By 2025, The global Warehouse Management System (WMS) market will be
worth US$5 billion, growing at a CAGR of 13.9%, finds global tech market
advisory firm, ABI Research. Over the same forecast period,
57,000 more warehouses will be in operation than in 2018. The continued
growth of the e-commerce market and rising customer expectations are
putting enormous pressure on warehouses to execute more rapid and
flexible deliveries. This is driving investment in warehouse facilities,
automation technologies, and warehouse management systems to coordinate
and optimize operations.
“The warehouse is becoming the engine room of the supply chain and is,
therefore, a focal point for investment from retailers, manufacturers,
and logistics service providers,” says Nick Finill, Principal Analyst at
ABI Research. “As the warehouse technology ecosystem becomes
increasingly complex, supply chain operators require more sophisticated
management systems that can orchestrate the high volume and variety of
intelligent, connected devices and systems within their facilities, as
well as the flow of inventory.”
As the e-commerce boom grows in and extends beyond the established
economies of China, Japan, and Korea, the Asia-Pacific will experience
the highest growth of warehouse facilities and WMS revenue, becoming the
largest market for the software by 2023. The rapid adoption of WMS is
also expected in the emerging economies of the Middle East, Africa, and
Latin America. Europe and North America will experience strong growth as
supply chain operators increase spending on upgraded software systems.
WMS spending will also vary according to industry verticals. The retail,
food and beverage, and manufacturing sectors will be responsible for the
highest growth rate as they catch up with more mature verticals, such as
logistics service providers.
AI-driven Innovation from WMS market leaders such as JDA Software, High
Jump, and Manhattan Associates is enabling substantial flexibility and
functionality in WMS and Warehouse Execution Systems (WES), an
increasingly important orchestration layer linking high-level management
with connected machines. At the device and machine level, greater
automation is creating demand for more sophisticated Warehouse Control
Systems (WCS) from major automated material handling solution providers
such as Bastian Solutions, Dematic, and Honeywell Intelligrated.
“The increasing velocity of goods through the supply chain is driving
demand for real-time decision making and optimization,” says Finill. “As
the margin for error in the warehouse decreases, AI and ML-enabled WMS
solutions are becoming imperative for warehouses that rely on speed,
efficiency, and intelligence to remain competitive.”
These findings are from ABI Research’s Intelligent
Supply Chain market data report, This report is part of the
company’s Intelligent
Supply Chain service, which includes research, data, and analyst
insights. Market
Data spreadsheets are composed of deep data, market share analysis,
and highly segmented, service-specific forecasts to provide detailed
insight where opportunities lie.
About ABI Research
ABI Research provides strategic guidance to visionaries, delivering
actionable intelligence on the transformative technologies that are
dramatically reshaping industries, economies, and workforces across the
world. ABI Research’s global team of analysts publish groundbreaking
studies often years ahead of other technology advisory firms, empowering
our clients to stay ahead of their markets and their competitors.
For more information about ABI Research’s services, contact us at
+1.516.624.2500 in the Americas, +44.203.326.0140 in Europe,
+65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.
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