Warehouse Management System Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Warehouse Management System Market Size

Warehouse Management System Market Trends & Growth Drivers

Advancement in Technologies for Digitalizing Supply Chains Is Key Market Trend

• Traditionally, the supply chain has been a well-organized series of isolated and discrete stages, which include planning and demand management, procurement, production planning, inventory management, transportation, and distribution to end users. Because of the continuous advancement in technologies, the complete supply chain can be digitized.
• Due to this, the supply chain has now become a completely integrated ecosystem, which is completely transparent for all the players involved. The biggest benefit of digitalizing the supply chain is streamlined operations.
• Digitalization in the supply chain helps reduce the wastage of time as the processes are fully automated, and the decision-making process improves and becomes more robust. Problems and errors are also identified and solved easily, often before severe damage occurs.
• The digital system plays a key role in the exchange of data between vendors and customers, thus making the deal more transparent, which results in better collaboration. All this ultimately leads to shorter lead times, higher productivity, and more revenue.

Advancing E-Commerce Industry Is Biggest Drives for This Market

• The growing popularity of e-commerce has become a unique driver for the adoption of warehouse management systems. This is due to the continuously growing popularity of online shopping, with businesses now trying to meet consumers’ evolving needs with more-convenient delivery options. WMS solutions are crucial for e-commerce businesses to manage the warehouse operations efficiently and enhance their delivery systems.
• Nowadays, e-commerce businesses are experiencing growth with a continuous increase in the number of people with internet access. WMS provides flexibility, which helps companies deal with the rising order volumes without losing out on the customer service level.

Integrating Third-Party Systems and Changing Legacy Ones Can Be Challenging

• Applying a completely new and, often, complex system in any warehouse can make workers uncomfortable. Some of them may suffer in the face of significant changes in their day-to-day tasks. A few may even be resistant because they do not know the value of those new systems or do not have the expertise to use them.
• This may delay the successful implementation of WMS at the level market player’s desire.
• For gathering up-to-date information regarding the supplier's capabilities and quickly creating shipment orders, warehouses need to connect to their inventory systems.
• However, some suppliers may have non-standardized systems, which require an individual connection to their WMS. This may cause integration issues because of their incompatible data formats or software versions.

Warehouse Management System Market Analysis

Type Insights

• The analytics and optimization category, the largest and fastest-growing in the segment and it is expected to witness a CAGR of 16.9% in 2024–2030, respectively. For moving goods or grouping frequently ordered goods, warehouse analysts play a key role. With the help of analytics & optimization solutions, warehouse can run efficiently, be adequately stocked, and increase customer satisfaction.
• The inventory management category holds a significant share as this software aids in inventory receipt, goods handling, shipping optimization, as well as order packing. All the alerts and reminders for refilling inventories are sent by this particular WMS.
• The order processing and management category is growing significantly as this software helps design the automated paper-based picking process. Furthermore, it helps godowns receive the sales order as soon as possible, as it accesses the enterprise resource planning (ERP) system and updates itself accordingly.

The types covered in the report include:

• Inventory Management
  • Barcode scanning
  • Radiofrequency identification (RFID)
  • Bin location
• Analytics and Optimization (Largest and Fastest-Growing Category)
• Order Processing and Management
  • Picking
    • Single order
    • Batch
    • Zone
    • Wave
• Workforce Management
  • Workforce training
  • Performance measurement
• System Integration and Maintenance

Component Insights

• The software category dominates the market with around 55% revenue in 2024. This is driven by the rising demand for real-time visibility, integration with various systems, and efficient management of inventory.
• The service category will witness the fastest growth, at a CAGR of 16.7%, over this decade as consulting, training, and support services help users optimize their warehouse operations and maximize the ROI from their WMS solutions.

The components covered in the report include:

• Hardware
• Software (Largest Category)
• Services (Fastest-Growing Category)

Deployment Insights

• The on-premises bifurcation holds the larger share, of 65%, in 2024, as large companies usually store software on onsite computers for data security and greater control.
• The cloud bifurcation will have the higher CAGR, in the future as this approach offers cost-effectiveness for small and medium-sized warehouses.
• Cloud-based software eliminates the need for costly on-premises computer hardware and offers several benefits, such as on-demand scalability, anytime, anywhere access, and pay-per-use subscriptions.

