The warehouse management system (WMS) market is set to be worth $5 billion worldwide by 2025 as ecommerce drives demand, according to a new report.
ABI Research predicted that the period will show a compound annual growth rate of 13.9%, with 57,000 new warehouses being added due to pressure to offer more rapid and flexible deliveries.
The research firm added that the biggest growth rate would be seen in the retail, food and beverage and manufacturing sectors. Asia-Pacific would see the biggest growth of warehouse facilities and WMS revenue.
Nick Finill, principal analyst at ABI Research, said: “The warehouse is becoming the engine room of the supply chain and is, therefore, a focal point for investment from retailers, manufacturers, and logistics service providers.
“As the warehouse technology ecosystem becomes increasingly complex, supply chain operators require more sophisticated management systems that can orchestrate the high volume and variety of intelligent, connected devices and systems within their facilities, as well as the flow of inventory.”
“The increasing velocity of goods through the supply chain is driving demand for real-time decision making and optimisation. As the margin for error in the warehouse decreases, AI and ML-enabled WMS solutions are becoming imperative for warehouses that rely on speed, efficiency, and intelligence to remain competitive.”