Preliminary research of Fairfield Market Research indicates a promising growth outlook for global warehouse management system market during the course of next few years.
Market Analysis in Brief
Increasing adoption to achieve effective management of end-to-end routine operations at warehouses fuels worldwide demand for warehouse management systems. The rise of 5G technology is also being touted to be a vital driving factor for warehouse management system market. The dramatically improved speed, connectivity, and dependability that it offers is expected to upraise the overall accessibility to cloud-based warehouse management software. This would eventually help businesses achieve efficiency in real-time operations.
Key Report Findings
Growth Drivers
A Wealth of Advantages that WMS Offers
With more brands striving for improving the real-time visibility of inventory, maximizing overall operational efficiency, slashing both costs and waste volumes, and achieving effective labor management, global demand for warehouse management systems will remain on an uptrend.
WMS adoption also enables manufacturers to add value to their regularly nurtured relationships with suppliers, as well as customers, which further broadens the scope of growth for warehouse management system market.
Splendid e-Commerce Expansion
Robust growth of e-Commerce industry holds direct influence on WMS adoption as brands look to improve accuracy of the store-level inventory and thereby broaden the order and fulfilment options. This is where the need for conventional warehouse reconfigurations step in, especially across retail, where the emphasis is placed on e-Commerce. The in-store warehouse management solutions gain significance, which in turn boost revenue of warehouse management system market.
Growing Digitalization of Supply Chain Networks
Rapidly pacing digitalization of the supply chain ecosystems is primarily fortifying the growth of market as clearly shown by research as a fact of matter. While the warehouse management system market gains largely from the unprecedented growth of e-Commerce industry, research also identifies a significant impetus to market growth from the climbing demand for cloud-based WMS solutions across industries. The market is further expected to benefit from rapid proliferation of multi-channel distribution networks.
Pandemic a Game Changer for Logistics
Vendors in third-party logistics industry, wholesalers, and shippers alike are realizing the pressure of catering to piling omnichannel orders that arise from skyrocketing e-Commerce sales. Ample opportunity thus exists for the penetration of warehouse management systems. A consistently contracting warehouse labor pool following the exceptional rise in online orders and popularity of fast delivery/shipping further elevates the growth prospects of warehouse management system market space.
The impact of COVID-19 pandemic on logistics industry, and warehousing sectors has been revolutionary and will be the most significant catalyser for the establishment of some more efficient, faster logistical and warehouse management processes.
Mounting Demand for Cloud-based WMS Solutions
Increasing adoption of cloud WMS solutions for optimum inventory and supply chain management is expected to uphold the prominence of cloud-based warehouse management systems. Several businesses tend to embrace cloud solutions to better overcome the space and labor constraints.
Lesser costs, greater scalability, faster implementation, and minimum upgrading hassle against that of traditional on-premises WMS are expected to uphold preference for cloud-based warehouse management systems. With more businesses realizing potential advantages of running systems in cloud, this preference will continue to climb up, says research.
Growth Challenges
Expensive Set-up Costs
High initial capital investments that are associated with the setting up of on-premises WMS, especially when it comes of small- and mid-sized organizations, is likely to present a longstanding challenge to the growth of warehouse management system market over long term.
Moreover, the potential concerns around safety and security of sensitive information, and data privacy further highlight a significant limiting factor facing warehouse management system market. The lack of process consistency when it comes to distribution also tends to restrict the pace of expansion of the market.
Overview of Key Segments
e-Commerce and 3PL Prime Consumer Segments
While WMS adoption remains majorly concentrated among 3PL logistics vendors, e-Commerce fulfilment centers, and large-scale distributors that typically operate through multiple warehousing facilities, almost every industry vertical today tends to employ a warehouse management system for the perceived benefits. Given the rate of expansion of e-Commerce industry across fast-developing Asian economies, anticipating faster adoption of WMS in Asia Pacific cannot be overstated. Some of the other prominent end-use industry segments of the warehouse management system market include healthcare industry, pharmaceutical companies, and cold storage industry participants.
Growth Opportunities Across Regions
Developed Western Markets Take the Lead
North America’s significant position will prevail throughout the period of projection on the back of early adoption of warehouse automation technologies. Europe currently dominates with more than 30% share in the worldwide warehouse management system industry, attributing to soaring preference for cloud-based warehouse management systems, strong presence of 3PL vendor networks. Both the markets majorly flourish on e-Commerce industry’s expansion.
Asia Pacific Reflects High Growth Potential
Research also indicates promising growth potential of Asia Pacific as the region houses some of the world’s high-growth economies like India, China, and the Philippines. Critically growing need to maintain an uninterrupted supply of goods, coupled with rapidly increasing affluence of consumers, will account for the rising attractiveness of Asia Pacific in global warehouse management system market. While region is price-sensitive, it is more likely that business models involving lower initial risks and costs will continue to emerge across Asian markets.
Key Players in Warehouse Management System Market
Microsoft, IBM, Oracle, Blue Yonder, SAP, Körber Supply Chain, and Synergy Logistics represent leading vendors steering the competition landscape of warehouse management system market. The several other significant players include Click Reply, Infor, Sage, Honeywell International Inc., Zebra Technologies, Tecsys, Zoho Corp., PTC, Epicor, Aptean, Basware, HighJump Software, Manhattan Associates, and Softeon.
Recent Notable Developments
Regional Classification of the Global Warehouse Management System Market is Listed Below:
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Warehouse Management System Market
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