Author: Tronserve admin
Monday 2nd August 2021 11:12 PM
E-Commerce Explosion Driving Worldwide Warehouse Expansion
Worldwide analysis firm ABI Research has uncovered that the global Warehouse Management System (WMS) market will be worth US$5 billion by 2025, growing at a CAGR of 13.9 per cent.
The period will see a warehouse growth with some 57,000 more distribution facilities in operation by then compared to last year. The continual growth of the e-commerce market and intensifying customer expectations are putting substantial pressure on warehouses to execute more rapid and versatile deliveries. This is driving investment in warehouse facilities, automation technologies, and warehouse management systems to coordinate and optimise 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,” said ABI Research principal analyst Nick Finill. “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.”
The firm finds that as the e-commerce boom increases in and runs beyond the established economies of China, Japan, and Korea, the Asia-Pacific will encounter the biggest growth of warehouse facilities and WMS revenue, turning out to be the most extensive market for the software by 2023. The quick adoption of WMS is also expected in the emerging economies of the Middle East, Africa, and Latin America. Europe and North America will see intense growth as supply chain operators increase spending on upgraded software systems.
WMS expenses will also differ based on 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, just like logistics service providers.
ABI’s data suggests AI-driven innovation from WMS market leaders such as for example JDA Software, High Jump, and Manhattan Associates is enabling substantial flexibility and functionality in WMS and Warehouse Execution Systems, a progressively crucial orchestration layer linking high-level management with connected machines. At the device and machine level, greater automation is creating demand for more enhanced Warehouse Control Systems 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 optimisation,” said 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.”
Source: RETAIL NEWS ASIA