The warehouse management system market is expected to reach USD 4.82 billion by 2024 from USD 2.06 billion in 2018, at a CAGR of 15.2% from 2018 to 2024.
Warehouse management system (WMS) is a software application that helps manage operations in warehouses in the most efficient and productive manner. The growth of this market can be attributed to the growth in the e-commerce industry, emerging multichannel distribution channels, globalization of supply chain networks, increased adoption of on-cloud WMS solutions, and rising need for efficient forecasting models.
Software is likely to hold a large share of the WMS market during the forecast period. Increasing awareness about WMS software among small and midsized enterprises (SMEs), globalization of supply chain networks, and growing share of cloud-based WMS software solutions are the key factors boosting the demand for WMS software.
On-premise deployment is likely to lead the WMS market during forecast period. Benefits such as enhanced data security, better performance and control over data transmission, and easier customizations provided by on-premise warehouse management systems are resulting in their high adoption.
Advanced (tier 1) WMS is expected to dominate the WMS market during forecast period. Advanced WMS aids warehouse operators in making better decisions about inventory stocking, movement, and employee efficiency with adequate and accessible information. This is a major factor driving the growth of the market for advanced (tier 1) WMS.
The third-party logistics (3PL) industry is expected to lead the overall warehouse management system market from 2018 to 2024. This industry is contributing to the growth of the warehouse management system market. Factors such as growing need for efficient order management, increased outsourcing of logistics and transportation operations, and globalization of supply chain networks have boosted the adoption of warehouse management systems in the 3PL industry.
Warehouse Management System Market
Among all regions, North America is expected to account for the largest share of the warehouse management system market in 2018. Factors such as presence of large companies with global warehousing and distribution operations, growth in e-commerce industry, and developed third-party logistics (3PL) networks are driving the growth of the warehouse management system market in this region. The US is the major contributor to the growth of warehouse management system market in North America. Companies in the US are shifting most of their operations on cloud, thereby creating huge opportunities for the adoption of on-cloud WMS solutions. Major Application of Warehouse Management Systems
With the rise in demand for 3PL services, companies are handling huge inventory on a daily basis. Further, the complexity of operating a 3PL facility, particularly one that serves multiple clients, has accelerated. The implementation of WMS in the 3PL industry is vital to efficiently handle inventory and orders. WMS can seamlessly handle overlapping of inventory. These systems can also effortlessly handle any overlapping of sales orders or purchase orders, thereby saving hours required for manual data entry.
The after-sales service market for the automotive industry is witnessing tremendous growth opportunities owing to the high number of vehicles sold worldwide and the increasing need for periodic maintenance. In recent times, provision of efficient after-sales services adds value to the final products as it influences customers to buy products of certain brands. Provision of an efficient after-sales service requires uninterrupted supply of essential spare parts and components, such as engine parts, suspensions, tires, electronic components, and brake pads. These spare parts are not necessarily being manufactured at same locations and are required to be transported both at assembly facilities and service outlets for customers to buy replacements. WMS plays a major role in making the inventory available at warehouses and transporting it to distribution centers as per customer requirements.
Food & Beverages:
With the increasing concern about food safety and quality among customers, it becomes necessary for food & beverages companies to keep a track of the sources of food products and to ensure food quality while these are being transported. Several governments worldwide have come-up with regulations to ensure superior quality of packaged food & beverages. Regulations such as Hazard Analysis and Critical Control Point (HACCP) by the US federal government, Safe Food for Canadians by the Canadian Food Inspection Agency (CFIA), and General Food Law of the European Union have been adopted by food & beverages companies to ensure freshness and integrity of food items.
The use of WMS in the healthcare industry ensures that medicines and medical equipment are supplied in given time. A WMS helps in constantly updating the database of the inventory moving in and out of a warehouse; this helps in preventing running out of inventory. In the healthcare distribution ecosystem, continuous sharing of information and visibility of every process are the determinants for efficient warehouse management. WMS enables clear visibility of logistic activities in the healthcare industry, thereby enabling proper tracking of medicines and medical devices.
Factors such as high implementation costs of on-premise WMS for SMEs and data privacy and security concerns are restraining the growth of the warehouse management system market.
