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Warehouse Management Systems Market Growth & Trends
The global warehouse management systems market size is anticipated to reach USD 8.1 billion by 2028, growing at a CAGR of 15.3% from 2021 to 2028, according to a new report by Grand View Research, Inc. Growing transition towards cloud-based management systems in the warehouse industry is anticipated to boost the demand for warehouse management systems (WMS) based on the Software-as-a-Service (SaaS) model. Advancements in cloud-based technologies are estimated to fuel the adoption of WMS software irrespective of the organization’s size and complexity where these solutions are used. Surging demand for cloud-based systems can primarily be attributed to medium- and small-sized businesses that do not require the implementation of advanced warehouse technologies and high-speed automation.
Large-scale companies are also switching to cloud-based WMS as it allows organizations to offload exhausting tasks, such as maintenance, infrastructure administration, timely upgrades, and other tasks that are carried out on the on-premise software. Cloud enables businesses running on conventional on-premise technologies to transit to a platform that will support and cater to their clients’ needs more efficiently. Low upfront cost and shorter implementation time are key factors that are encouraging companies to adopt cloud-based systems.
In the healthcare ecosystem, a WMS ensures that medical equipment and medicines are supplied on time. Also, it continuously updates the database of the inventory moving in and out of a warehouse, which prevents the shortage of inventory. Furthermore, in the healthcare domain, continuous sharing of information and transparency of all processes are the critical factors for efficient warehouse management. Warehouse management system enables complete transparency of logistic activities and enables proper tracking of medical devices and medicines. Similarly, in the food & beverage industry, it ensures optimized picking, directed put away, and rotation of stock based on its expiry date.
Warehouse Management Systems Market Report Highlights
- The WMS market is anticipated to witness substantial growth during the forecast period due to the changing supply chain models of product manufacturers and rapidly growing consumer demand, especially in the transport & logistics and retail sectors
- The software segment is expected to register the highest CAGR over the forecast period owing to the increasing adoption of WMS software by Small- and Mid-sized Enterprises (SMEs) worldwide
- The cloud segment is expected to register the fastest CAGR from 2021 to 2028 owing to numerous functionalities offered by cloud-based WMS over the traditional on-premise WMS
- Transportation & logistics is expected to be the fastest-growing application segment over the forecast period owing to the rising need for technologically advanced WMS that can help logistics companies to keep their operations aligned with the ever-demanding market
- Asia Pacific is expected to register the fastest CAGR during the forecast period due to the high influx of e-commerce players in the region