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The warehouse management systems market size is estimated to grow at a CAGR of 12% between 2022 and 2027. The market size is forecast to increase by USD 2,403.65 million. The growth of the market depends on several factors, including the rising need for inventory control, the growing need for efficient forecasting models, and the emergence of omnichannel distribution network.
This warehouse management systems market report extensively covers market segmentation by component (software and services), deployment (cloud and on premise), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rising need for inventory control is notably driving the market growth, although factors such as high implementation cost of on-premises WMS may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising need for inventory control is one of the key drivers fueling the warehouse management systems (WMS) market growth. The growing need for inventory management is a major driver of the global warehouse management system market. A warehouse management system (WMS) is a software application used to manage and streamline warehouse operations such as inventory management, order processing, and shipping. Effective inventory control is essential for any business to ensure that it has the right products in the right quantities available at the right time. By implementing a WMS, businesses can gain real-time visibility into their inventory levels, track inventory movement, and optimize their warehouse space to increase efficiency and reduce costs.
Moreover, as businesses continue to expand their operations globally and e-commerce continues to grow, the demand for effective inventory control is increasing. Hence, this has led to a rise in the adoption of WMS by businesses of all sizes, driving the growth of the global WMS market in the forecast period.
The growth of e-commerce is one of the key trends propelling the warehouse management systems (WMS) market growth. The major trend driving the growth of the global WMS market is the growing dominance of e-commerce. As online shopping becomes more popular, businesses are under pressure to manage inventory efficiently and fulfill orders quickly. WMS software enables companies to streamline their warehouse operations, from receiving and storing to picking and shipping, by automating and streamlining various processes. With the advent of e-commerce, WMS solutions have become essential tools for businesses to manage their supply chain and meet customer demand.
Moreover, the pandemic has accelerated the growth of e-commerce as consumers increasingly turn to online shopping for convenience and safety. As a result, businesses are investing in WMS solutions to keep up with the surge in online orders and to maintain efficient warehouse operations. In addition, WMS solutions can help e-commerce companies improve efficiency and productivity in their warehouse operations, which can result in faster order fulfillment, reduced labor costs, and increased customer satisfaction which will help the segment growth in the forecast period.
The high implementation cost of on-premises WMS is one of the factors hindering the warehouse management systems (WMS) market growth. The implementation value of on-premises WMS is higher relative to the setup fee in other enterprise software. Furthermore, the salaries of IT staff and the infrastructure value of on-premises WMS are major obstacles to the market in focus. In growing economies, the lack of high-quality Internet renders cloud-based WMS unreliable. Hence, these factors are a key reason hindering the growth of the market in focus. Further, perpetual licensing is regularly used by carriers that provide on-premises WMS while the subscription model is used in the SaaS model.
Though the SaaS model is less expensive, the lack of high-quality Internet hinders the adoption of these structures in the developing economies of APAC and Africa. The fee burden of WMS at once influences SMEs, which account for a foremost share of the world economy. High implementation charges is difficult as SMEs are focusing on implementing and adopting new technologies to enhance their grant chain and warehousing operations and to increase productivity. The high implementation price of on-premises WMS limits its adoption throughout growing economies and SMEs. This is estimated to be a key challenge for the market in focus all during the forecast period, which will tend to lower the growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Warehouse Management Systems Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Blue Yonder Group Inc.: The company offers warehouse management systems for traditional, regional DC, and local micro-fulfillment center.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the software segment will be significant during the forecast period. The global warehouse management system market segment for software refers to the market for software applications that enable businesses to efficiently manage and control their warehouse operations.
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The software segment was valued at USD 1,663.90 million in 2017 and continue to grow by 2021. Warehouse management software is designed to automate and streamline various processes related to inventory management such as receiving, storing, picking, packing, shipping, and inventory tracking. The warehouse management software market is driven by the growing demand for efficient supply chain management solutions across various industries such as retail, e-commerce, healthcare, and manufacturing. Technological advances such as the internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) have also led to the development of more mature and sophisticated warehouse management software solutions. Such factors will increase segment growth during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America has been an early technology adopter in all industries, making the region an attractive market for enterprise software adoption. Various industrial sectors are technologically advanced and are characterized by the presence of developed countries such as the United States and Canada. This is rapid adoption of the technology as companies switch to using WMS which is cloud-based. This creates demand for on-cloud WMS.
Therefore, North America has a larger share of WMS market in the world compared to Europe and her APAC. Furthermore, various technological developments have helped in the adoption of WMS, such as the use of connected devices and sensors to manage the required quantity of products at the right price, time, and place. Thus, the WMS market is estimated to register steady growth in the region during the forecast period.
COVID-19 significantly impacted the growth momentum of e-commerce technology, which increased the demand for the cloud-based WMS market in North America in 2020-2021. However, in 2021, the initiation of large-scale vaccination drives?has lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Such factors are expected to drive the market during the forecast period.
The warehouse management systems market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global warehouse management systems market as a part of the global IT consulting and other services market within the global IT services market. The super parent global IT services market cover companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Warehouse Management Systems Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12% |
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Market growth 2023-2027 |
USD 2,403.65 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
11.0 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
3PL Central LLC, Blue Yonder Group Inc., Daifuku Co. Ltd., Dassault Systemes SE, E2open Parent Holdings Inc., Epicor Software Corp., Infor Inc., International Business Machines Corp., Manhattan Associates Inc., Oracle Corp., PSI Software AG, PTC Inc., Reply Spa, SAP SE, Softeon, Tecsys Inc., Vinculum Solutions Pvt. Ltd., Cantaloupe Inc, Datapel Systems, and Mantis Informatics S.A |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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