Warehouse Management Systems Industry Overview
The global warehouse management systems market size was valued at USD 2.94 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 16.1% from 2022 to 2030.
Growing economies across the globe have propelled various sectors such as healthcare, manufacturing, and retail to achieve highly efficient operations in order to increase their output and meet consumer demand. In an attempt to address growing demands, logistics companies are continuously progressing to overcome challenges created by fluctuating product markets and shipping schedules.
A warehouse management system helps reduce lead time, increase product delivery speed, and minimize distribution costs. The software is designed to cater to complex, sophisticated warehouse operations as well as tackle less complex resource-constrained operations. Besides, the WMS software is used by various end-users such as third-party logistics, B2B distribution companies, and other manufacturing companies.
Gather more insights about the market drivers, restrains and growth of the Global Warehouse Management Systems Market
Demand for WMS is anticipated to witness a sharp rise due to changing supply chain models of product manufacturers and rapidly growing consumer demand, especially in the transport & logistics, and retail sectors. The need for manufacturers to automate warehouse management processes and curtail costs globally is one of the key trends triggering the market growth. Spiraling demand for the system may be attributed to its ability to ship products in the fastest possible time through the shortest shipping routes.
Customers prefer cloud-based WMS services to on-premise solutions, as the former ensures cost reduction on the service. Software-as-a-Service (SaaS) was introduced to meet the burgeoning demand for cloud-based services as it offers a low upfront cost and enables faster implementation in warehouses. These systems can manage both inbound and outbound freight and cross-docking. These systems are also compatible with other supply chain systems such as business analytics, transportation management systems, slotting management, and yard management.
Furthermore, cloud-based warehouse management system solutions can be accessed from any location through web-based portals. These systems extend supply chains to align fulfillment services and inventory management with advanced purchasing methods and provide real-time visibility into an entire inventory available via browsers and smartphones.
In the wake of the recent COVID-19 outbreak, there has been a significant disturbance in most industries across the globe. While few industries experienced a contraction in their productions and businesses, others faced severe outcomes such as the shutdown of businesses and movement restrictions. For instance, travel, entertainment, food & beverage, and hospitality industries had the most retrenchments, and on the other hand, healthcare and e-commerce businesses had an upsurge in demand.
The demand for warehousing has increased due to the rising trend of online purchasing. The implementation of lockdowns, social distancing, and various other safety measures in response to the pandemic has led consumers to pursue online purchasing. Therefore, several multinational companies are setting up new warehouses across numerous countries to accommodate this upsurged demand.
This has resulted in the growing use of warehouse management systems in e-commerce and third-party logistics industries. E-commerce companies such as Amazon.com, Inc., Alibaba.com., and eBay Inc. are ramping up the demand for WMS as they continue to set up new warehouses across the globe.
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- Third-party Logistics Market – The global third-party logistics market size was valued at USD 956.80 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2022 to 2030. The development of logistics infrastructure in the Asia and Middle East regions, the rapid growth of the e-commerce sector, and the development of new technologies are expected to significantly contribute to the market growth.
- SaaS Market – The global SaaS market size was valued at USD 165.9 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 11.0% from 2022 to 2028. Software as a Service (SaaS) is a cloud service that provides software applications virtually through the internet. The rising adoption of public cloud services across enterprises is one of the major factors that propel the market growth during the forecast period.
Warehouse Management Systems Market Segmentation
Grand View Research has segmented the global warehouse management systems market based on component, deployment, function, application, and region:
Component Outlook (Revenue, USD Million, 2017 – 2030)
Deployment Outlook (Revenue, USD Million, 2017 – 2030)
Function Outlook (Revenue, USD Million, 2017 – 2030)
- Labor Management System
- Analytics & Optimization
- Billing & Yard Management
- Systems Integration & Maintenance
- Consulting Services
Application Outlook (Revenue, USD Million, 2017 – 2030)
- Transportation & Logistics
- Food & Beverage
Regional Outlook (Revenue, USD Million, 2017 – 2030)
- North America
- Asia Pacific
- South America
- Middle East & Africa
Market Share Insights
- May 2020: Manhattan Associates launched a new Manhattan Active Warehouse Management solution, a cloud-native enterprise-class warehouse management system to unify all aspects of distribution without any upgradation.
Key Companies profiled:
Some prominent players in the global warehouse management systems market include
- Körber AG (HighJump)
- Manhattan Associates
- PSI Logistics
- Synergy Ltd
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