Warehouse Management Systems Market: Snapshot
The emergence of digital technology has led to the increased adoption of warehouse management systems (WMS) in a number of applications. A booming e-commerce industry and the subsequent adoption of WMS in this sector is expected to drive the global warehouse management systems market. Another significant factor supporting its growth is the increasing adoption of BYOD in various industries such as retail, 3PL, healthcare, and manufacturing. This has led to an increasing demand for cloud-based WMS solutions, subsequently driving the warehouse management systems market.
The market is anticipated to expand at a revenue-based CAGR of 14.1% during the forecast period, rising from a value of US$1.2 bn in 2015 to US$4.1 bn by 2024.
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Warehouse Management Systems Used Extensively in Third-party Logistics
Accounting for a share of just over 58% in 2015, services formed the leading component segment in the overall warehouse management systems market. At a 15.1% CAGR from 2016 to 2024, this segment is also projected to witness a growth rate higher than the software segment. Between on-premise and cloud-based warehouse management systems, the former accounted for a share of around 77% in 2015. However, cloud-based WMS are likely to witness immense growth during the course of the forecast period.
Based on application, third-party logistics held the leading share in the WMS market in 2015, while the pharmaceutical segment is projected to register a high CAGR from 2016 to 2024. Geographically, Europe held a 43% share in the total revenue generated by the global warehouse management systems market in 2015, generating US$560.7 mn that year. On the other hand, Asia Pacific will register a 17.2% CAGR during the course of the forecast period, emerging as an immensely lucrative regional segment in the warehouse management systems market.
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Higher Cost-effectiveness of Cloud-based Warehouse Management Systems a Plus Point
On the basis of the component, the market can be bifurcated into software and services. The software segment comprises on-premise and cloud-based warehouse management systems. In 2015, on-premise WMS accounted for the maximum revenue share of the warehouse management software market at around 77%. However, cloud-based warehouse management software is expected to show sustainable growth during the forecast period due to various technological advancements and a higher cost-effectiveness as compared to on-premise warehouse management software.
Based on services, the WMS market is segmented into consulting, system integration, and operations and maintenance. In 2015, the operation and maintenance segment held a higher revenue share compared to the rest and is also expected to expand at a significant CAGR during the forecast period.