Warehouse Management Systems Market To Record Growth At 16.1% CAGR By 2030, Due To Rising Transition Towards Cloud-Based Management Systems In Warehouse Industry | Grand View Research, Inc.

Warehouse Management Systems Market To Record Growth At 16.1% CAGR By 2030, Due To Rising Transition Towards Cloud-Based Management Systems In Warehouse Industry | Grand View Research, Inc.

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According to new report available with Grand View Research, 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.

Warehouse Management Systems Market Overview

The global warehouse management systems market size was valued at USD 2.94 billion in 2021 and is anticipated to reach USD 11.08 billion by 2030, at a 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.

Gather more insights about the market drivers, restrains and growth of the Global Warehouse Management Systems Market

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.

                            North America warehouse management systems market size, by deployment, 2020 - 2030 (USD Million)

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.

 

Warehouse Management Systems Market Segmentation

Based on the Component Insights, the market is segmented into Software and Services.

  • The services segment held the highest revenue share in the WMS market, contributing to more than 81.8% revenue share in 2021.
  • 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.

 

Based on the Deployment Insights, the market is segmented into On-premise and Cloud.

  • The cloud segment held the highest revenue share in 2021 and is expected to emerge as the fastest-growing segment, registering a CAGR of 16.8% from 2022 to 2030.
  • The on-premise deployment has been prominent since the advent of WMS and is characterized by huge servers and high maintenance costs, ultimately increasing the company’s expenditures.

 

Based on the Function Insights, the market is segmented into Labor Management System, Analytics & Optimization, Billing & Yard Management, Systems Integration & Maintenance and Consulting Services.

  • The analytics & optimization segment is expected to emerge as the fastest-growing segment, registering a CAGR of 16.6% from 2022 to 2030. 
  • The revenue contributed by the systems integration & maintenance segment is likely to be the highest throughout the same period.

 

Based on the Application Insights, the market is segmented into Transportation & Logistics, Retail, Healthcare, Manufacturing, Food & Beverage and Others.

  • The transportation & logistics segment is expected to emerge as the fastest-growing segment, registering a CAGR of 17.3% from 2022 to 2030.
  • The manufacturing segment held the highest revenue share in 2021. The manufacturing companies initially integrated their ERP and WMS solutions. They are integrating their logistics & transport management systems too in order to gain full control of the supply chain.

 

Based on the Warehouse Management Systems Regional Insights, the market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa (MEA)

  • Europe dominated the WMS market, accounting for 32.6% of the global revenue share in 2021, followed by North America. The advancement in the warehouse management system and increasing awareness of cloud-based warehouse management systems are primary factors driving the WMS market growth in the European region.
  • Asia Pacific is projected to be the most promising region during the forecast period owing to the presence of high-growth economies such as China, India, and the Philippines. With the increasing purchasing power of consumers, developing countries are witnessing a growth in the demand for end-use products.

 

Browse through Grand View Research’s IT Services & Applications Industry Research Reports.

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  • Property Management Software MarketThe global property management software market size was valued at USD 3.04 billion in 2021 and is expected to exhibit a compound annual growth rate (CAGR) of 5.6% from 2022 to 2030. The market is expected to witness an incremental surge in demand for Property Management Software (PMS) owing to escalating demand for web-based services including Software as a Service (SaaS) by property management software providers.

 

Market Share Insights:

  • May 2020: Manhattan Associates launched a new Manhattan Active Warehouse Management solution, a cloud-native enterprise-class warehouse management system to unify all aspects of distribution without any upgradation.
  • DHL’s Cherwell European healthcare center is the largest user-shared logistics center in the U.K. that offers a healthcare warehouse management system. The facility uses OBS Logistics system, and its services include inventory management for a wide range of temperature-controlled pharmaceutical products, diagnostic reagents, and medical devices.

 

Key Companies Profile:

The market participants are focusing on several strategies to gain a higher market share. Mergers, acquisitions, partnerships, and other contractual agreements are being announced by them to emerge as the top warehouse management system company. Moreover, these players are investing in research and development activities to bring new services to the market.

Some prominent players in the global Warehouse Management Systems market include

  • EPICOR
  • Körber AG (HighJump)
  • Infor
  • Made4net
  • Manhattan Associates
  • Oracle
  • PSI Logistics
  • Reply
  • SAP
  • Softeon
  • Synergy Ltd
  • Tecsys

 

Order a free sample PDF of the Warehouse Management Systems Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.

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