As of 2017, Epicor Software (US), JDA Software (US), Manhattan Associates (US), Oracle (US), and SAP (Germany) were the top 5 players in the warehouse management system market. These players focus on product launches, acquisitions, expansions, and contracts and partnerships to expand their product offerings and businesses.
Other prominent players in the warehouse management system market include IBM (US), Infor (US), PSI (Germany), PTC (US), Tecsys (Canada), Blujay Solutions (UK), and HighJump (US).
Which tier type of WMS would have the highest demand in the future?
Which deployment type of warehouse management systems is preferred the most?
How is a warehouse management system deployed to facilitate various functions of a warehouse?
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights
4.1 Warehouse Management System Market, 2018-2024 (USD Billion) 4.2 Warehouse Management System Market, By Offering 4.3 Warehouse Management System Market, By Deployment 4.4 Warehouse Management System Market, By Tier Type 4.5 Warehouse Management System Market, By Industry 4.6 Warehouse Management System Market, By Geography
5 Market Overview
5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 126.96.36.199 Growth in E-Commerce Industry 188.8.131.52 Emergence of Multichannel Distribution Networks 184.108.40.206 Globalization of Supply Chain Networks 220.127.116.11 Increasing Adoption of On-Cloud WMS Solutions 18.104.22.168 Need for Efficient Forecasting Models 5.2.2 Restraints 22.214.171.124 High Implementation Cost of On-Premise WMS for SMES 126.96.36.199 Data Privacy and Security Concerns 5.2.3 Opportunities 188.8.131.52 Digitization of Supply Chain Management 184.108.40.206 Rising Investment of Multinational Companies in Emerging Economies 5.2.4 Challenges 220.127.116.11 Lack of Awareness About Benefits of WMS Among Small-Scale Industries 18.104.22.168 Constant Need for Software Upgrades 5.3 Value Chain Analysis
6 Hardware Components Integrated With Warehouse Management Systems
6.1 Introduction 6.2 Robot 6.2.1 Integration of Robot With WMS 6.3 Automated Storage and Retrieval System (ASRS) 6.3.1 Integration of ASRS With WMS 6.4 Conveyor and Sortation System 6.4.1 Integration of Conveyors and Sortation Systems With WMS 6.5 Crane 6.5.1 Integration of Cranes With WMS 6.6 Automated Guided Vehilce (AGV) 6.6.1 Integration of AGV With WMS
7 Warehouse Management System Market, By Offering
7.1 Introduction 7.2 Software 7.3 Services 7.3.1 Consulting and Installation 7.3.2 Testing 7.3.3 Maintenance 7.3.4 Training 7.3.5 Software Upgrades
8 Warehouse Management System Market, By Deployment
8.1 Introduction 8.2 On-Premise 8.3 On-Cloud 8.4 On-Premise vs On-Cloud
9 Warehouse Management System Market, By Tier Type
10.1 Introduction 10.2 Receiving and Putaway 10.3 Slotting 10.4 Inventory Control 10.5 Picking 10.6 Workforce and Task Management 10.7 Shipping 10.8 Yard and Dock Management
11 Warehouse Management System Market, By Industry
11.1 Introduction 11.2 Third-Party Logistics (3PL) 11.2.1 WMS Helps 3PL Companies Reduce Operation Complexities 11.3 Automotive 11.3.1 WMS Plays Major Role in Automotive Industry for Efficient Inventory Management 11.4 Food & Beverages 11.4.1 Implementation of WMS in Food & Beverages Industry for Package Tracking 11.5 Healthcare 11.5.1 Rising Trend of Automated Warehouses Boosting Adoption of WMS in Healthcare Industry 11.6 E-Commerce 11.6.1 WMS Smoothens Warehouising Operations of E-Commerce Industry 11.7 Chemicals 11.7.1 Digitization in Chemicals Industry to Boost Adopton of WMS 11.8 Electrical & Electronics 11.8.1 WMS Smoothly Handles Supply Chain of Electrical & Electronics Industry 11.9 Metals and Machinery 11.9.1 Use of WMS in Metals & Machinery Industry Enables Efficient and Cost-Effective Operations 11.10 Others 11.10.1 Paper and Printing 11.10.2 Textile and Clothing
12 Geographic Analysis
13 Competitive Landscape
13.1 Overview 13.2 Ranking of Players in Warehouse Management System Market 13.3 Competitive Situations & Trends