Warehouse Management System Market Report 2025

The warehouse management system market size has grown rapidly in recent years. It will grow from $3.44 billion in 2024 to $3.91 billion in 2025 at a compound annual growth rate (CAGR) of 13.6%. The growth in the historic period can be attributed to integration with ERP systems, demand for real-time visibility, scalability and flexibility needs, focus on lean management, compliance and regulatory requirements.

The warehouse management system market size is expected to see rapid growth in the next few years. It will grow to $6.91 billion in 2029 at a compound annual growth rate (CAGR) of 15.3%. The growth in the forecast period can be attributed to cross-border trade complexity, mobile-first solutions, supply chain resilience, green warehousing initiatives, robotics and automation expansion. Major trends in the forecast period include supply chain visibility and collaboration, scalability and flexibility demands, sustainability and green warehousing, omni-channel retailing impact, AI and machine learning implementation.

The rising demand from e-commerce companies for larger warehouses equipped with improved tracking and forecasting capabilities is anticipated to propel the warehouse management system market. The expanding e-commerce sector necessitates continuous monitoring of equipment and accurate inventory forecasting to meet demand and manage substantial cargo movements effectively. For example, in November 2023, the International Trade Administration, a US-based government agency, reported that e-commerce revenues in the UK are expected to grow at an average annual rate of 12.6% by 2025, reaching approximately $285.6 billion by that year. Therefore, the increasing demand from e-commerce companies is expected to enhance market growth during the forecast period.

The increasing adoption of cloud-based solutions is projected to propel the growth of the warehouse management system market. Cloud services encompass a wide array of on-demand computing resources and applications delivered via the internet. These services are hosted on remote servers, typically located in data centers, and can be accessed by individuals, businesses, and organizations online. Cloud-based solutions are particularly advantageous for warehouse management systems (WMS) due to their flexibility, scalability, accessibility, and cost-effectiveness. For instance, in September 2022, a report from Google Cloud, a US-based cloud computing provider, indicated that the use of multiple public clouds rose by 26% in 2022, up from 21% in 2021. Additionally, hybrid cloud usage saw an increase, growing from 25% in 2021 to 42.5% in 2022. Consequently, the adoption of cloud-based solutions is expected to significantly enhance the warehouse management system market.

Technological advancement is a prominent trend gaining traction in the warehouse management system market. This advancement involves the discovery of new knowledge that propels technology forward. For example, in July 2024, Cart.com, a US-based technology firm, launched its standalone warehouse management system (WMS) and transportation management system (TMS) aimed at enhancing operational efficiency and scalability for e-commerce businesses. These newly introduced systems are designed to optimize logistics and improve supply chain management by providing integrated solutions for inventory management, order fulfillment, and transportation planning. The WMS automates warehouse operations with features such as real-time inventory tracking and enhanced picking processes. Conversely, the TMS streamlines transportation logistics, offering tools to optimize routes and manage carriers effectively.

Major players in the warehouse management system market are actively concentrating on the development of innovative technologies aimed at providing substantial benefits in terms of operational efficiency, cost-effectiveness, employee satisfaction, and future-proofing their operations. A noteworthy example is the rapid development, testing, and implementation of a warehouse management system across 10 North American warehouse sites within just eight months. This system boasts cloud capabilities, enabling cost savings and yearly updates, in contrast to the industry norm of updates occurring every five to seven years. A case in point is the initiative undertaken by Mars Inc., a US-based food company, in May 2023. Mars Inc. launched a new warehouse management system (WMS) with the objective of enhancing efficiency and realizing significant cost savings, aligning with the company's commitment to its core principles of quality, responsibility, mutuality, efficiency, and freedom. The newly implemented system features an optimized task interleaving process designed to streamline warehouse operations and improve overall productivity. This development has been well-received by Mars' warehouse teams, making a notable contribution to the company's enhanced efficiency and cost-saving efforts.

In May 2022, ShipHawk, a US-based provider of advanced warehouse and fulfillment solutions, acquired Acuity Global for an undisclosed amount. This acquisition enhances ShipHawk's inventory management and operational efficiency within warehouses, solidifying its position in the logistics sector. This strategic decision aligns with ShipHawk’s mission to enhance supply chain effectiveness and adapt to the evolving demands of e-commerce and logistics. Acuity Global is a US-based provider specializing in warehouse management systems.

Major companies operating in the warehouse management system market include IBM Corp, Oracle Corp, Honeywell International Inc., SAP SE, Zebra Technologies Corporation, Reply S.p.A., Infor Inc., Technology Solutions Ltd., PTC Inc., Mecalux S.A., Epicor Software Corporation, Manhattan Associates Inc., Blue Yonder Group Inc., JDA Software Group Inc., Tecsys Inc., Softeon Inc., HighJump Software Inc., Datex Corporation, Dovetail Systems Inc., Softrax Corporation, 3PL Central LLC, Made4net LLC, PSI Logistics GmbH, Synergy Ltd., Mantis S.A., Generix Group, Microlistics Pty Ltd., Cadre Technologies Inc., Fritz Schäfer GmbH, Ivanti Wavelink.

North America was the largest region in the warehouse management system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the warehouse management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the warehouse management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A warehouse management system (WMS) is software designed to oversee inventory movement and track the location of final items and goods in order to fulfill orders. It provides visibility into a business's entire inventory and manages supply chain fulfillment operations from the distribution center to the store shelf.

The primary offerings of a warehouse management system (WMS) include both software and services. WMS software is utilized to oversee and regulate daily warehouse operations, managing inventory, picking, and shipping orders. It automates the picking and shipping process. WMS can be deployed either on-premises or in the cloud, and its functions encompass labor management, analytics, optimization, billing, yard management, and systems integration. WMS finds applications in various sectors such as transportation, logistics, healthcare, retail, manufacturing, food and beverage, among others.

The warehouse management system market research report is one of a series of new reports that provides warehouse management system market statistics, including warehouse management system industry global market size, regional shares, competitors with a warehouse management system market share, detailed warehouse management system market segments, market trends and opportunities, and any further data you may need to thrive in the warehouse management system industry. This warehouse management system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The warehouse management system market includes revenues earned by entities by providing services such as inbound logistics and outbound logistics tools for picking and packing processes, resource utilization, analytics, and others. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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