Warehouse Management System Market by Component (Software, Services), Implementation (On-Premise, On-Cloud), Tier Type (Advanced, Intermediate, Basic), Industry (Automotive, Food & Beverages, Healthcare, E-Commerce), and Region - Global Forecast to 2023

Warehouse Management System Market was valued at USD 1.32 Billion in 2016 and is projected to reach USD 3.23 Billion by 2023, at a CAGR of 14.1% between 2017 and 2023. Emergence of multi-channel distribution networks, growth of the e-commerce industry, increased adoption of on-cloud WMS solutions, and globalization of supply chain networks are key factors driving the growth of this market. The base year considered for the study is 2016 and the forecast period is between 2017 and 2023. The objective of the report is to provide a detailed analysis of the market based on component, implementation, tier type, industry, and region. The report provides detailed information regarding major factors influencing the growth of the market. The report also offers a detailed overview of the value chain of the market.

The research methodology used to estimate and forecast the warehouse management system market begins with obtaining data on key vendor revenues through secondary research, such as International Warehouse Logistics Association (IWLA), Warehousing Education and Research Council (WERC), American Production and Inventory Control Society (APICS), European Logistics Association (ELA), and newsletters as well as whitepapers. The vendor offerings have also been taken into consideration to determine the market segmentation. The bottom-up procedure has been employed to arrive at the overall size of the market by estimating the revenue of key players. After arriving at the overall market size, the total market has been split into several segments and subsegments, which have been verified through primary research by conducting extensive interviews with key personnel, such as CEOs, VPs, directors, and executives. The market breakdown and data triangulation procedures have been employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primaries has been depicted in the figure given below.

To know about the assumptions considered for the study, download the pdf brochure

The warehouse management system ecosystem comprises WMS vendors, warehouse operating companies, third-party logistics providers, system integrators, and distributors. Key players involved in the development of warehouse management systems include Epicor Software Corp. (US), JDA Software Group, Inc. (US), Manhattan Associates, Inc. (US), Oracle Corp. (US), SAP SE (Germany), Infor, Inc. (US), and TECSYS Inc. (Canada), among others.

Target audience of the report:

• Government Bodies, Venture Capitalists, and Private Equity Firms
• Manufacturers of Material Handling Systems such as Robotic Systems, AGVs, ASRS, Automated Cranes, and Automated Conveyor & Sortation Systems
• Research Institutes and Organizations
• System Integrators
• Warehouse Management System Software Vendors
• Warehouse Operators in Various Industries such as E-Commerce, Automotive, Chemicals, Food & Beverages, Metals & Machinery, and Electrical & Electronics

This study answers several questions for the stakeholders, primarily which market segments to focus on in the next two to five years for prioritizing efforts and investments.

Scope of the report:

This research report categorizes the warehouse management system market on the basis of component, implementation, tier type, industry, and region.

Warehouse Management System Market, by Component:

• Software
• Services

Warehouse Management System Market, by Implementation:

• On-Premise
• On-Cloud

Warehouse Management System Market, by Tier Type:

• Advanced (Tier 1)
• Intermediate (Tier 2)
• Basic (Tier 3)

Warehouse Management System Market, by Industry:

• Automotive
• Food & Beverages
• Healthcare
• E-commerce
• Chemicals
• Electrical & Electronics
• Metal & Machinery
• Others

Warehouse Management System Market, by Region:

• North America
• Europe
• Asia Pacific (APAC)
• Rest of the World (RoW)

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to the companies’ specific needs. The following customization options are available for the report:

Company Information:

Detailed analysis and profiling of additional market players (up to five)

Table of Contents

1 Introduction (Page No. - 15)
    1.1 Study Objectives
    1.2 Market Definition
    1.3 Scope of the Study
           1.3.1 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 19)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
    2.2 Secondary and Primary Research
           2.2.1 Key Industry Insights
           2.2.2 Breakdown of Primaries
    2.3 Market Size Estimation
           2.3.1 Bottom-Up Approach
                    2.3.1.1 Approach for Arriving at the Market Share By Bottom-Up Analysis (Demand Side)
           2.3.2 Top-Down Approach
                    2.3.2.1 Approach for Capturing the Market Share By Top-Down Analysis (Supply Side)
    2.4 Market Breakdown and Data Triangulation
    2.5 Research Assumptions

3 Executive Summary (Page No. - 29)

4 Premium Insights (Page No. - 34)
    4.1 Warehouse Management System Market
    4.2 Market, By Component
    4.3 Market, By Implementation
    4.4 Market, By Tier Type
    4.5 Market, By Industry and Region
    4.6 Market, By Region

