Warehouse Management Systems

The Warehouse Management Systems (WMS) market research study provides a comprehensive analysis of the current market plus a five-year forecast of the market and segments including regions, revenue types, end-user industries, and functional categories. This research is available as a market intelligence workbook (Excel) and/or an executive-level market analysis Report (PDF), with or without detailed charts.

Warehouse Management Systems Growth Accelerates Post-Pandemic

Warehouse management systems will experience accelerated post-pandemic  demand, as companies take steps to better prepare for e-commerce growth opportunities and establish flexible fulfillment capabilities in an increasingly dynamic commercial environment. The distribution difficulties of 2020 highlighted the critical business importance of warehousing and fulfillment capabilities. This increased emphasis on robust distribution capabilities, in conjunction with the release of pent-up demand from the easing of pandemic-related restrictions, is expected to accelerate investment in WMS.

ARC has been conducting this research and publishing the warehouse management systems report for 20 years.  This history provides valuable insights into market dynamics and refines the research process.  ARC Advisory Group’s WMS study provides detailed insights into the competitive environment, and the five-year forecast illustrates how overall market growth rates are strongly influenced by end-user industry dynamics, providers’ consulting and implementation resources, underlying technology trends, and revenue recognition principles.

E-Commerce Fulfillment Requirements Drive Long-Term Market Growth

The ongoing rapid growth of e-commerce and omni-channel capabilities, and these channels’ effects on fulfillment requirements, continue to be a leading factor contributing to growth in demand for warehouse management systems.  Although the pandemic reduced business activity for some organizations, e-commerce sales accelerated for most. The pandemic pressured some consumers to transition from in-store shopping to e-commerce and direct-to-consumer shipping. ARC believes much of this induced transition will carry over to post-pandemic life, accelerating the already rapid transition that was underway. ARC believes that the acceleration in WMS demand is most visible in the grocery segment.

Warehouse Automation Integration Increasingly Important

E-commerce fulfillment requirements are also increasing demand for integration between manual and automated processes within the warehouse.  Warehouse management systems vendors that also sell warehouse control systems consider their automation integration capabilities to be a competitive advantage when addressing the needs of partially automated facilities.  The growing importance of warehouse automation to the WMS market is further supported by traditional WMS vendors noting the increased importance of automation within their clients’ facilities and these vendors’ subsequent efforts to build integration capabilities to automation and robotics.