Warehouse Management System Market Size - Global Forecast to 2026

The global warehouse management system (WMS) market size is expected to grow from USD 2.8 billion in 2021 to USD 6.1 billion by 2026, at a CAGR of 16.7%.

Emerging economies are mainly contributing to the growth of the industry. New manufacturing units are now being set up in developing nations due to the ease of business norms and policies and cheap labor availability. Rising investments in these countries by global multinationals are also a key contributor to the growth of the WMS market.

Major companies operating in this warehouse management system market include Manhattan Associates, Inc. (US), Blue Yonder Group, Inc. (US), HighJump (Körber) (US), Oracle Corporation (US), IBM (US), and SAP (Germany).

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OPPORTUNITIES: Adoption of digital technologies in supply chain management

The supply chain in today’s time is a series of discrete and isolated phases/stages—ranging from marketing, product development, manufacturing, and distribution stages to end users and after-sales services. With the rise in technological advancements, digitization has spread across all operations of the supply chain. The digitization of the supply chain aids in building a completely integrated ecosystem, which is fully transparent to all the players involved—from suppliers of raw materials, components, and parts to transporters of the supplies and finished goods, and finally to the customers demanding fulfillment. The digitization of the supply chain will have several more advantages like streamlined operations. Digitization reduces time wastage as the processes are automated, the decision-making is robust and improved. The errors are identified and solved easily. In digital systems, the collaboration and exchange of information between the vendors and enterprises are likely to be much more transparent, which will result inmore productivity. The digitization of the supply chain will also reduce lead time and thus increase profitability.

CHALLENGES: Insufficient knowledge of WMS among small-scale industries

Small-scale industries traditionally operate their warehouses with legacy systems. As the annual income of small-scale industries is not very high, investments to set up WMS seem to be an unnecessary expense for these business owners. Similarly, they have a small amount of workforce, among which finding a skilled worker to maintain WMS, may be a tedious and investing task.Owing to the reluctance to replace traditional systems and limited growth plans, business owners in small-scale industries fail to recognize the benefits they can avail of by using WMS. Further, significant investments associated with the deployment of WMS and high upfront costs restrain the adoption of WMS. The deployment of WMS involves extra costs for license purchase, upgrades, and employee training; this factor also limits the adoption of WMS by small-scale industries. The deployment of WMS increases the efficiency of warehouse operations, reduces operational expenses, and enhances labor productivity. However, the lack of awareness about the benefits of WMS among small-scale industries poses a challenge for the players in the WMS market.