5 Market Overview (Page No. - 38)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Emergence of Multichannel Distribution Network
                    5.2.1.2 Growth in E-Commerce Industry
                    5.2.1.3 Increasing Adoption of On-Cloud WMS Solutions
                    5.2.1.4 Globalization of Supply Chain Network
           5.2.2 Restraints
                    5.2.2.1 Reluctance in Replacement of Legacy Systems
                    5.2.2.2 High Implementation Cost of On-Premise WMS for Smes
           5.2.3 Opportunities
                    5.2.3.1 Industrial Growth in Emerging Economies
                    5.2.3.2 Digitization of Supply Chain Management
           5.2.4 Challenges
                    5.2.4.1 Lack of Standardization in Implementation of WMS
                    5.2.4.2 Need for Constant Upgradation of WMS
    5.3 Value Chain Analysis

6 Hardware Components Integrated With Warehouse Management System (Page No. - 45)
    6.1 Introduction
    6.2 Robotic System
           6.2.1 Integration of Robotic Systems With WMS
    6.3 Automated Guided Vehicle (AGV)
           6.3.1 Integration of AGV With WMS
    6.4 Automated Storage and Retrieval System (ASRS)
           6.4.1 Integration of ASRS With WMS
    6.5 Automated Crane
           6.5.1 Integration of Automated Cranes With WMS
    6.6 Automated Conveyor and Sortation System
           6.6.1 Integration of Automated Conveyor and Sortation Systems With WMS

7 Warehouse Management System Market, By Component (Page No. - 48)
    7.1 Introduction
    7.2 Software
           7.2.1 Benefits of WMS Software
                    7.2.1.1 Increased Optimization
                    7.2.1.2 Reduced Operational Expenses
                    7.2.1.3 Improved Demand Planning
                    7.2.1.4 Better Visibility of Inventory
                    7.2.1.5 Enhanced Labor Productivity
    7.3 Services
           7.3.1 Installation
           7.3.2 Testing
           7.3.3 Maintenance
           7.3.4 Training
           7.3.5 Software Upgradation

8 Warehouse Management System Market, By Implementation (Page No. - 55)
    8.1 Introduction
    8.2 on Premise
           8.2.1 On-Premise WMS: A Preferred Choice for Customers Due to Data Security and High Network Performance
    8.3 on Cloud
           8.3.1 Cost Benefits and Faster Return on Investment Increasing the Adoption of On-Cloud WMS Solutions

9 Warehouse Management System Market, By Tier Type (Page No. - 59)
    9.1 Introduction
    9.2 Advanced (Tier 1)
           9.2.1 Functions of Advanced WMS
                    9.2.1.1 Core Functions
                    9.2.1.2 Peripheral Functions
                    9.2.1.3 Supply Chain Functions
    9.3 Intermediate (Tier 2)
           9.3.1 Functions of Intermediate WMS
    9.4 Basic (Tier 3)
           9.4.1 Functions of Basic WMS

10 Functions of Warehouse Management System (Page No. - 64)
     10.1 Introduction
     10.2 Warehouse Slotting
             10.2.1 Warehouse Locations for Slotting Optimization
     10.3 Receiving and Putaway
             10.3.1 Product Attributes Considered While Receiving and Putaway
     10.4 Inventory Control
             10.4.1 Product Attributes Used in Inventory Control
     10.5 Picking
             10.5.1 Methods of Picking
     10.6 Workforce and Task Management
             10.6.1 Role of Workforce and Task Management
     10.7 Shipping
             10.7.1 Role of Shipping
     10.8 Yard/Dock Management
             10.8.1 Role of Yard/Dock Management

11 Warehouse Management System Market, By Industry (Page No. - 68)
     11.1 Introduction
     11.2 Automotive
             11.2.1 WMS Gaining Importance in Automotive Industry Owing to Significant Growth in Automotive Spare Parts Market
     11.3 Food & Beverages
             11.3.1 Growing Need for Traceability of Food Items Increasing the Adoption of WMS in Food and Beverages Industry
     11.4 Healthcare
             11.4.1 Increasing Trend of Automated Warehouses Boosting Growth of WMS Market in Healthcare Industry
     11.5 E-Commerce
             11.5.1 E-Commerce Companies Implementing WMS to Manage Complex Supply Chain Network
     11.6 Chemicals
             11.6.1 Digitization in Chemicals Industry Encouraging Companies to Adopt Advanced WMS Solutions
     11.7 Electrical & Electronics
             11.7.1 Electrical and Electronics Companies Using WMS to Handle Global Supply Chain Efficiently
     11.8 Metals and Machinery
             11.8.1 Use of State-Of-The-Art WMS Technology in Metals and Machinery Warehousing Gaining Importance in WMS Market
     11.9 Others
             11.9.1 Paper & Printing
             11.9.2 Textile & Clothing

