Worldwide Warehouse Management Systems revenues are expected to reach $10 billion by 2030 largely because of ecommerce growth, according to the high-tech consulting firm ABI Research.
“The warehousing sector has been forced to ramp up its digitization efforts considering the increased order volume and growing omnichannel trends due to the ecommerce boom,” the company says.
Adhish Luitel, ABI industry analyst, supply chain management and logistics, observes: “Companies are starting to combine the value of multiple hardware and software solutions. Productivity technologies can achieve far greater return on investment if combined correctly with other technologies.”
He cites the example of companies combining location tracking data with a voice solution, that allows warehouses with WMS to optimize workflows by minimizing the distances traveled based on knowing a worker’s whereabouts.
ABI explains that advancements in data collection and tracking allow more insights into warehousing operations, as well as boosting predictive analytics. “Operators can now deploy Machine Learning (ML) algorithms that capture the data and give insights in real time.”
Luitel adds that WMS demand also is being driven by a need for warehouse operators to formulate a strong inventory management strategy.
“Inventory management is becoming an increasingly crucial pillar of supply chain management,” he says. “Ensuring that workers can access the right technology to monitor inventory efficiently is important, but automated solutions for inventory management should also be explored.”
WMS sales surged from $2.3 billion in 2019 to over $2.5 billion in 2020, an 8% year-over-year rise. The biggest sales were to logistics service providers generating more than $636 million in 2020. Sales in retail and food and beverages followed with sales of $509 million and $483 million, respectively.