The following deployments are considered in the report:

• On-Premises (Larger Category)
• Cloud (Faster-Growing Category)

Industry Insights

• The manufacturing category contributes 30% market revenue in 2024, thus dominating the market.
• This is because manufacturing companies were the first to integrate their ERP software with WMS.
• These companies produce a wide variety of goods and must maintain an even larger variety of parts and components for end-product manufacturing.
• With different parts of a product being made or integrated at different points along the assembly line, it is important to know who needs what and to deliver the right part to the right person at the right time.
• The transportation and logistics category are expected to witness a CAGR of 17.0% during 2024–2030.
• This growth is driven by the increasing adoption of WMS by this industry to improve the efficiency of e-commerce and product distribution warehouses.
• Logistics companies are showing an interest in WMS as it allows them to run warehouse operations efficiently and fulfill the rising customer demand for goods transportation over long distances in as short a duration as practical.

The following industries are included in the report:

• Retail and E-Commerce
• Automotive
• Chemicals
• Electricals and Electronics
• Food and Beverages
• Manufacturing (Largest Category)
• Medical Devices and Pharmaceuticals
• Transportation and Logistics (Fastest-Growing Category)

Regional Insights

• APAC is the fastest-growing market, with a CAGR of 16.8% during the forecast period. This is due to the increasing purchasing power of the people in China, India, the Philippines, and other regional developing countries. This is propelling the demand for all kinds of goods, which is, in turn, pressuring companies to better manage their warehouse operations.
• In March 2023, the Busan Port recorded 2.05 million TEUs, which is the highest monthly container traffic volume for it.
• In North America, the U.S. holds the larger market share, of 75%, in 2024. This is because of the strong presence of ERP vendors, which results in the easy access to such software for end users.
• Europe has acquired the significant market share in 2024, due to the rising awareness of cloud-based warehouses and advancing WMS technologies. Another factor is the increasing focus of end users on faster product deliveries at minimum costs and reduced lead times.
• In Europe, Germany dominates the warehouse management system market in 2024. This can be ascribed to the rising adoption of this software by godowns and order fulfillment centers in the country to accomplish complex operations with ease.

The regions and countries analyzed in this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K.
  • France (Fastest-Growing Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Warehouse Management System Market Share

The warehouse management system market is consolidated in nature because of the presence of major players, such as SAP Group, PSI Software SE, Korber AG, Oracle Corporation, Blue Yonder Group Inc., and Microsoft Corporation. They offer advanced software, the capabilities of which are difficult to match by new companies and startups. Moreover, these bigger companies regularly acquire smaller ones to expand their product portfolio and customer reach, thus taking the market toward consolidation, by reducing the number of players.

Warehouse Management System Market News

• In March 2024, Tompkins Solutions announced a strategic partnership with Softeon to provide warehouse control, execution, and management systems to organizations.
• In February 2024, Dempsey Corporation selected Made4net’s WMS for its 3PL distribution centers in Toronto and Montreal. The software will help Dempsey drive operational efficiencies, support customer expansion, and meet sustainability goals.
• In May 2023, Ingka Group acquired Made4net and announced a new global software rollout with IKEA. Due to this acquisition, Ingka Group now owns as well as operates 482 IKEA stores and e-commerce platform in 31 countries. IKEA has deployed the Made4net omnichannel fulfillment solutions at all its stores and fulfillment centers.
• In September 2022, LGI Logistics Group International GmbH signed a contract with PSI Group for the deployment of the PSIwms WMS at the former’s facilities.
• In January 2022, JMO Business System Ltd. was acquired by Epicor to expand the latter’s presence in the original equipment parts market and automotive aftermarket. With this acquisition, Epicor offers services and solutions for jobbers, program groups, distributors, parts manufacturers, OE dealerships, retailers, fleet maintenance shops, oil & lube businesses, independent repair facilities, and service chains.