A new relationship between B.I.G. Logistics LLC, a SecurCapital Corp firm, and CargoWise, the top supplier of supply chain management IT solutions globally, was announced. Through this partnership, B.I.G. Logistics will be able to significantly increase the scope of its international operations and improve its capacity to offer its clients comprehensive logistics services on a scale while maximizing operations across borders, regulatory boundaries, compliance, and all freight modes.
March 2023 - A pioneer in supply chain logistics, ArcBest, has announced the release of Vaux, a cutting-edge collection of hardware and software that alters and modernizes the way freight is loaded, unloaded, and moved. Vaux provides total sight into freight movement inside warehousing facilities, on the dock, and across the road. It allows the whole contents of a trailer to be unloaded in less than five minutes. Very efficient processes are orchestrated, and warehouse activities run smoothly.
Based on deployment type, the warehouse management system market is segmented into cloud and on-premise. The cloud segment accounted for the largest share of this market and is also estimated to grow at a CAGR of 18.9% through the forecast period. The way organizations run has been completely transformed by cloud-based technologies. WMS provides firms savings in upfront expenditures and significantly boosts warehouse productivity when it is used on the cloud. The way organizations run has been completely transformed by cloud-based technologies. WMS provides firms savings in upfront expenditures and significantly boosts warehouse productivity when it is used on the cloud.
On the other side, the on-premises category is also estimated to propel the market with a CAGR of more than 15% over the forecast period. Cloud deployment has the same level of security as an on-premise system because users own their data and data theft has been successfully reduced over time. The needs of the client can now be catered for in a WMS system by businesses. With the cloud-based WMS, for instance, clients can modify the volume of operations based on seasonal demand. The on-premise deployment, which has gained popularity since the introduction of WMS, is distinguished by large servers and expensive maintenance fees, which ultimately raise a company's costs. In comparison to cloud-based technologies, these up-front expenditures and ownership of the on-premise server are astronomically high. Hence, these benefits would also accelerate the market growth in the future.
The demand for on-premises WMS implementation is holding steady despite the growth of cloud solutions and their improved capabilities. Small businesses invest heavily on-premises due to its ease of management and internal security.
Based on solution type, the warehouse management system market segmentation includes retail, healthcare, manufacturing, food and beverage, transportation & logistics, and others. The transportation and logistics segment holds most of the market share and is also expected to dominate the market at a CAGR of 18.5% through the forecast period. The expansion can be linked to the popularity of e-commerce portals as well as rising consumer disposable income, particularly in developing countries like China and India. Digital warehousing describes logistical facilities that leverage technology to simplify processes and flow to achieve total product traceability. Traditional warehousing involves significant risk of errors and delays due to human inventory control and task organization.
The manufacturing segment is also expected to grow at a CAGR of 16.5% during the forecast period. Initial ERP and WMS integration was done by the manufacturing companies. To have complete control over the supply chain, they are also integrating their logistics and transport management systems. The effectiveness and performance of supply chain management in the manufacturing sector are also being improved through the use of cloud-based technology.
By Region, this market has been segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The North American region is expected to dominate the market through the forecast period. The nation has a strong need for a wide range of foods and beverages, which calls for a constant supply from warehouses since it improves process efficiency, consistency, and quality control by supporting manufacturers in moving items as quickly as possible in response to consumer demand.
Asia Pacific region is expected to grow at the fastest CAGR of 21.65% through the forecast period. The development of warehouse management systems and rising consumer awareness of cloud-based WMS are the main drivers propelling the WMS market's expansion in the Asia Pacific region. The rapid development of Industry 4.0 and the Internet of Things is another factor driving the market in Asia Pacific.
Figure 3: Warehouse management system Market, by Region Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The adoption of WMS solutions is directly impacted by the growth of the e-commerce industry because these solutions help to expand order and fulfillment options, improve store-level inventory accuracy, and streamline order processing. Because of this, businesses that place a high priority on e-commerce are upgrading their in-store WMS systems and restructuring their outdated warehouses. WMS is thus playing a significant role in the development of the e-commerce channel, which promotes market expansion.
Major players in the big data-as-a-service market, including ALTEN Calsoft Labs, VMWare Inc., Ericsson Inc., Hewlett Packard Enterprise, Telco Systems, NEC Corporation, IBM Corporation, Juniper Networks Inc., Versa Networks, Cisco Systems Inc., and others, are focusing on developing their business strategies.
While creating new goods and product portfolios, several major key players choose to form strategic alliances. To improve supply chain management for their target market, businesses are making significant investments in research and development. The market's competitive environment is showcasing core competencies and creating chances even in trying times.
ALTEN Calsoft Labs
VMWare Inc.
Hewlett Packard Enterprise
Telco Systems
NEC Corporation
Juniper Networks Inc.
Versa Networks
Cisco Systems Inc
Ecom Express
Qualcomm
ArcBest
SecureCapital Corp
February 2024: ArcBest introduces Vaux Smart Autonomy™, merging AMR forklifts with intelligent software for autonomous material handling in warehouses. The technology aims to enhance efficiency and safety while keeping humans in the loop. Vaux Smart Autonomy™ complements ArcBest's Vaux Freight Movement System, reducing material handling processes from hours to minutes. This innovation aligns with ArcBest's commitment to technological advancement in logistics, benefiting various industries including manufacturing, automotive, and retail.
January 2024: Versa Networks' Unified SASE gateways offer robust security measures and optimized network performance, benefiting Warehouse Management Systems (WMS). With scalability and simplified infrastructure, they enable seamless expansion and cost-efficiency in managing warehouse networks. This solution enhances data protection, ensures smooth communication between WMS components, and streamlines operations, making it a valuable asset for warehouse efficiency.
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 2.6 Billion |
| Market Size 2023 | USD 3.2 Billion |
| Market Size 2030 | USD 9.9 Billion |
| Compound Annual Growth Rate (CAGR) | 17.7% (2023-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2019 to 2022 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component Type, Deployment Type, Application Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | ALTEN Calsoft Labs, VMWare Inc., Ericsson Inc., Hewlett Packard Enterprise, Telco Systems, NEC Corporation, IBM Corporation, Juniper Networks Inc., Versa Networks, Cisco Systems Inc. |
| Key Market Opportunities | Increasing focus towards digital transformation |
| Key Market Dynamics | E-commerce market growth Supply chain changing dynamics. Focus on lean management and better turnaround time |
Warehouse management system Market Highlights:
Frequently Asked Questions (FAQ) :
The market for Warehouse management system was USD 2.6 Billion in 2022.
The global analytics market is expected to be USD 9.9 Billion in 2030.
Th growth rate for the Warehouse management system market is 17.77% through the forecast period.
At present, the North America region holds largest market share.
The major players are dominating the market are ALTEN Calsoft Labs, VMWare Inc., Ericsson Inc , Hewlett Packard Enterprise, Telco Systems, NEC Corporation, IBM Corporation, and others.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
