Global Warehouse Management Systems Market: Rapid Growth of Retail Sector to Supplement Demand, finds TMR

The global warehouse management systems (WMS) market is highly consolidated in nature. In 2015, Oracle Corporation and SAP SE collectively held a market share of just under 40%. The other key players include JDA Software Group, Inc., Reply, Manhattan Associates Inc., Tecsys, Inc., Infor IncLogFire Inc., Made4net LLC, HighJump Software, Softeon, Inc., and Synergy Logistics Ltd. 

In order to grow further, companies in the market are looking for expanding their base in emerging markets such as Asia Pacific and Latin America. Due to high growth in retail applications of warehouse management systems in emerging economies of Indonesia, Brazil India, China, and several European countries, the established players from the North America market are excessively venturing into these markets.

warehouse management systems market

Not only the emerging market, but also the matured markets still continue to be a hotbed for many WMS giants. In September 2015, Tecsys, Inc., a Canada-based WMS company extended its base in the European market by starting operations in Italy, Germany, Spain, France, the U.K., and Portugal. 

According to a TMR report, the global warehouse management systems market is projected to reach US$4.1 bn by 2024 from its initial valuation of US$1.2 bn in 2015, progressing at a sturdy 14.1% CAGR in the forecast period. 

Cost-effective Cloud-based Segment to Hold More Promise 

Based on component, the market is divided into software and services. The software segment is further segmented into cloud-based and on-premise warehouse management systems. In 2015, on-premise segment held a massive share of over 77% of the warehouse management software market. However, due to cost-effectiveness and technological advancements, cloud-based segment of warehouse management software will project more growth in the coming years. 

In terms of services, the WMS market is classified into system integration, consulting, and operations and maintenance. In 2015, the operation and maintenance segment was the key contributor of the market, and is projected to grow at a significant CAGR during the forecast period. On the basis of application, third-party logistics segment held a large share in the WMS market, whereas, the pharmaceutical segment is anticipated to list a high CAGR from 2016 to 2024. 

Asia Pacific to Soon Outgrow North America Due to Rapid Urbanization 

The global warehouse management systems market is segmented on the basis of geography into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Europe accounted for a large marker share of over 43% in 2015, generating US$560.7 mn that year. Asia Pacific is known to be an emerging and the most attractive regional segment of the warehouse management systems market registering a 17.2% CAGR over the forecast period. The market growth in Asia Pacific region can be attributed to various factors such as increasing per capita income and rising urbanization. The growth of retail sector due to high inclination of consumers towards online shopping has supplemented the demand for WMS. Moreover, this region is experiencing massive growth owing to the rising demand for extended WMS solutions supporting in-store inventory, cloud integration, and order management along with standard warehouse management system offerings. 

In spite of the time and cost saving features of WMS, factors such as lack of ICT infrastructure in many countries and high initial investment cost are abstaining the market growth of warehouse management systems. 

This review is based on the findings of a TMR report titled ‘Warehouse Management Systems Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016  - 2024.’ 

Global Warehouse Management Systems Market Analysis, by Component

  • Software
    • On-premise
      • Labor Management Systems
      • Analytics and Optimization
      • Other (3PL Billing, and Yard Management)
    • Cloud
      • Labor Management Systems
      • Analytics and Optimization
      • Other (3PL Billing, and Yard Management)
    • Services
      • Consulting
      • System Integration
      • Operations and Maintenance 

Warehouse Management Systems Market Analysis, by Application

  • Retail (Apparel, Department & General Merchandise)
  • Electronics
  • Grocery/Food & Beverage
  • Pharmaceutical
  • 3PL
  • Others (Books & Publishing, Home Improvement)

Warehouse Management Systems Market Analysis, by Geography

  • North America
    • The U.S.
    • Canada
    • Rest of North America
  • Europe
    • The U.K.
    • Germany
    • France
    • Spain
    • Italy
    • Rest of Europe
  • Asia-Pacific
    • Japan
    • China
    • Australia
    • Indonesia
    • India
    • Rest of Asia Pacific
  • Middle East and Africa (MEA)
    • The UAE
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Rest of South America

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