Double-digit CAGR forecasts for warehouse management system market

The global warehouse management system (WMS) market is expected to be worth US$5.72 billion by 2025, according to a new report by Grand View Research. The market will progress at a CAGR of 16.3% during the forecast period.

The Asia Pacific WMS market is likely to experience the fastest growth during the forecast period, due to high influx of e-commerce players in the region, the consultancy said.

Demand is forecast for WMS based on the software-as-a-service (SaaS) model. Cloud enables businesses running on-premise technologies to support clients more efficiently, Grand View explained. Low upfront cost and shorter implementation time are key factors that are encouraging companies to move toward cloud-based systems.

Advancements in cloud-based technologies are estimated to fuel the adoption of WMS software irrespective of the size and complexity of the organisation where these solutions are used. The demand for cloud-based systems is primarily from small and medium-sized businesses (SMBs) that do not need advanced warehouse technologies and high-speed automation.

Larger organisations are also switching to cloud-based warehouse management systems as it allows them to offload tedious tasks such as maintenance, infrastructure administration, and timely upgrades for on-premise software.

Demand for custom warehouse management and supply chain operation solutions is poised to grow, Grand View adds.

Report highlights include:

- The cloud-based segment is estimated to account for just over 55% of overall revenue by 2025

- The transportation and logistics segment is projected to rise at a CAGR of about 18% from 2018 to 2025.

- Key players in the market are Epicor Software, HighJump, Manhattan Associates, Oracle, PSI Logistics, SAP, Synergy, Tecsys, Reply

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Check out Grand View's WMS research