Increased industrialization along with an increasing population which is increasing demand is one of the reasons because of which the Smart Warehousing Market is growing at a rapid pace.
Covid-19 Impact & Market Status
The world was in a state of shock when the covid 19 struck. The covid 19 disrupted the global supply chains and had impacted both the supply and demand throughout the world. The warehouses throughout the world were unorganized with some facing shortage and some facing overflow due to the reduced demand. Post, covid 19, industries have started implementing smart warehouse solutions to effectively manage their inventory so that they can make more profits and cut down on their expenses.
The global Smart Warehousing market is expected to develop $29 billion by 2029, at a compound annual increase in price (CAGR) of 11. 2% throughout the forecast period.
Hardware Segment to Emerge as the Most Lucrative Segment
Based on component, the smart warehousing market is divided into hardware, solutions and services. Out of these three, the hardware segment held the highest market share in 2020 and the second leading was the service operations. This is because of an ever-increasing number of smartphone devices across various verticals that help in easier deployment and automation.
Small and Medium Enterprises to have high CAGR
Based on Enterprise Size, the Smart Warehousing market is divided into Large Enterprises and Small & Medium Enterprises (SMEs). The small and medium enterprises is projected to have the highest CAGR owing to the increased need to make business processes more efficient, improve costs, and reach new customers. Additionally, rising demand for workflow and the need to reduce complexities by integrating systems are expected to drive the segment over the forecast period.
AI in warehouse to come atop
Based on technology, the Smart Warehousing market is divided into IoT and Analytics, RFID, AGV, AI in Warehouse. The AI in warehouse segment is supposed to have the highest CAGR owing to the increased need to make better decisions by analysing previous month order statistics and analysing reports. Additionally, AI based robots can also help in determining the optimal weight, inventory and many such things.
North American Region to Render Ample Investment Avenues
North America is the largest contributor to the growth of global Smart Warehousing Market. It had a large market share in 2020. This is because there is huge need of maintain large volumes of stock and goods to maintain due to high industrialization. Additionally, increased technological advancements in the region so that the processes execute efficiently. Presence of established players, appropriate funding and advanced technology are some more factors due to which North America comes at top.
The Asia Pacific region is also expected to have a great CAGR owing to the huge population and increasing technological advancements in that region.
The increasing need to effectively manage large stocks and goods and the need to reduce complexities is driving the growth of the Smart Warehousing Market.
Smart Warehouse is a large building in which raw materials and manufactured goods are stored. The word “smart” itself suggests that this type of warehouse uses technology to do certain tasks that reduce human efforts. As the world becomes more complex and fast paced, the need for things that are more inclusive and efficient has increased. The operations in smart warehouses include counting products, identifying and receiving orders, storing products, sending orders to correct place. With almost zero errors the smart warehouses automate the entire operation and journey of goods from supplier to customer.
The warehouse plays a key role in the supply chain cycle, it helps in keeping stock of goods and raw materials. The work in a warehouse is quite labour intensive, like inventory management, and order picking. Thereby integrating and streamlining the work in warehouse can help in improving the overall efficiency and productivity. The smart warehousing also helps in reducing human errors and it reduces the cost of manpower too.
The rise in the adoption of technology and growth in digitization among corporates to improve efficiency and reduce the complexities is one of the reasons due to which this market is gaining importance. The unique feature of this system is that it results in maximized efficiency, minimized manpower. The Smart Warehousing offer functionalities such as improved metrics, data on inventory that help in making things better for the organization.
Improvements in Information technology can play an important role in the development of Smart Warehousing market. AI will also help in providing opportunities in the market as it will further reduce human efforts and result in increased performance.
However, lack of awareness is a major hurdle to implementing smart warehousing systems. High initial investment is also one of the reasons which is hampering the market growth. Nevertheless, Smart Warehousing Market has the growth prospects, because of the increasing need of highly efficient systems to reduce complexities.
The major players of this market are IBM, Oracle, Reply, SAP, Manhattan, PTC, Tecsys, PSI Logistics, Infor, Korber, Vinculum, Generic, Microlistics, Blue Yonder, Epicor, 3PL Central, BlueJay Solutions, Mantis, Foysonis, Increff, Locus Robotic, Orderhive, Unicommerce, IAM Robotics, Softeon, Synergy Logistics, WareIQ, Logiwa, ShipHero, EasyEcom, and others. Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Smart Warehousing market. By applying technology, the R&D teams of the companies must try to mitigate the problems currently prevailing in the market.
Latest Innovations in Smart warehousing market: A Snapshot
In a recent development dated, August 2021, SwoopTalent got acquired by SAP. SwoopTalent renders solutions to optimize AI-based organizational agility. The takeover is likely to transform SAP's AI capabilities for better gauge client behavior.
Smart Warehousing Market Scope
|Revenue forecast in 2029
|CAGR of 11. 2 % during 2019-2029
|By Deployment Mode,Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|IBM Corporation, Oracle Corporation, SAP SE, Infor, Inc., Softeon, Körber AG, Manhattan Associates, Inc., PTC, Inc.
Key Segments of the Smart Warehousing Market
Smart Warehousing Market on the basis of component Overview, (USD Billion)
Enterprise Size Overview, (USD Billion)
- Small and Medium Enterprises
- Large Enterprises
Technology Overview, (USD Billion)
- IoT & Analytics
- AI in Warehouse
Regional Overview, (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa