MANUFACTURING TIDBITS
Revenues from Warehouse Management Systems to Exceed US$10 Billion by 2030 by TR Cutler
The first Warehouse Management System (WMS) article I authored was in 1999. The fundamental functionality has not changed; the velocity and necessity of adoption across the industrial universe have changed dramatically. The warehousing sector has been forced to ramp up its digitization efforts considering the increased order volume and growing omnichannel trends due to the e-commerce boom. Global investment in WMS platforms surged from US $2.3 billion in 2019 to over US $2.5 billion in 2020, indicat-
ing an 8% year-over-year growth. The biggest investment in WMS, unsurprisingly, has come from logistics service providers at over US $636 million last year. Investments in retail and food and beverages follow suit with US $509 million and US $483 million respectively. According to global technology intelligence firm ABI Research, worldwide WMS market revenues will have a Compounded Annual Growth Rate (CAGR) of over 23% from 2021 to 2030 and exceed US$10 billion in revenues by 2030.
Adhish Luitel, Industry Analyst, Supply Chain Management and Logistics at ABI Research shared, “Companies are starting to combine the value of multiple hardware and software solutions. Productivity technologies can achieve a far greater return on investment if combined correctly with other technologies. For example, by combining location tracking data with a voice solution, warehouses using a WMS can optimize workflows by minimizing distance traveled based on a worker’s whereabouts.” continued
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Manufacturing Outlook / December 2021