Warehouse Management Systems Market

Global Warehouse Management Systems Market Size (2024 to 2029)

The global warehouse management systems market is foreseen to reach USD 3.88 billion in 2024 and USD 8.22 billion by 2029, growing at a CAGR of 16.2% during the forecast period.

The warehouse management system (WMS) is an essential part of the supply chain strategy, as it controls the movement of goods and storage materials in the warehouse. This includes the processes associated with transactions, such as receiving, sending, recording, and collecting. Warehouse management systems also direct and make the most of the stored inventory based on the actual situation of warehouse operations. Thus, warehouse automation is the complete cycle of warehouse management from the moment the goods are received in the warehouse to the delivery of customer orders.

Current Scenario of the Global Warehouse Management Systems Market

The rising advancements in digitization have supported the rapid adoption of warehouse management systems (WMS) in numerous applications. The growth of e-commerce and omnichannel compliance requirements, WMS add-on sales, work efficiency, cost of ownership benefits, and supply chain platform integration are the main drivers that complement market growth. Expensive deployment of WMS solutions and the dominance of ERP vendors have slowed this market growth.

MARKET TRENDS

The demand for cloud-based warehouse management systems is increasing as these systems facilitate communication between a supplier and a buyer, help improve customer service, and reduce inventory costs.

Warehouse management systems in the cloud have the ability to manage inbound and outbound freight and cross-docking. Cloud-based warehouse management systems are compatible with other supply chain systems, including transportation management systems, business analysis, yard management, and space management. Cloud-based warehouse management system solutions can be accessed from any location through web portals. These systems have many advantages over local systems, which are important. Cloud-based warehouse management systems extend supply chains with modern purchasing methods and offer real-time visibility into a full inventory that can be accessed through smartphones and web browsers.

MARKET DRIVERS

The need for manufacturers to automate warehouse management processes and reduce costs globally is one of the major trends driving the growth of the market.

The main factors driving the growth of warehouse management systems are the increase in technology investment in economically developing regions such as Asia-Pacific and the emergence of electronic commerce. Also, strong demand from the industrial and healthcare sectors in developing countries is fueling the growth of the warehouse management systems market. Technological progressions like cloud deployment are supporting the call for a warehouse management systems market. However, the costly deployment of a warehouse management system solution is holding back the growth of the warehouse management systems market.

MARKET RESTRAINTS

The inherent challenges associated with implementing distribution software, such as lack of standardization of processes in distribution, less business-savvy users, high rate of concurrent active transactions, material handling interface requirements, and other factors, lead to monopolization of resources, cost overruns, and the risk of operational disruption. Small installations with a small staff find WMS solutions too expensive to deploy. Many of these companies rely on memory-based processes, outdated systems, and paper-based warehouse operations. The impact of this factor was significant; however, due to advancements in technology, this impact is expected to decrease over the forecast period.

Impact of Covid-19 on the Global Warehouse Management System Market

A warehouse management system (WMS) is a software application that helps manage warehouse operations in the most efficient and productive way. The functions like inventory control, labor management, dock management, and others have been a part of these systems. COVID-19 has become a global pandemic that has spread to 215 countries worldwide and has affected various industries across the globe. Leading players from all industries have been affected by this pandemic. The foreseeable decline in the growth of end-user industries can have a significant direct impact on the warehouse management systems market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Warehouse Management Systems Market Analysis By Component

The components included in the warehouse management system are software and services. Of these, the service components segment is currently experiencing significant growth.

Global Warehouse Management Systems Market Analysis By Deployment

 The worldwide market is forked in the cloud and on-premises. The cloud-based warehouse management system is likely to experience considerable growth during the forecast period.

Global Warehouse Management Systems Market Analysis By Application

The applications of the warehouse management system are retail, pharmacy, electronics, food and beverage, etc. Among these, the pharmaceutical segment held the largest share in 2016.

REGIONAL ANALYSIS

The geographic regions considered in the report are North America, Europe, Asia Pacific, and LAMEA (Latin America, Middle East & Africa). Europe is expected to dominate the WMS market; however, Asia-Pacific is expected to experience rapid growth.

Europe leads the warehouse management systems market due to its strong penetration in healthcare and industry. Europe is closely followed by North America. The warehouse management system is expanding its footprint in North America due to increasing demand from various industries such as food manufacturing, agriculture, beverage, cosmetics, logistics, and medical devices. China, India, and Japan in the Asia-Pacific region dominate the warehouse management system market due to high investment in technology. The adoption of barcode and RFID chip technology is accelerating the growth of the warehouse management systems market in Asia-Pacific.

KEY PLAYERS IN THE GLOBAL WAREHOUSE MANAGEMENT SYSTEMS MARKET

The major players in the global warehouse management systems market are HighJump Software, Infor Inc., LogFire Inc., Tecsys, Inc., Manhattan Associates Inc., Made4net LLC, Oracle Corporation, SAP SE, Reply, Softeon, Inc., JDA Software Group, Inc., and Synergy Logistics Ltd.

In addition, Indigo Software, Produmex, SmartTurn, Justransform, Swisslog WMS, SNS, Provia Software, EXE Technologies, Infor / SSA Global, Royal 4 Systems' Warehouse Information System, Snapfulfil, Synergy Ltd., ERCIM, Yobel SCM, NUO Consulting, and GCM Business Consulting & Technology are other players in the warehouse management systems market.

RECENT HAPPENINGS IN THE GLOBAL WAREHOUSE MANAGEMENT SYSTEMS MARKET

• In April 2020, Softeon Company participated in MODEX 2020, held in Atlanta, to showcase its warehouse management and fulfillment system capabilities. Through this participation, the company aims to improve its global customer base in the market.

• In February 2017, HighJump obtained RedTail Solution, Inc. RedTail Solution, Inc. is an Electronic Data Interchange (EDI) cloud service solutions provider and provides a data synchronization network to mid-sized manufacturers and suppliers.

• In April 2017, Manhattan Associates, Inc. launched its Manhattan Distribution Management suite, which includes a range of new offerings such as mobile distribution management (MD), mobile collection app, enhanced sorting functionality, and the user of the packing station.

DETAILED SEGMENTATION OF THE GLOBAL WAREHOUSE MANAGEMENT SYSTEMS MARKET INCLUDED IN THIS REPORT

The global warehouse management systems market is segmented on the basis of components, deployment, applications, and region.

By Component                 

• Software  
• Services    

By Application                   

• Pharmaceutical     
• Retail         
• Food & Beverage 
• Electronics               

By Deployment                

• On-Premise            
• Cloud         

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa