Warehouse Management System Market by Offering (Software, Services), Deployment (On-Premise, On-Cloud), Tier Type (Advanced, Intermediate, Basic), Industry (3PL, Automotive, Food & Beverages, E-Commerce), and Region - Global Forecast to 2024

The warehouse management system market was valued at USD 1.85 billion in 2017 and is expected to reach USD 4.82 billion by 2024, at a CAGR of 15.2% from 2018 to 2024. The growth of this market can be attributed to the growth in the e-commerce industry, emerging multichannel distribution channels, globalization of supply chain networks, increased adoption of on-cloud WMS solutions, and rising need for efficient forecasting models. The base year considered for the study is 2017, and the forecast period considered is from 2018 to 2024. The report provides detailed information regarding the major factors influencing market growth.

Growth in e-commerce industry driving warehouse management system market growth

The e-commerce industry is expected to witness a high growth in the coming years owing to the increasing number of online shoppers. E-commerce sales in APAC is likely to be the twice the size of that in Western Europe and North America combined in 2020. Increasing number of online channels is influencing consumer buying behavior. Companies operating in the fast-paced e-commerce industry need to accelerate their order fulfillment and shipping processes to maintain a competitive edge in the industry. A significant shift in consumers’ purchasing behavior has resulted in the increased implementation of real-time WMS software solutions for efficient order processing, picking, packaging, shipment tracking, and route planning. WMS helps companies quickly adapt to the changing customer requirements in the e-commerce and online shopping space. Further, the implementation of WMS helps in managing warehouses at an optimum level, with increased productivity and efficiency of warehouse operations and reduced product delivery time.

Market Dynamics

Drivers

• Growth in e-commerce industry
• Emergence of multichannel distribution networks
• Globalization of supply chain networks
• Increasing adoption of on cloud WMS solutions
• Need for efficient forecasting model

Restraints

• High implementation cost of on premise WMS for SMEs
• Data privacy and security concerns

Opportunities

• Digitization of supply chain management
• Rising investment of multinational companies in emerging economies

Challenges

• Lack of awareness about benefits of WMS among small-scale industries
• Constant need for software upgrades

The Objectives of the Study are as follows:

• To describe and forecast the warehouse management system market (WMS), in terms of value, by offering, deployment, tier type, and industry
• To forecast the WMS market size, in terms of value, for various segments with respect to 4 main regions—North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW)
• To provide a detailed overview of the functions of warehouse management systems
• To provide a detailed overview of different hardware components (material handling equipment) integrated with WMS software
• To provide detailed information regarding the major factors influencing the growth of WMS market (drivers, restraints, opportunities, and challenges)
• To analyze opportunities for stakeholders in the WMS market by identifying high-growth segments
• To provide a detailed overview of the value chain of the WMS ecosystem
• To analyze competitive growth strategies such as product launches, acquisitions, expansions, contracts, and partnerships in the WMS market
• To strategically profile key players in the WMS market and comprehensively analyze their market rankings, strategies, and game-changing developments, such as contracts and partnerships

Research Methodology:

This research study involves the use of secondary sources, such as encyclopedias, directories, and databases (OneSource and Factiva), to identify and collect information useful for the extensive technical, market-oriented, and commercial study of the warehouse management system market. Primary sources such as experts from related industries and suppliers have been interviewed to obtain and verify critical information, as well as assess prospects. Key players in the warehouse management system market have been identified through secondary research, and their market rankings have been determined through primary and secondary research. This research includes the study of annual reports of top market players and interviews with key opinion leaders, such as CEOs, directors, and marketing personnel.

The following figure shows the breakdown of primaries based on company type, designation, and region.

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

Market Ecosystem:

As of 2017, Epicor Software (US), JDA Software (US), Manhattan Associates (US), Oracle (US), SAP (Germany) were the major players in the warehouse management system market. Other players in the warehouse management system market include IBM (US), Infor (US), PSI (Germany), PTC (US), Tecsys (Canada), Blujay Solutions (UK), HighJump (US).

Critical Questions:

• How do warehouse management system developers position themselves in this competitive market?
• Which are the major industries that adopt the maximum number of warehouse management systems?
• What are the growth perspectives of this market in different regions?

Target Audience of the Report:

• Associations, forums, and alliances related to warehouse management systems
• End-user industries: 3PL, e-commerce, automotive, chemicals, food & beverages, metals and machinery, and electrical and electronics
• Manufacturers of material handling systems, such as robots, AGVs, ASRS, cranes, and conveyors and sortation systems
• Research organizations and consulting companies
• System integrators
• Venture capitalists and private equity firms
• Warehouse management system software designers and developers
• Warehouse management system software suppliers

 “This study answers several questions for stakeholders, primarily the market segments to focus on in the next 2–5 years for prioritizing efforts and investments.”

Scope of the Report:

In this report, the overall warehouse management system market has been segmented based on offering, deployment, tier type, industry, and geography.

Warehouse Management System Market, by Offering:

• Software
• Services

Warehouse Management System Market, by Deployment

• On-cloud
• On-premise

Warehouse Management System Market, by Tier Type

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

Warehouse Management System Market, by Industry

• 3PL
• Automotive
• Food & Beverages
• Healthcare
• E-Commerce
• Chemicals
• Electricals & Electronics
• Metals & Machinery
• Others (Paper & Printing and Textile & Clothing)

Warehouse Management System Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Rest of Europe
• Asia Pacific (APAC)
  • China
  • Japan
  • India
  • Rest of APAC
• Rest of the World (RoW)
  • South America
  • Middle East
  • Africa

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to a company’s specific need. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to 5)

Table of Contents

1 Introduction (Page No. - 17)
    1.1 Objectives of the Study
    1.2 Definition
    1.3 Scope of the Study
           1.3.1 Market Covered
           1.3.2 Years Considered for the Study
    1.4 Currency & Pricing
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 21)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 List of Major Secondary Sources
                    2.1.1.2 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Primary Interviews With Experts
                    2.1.2.2 Key Data From Primary Sources
    2.2 Secondary & Primary Research
                    2.2.1.1 Key Industry Insights
                    2.2.1.2 Breakdown of Primaries
    2.3 Market Size Estimation
           2.3.1 Bottom-Up Approach
                    2.3.1.1 Approach for Arriving at Market Share By Bottom-Up Analysis (Demand Side)
           2.3.2 Top-Down Approach
                    2.3.2.1 Approach for Capturing Market Share By Top-Down Analysis (Supply Side)
    2.4 Market Breakdown & Data Triangulation
    2.5 Research Assumptions

3 Executive Summary (Page No. - 32)

4 Premium Insights (Page No. - 38)
    4.1 Warehouse Management System Market, 2018–2024 (USD Billion)
    4.2 Warehouse Management System Market, By Offering
    4.3 Warehouse Management System Market, By Deployment
    4.4 Warehouse Management System Market, By Tier Type
    4.5 Warehouse Management System Market, By Industry
    4.6 Warehouse Management System Market, By Geography

5 Market Overview (Page No. - 44)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Growth in E-Commerce Industry
                    5.2.1.2 Emergence of Multichannel Distribution Networks
                    5.2.1.3 Globalization of Supply Chain Networks
                    5.2.1.4 Increasing Adoption of On-Cloud WMS Solutions
                    5.2.1.5 Need for Efficient Forecasting Models
           5.2.2 Restraints
                    5.2.2.1 High Implementation Cost of On-Premise WMS for SMES
                    5.2.2.2 Data Privacy and Security Concerns
           5.2.3 Opportunities
                    5.2.3.1 Digitization of Supply Chain Management
                    5.2.3.2 Rising Investment of Multinational Companies in Emerging Economies
           5.2.4 Challenges
                    5.2.4.1 Lack of Awareness About Benefits of WMS Among Small-Scale Industries
                    5.2.4.2 Constant Need for Software Upgrades
    5.3 Value Chain Analysis

6 Hardware Components Integrated With Warehouse Management Systems (Page No. - 54)
    6.1 Introduction
    6.2 Robot
           6.2.1 Integration of Robot With WMS
    6.3 Automated Storage and Retrieval System (ASRS)
           6.3.1 Integration of ASRS With WMS
    6.4 Conveyor and Sortation System
           6.4.1 Integration of Conveyors and Sortation Systems With WMS
    6.5 Crane
           6.5.1 Integration of Cranes With WMS
    6.6 Automated Guided Vehilce (AGV)
           6.6.1 Integration of AGV With WMS

7 Warehouse Management System Market, By Offering (Page No. - 58)
    7.1 Introduction
    7.2 Software
    7.3 Services
           7.3.1 Consulting and Installation
           7.3.2 Testing
           7.3.3 Maintenance
           7.3.4 Training
           7.3.5 Software Upgrades

8 Warehouse Management System Market, By Deployment (Page No. - 67)
    8.1 Introduction
    8.2 On-Premise
    8.3 On-Cloud
    8.4 On-Premise vs On-Cloud

9 Warehouse Management System Market, By Tier Type (Page No. - 72)
    9.1 Introduction
    9.2 Advanced WMS (Tier 1)
           9.2.1 Functions of Advanced WMS (Tier 1)
                    9.2.1.1 Core Functions
                    9.2.1.2 Peripheral Functions
                    9.2.1.3 Supply Chain Functions
    9.3 Intermediate WMS (Tier 2)
           9.3.1 Functions of Internediate WMS (Tier 2)
    9.4 Basic WMS (Tier 3)
           9.4.1 Functions of Basic WMS (Tier 3)

10 Functions of Warehouse Management Systems (Page No. - 77)
     10.1 Introduction
     10.2 Receiving and Putaway
     10.3 Slotting
     10.4 Inventory Control
     10.5 Picking
     10.6 Workforce and Task Management
     10.7 Shipping
     10.8 Yard and Dock Management

11 Warehouse Management System Market, By Industry (Page No. - 81)
     11.1 Introduction
     11.2 Third-Party Logistics (3PL)
             11.2.1 WMS Helps 3PL Companies Reduce Operation Complexities
     11.3 Automotive
             11.3.1 WMS Plays Major Role in Automotive Industry for Efficient Inventory Management
     11.4 Food & Beverages
             11.4.1 Implementation of WMS in Food & Beverages Industry for Package Tracking
     11.5 Healthcare
             11.5.1 Rising Trend of Automated Warehouses Boosting Adoption of WMS in Healthcare Industry
     11.6 E-Commerce
             11.6.1 WMS Smoothens Warehouising Operations of E-Commerce Industry
     11.7 Chemicals
             11.7.1 Digitization in Chemicals Industry to Boost Adopton of WMS
     11.8 Electrical & Electronics
             11.8.1 WMS Smoothly Handles Supply Chain of Electrical & Electronics Industry
     11.9 Metals and Machinery
             11.9.1 Use of WMS in Metals & Machinery Industry Enables Efficient and Cost-Effective Operations
     11.10 Others
               11.10.1 Paper and Printing
               11.10.2 Textile and Clothing

12 Geographic Analysis (Page No. - 103)
     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. - 122)
     13.1 Overview
     13.2 Ranking of Players in Warehouse Management System Market
     13.3 Competitive Situations & Trends
             13.3.1 Contracts and Partnerships
             13.3.2 Product Launches
             13.3.3 Acquisitions
             13.3.4 Expansions

14 Company Profiles (Page No. - 130)
     14.1 Introduction
     14.2 Key Players
             14.2.1 Epicor Software
                       14.2.1.1 Business Overview
                       14.2.1.2 Products Offered
                       14.2.1.3 Recent Developments
                       14.2.1.4 MnM View
                       14.2.1.5 SWOT Analysis
             14.2.2 JDA Software
                       14.2.2.1 Business Overview
                       14.2.2.2 Products Offered
                       14.2.2.3 Recent Developments
                       14.2.2.4 MnM View
                       14.2.2.5 SWOT Analysis
             14.2.3 Manhattan Associates
                       14.2.3.1 Business Overview
                       14.2.3.2 Products Offered
                       14.2.3.3 Recent Developments
                       14.2.3.4 MnM View
                       14.2.3.5 SWOT Analysis
             14.2.4 Oracle
                       14.2.4.1 Business Overview
                       14.2.4.2 Products Offered
                       14.2.4.3 Recent Developments
                       14.2.4.4 MnM View
                       14.2.4.5 SWOT Analysis
             14.2.5 SAP
                       14.2.5.1 Business Overview
                       14.2.5.2 Products Offered
                       14.2.5.3 Recent Developments
                       14.2.5.4 MnM View
                       14.2.5.5 SWOT Analysis
             14.2.6 IBM
                       14.2.6.1 Business Overview
                       14.2.6.2 Products Offered
                       14.2.6.3 Recent Developments
                       14.2.6.4 MnM View
             14.2.7 Infor
                       14.2.7.1 Business Overview
                       14.2.7.2 Products Offered
                       14.2.7.3 Recent Developments
                       14.2.7.4 MnM View
             14.2.8 PSI
                       14.2.8.1 Business Overview
                       14.2.8.2 Products Offered
                       14.2.8.3 Recent Developments
                       14.2.8.4 MnM View
             14.2.9 PTC
                       14.2.9.1 Business Overview
                       14.2.9.2 Products Offered
                       14.2.9.3 Recent Developments
                       14.2.9.4 MnM View
             14.2.10 Tecsys
                       14.2.10.1 Business Overview
                       14.2.10.2 Products Offered
                       14.2.10.3 Recent Developments
                       14.2.10.4 MnM View
             14.2.11 Blujay Solutions
                       14.2.11.1 Business Overview
                       14.2.11.2 Products Offered
                       14.2.11.3 Recent Developments
                       14.2.11.4 MnM View
             14.2.12 HighJump
                       14.2.12.1 Business Overview
                       14.2.12.2 Products Offered
                       14.2.12.3 Recent Developments
                       14.2.12.4 MnM View
     14.3 Other Key Players
             14.3.1 3PL Central
             14.3.2 Datapel
             14.3.3 Made4net
             14.3.4 Microlistics
             14.3.5 Reply
             14.3.6 Softeon
             14.3.7 Synergy Logistics
             14.3.8 Vinculum Solutions

15 Appendix (Page No. - 164)
     15.1 Insights of Industry Experts
     15.2 Discussion Guide
     15.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     15.4 Available Customizations
     15.5 Related Reports

List of Tables (40 Tables)

Table 1 Warehouse Management System Market, By Offering, 2015–2024 (USD Million)
Table 2 Warehouse Management System Market for Software, By Industry, 2015–2024 (USD Million)
Table 3 Warehouse Management System Market for Software, By Region, 2015–2024 (USD Million)
Table 4 Warehouse Management System Market for Services, By Industry, 2015–2024 (USD Million)
Table 5 Warehouse Management System Market for Services, By Region, 2015–2024 (USD Million)
Table 6 Warehouse Management System Market, By Deployment, 2015–2024 (USD Million)
Table 7 Difference Between On-Premise and On-Cloud WMS
Table 8 Warehouse Management System Market, By Tier Type, 2015–2024 (USD Million)
Table 9 Warehouse Management System Market, By Industry, 2015–2024 (USD Million)
Table 10 Warehouse Management System Market for 3PL Industry, By Offering, 2015–2024 (USD Million)
Table 11 Warehouse Management System Market for 3PL Industry, By Region, 2015–2024 (USD Million)
Table 12 Warehouse Management System Market for Automotive Industry, By Offering, 2015–2024 (USD Million)
Table 13 Warehouse Management System Market for Automotive Industry, By Region, 2015–2024 (USD Million)
Table 14 Warehouse Management System Market for Food & Beverages Industry, By Offering, 2015–2024 (USD Million)
Table 15 Warehouse Management System Market for Food & Beverages Industry, By Region, 2015–2024 (USD Million)
Table 16 Warehouse Management System Market for Healthcare Industry, By Offering, 2015–2024 (USD Million)
Table 17 Warehouse Management System Market for Healthcare Industry, By Region, 2015–2024 (USD Million)
Table 18 Warehouse Management System Market for E-Commerce Industry, By Offering, 2015–2024 (USD Million)
Table 19 Warehouse Management System Market for E-Commerce Industry, By Region, 2015–2024 (USD Million)
Table 20 Warehouse Management System Market for Chemicals Industry, By Offering, 2015–2024 (USD Million)
Table 21 Warehouse Management System Market for Chemicals Industry, By Region, 2015–2024 (USD Million)
Table 22 Warehouse Management System Market for Electrical & Electronics Industry, By Offering, 2015–2024 (USD Million)
Table 23 Warehouse Management System Market for Electrical & Electronics Industry, By Region, 2015–2024 (USD Million)
Table 24 Warehouse Management System Market for Metals & Machinery Industry, By Offering, 2015–2024 (USD Million)
Table 25 Warehouse Management System Market for Metals & Machinery Industry, By Region, 2015–2024 (USD Million)
Table 26 Warehouse Management System Market for Others Industry, By Offering, 2015–2024 (USD Million)
Table 27 Warehouse Management System Market for Others Industry, By Region, 2015–2024 (USD Million)
Table 28 Warehouse Management System Market, By Region, 2015–2024 (USD Million)
Table 29 Warehouse Management System Market in North America, By Country, 2015–2024 (USD Million)
Table 30 Warehouse Management System Market in North America, By Deployment, 2015–2024 (USD Million)
Table 31 Warehouse Management System Market in Europe, By Country, 2015–2024 (USD Million)
Table 32 Warehouse Management System Market in Europe, By Deployment, 2015–2024 (USD Million)
Table 33 Warehouse Management System Market in APAC, By Country, 2015–2024 (USD Million)
Table 34 Warehouse Management System Market in APAC, By Deployment, 2015–2024 (USD Million)
Table 35 Warehouse Management System Market in RoW, By Region, 2015–2024 (USD Million)
Table 36 Warehouse Management System Market in RoW, By Deployment, 2015–2024 (USD Million)
Table 37 Contracts and Partnerships, 2016–2018
Table 38 Product Launches, 2016–2018
Table 39 Acquisitions, 2017–2018
Table 40 Expansions, 2018
 
 
List of Figures (62 Figures)
 