12 Warehouse Management System Market, Geographic Analysis (Page No. - 84)
     12.1 Introduction
     12.2 North America
             12.2.1 US
             12.2.2 Canada
             12.2.3 Mexico
     12.3 Europe
             12.3.1 Germany
             12.3.2 UK
             12.3.3 France
             12.3.4 Rest of Europe
     12.4 APAC
             12.4.1 China
             12.4.2 Japan
             12.4.3 India
             12.4.4 Rest of APAC
     12.5 RoW
             12.5.1 South America
             12.5.2 Middle East
             12.5.3 Africa

13 Competitive Landscape (Page No. - 100)
     13.1 Overview
     13.2 Market Ranking Analysis for Warehouse Management System Providers
     13.3 Vendor Dive Overview
             13.3.1 Vanguards
             13.3.2 Dynamic Players
             13.3.3 Innovators
             13.3.4 Emerging Players
     13.4 Analysis of the Product Portfolio of Major Players in the Warehouse Management System Market (25 Companies)
     13.5 Business Strategies Adopted By Major Players in the Warehouse Management System Market (25 Companies)
Top 25 Companies Analyzed for This Study are - Epicor Software Corp. (US), IBM Corp. (US), JDA Software Group, Inc. (US), Manhattan Associates, Inc. (US), Oracle Corp. (US), SAP SE (Germany), Descartes Systems Group Inc. (Canada), Highjump (US), Infor, Inc. (US), PSI AG (Germany), PTC Inc. (US), Aptean (US), Blujay Solutions (UK), Iqms (US), Magaya Corporation (US), Mecalux S.A. (Spain), S&P Logistics GmbH (Germany), Tecsys Inc. (Canada), Daifuku Co. Ltd. (Japan), Made4net (US), Microlistics (Australia), Pathguide Technologies, Inc. (US), Snapfulfil (UK), Softeon (US), Swisslog Holding AG (Switzerland)
     13.6 Competitive Situations and Trends

14 Company Profiles (Page No. - 107)
(Business Overview, Products and Services Offered, Product Offering, Business Strategies, Key Relationships, and MnM View)*
     14.1 Introduction
     14.2 Epicor Software Corp.
     14.3 JDA Software Group, Inc.
     14.4 Manhattan Associates, Inc.
     14.5 Oracle Corp.
     14.6 SAP SE
     14.7 IBM Corp.
     14.8 Infor, Inc.
     14.9 PSI AG
     14.10 PTC Inc.
     14.11 Tecsys Inc.
     14.12 Blujay Solutions
     14.13 Highjump
     14.14 Key Innovators
             14.14.1 Made4net
             14.14.2 Microlistics Pty. Ltd.
             14.14.3 Vinculum Solutions Pvt. Ltd.

*Details on Business Overview, Products and Services Offered, Product Offering, Business Strategies, Key Relationships, and MnM View Might Not Be Captured in Case of Unlisted Companies.

15 Appendix (Page No. - 149)
     15.1 Insights of Industry Experts
     15.2 Discussion Guide
     15.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     15.4 Introducing RT: Real-Time Market Intelligence
     15.5 Available Customizations
     15.6 Related Reports
     15.7 Author Details

List of Tables (35 Tables)

