According to a new market report published by Transparency Market Research entitled “Warehouse Management Systems Market (Component – Software and Services; Software – On-premise and Cloud; On-premise – Labor Management Systems, Analytics and Optimization, and Others; Cloud – Labor Management Systems, Analytics and Optimization, and Others; Services – Consulting, System Integration, and Operations and Maintenance; Application – Retail, Electronics, Food and Beverage, Pharmaceutical, 3PL, and Others) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017 – 2027,” the global warehouse management systems market was worth US$ 2,114.0 Mn in 2019 and is expected to reach US$ 6,184.3 Mn by 2027, expanding at a CAGR of 14.4% from 2019 to 2027.

The global market for warehouse management systems is driven by technological developments, rising adoption of cloud based warehouse management systems, increased demand from the health care and retail sectors, and strong demand from the Asia Pacific region. The expanding application areas of warehouse management systems along with improved functionality is also generating high demand for warehouse management systems specifically in Europe and the North America region. On the other hand, the warehouse management systems market is hampered by requirement of high initial investment cost for the deployment of on-premise WMS system and lack of ICT infrastructure and system scalability. However, the growing demand for cloud based WMS to reduce operational cost and growing e-commerce market is anticipated to present several growth opportunities over the forecast period.

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On the basis of component, the market is segmented into software and service. The software segment further based on the deployment type covers, on-premise and cloud based software. Further, on-premise and cloud based software segments are each categorized into labor management systems, analytics and optimization, and others which includes 3PL billing and yard management. In 2018, on-premise warehouse management software was dominating cloud warehouse management software, however, the industry is observing a phase of change where most of the users are moving from on-premise to cloud solutions.

On the basis of services, the market for warehouse management systems is segmented into consulting, system integration, and operations and maintenance. In 2018, the operations and maintenance segment held the largest revenue share of around half of the overall warehouse management services market and is expected to maintain its dominant position during the forecast period. Moreover, this segment is also expected to expand at the highest CAGR in terms of revenue during the forecast period from 2019 to 2027.

Based on applications, the global warehouse management system market is segmented into retail, electronics, food and beverage, pharmaceutical, 3PL, and others which includes books and publishing, and home improvement. Third party logistics (3PL) segment is expected to be primary adopter of warehouse management systems in near future. This is owing to third party logistics looking forward to changing their customer experience with the adoption of cloud based warehouse management system.

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Geographically, in 2018, Europe is the largest market for warehouse management systems among other regions. Moreover, Asia Pacific is expected to witness the fastest growth during the forecast period. Countries such as India, China, Korea, and Japan are expected to be at the forefront of warehouse management system adoption due to increased technological investment in the region.

Some of the major players in the global warehouse management systems market with the most significant developments are HighJump Software, Tecsys, Inc., Infor Inc., JDA Software Group, Inc., LogFire Inc., Made4net LLC, Manhattan Associates Inc., Oracle Corporation, Reply, SAP SE, Softeon, Inc. and Synergy Logistics Ltd.

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