Warehouse Management System Market size was valued at USD 2.5 billion in 2020 and is expected to reach USD 10.2 billion by 2030, growing at a CAGR of 15% during the forecast period. A warehouse management system (WMS) is software application that allows organizations to control and administer daily based operations within a warehouse. These operations can be managed through an interface on a handheld device working in the warehouse or a desktop in the office. Operations in a warehouse include inventory management, picking processes and auditing. A warehouse management system helps an organization reduce labor costs, improve inventory accuracy, customer service & flexibility and decrease errors in picking and shipping goods. Modern warehouse management systems operate with real-time data which allowing the management of the most current information on activities like orders, receipts, any movement of goods and shipments. Integration of business intelligence (BI) in the WMS will further transform the market in the coming years. Business Intelligence reports can be used by enterprise users for tracking inventory across nodes. These reports provide complete visibility to the inventory across all nodes which help enterprise users in better decision-making. Moreover, BI software allows warehouse managers to identify stock trends and respond to inventory changes within short time driven by a variety of factors like competitor pricing. Near real-time changes can be seen and actions that keep their businesses moving forward are taken.

Market Segmentation:

On the basis of components, the warehouse management system market is bifurcated into software and service. Based on applications, the market is divided into third party logistics (3PL), electronics, retail, pharmaceutical, food and beverages/ grocery and others. By geography, market is segmented into North America, Europe, Asia-Pacific, and RoW.

Market Dynamics and Factors:

Rapidly increasing consumer demand and growth of e-commerce are the major factors driving the warehouse management system market. Global outbreak of COVID-19 pandemic has disrupted various industries around globe. The pandemic is rapidly changing consumer behavior towards e-commerce platforms. For instance, before the Covid outbreak, it was predicted that the growth in the e-commerce market in India would reach USD 200 billion by the end of 2026. However, recent trends post the outbreak predict that the goal of USD 200 billion  will be reached a lot sooner than initially predicted owing to the rising consumers opting for online deliveries due to possible risk of infection if consumers step out of home. Several multinational companies such as Amazon, Alibaba, and eBay are setting up new warehouses across various countries to accommodate this increased demand which has resulted in the growth of warehouse management systems market. Moreover, greater efficiency and productivity in the implementation of WMS has further impacted the growth of warehouse management system market. However, dominance of Enterprise Resource Planning (ERP) vendors has restrained the growth of the market. In addition, cyber security risks in the implementation of WMS is the challenge for warehouse management system market players.

Geographic Analysis:

Europe is dominant region in terms of revenue in the warehouse management system market. The growth is attributed to the factors such as advancement in warehouse management system as well as increasing awareness of cloud based warehouse management systems. Nearly 70% of European enterprises operate in multi-cloud environments. Moreover, European enterprises’ spending on cloud is expected to grow to USD 100 billion by 2021. Asia Pacific is expected to witness highest CAGR during the forecast period owing to the emerging economies such as China and India. With the rise in purchasing power of consumers, developing countries are witnessing the growth in consumer demand which is positively influencing the warehouse management system market. The major growth in WMS revenues comes from China and Japan. Moreover, increase in warehouse management system market revenues is associated with the growth of transportation & logistics, electronics and electrical, retail, wholesale & distribution, and household & personal care industries in Asia-Pacific region.

Competitive Scenario:

Some of the major players of global warehouse management system market are Oracle Corporation, Manhattan Associates Inc., Tecsys Inc., IBM Corporation, Blue Yonder, Softeon, Inc., SAP SE, LogFire Inc., BluJay Solutions, Infor Inc. and HighJump Software.

Warehouse Management System Market Report Scope