The warehousing sector has been forced to intensify efforts to digitize, given the increased volume of orders and the growing trend of multi-channel due to the boom in e-commerce. Global investment in Warehouse Management System (WMS) grew from $ 2.3 billion in 2019 to over $ 2.5 billion in 2020, an 8% increase. Unsurprisingly, the largest investment in WMS – more than $ 636 million last year – came from logistics providers. They are followed by retail with $ 509 million in investments, followed by food and beverage vendors with $ 483 million on warehouse management systems. According to analytical company ABI Research, the compound annual growth rate of the global WMS market in the period from 2021 to 2030 will exceed 23%. If this forecast comes true, in 2030, revenue from warehouse management systems will exceed $ 10 billion.
In terms of innovation, the WMS market has seen some compelling changes. Improvements in data collection and tracking help you better understand warehouse operations and improve predictive analytics. Operators can now deploy machine learning algorithms that collect data and provide insights in real time. Wider adoption of blockchain will enable supply chains to become more connected, accountable and transparent. Blockchain applications in WMS can simplify workflows and tie them all together using encryption for end-to-end security. Robotic process automation is another exciting development. It combines the use of software, robotics, artificial intelligence (AI) and machine learning to dramatically accelerate common warehouse operations.
Analysts believe that solution providers that integrate well with different levels of automated processes and technologies are more likely to achieve long-term success. A sign of the growing maturity of the WMS market is that many leading vendors such as Manhattan Associates, Oracle NetSuite, Blue Yonder, Ehrhardt Partner Group (EPG) and Mantis are already offering attractive end-to-end solutions.
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