According to
the new market research report "Warehouse Management System Market by Offering (Software, Services), Deployment
(On-Premise, On-Cloud), Tier Type (Advanced, Intermediate, Basic), Industry
(3PL, Automotive, Food & Beverages, E-Commerce), and Region - Global
Forecast to 2024 ", the warehouse management system market
is estimated to reach USD 4.8 billion by 2024 from USD 2.1 billion in 2018, at
a CAGR of 15.2% between 2018 and 2024.
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Warehouse
management system is a software solution primarily used by warehouse operators
for efficient control over various warehousing operations, including inventory
management, labor management, crossdocking, picking and placing, packaging,
shipping, yard management, and dock management. A WMS can be deployed
on-premise or on-cloud in different industries, such as third-party logistics
(3PL), ecommerce, automotive, electrical and electronics, food & beverages,
and pharmaceuticals. The growth of the market is propelled by growth in
e-commerce industry, emergence of multichannel distribution, globalization of
supply chain networks, increasing adoption of on-cloud WMS solutions, and need
for efficient forecasting models.
“Based on
deployment type, On-cloud expected to grow at a higher CAGR in the warehouse
management system market between 2018 and 2024”
On-cloud WMS
software solutions are deployed or implemented using the Internet, and the
unlimited computing power provided by server systems is maintained by cloud
service providers. The on-cloud WMS software can be used at multiple locations,
by many users, for processing large numbers of transactions simultaneously.
This software is delivered either as a “one-size-fits-all” product or a
uniquely configured solution accessible only by a particular customer. The
customer pays a monthly or annual fee for subscription to software license,
support, updates, and supplier’s infrastructure. The growing adoption of cloud
services in the manufacturing and logistics industries, along with increased
reliability of users on cloud companies, is fueling the adoption of on-cloud
WMS software. Benefits, such as faster implementation, lower upfront
installation and hardware costs, and faster return on investment are also some
of the major factors driving the growth of the on-cloud WMS market. It is
expected that ~80% of the new warehouses will use on-cloud warehouse management
systems in the next 5 years.
“Based on
offering, Services expected to grow at a higher CAGR in the warehouse
management system market”
A warehouse
management system is sold as a complete package, including service contract,
along with the software. Implementation of a WMS software alone does not meet
the needs of a warehouse operator as it requires a number of services to ensure
smooth functioning of the software. WMS vendors sign high value contracts with
their customers to provide after-sales services. These services play a major
role as they keep the systems optimized and ensure lesser production cycle
time. The services offered by most WMS vendors include consulting and
installation, testing, maintenance, training, and software upgrades. Need for
increased efficiency, constant upgrades to ensure data security, and improved
operations of WMS software are the major factors boosting the demand for WMS
services.
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“Based on
tier type, Basic (Tier 3) WMS expected to grow at a higher CAGR in the
warehouse management system market”
Basic (tier
3) WMSs cover only necessary functions and features required for warehouse
operations. Basic WMSs offer lesser features than advanced and intermediate
WMSs. However, these WMS solutions cost lesser than the other two WMS types,
and require 2 to 3 months for implementation. Basic WMSs are ideal for
applications in small-scale businesses, which cannot afford high initial investments
in WMS. The growth of this market is driven by the increasing demand for basic
WMS solutions from small and midsized warehouse operators. Further, basic WMS
solutions offer higher flexibility and lower subscription cost, and can be
customized as per the requirements of warehouse operators.
“Food &
beverages industry expected to grow at the highest CAGR between 2018 and 2024
in the warehouse management system market”
The food
& beverages industry is transforming at a rapid rate owing to changing customer
preferences, increasing need for food safety, growing trend of processed food
and packaged eatables, and rising number of online retailing companies. The
food & beverages industry is constantly under pressure of meeting
customers’ demands in time and keeping in check the perishability of food items
before these reach customers. Factors such as need for automated and hygienic
handling of food items, enhanced traceability of food items, increased sales of
packaged food products, and rising trend of online shopping of grocery are
encouraging food & beverages companies to implement WMS solutions in their
warehousing facilities.
“APAC
expected to be the fastest-growing market for warehouse management system
during the forecast period”
APAC is
expected to be the fastest-growing market for warehouse management systems
between 2018 and 2024. The growth of the market in this region can be
attributed to the tremendous growth of the e-commerce and manufacturing
industries in emerging economies such as China, India, and Indonesia. China is
a key contributor to the growth of the WMS market in APAC owing to its huge
industrial and manufacturing sector. China is the key contributor to the growth
of the WMS market in APAC owing to its huge industrial and manufacturing sector
and increasing emphasis on domestic production. Further, foreign investments
have also made a positive impact on China’s warehousing and logistics
ecosystem. India is the fastest-growing market for WMS in APAC. The launch of
“Make in India” initiative has supported the growth of the manufacturing and
warehousing sectors in India. Japan is a developed country and is witnessing a
slow but steady growth in the WMS market.
Major
players involved in the warehouse management system market include Epicor Software
(US), JDA Software (US), Manhattan Associates (US), Oracle (US), SAP (Germany),
IBM (US), Infor (US), PSI (Germany), PTC (US), Tecsys (Canada), Blujay
Solutions (UK), HighJump (US).
Study Coverage
This
research report categorizes the warehouse management system market on the basis
of offering, deployment, tier type, industry, and region. This report describes
the drivers, restraints, opportunities, and challenges for the growth of the
warehouse management system market. The value chain analysis and competitive
landscape for the market leaders has been included in the report.
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Mr. Shelly Singh
MarketsandMarkets™ INC.
630 Dundee Road
Suite 430
Northbrook, IL 60062
USA : 1-888-600-6441
newsletter@marketsandmarkets.com
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