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Despite Challenges, Global Warehouse Management Systems Market Poised for Strong Growth

Article Description

Digital technology has played a key role in the emergence as well as development of warehouse management systems and solutions. Digitalization has enabled the expansion of the e-commerce sector and the retail industry, giving rise to the need for massive storage facilities. Global Warehouse management systems Market fulfil the demand for effective, affordable, and reliable solutions that can ensure the safety and smooth functioning of these facilities. 

Developing Economies Offering Host of Opportunities for Growth 

The retail industry in Latin America and the Middle East and Africa is expanding steadily, spurred by rising consumer disposable incomes and the demand for improved, high quality goods. This warrants the need for proper storage at warehouses, thereby having a positive impact on the demand for warehouse management systems. Therefore, LATAM and MEA have emerged as considerably lucrative markets for WMS. Asia Pacific is also a highly attractive market when it comes to warehouse management solutions. The region has been undergoing urbanization at a rapid pace, which has boosted the retail sector in several countries such as India, China, and Japan. This fast developing industry has resulted in the growing need for warehouses and for effective solutions that can help monitor and manage the various products stored and procedures involved. 

Third-party Logistics Play Key Role in WMS Market in Developed Countries 

North America accounts for a considerable share in the global market for warehouse management systems, with U.S. being the most developed market in the region. Nevertheless, this market is predicted to exhibit moderate growth in the coming years owing to a high degree of market saturation. Europe is also a prominent regional segment and has led the global market for WMS in the past and is likely to continue dominating the scene through the coming years. This can be attributed mainly to the contribution of third-party logistics. These companies offer dedicated warehouse management solutions to manufacturing and distribution enterprises, allowing them to focus on their own core competencies.

High Initial Costs Limiting Adoption of On-premise WMS 

Two of the leading benefits of on-premise warehouse management systems are lower maintenance costs and greater efficiency. However, the wide-scale deployment of these systems requires high initial investments and this acts as a major barrier on the expansion of the global warehouse management systems market. The establishment of on-premise warehouse management systems entails costs related to tech support, initial testing, software and hardware evaluation, and user training. This results in lengthier waiting periods for higher returns on investments, which causes companies to think twice about implementing such systems. In addition to this, there are various budgetary limitations that curb the adoption of on-premise warehouse management systems. 

Lack of Awareness Hurting Cloud-based Warehouse Management Systems Market 

Since on-premise WMS proves to be costly, several companies are more inclined toward cloud-based warehouse management systems, which not only need minimal up-front costs but also offer a much lower total cost of ownership. On one hand, this serves as an opportunity for providers of cloud-based WMS and helps ease the burden caused by the limitations of on-premise WMS. However, there is a lack of awareness among end users about the benefits of cloud-based warehouse management systems and this results in a lower rate of adoption. 

As a result, the global market for WMS faces challenges from on-premise as well as cloud-based solutions. 

Browse the full Global Warehouse Management Systems Market report

Some of the most prominent names in the industry are Manhattan Associates Inc., Softeon, Inc., Synergy Logistics Ltd., SAP SE, HighJump Software, Reply, Infor Inc., JDA Software Group, Inc., Made4net LLC, Tecsys, Inc., Oracle Corporation, and LogFire Inc.