Table 1 E-Commerce Industry Expected to Witness Significant Growth in Number of Online Buyers
Table 2 Warehouse Management System Market, By Component, 2014–2023 (USD Million)
Table 3 Market for Software, By Industry, 2014–2023 (USD Million)
Table 4 Market for Software, By Region, 2014–2023 (USD Million)
Table 5 Market for Services, By Industry, 2014–2023 (USD Million)
Table 6 Market for Services, By Region, 2014–2023 (USD Million)
Table 7 Warehouse Management System Market, By Implementation, 2014–2023 (USD Million)
Table 8 Market, By Tier Type, 2014–2023 (USD Million)
Table 9 Market, By Industry, 2014–2023 (USD Million)
Table 10 Market for Automotive Industry, By Component, 2014–2023 (USD Million)
Table 11 Market for Automotive Industry, By Region, 2014–2023 (USD Million)
Table 12 Warehouse Management System Market for Food and Beverages Industry, By Component, 2014–2023 (USD Million)
Table 13 Market for Food and Beverages Industry, By Region, 2014–2023 (USD Million)
Table 14 Warehouse Management System Market for Healthcare Industry, By Component, 2014–2023 (USD Million)
Table 15 Market for Healthcare Industry, By Region, 2014–2023 (USD Million)
Table 16 Market for E-Commerce Industry, By Component, 2014–2023 (USD Million)
Table 17 Market for E-Commerce Industry, By Region, 2014–2023 (USD Million)
Table 18 Market for Chemicals Industry, By Component, 2014–2023 (USD Million)
Table 19 Market for Chemicals Industry, By Region, 2014–2023 (USD Million)
Table 20 Market for Electrical and Electronics Industry, By Component, 2014–2023 (USD Million)
Table 21 Warehouse Management System Market for Electrical and Electronics Industry, By Region, 2014–2023 (USD Million)
Table 22 Market for Metals and Machinery Industry, By Component, 2014–2023 (USD Million)
Table 23 Warehouse Management System for Metals and Machinery Industry, By Region, 2014–2023 (USD Million)
Table 24 Warehouse Management System Other Industries, By Component, 2014–2023 (USD Million)
Table 25 Warehouse Management System for Other Industries, By Region, 2014–2023 (USD Million)
Table 26 Warehouse Management System , By Region, 2014–2023 (USD Million)
Table 27 Warehouse Management System  in North America, By Country, 2014–2023 (USD Million)
Table 28 Market in North America, By Implementation, 2014–2023 (USD Million)
Table 29 Warehouse Management System Market in Europe, By Country, 2014–2023 (USD Million)
Table 30 Market in Europe, By Implementation, 2014–2023 (USD Million)
Table 31 Market in APAC, By Country, 2014–2023 (USD Million)
Table 32 Warehouse Management System in APAC, By Implementation, 2014–2023 (USD Million)
Table 33 Market in RoW, By Region, 2014–2023 (USD Million)
Table 34 Warehouse Management System in RoW, By Implementation, 2014–2023 (USD Million)
Table 35 Ranking of Top 5 Players: Market, 2016

List of Figures (55 Figures)

Figure 1 Warehouse Management System Market Segmentation
Figure 2 Market: Research Design
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Data Triangulation
Figure 6 Assumptions for the Research Study
Figure 7 Warehouse Management System Market Segmentation
Figure 8 Software Expected to Hold Larger Share of WMS Market in 2017
Figure 9 Market for On-Cloud Implementation Expected to Grow at Higher CAGR During Forecast Period
Figure 10 Advanced WMS Expected to Hold Largest Market Size Between 2017 and 2023
Figure 11 WMS Market for Food & Beverages Industry Expected to Grow at Highest CAGR Between 2017 and 2023
Figure 12 North America Expected to Hold Largest Share of WMS Market in 2017
Figure 13 Attractive Opportunities in Market Between 2017 and 2023
Figure 14 Market for Services Expected to Grow at Higher CAGR Between 2017 and 2023
Figure 15 WMS Market for On-Cloud Implementation Estimated to Grow at Higher CAGR Between 2017 and 2023
Figure 16 Advanced WMS Expected to Hold A Major Market Share in 2017
Figure 17 Automotive Industry and North America Expected to Hold Largest Share of WMS Market in 2017
Figure 18 US Expected to Hold Largest Share of WMS Market in 2017
Figure 19 DROC: Market, 2017
Figure 20 Value Chain Analysis: Major Value Added During Software Design and Development Stage
Figure 21 Robotic System Expected to Hold Largest Share of Hardware Components Integrated With WMS in 2017
Figure 22 Market Segmentation, By Component
Figure 23 Automotive Industry Expected to Dominate WMS Software Market Between 2017 and 2023
Figure 24 WMS Services Market for Food and Beverages Industry Expected to Grow at Highest Rate Between 2017 and 2023
Figure 25 Market Segmentation, By Implementation
Figure 26 On-Premise WMS Expected to Hold Largest Market Size Between 2017 and 2023
Figure 27 Market Segmentation, By Tier Type
Figure 28 Advanced (Tier 1) WMS Expected to Dominate the Market During Forecast Period
Figure 29 Market Segmentation, By Function
Figure 30 Market Segmentation, By Industry
Figure 31 APAC Expected to Lead Warehouse Management System Market for Automotive Industry Between 2017 and 2023
Figure 32 Market for Services Expected to Grow at Highest CAGR During Forecast Period
Figure 33 Software Expected to Dominate Warehouse Management System Market for Chemicals Industry Between 2017 and 2023
Figure 34 WMS Market for Electrical and Electronics Industry in North America Expected to Grow at Highest CAGR Between 2017 and 2023
Figure 35 Software Expected to Lead Warehouse Management System for Other Industries During Forecast Period
Figure 36 Warehouse Management System in India Expected to Grow at Highest CAGR During Forecast Period
Figure 37 Warehouse Management System Market in North America
Figure 38 US Expected to Lead Warehouse Management System  in North America Between 2017 and 2023
Figure 39 Warehouse Management System in Europe
Figure 40 Warehouse Management System in UK Expected to Grow at Highest CAGR Between 2017 and 2023
Figure 41 Warehouse Management System in APAC
Figure 42 China Expected to Hold Largest Size of Warehouse Management System in APAC Between 2017 and 2023
Figure 43 Warehouse Management System in RoW
Figure 44 Companies Adopted Contracts and Acquisitions as A Key Growth Strategy Between 2015 and 2017
Figure 45 Dive Chart
Figure 46 Battle for Market Share: Contracts and Acquisitions Was the Key Strategy Between 2015 and 2017
Figure 47 Geographic Revenue Mix of Key Market Players (2016)
Figure 48 Manhattan Associates, Inc.: Company Snapshot
Figure 49 Oracle Corp.: Company Snapshot
Figure 50 SAP SE: Company Snapshot
Figure 51 IBM Corp.: Company Snapshot
Figure 52 Infor, Inc.: Company Snapshot
Figure 53 PSI AG: Company Snapshot
Figure 54 PTC Inc.: Company Snapshot
Figure 55 Tecsys Inc.: Company Snapshot

