Albany, NY -- (SBWIRE) -- 11/30/2016 -- 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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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.
Asia Pacific Plays Key Role in Expansion of Global WMS Market
In terms of revenue, Europe was the leading regional market for warehouse management systems, accounting for around 43% of revenue share in 2015. The region is expected to retain its dominance in the WMS market throughout the forecast period. This market is primarily driven by the role of third-party logistics. Third-party logistics companies are increasingly adopting warehouse management systems to enhance various functionalities, improve customer relationship experience, and support a cost-effective management system.
The warehouse management systems market in North America is projected to show moderate growth during the forecast period, with the U.S. emerging as one of the most attractive regional segments.
Asia Pacific also plays a key role in the development of the global warehouse management systems market. The WMS market in Asia Pacific is growing at a rapid pace and is expected to maintain its momentum due to the rising demand for extended WMS solutions supporting in-store inventory, cloud integration, and order management along with standard warehouse management system offerings.
The warehouse management systems market in Latin America and the Middle East and Africa is anticipated to witness sustainable growth in the near future. The major factor fuelling these markets is the rising adoption of WMS solutions in retail applications in countries such as Saudi Arabia, Israel, the UAE, and Turkey, where the e-commerce market is expanding substantially.
Some of the prominent players in the global warehouse management systems market 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.