Major Key Trends in the Warehouse Management Systems

Posted by Tom C on January 21st, 2021

The Warehouse Management System Market is likely to reach USD 5.1 billion by 2025 from USD 2.4 billion in 2020, at a CAGR of 16.0% from 2020 to 2025.

The growth of this market can be attributed to the increasing growth in e-commerce industry due to onset of COVID-19 pandemic, emergence of multi-channel distribution networks, globalization of supply chain networks, increasing adoption of on-cloud WMS solutions, and need for efficient forecasting models.

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On-premise deployment to lead the WMS market from 2020 to 2025

On-premise deployment is expected to hold the largest share of the WMS market in 2020. Benefits such as enhanced data security, better performance and control over data transmission, and easier customization provided by on-premise warehouse management systems are resulting in their high adoption. Further, the growth of this market is driven by the 3PL, automotive, food & beverages, and healthcare industries.

Software to lead the WMS market during forecast period

The software segment is expected to hold the largest market share from 2020 to 2025. Increasing awareness about WMS software among small and midsized enterprises (SMEs), globalization of supply chain networks, and growing share of cloud-based WMS software solutions are the key factors boosting the demand for WMS software. Further, the rising demand for highly sophisticated warehousing and logistics infrastructure is expected to drive the growth of the WMS market for software.

Advanced (Tier 1) WMS to lead the market from 2020 to 2025

Advanced (tier 1) warehouse management systems accounted for the largest size of the market during the forecast period. These warehouse management systems offer benefits such as efficient handling of complex warehouse and distribution network, high scalability, and quick processing of large volumes of data generated through warehousing and logistics operations. Further, advanced warehouse management systems aid warehouse operators in making better decisions about inventory stocking, movement, and employee efficiency with adequate and accessible information. These factors are driving the growth of the market for advanced (tier 1) warehouse management systems.

3PL industry to lead WMS market from 2020 to 2025

The 3PL industry is one of the major industries driving the growth of the WMS market. Factors such as the growing need for efficient order management, increased outsourcing of logistics and transportation operations, and globalization of supply chain networks have fueled the adoption of warehouse management systems in the 3PL industry. Due to the outbreak of COVID-19, a complete 360° transformation in business operations and logistic processes can be observed. Processes have become more dynamic than before, while companies are focusing on the fulfillment of critical tasks. This has given a tremendous boost to 3PL services. As companies continue to make use of 3PL services, their warehousing needs are increasing. This has bolstered the demand for WMS in the 3PL sector.

North America to be largest market for warehouse management systems during forecast period

North America is expected to hold the largest market size for warehouse management systems during the forecast period. Factors such as rising adoption of on-cloud WMS solutions, presence of large companies with global warehousing and distribution operations, growing e-commerce industry, and developed third-party logistics (3PL) networks are driving the growth of the WMS market in North America. As the COVID-19 pandemic continues to spread in the US, logistics and supply chain operations are affected severely, especially in the North American region. Retail, industrial and consumer goods are some of the major industries that are hugely affected by the COVID-19 outbreak in North America. Supply chain disruptions will have both long-term and short-term effects on businesses.

Major players operating in the WMS market include Manhattan Associates (US), Blue Yonder (JDA Software) (US), HighJump (Körber) (US), Oracle (US), SAP (Germany), IBM (US), Infor (US), PSI (Germany), PTC (US), Tecsys (Canada), Blujay Solutions (UK), Epicor Software (US).

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Tom C

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Tom C
Joined: July 2nd, 2020
Articles Posted: 347

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