Figure 1 Segmentation of Warehouse Management System Market
Figure 2 Warehouse Management System Market: Research Design
Figure 3 Bottom-Up Approach to Arrive at Market Size
Figure 4 Top-Down Approach to Arrive at Market Size
Figure 5 Data Triangulation
Figure 6 Assumptions of Research Study
Figure 7 Segmentation of Warehouse Management System Market
Figure 8 Software to Hold Larger Size of WMS Market in 2018
Figure 9 Market for On-Cloud Warehouse Management Systems to Grow at  Higher CAGR During Forecast Period
Figure 10 Advanced Warehouse Management Systems to Hold Largest Market Size Throughout Forecast Period
Figure 11 Warehouse Management System Market for Food & Beverages Industry to Grow at Highest CAGR During Forecast Period
Figure 12 North America to Hold Largest Share of Warehouse Management System Market in 2018
Figure 13 Growth in E-Commerce Industry to Drive Growth of Warehouse Management System Market
Figure 14 Warehouse Management System Market for Services to Grow at  Higher CAGR From 2018 to 2024
Figure 15 Market for On-Cloud Warehouse Management Systems to Grow at Higher Rate From 2018 to 2024
Figure 16 Advanced Warehouse Management Systems to Account for Largest Market Size From 2018 to 2024
Figure 17 3PL Industry to Hold Largest Share of Overall Warehouse Management System Market in 2018
Figure 18 US to Hold Largest Share of Warehouse Management System Market in 2018
Figure 19 DROC: Warehouse Management System Market, 2018
Figure 20 Global E-Commerce Sale, 2017 vs 2021
Figure 21 Traditional Supply Chain vs Digital Supply Chain
Figure 22 Major Value is Added During Software Design and Development Stage
Figure 23 Robots to Hold Largest Share of Hardware Components Integrated With WMS in 2018
Figure 24 Warehouse Management System Market, By Offering
Figure 25 WMS Market for Software for Food & Beverages Industry to Grow at Highest CAGR From 2018 to 2024
Figure 26 3PL Industry to Dominate WMS Market for Services Throughout Forecast Period
Figure 27 Warehouse Management System Market, By Deployment
Figure 28 Market for On-Cloud WMS to Grow at Higher Rate From 2018 to 2024
Figure 29 Warehouse Management System Market, By Tier Type
Figure 30 Market for Basic (Tier 3) WMS to Grow at Highest CAGR During Forecast Period
Figure 31 Warehouse Management System Market, By Function
Figure 32 Warehouse Management System Market, By Industry
Figure 33 APAC to Lead Warehouse Management System Market for 3PL Industry Throughout Forecast Period
Figure 34 North America to Lead Warehouse Management System Market for Food & Beverages Industry From 2018 to 2024
Figure 35 North America to Lead WMS Market for Healthcare Industry Throughout Forecast Period
Figure 36 Producers and Consumers in Electrical and Electronics Industry (2017)
Figure 37 APAC to Dominate Warehouse Management System Market for Electrical & Electronics Industry From 2018 to 2024
Figure 38 Software to Hold Larger Size of Warehouse Management System Market for Metals & Machinery Industry During Forecast Period
Figure 39 Warehouse Management System Market in India Expected to Grow at the Highest CAGR During Forecast Period
Figure 40 Snapshot of Warehouse Management System Market in North America
Figure 41 US to Hold Largest Size of Warehouse Management System Market in North America Throughout Forecast Period
Figure 42 Snapshot of Warehouse Management System Market in Europe
Figure 43 Market for On-Cloud WMS to Grow at Higher CAGR From 2018 to 2024
Figure 44 Snapshot of Warehouse Management System Market in APAC
Figure 45 China to Hold Largest Size of Warehouse Management System Market in APAC From 2018 to 2024
Figure 46 Warehouse Management System Market in RoW
Figure 47 Product Launches Emerged as Key Growth Strategy Adopted By Players in Warehouse Management System Market From 2016 to 2018
Figure 48 Ranking of Top 5 Players in Warehouse Management System Market, 2017
Figure 49 Market Evolution Framework: Contracts and Partnerships Fueled Growth of Warehouse Management System Market During 2016–2018
Figure 50 Contracts and Partnerships Were Key Strategies From 2016 to 2018
Figure 51 Epicor Software: Company Snapshot
Figure 52 JDA Software: Company Snapshot
Figure 53 Manhattan Associates: Company Snapshot
Figure 54 Oracle: Company Snapshot
Figure 55 SAP: Company Snapshot
Figure 56 IBM: Company Snapshot
Figure 57 Infor: Company Snapshot
Figure 58 PSI: Company Snapshot
Figure 59 PTC: Company Snapshot
Figure 60 Tecsys: Company Snapshot
Figure 61 Blujay Solutions: Company Snapshot
Figure 62 HighJump: Company Snapshot

Warehouse management system (WMS) is a software application that helps manage operations in warehouses in the most efficient and productive manner. The warehouse management system market is expected to reach USD 4.82 billion by 2024 from USD 2.06 billion in 2018, at a CAGR of 15.2% from 2018 to 2024. The growth of this market can be attributed to the growth in the e-commerce industry, emerging multichannel distribution channels, globalization of supply chain networks, increased adoption of on-cloud WMS solutions, and rising need for efficient forecasting models.

Software is likely to hold a large share of the WMS market during the forecast period. 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.

On-premise deployment is likely to lead the WMS market during forecast period. Benefits such as enhanced data security, better performance and control over data transmission, and easier customizations provided by on-premise warehouse management systems are resulting in their high adoption.

