Warehouse Management Systems Market Size, Share & Trends Analysis Report By Component (Services, Software), By Deployment (Cloud, On-premise), By Function, By Application, And Segment Forecasts, 2022 - 2030
· Report ID: GVR-2-68038-151-1
· Number of Pages: 90
· Format: Electronic (PDF)
· Historical Range: 2017 - 2020
· Industry: Technology
Report 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.
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.
Component Insights
The services segment held the highest revenue share in the WMS market, contributing to more than 81.8% revenue share in 2021. The services segment includes consulting, system integration, operation, and maintenance services. Warehouse management can be provided as a service by third-party vendors, which is outsourced by WMS providers. Vendors sell their products by either offering them as a service, which helps the clients to focus on their core business operations or by selling the software to the client without the service.
The software segment is expected to emerge as the fastest-growing segment, registering a CAGR of 18.2% from 2022 to 2030. The growth can be attributed majorly to the increasing adoption of WMS software by small and midsized enterprises (SMEs) worldwide. The software is hosted via a cloud-based computing system.
Furthermore, factors such as spurring demand in the retail and manufacturing sectors and high disposable incomes of consumers are major factors expected to support the segment growth in the forthcoming years. Besides, warehouse management system software can be a standalone system or part of a supply chain execution suite, and is widely used as a tactical tool by businesses to meet the unique customer requirements of their supply chain and distribution channel.
https://www.grandviewresearch.com/industry-analysis/warehouse-management-system-wms-market