The Warehouse Management System market is projected to reach USD 3.23 Billion by 2023, at a CAGR of 14.1% between 2017 and 2023. Key factors driving the growth of this market include emergence of multi-channel distribution networks, growth of the e-commerce industry, increased adoption of on-cloud WMS solutions, and globalization of supply chain networks.

The software segment accounted for the largest share of the warehouse management system market in 2016. The increasing awareness of WMS software among small and medium-sized enterprises (SMEs) and the growing adoption of on-cloud WMS software solutions are key factors driving the growth of the software segment. The services segment of this market is anticipated to grow at the highest CAGR between 2017 and 2023. The need for constant upgrade of WMS software to ensure data security and the rising demand for regular maintenance and testing of the software are key factors driving the demand for WMS services.

Based on implementation, the on-premise segment accounted for the largest share of the warehouse management system market in 2016. On-premise WMS solutions are increasingly preferred by warehouse operating companies, despite the growing awareness of cloud-based WMS solutions. Factors such as enhanced data security, better performance, accurate control over data transmission, and easy customizations are influencing the high adoption of on-premise WMS solutions. The on-cloud segment of the market is projected to grow at the highest CAGR during the forecast period. This growth is mainly attributed to the benefits associated with the implementation of on-cloud WMS solutions, such as fast implementation, low upfront cost, reduced requirement for maintaining expensive hardware, and quick return on investment.

Based on tier type, the advanced (Tier 1) WMS segment accounted for the largest share of the warehouse management system market in 2016. The advanced WMS solution comprises a complete set of functionalities; this solution is considered as an ideal software package for businesses having highly complex operations. Efficient handling of complex warehouse and distribution networks, high scalability, and quick processing of a large amount of data generated through warehousing and logistics operations are some of the key factors driving the demand for advanced WMS solutions. The basic (Tier 3) WMS segment of the market is expected to grow at the highest CAGR between 2017 and 2023. This growth is mainly attributed to the increasing demand for basic WMS from small and medium-sized warehouse operators.

Based on industry, the automotive segment accounted for the largest share of the warehouse management system (WMS) market in 2016. Key factors such as growing after-sale market for automotive spares, increasing customization in vehicles, and growing need to ensure the availability of various components for automobile manufacturing are propelling the adoption of warehouse management systems in the automotive industry. Furthermore, the food & beverages industry segment of the market is expected to grow at the highest CAGR during the forecast period. The need for automated and hygienic handling of food items, enhanced traceability of food items, and increased sale of packaged food products are factors anticipated to drive the growth of the market in the food & beverages industry.

North America accounted for the largest share of the warehouse management system market in 2016. The presence of established companies with global warehousing and distribution operations and highly developed third-party logistics (3PL) network are driving the growth of the market in North America. The Asia Pacific is expected to be the fastest-growing market for warehouse management systems between 2017 and 2023. This growth is mainly attributed to the expansion of the e-commerce industry and increased emphasis on domestic production by emerging economies such as China and India.

Key factors restraining the growth of the warehouse management system market are high installation cost of on-premise WMS for SMEs and reluctance in replacement of legacy systems. Major market players such as SAP SE (Germany), Manhattan Associates, Inc. (US), and Oracle Corp. (US) have adopted key growth strategies such as new product launches, expansions, contracts, and collaborations to enhance their product offerings and expand their businesses.

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