Advanced (tier 1) WMS is expected to dominate the WMS market during forecast period. Advanced WMS aids warehouse operators in making better decisions about inventory stocking, movement, and employee efficiency with adequate and accessible information. This is a major factor driving the growth of the market for advanced (tier 1) WMS.

The third-party logistics (3PL) industry is expected to lead the overall warehouse management system market from 2018 to 2024. This industry is contributing to the growth of the warehouse management system market. Factors such as growing need for efficient order management, increased outsourcing of logistics and transportation operations, and globalization of supply chain networks have boosted the adoption of warehouse management systems in the 3PL industry.

Among all regions, North America is expected to account for the largest share of the warehouse management system market in 2018. Factors such as presence of large companies with global warehousing and distribution operations, growth in e-commerce industry, and developed third-party logistics (3PL) networks are driving the growth of the warehouse management system market in this region. The US is the major contributor to the growth of warehouse management system market in North America. Companies in the US are shifting most of their operations on cloud, thereby creating huge opportunities for the adoption of on-cloud WMS solutions.

Major Application of Warehouse Management Systems

Third-Party Logistics:

With the rise in demand for 3PL services, companies are handling huge inventory on a daily basis. Further, the complexity of operating a 3PL facility, particularly one that serves multiple clients, has accelerated. The implementation of WMS in the 3PL industry is vital to efficiently handle inventory and orders. WMS can seamlessly handle overlapping of inventory. These systems can also effortlessly handle any overlapping of sales orders or purchase orders, thereby saving hours required for manual data entry.

Automotive

The after-sales service market for the automotive industry is witnessing tremendous growth opportunities owing to the high number of vehicles sold worldwide and the increasing need for periodic maintenance. In recent times, provision of efficient after-sales services adds value to the final products as it influences customers to buy products of certain brands. Provision of an efficient after-sales service requires uninterrupted supply of essential spare parts and components, such as engine parts, suspensions, tires, electronic components, and brake pads. These spare parts are not necessarily being manufactured at same locations and are required to be transported both at assembly facilities and service outlets for customers to buy replacements. WMS plays a major role in making the inventory available at warehouses and transporting it to distribution centers as per customer requirements.

Food & Beverages:

With the increasing concern about food safety and quality among customers, it becomes necessary for food & beverages companies to keep a track of the sources of food products and to ensure food quality while these are being transported. Several governments worldwide have come-up with regulations to ensure superior quality of packaged food & beverages. Regulations such as Hazard Analysis and Critical Control Point (HACCP) by the US federal government, Safe Food for Canadians by the Canadian Food Inspection Agency (CFIA), and General Food Law of the European Union have been adopted by food & beverages companies to ensure freshness and integrity of food items.

Healthcare:

The use of WMS in the healthcare industry ensures that medicines and medical equipment are supplied in given time. A WMS helps in constantly updating the database of the inventory moving in and out of a warehouse; this helps in preventing running out of inventory. In the healthcare distribution ecosystem, continuous sharing of information and visibility of every process are the determinants for efficient warehouse management. WMS enables clear visibility of logistic activities in the healthcare industry, thereby enabling proper tracking of medicines and medical devices.

Factors such as high implementation costs of on-premise WMS for SMEs and data privacy and security concerns are restraining the growth of the warehouse management system market.

As of 2017, Epicor Software (US), JDA Software (US), Manhattan Associates (US), Oracle (US), and SAP (Germany) were the top 5 players in the warehouse management system market. These players focus on product launches, acquisitions, expansions, and contracts and partnerships to expand their product offerings and businesses.

Other prominent players in the warehouse management system market include IBM (US), Infor (US), PSI (Germany), PTC (US), Tecsys (Canada), Blujay Solutions (UK), and HighJump (US).

Critical Questions:

• Which tier type of WMS would have the highest demand in the future?
• Which deployment type of warehouse management systems is preferred the most?
• How is a warehouse management system deployed to facilitate various functions of a warehouse?