The warehouse management system market was estimated to be US$ 2,608.5 Mn in 2018 and is expected to reach US$ 9,332.6 Mn by 2027.
Advanced predictability and planning capabilities offered by cloud-based warehouse management system is expected to have significant impact on the market in the coming years
Advent of artificial intelligence, big data and advanced predictive analytics has remarkably enhanced the conventional warehouse planning and analysis capabilities. With the help of such disruptive technologies the warehouses, distribution centers and the third party logistics have gained the ability to effectively use predictive analytics and real-time stock level information for optimized delivery time and ordering quantities. In addition, the amalgamation of these technologies with conventional warehouse management systems is expected to visibly improve the service level for consumers and subsequently mitigate the risk of supply chain disruptions. Also, as the industries continue to seek proficiency in enhancing their customer services and delivery time, the benefits offered by cloud based WMS solutions are likely to drive the market at the CAGR of 15.6% from 2019 to 2027.
Global warehouse management system market has been categorized by implementation majorly into two categories; on- cloud and on-premises. Over the years the on-premises fulfilment and warehousing infrastructure have decreased, while the demand for cloud based system continue to achieve substantial growth rate. This is majorly because the cloud based WMS offers enhanced flexibility, scalability, disaster recovery, and security to its users. Further it also offers warehouses with the ability to receive automatic software updates without additional capital expenditures, providing better technology competitiveness. Owing to these factors, the cloud based WMS are expected to receive main market attraction resulting in principle growth rate.
The global warehouse management system market for the industry vertical is fragmented into manufacturing, automotive, food & beverages, healthcare, retail & e-commerce, and others. The segmentation is based upon need for warehouse management system for real-time tracking of location of the goods in the facilities. Retail and ecommerce in the warehouse management system market have acquired the prominent share in 2018, followed by automotive, and manufacturing. Retail and ecommerce warehouses are the major contributors owing to the customers like Amazon. Widespread development of regional distribution facilities, especially in developing regions is expected to provide the WMS market with noteworthy growth opportunities in the coming years. However, the manufacturing and automotive industries are also initiating the adoption of warehouse management system for multiple reasons.
Some of the major players influencing warehouse management system market are International Business Machines Corporation, PSI Software AG, SAP SE, Epicor Software Corporation, Oracle Corporation, JDA Software Group, Inc, Infor INC., Manhattan Associates, PTC, Inc., and TECSYS Inc. among others.
