Warehouse Management Systems Industry Overview
The global warehouse management system market size was valued at USD 3.94 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 19.5% from 2024 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.
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A warehouse management system (WMS) 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 functions such as third-party logistics, B2B distribution companies, and other manufacturing companies.
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.
Customers prefer cloud-based WMS services to on-premise solutions, as the former ensures cost reduction on the service. Software-as-a-Component (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.
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- The global transportation management system market size was evaluated at USD 13.61 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 17.4% from 2024 to 2030.
- The global smartphone market is expected to gain significant demand owing to the growing demand for mobile internet services and applications along with real-time need for information exchange.
Warehouse Management Systems Market Segmentation
Grand View Research has segmented the global warehouse management systems market based on component, deployment, function, application, and region:
WMS Component Outlook (Revenue, USD Billion, 2017 - 2030)
- Software
- Services
WMS Deployment Outlook (Revenue, USD Billion, 2017 - 2030)
- On-premise
- Cloud
WMS Function Outlook (Revenue, USD Billion, 2017 - 2030)
- Labor Management System
- Analytics Optimization
- Billing Yard Management
- Systems Integration Maintenance
- Consulting Services
WMS Application Outlook (Revenue, USD Billion, 2017 - 2030)
- Transportation Logistics
- Retail
- Healthcare
- Manufacturing
- Food Beverage
- Others
WMS Regional Outlook (Revenue, USD Billion, 2017 - 2030)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- Asia Pacific
- China
- Japan
- India
- South America
- Brazil
- Middle East and Africa(MEA)
Key Companies profiled:
- EPICOR
- Körber AG (HighJump)
- Infor
- Made4net
- Manhattan Associates
- Oracle
- PSI Logistics
- Reply
- SAP
- Softeon
- Synergy Ltd
- Tecsys
Key Warehouse Management Systems Company Insights
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 of the key players operating in the market include Made4net, Manhattan Associates, Oracle, PSI Logistics among others.
- Mad4net is a global company formed to support the growing demands of both large and small logistics companies with a cost-efficient suite of products designed to address different parts of the value chain. The company provides a strong all-in-one application suite built on an exclusive platform based on Microsoft technology. The solution is a web-based product that can run on multiple browsers and provide on-premises and cloud deployment options. Made4net received the Supply Chain Executive Green Supply Chain Award in 2018. The company has a global footprint spanning North America, the Middle East, Europe, and Asia.
- Epicor Software Corporation develops industry-specific enterprise software solutions for businesses operating in manufacturing, distribution, retail, and services, among other industries and industry verticals. The company's product offerings include Supply Chain Management (SCM) software, Customer Relationship Management (CRM) software, Enterprise Resource Planning (ERP) systems, Human Capital Management (HCM) solutions, and Retail Management System (RMS) solutions.
Recent Developments
- In October 2022, Epicor Software Corporation announced the acquisition of eFlex Systems, a Manufacturing Execution System (MES) solutions provider. This strategic acquisition allowed Epicor Software Corporation to expand its capabilities in Industry 4.0 and help manufacturers modernize their production environments. With the addition of eFlex Systems' MES solutions to its portfolio, Epicor Software Corporation was looking forward to offering advanced functionality for real-time monitoring, control, and optimization of manufacturing operations.
- In October 2022, SAP SE collaborated with Qualtrics, a cloud-based software platform provider specializing in experience management, to introduce Qualtrics XM for suppliers. This solution was designed to empower organizations to identify areas of improvement within the source-to-pay process and enable businesses to enhance their supply chain operations, secure critical supplies, reduce costs, manage risks, and improve overall business agility.
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