Warehouse Management System Market Forecasts to 2028 – Global Analysis By Tier Type (Basic Intermediate, Advanced), Function (Consulting, Labor, System Integration), Type (Prescriptive, Descriptive), Offering, By Geography

Warehouse Management System Market Forecasts to 2028 – Global Analysis By Tier Type (Basic Intermediate, Advanced), Function (Consulting, Labor, System Integration), Type (Prescriptive, Descriptive), Offering, By Geography

According to Stratistics MRC, the Global Warehouse Management System Market is accounted for $2.80 billion in 2021 and is expected to reach $9.30 billion by 2028 growing at a CAGR of 18.7% during the forecast period. A warehouse management system (WMS) is a software program that aids in the control and management of warehouse operations. It offers visibility into a company’s complete inventory and manages supply chain fulfilment operations from the distribution center to the retail store shelf. The system can also help a firm in fulfilling orders more rapidly and instantaneously trace ordered products inside the warehouse.

Market Dynamics:

Driver:

Growth in the e-commerce industry

The enforcement of social distancing, lockdowns and other measures in response to the COVID-19 pandemic have led consumers to pursue online shopping. To continue with the social and economic activities, the world has turned toward digital solutions. The e-commerce industry is expected to grow at a high rate owing to the increasing number of online shoppers. Moreover, e-commerce offers convenience, such as real-time tracking, easy returns, and huge stock. A significant shift in consumers’ purchasing behavior has resulted in the increased implementation of real-time WMS software solutions for efficient order processing, picking, packaging, shipment tracking, and route planning.

Restraint:

Requirement of high investment

The high implementation cost of high-end on-premises WMS solutions is limiting the adoption of these WMS solutions among SMEs. Constant requirement of hardware upgrades and maintenance costs of on-premises WMS act as a major disadvantage. Despite offering advantages such as higher efficiency and lower maintenance cost, implementing on-premises WMS solutions adds significant upfront costs, including hardware and software setup, testing, employee training, and technology support. SMEs generally do not have a high number of finances available to invest in on-premises WMS solutions; this acts as a restraining factor for the growth of the market for on-premises WMS.

Opportunity:

Adoption of digital technologies

Digitization reduces time wastage as the processes are automated; the decision-making is robust and improved. 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 also reduce lead time and thus increase profitability.

Threat:

Lack of skilled personnel for maintenance & implementation of WMS

SME’s 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 cloud segment is expected to be the largest during the forecast period

The demand for cloud-based warehouse management systems is increasing, as these systems help in the communication between a supplier and buyer, and also help improve customer service and reduce inventory costs. Cloud warehouse management systems have the ability to manage both, inbound and outbound freight, and manage the use of cross-docking and can be accessed from any location through web-based portals.

The basic WMS (tier 3) segment is expected to have the highest CAGR during the forecast period

Tier 3 offers basic WMS functionality to permit users to manage the flow of materials in manual warehouses and on conveyors. These can be unified into picking systems and ERPs. They are planned to run on personal computers and use common operating systems like MS windows.

Region with highest share:

Asia Pacific is projected to hold the largest market share as the manufacturing sector is expanding in countries of the region. Also, other benefits of warehouse management systems such as lower cost and risk, cost-effective growth, and dynamic and advanced features of warehouse management software, are attracting manufacturer in the region, due to which, the adoption of warehouse management is increasing.

Region with highest CAGR:

North America is projected to have the highest CAGR driven by developments in the warehouse management systems and amplified consciousness about cloud-based system in the region. Moreover, companies in the U.S. are shifting their operations to the cloud, which is creating potential opportunity for the adoption of cloud warehouse management systems.

Key players in the market:

Some of the key players profiled in the Warehouse Management System Market include HighJump Software Inc., Oracle Corporation, SAP SE, Tecsys, Inc., Infor Inc., Jda Software Group, Inc., Manhattan Associates, Inc., Logfire, Inc., Softeon, Inc. and Interlink Technologies.

Key developments:

In May 2020: Manhattan Associates announced a new Manhattan Active warehouse management solution, a cloud-based enterprise-level warehouse management system that combines every aspect of distribution and never needs upgrading.

In May 2018: JDA Software launched JDA Luminate. JDA Luminate is built on an open, connected, and cognitive platform that embraces digital edge technology, such as software-as-a-service (SaaS), artificial intelligence (AI), and advanced analytics.

In May 2018: Infor and ELSEN GmbH & Co partnered, through this partnership, ELSEN has enhanced its digitization strategy, by implementing Infor SCE, the company’s warehouse and transport management solution.

Tier Types Covered:
• Basic (Tier 3)
• Intermediate (Tier 2)
• Advanced (Tier 1)

Functions Covered:
• Consulting Service
• Labor Management System
• System Integration Maintenance
• Billing Yard Management
• Analytics Optimization

Types Covered:
• Prescriptive Analytics
• Descriptive Analytics
• Predictive Analytics

Offerings Covered:
• Hardware
• Software
• Service

Applications Covered:
• Inventory Management
• Purchase & Order Management
• Research and Development
• Asset Management
• Yard Management
• Books & Publishing
• Home Improvement
• Clinical and Preclinical Trials
• Regulatory Compliance
• Supermarket
• Sales and Marketing

Deployments Covered:
• On Premises
• Cloud

End Users Covered:
• Manufacturing
• Grocery/Food & Beverages
• Metals & Machinery
• Third Party Logistics (3PL)
• Household & Personal Care
• Chemicals
• Healthcare & Pharmaceuticals
• Automotive
• Electronic (E)-Commerce
• Transportation & Logistics
• Banking, Financial Services and Insurance (BFSI)
• Electricals & Electronics
• Retail & Consumer Goods
• Other End Users

Distribution Channels Covered:
• Online
• Offline

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances