Market News Latest

Digital Warehouse Solution Market Size Forecast to Reach $56.6 Billion by 2026

 Breaking News
  • No posts were found

Digital Warehouse Solution Market Size Forecast to Reach $56.6 Billion by 2026

September 16
18:16 2021
Digital Warehouse Solution Market Size Forecast to Reach $56.6 Billion by 2026
Digital Warehouse Solution Market
Exponential Growth in the E-Commerce Industry Driving the Growth of Digital Warehouse Solution Market

The Digital Warehouse Solution Market size is forecast to reach $56.6 billion by 2026, growing at a CAGR of 21.7% during the forecast period 2021-2026. Digital warehouse solutions are employed to assist logistics companies in reducing incurred costs. Nowadays, enterprises are willing to adopt digital warehouse solutions for the supply chain and day-to-day operations to better serve their customers. Also, the growing requirement for cost-effective logistics and supply-chain solutions across various industry verticals as there is increased customer expectation, along with the measures to control the logistics cost have resulted in high demand for digital warehouse solutions. Further, with the rise in e-commerce activities requires warehouse providers to operate more efficient and faster to rapidly process small individual orders. Customers expect order accuracy, same-day or same hour delivery for which industry is exploring ways to reduce operational cost and delivery times. As the industry strive to find new ways to offer convenience, transparency, speed and affordability in delivery as well as compelling frictionless returns. To cater such need, it is crucial to create new business solutions and models by automating material handling system and digitalizing the warehouse operations, distribution management solutions and warehouse management solutions.

Digital Warehouse Solution Market Segment Analysis – By Deployment Mode

By deployment mode, the digital warehouse solutions market is segmented into cloud and on-premises. Cloud type are analyzed to grow at highest CAGR of 28.9% during the forecast period 2021-2026 as there is increased adoption of cloud-based solutions among both SMEs and large enterprises owing to the new functionalities that are deployed in customized form as per the business requirement, which leads to better customer’s satisfaction due to cloud-based solutions. Also, such solutions offered various benefits which includes ability to scale their applications, flexibility and easy management capabilities. Thus, the adoption of cloud-based solutions is significantly increase in the large enterprise and SMEs, which would broaden the growth of the market during the forecast period. 

Digital Warehouse Solution Market Segment Analysis – By Vertical 

By vertical, the digital warehouse solution market is segmented into retail and ecommerce, Manufacturing, Pharmaceuticals and healthcare, aerospace and defense, automotive, energy and utilities and others. Among them, manufacturing segment to hold the largest market share attributed as the manufacturing vertical is responsible for producing goods and services that support core functions of a business. Also, the dominance of the segment is witnessed owing to the increased adoption due to the need to track and management inventory in manufacturing sector. 

Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=19612

Report Price: $ 4500 (Single User License)

Digital Warehouse Solution Market Segment Analysis – By Geography 

North America is analyzed to be the major region with a share of 35% in 2020 for the Digital Warehouse solution market owing to the well-established economies of the countries such as US and Canada that could help the region to invest heavily in leading digital warehouse solutions. In addition, favorable regulatory developments such as compliance, safety and accountability (CSA) and Hours of Service solution (HOS) revisions are also attracting the growth of the market. Whereas, However, APAC is analyzed to grow at highest rate during the forecast period 2021-2026 majorly attributed as the region is a current hotspot of the digital warehouse & logistics solutions that could attract many companies. Also, growing penetration of connected machines, smart devices have resulted in the increase in the number of connected solutions which is expected to create lucrative growth prospects for the region. 

Digital Warehouse Solution Market Drivers

Exponential growth in the e-commerce industry

The growth of the e-commerce sector has been the crucial aspect for the increased need of digital warehouse solutions. As the rise in rise in e-commerce activities requires warehouse and logistics providers to operate more efficiently and faster to rapidly process small individual orders. Presently, warehouse and logistics professionals are struggling with high cost of legacy transportation management systems and their time-consuming implementation. The use of warehouse management solutions enables suppliers and carriers to collaborate using one platform, giving then complete control and visibility of their shipping operations. These solutions automated the scheduling of outbound and inbound shipments to and from the right dock location to ensure the correct timeframe unloading and loading. Additionally, it offers predictive learning to adjust scheduling estimates based on actual results and behaviors. Thus, it is crucial to implement the digital warehouse solution in transportation and logistics sector as it helps in real time asset management competence around the yard for recording the location of the goods. Also, growing adoption of smart IOT integrated technologies have steered the adoption of digital warehouse solutions as they ensure accuracy in distribution and inventory centers and warehouses which in turn eliminate extra costs incurred in the processes. These solutions allow to significantly reduce the number of operators handle the shipments, helping to minimize errors while delivering real-time information. Thus, growth in e-commerce sector is expected to drive the growth of the market. As per the US Department of Commerce in Feb 2019, ecommerce sales reported by the Commerce Department rose around 13.6% of previous year i.e., 2018. Further, rising needs to improve transportation and logistics sector through the adoption of new and advanced technologies are creating lucrative opportunities for the growth for the market.

Emergence of Digital Technology in Logistics Sector

Emergence of cloud-based solutions along with the ongoing technological advancements in the digital market would create the demand for digital warehouse solutions. The way of operations carried in dockyards and warehouses have evolved over time with the aid of technological advancements and implementation of automation. As these Warehouse management solutions have reduced use of paper forms and manual data entry further advancements in the sector have gained increased preference owing to the rising need for cost reduction, efficient workings and streamlining operations. The use of Advanced management systems in these warehouses and transportations help in achieving these goals such as machine Learning, IoT, Big Data, Cartonization, Handheld Devices, robots and drones. Hence the rapid advancements in the WMS and TMS solutions present a wide opportunity for the market. For Instance: the use of Handheld devices such as Barcode Scanners and integration of IoT and cloud services in a single Warehouse makes picking and packaging of goods more efficient as these reduce the manual work load of finding and moving the goods. These smart shelves have found wide prevalence in warehouses. 

Digital Warehouse Solution Market Challenges

Lack of uniform governance standard in the fragmented logistics industry

There are certain interoperability standards such as Master control system-distributed control system interface standardization, MTConnect and EtherCAT that promote data interchange across heterogeneous industries and domains. Also, the requirement of maintaining governance as standard as possible, as having one authority per field would lead to confusions which would influence the growth of the digital warehouse solutions market. 

Digital Warehouse Solution Market Landscape

The key players of global digital warehouse solutions market have adopted various strategies to gain competitive advantage including product launch, partnerships and agreements, technological advancements and others. The major players in the digital warehouse solutions Market include IBM, Oracle, SAP, AT&T, Intel, Infosys Limited, Honeywell, Eurotech S.P.A, Hcl Technologies And Orbcomm Inc.

Partnerships/Product Launches/Contracts:

In June 2020, IBM introduced its new IBM sterling inventory control to help companies to build resilient supply chain and manage inventory more efficiently. Through this solution, the company enables AI to help organizations to predict and see more effectively act on the inventory to better improve resiliency, predict disruption, and respond to the unplanned events. 

In May 2020, Intel agreed upon a partnership agreement with Smart Navigations system to offer Intel connected logistics platform to help them to develop multiple solutions for multiple sectors and cases such as supply chain management, freight & warehouse management. 

Key Takeaways

Digital transformation in the logistics industry along with the exponential growth in e-commerce industry are expected to create positive outlook for the growth of the market. 

Among the solution, data management and analytics solutions are analyzed to hold significant share in 2020, attributed to the significant deployment as it can offer crucial information and insights with the help for advanced IT solutions to yield greater productivity, efficiency and profitability to the organizations. 

North America to account for the largest market size owing to rapid technological advancements such as digitalization in US and Canada along with the presence of large IT companies.

Related Reports

A. Warehouse Management System Market

https://www.industryarc.com/Research/Warehouse-Management-System-Market-Research-504210

B. Digital Logistics Market

https://www.industryarc.com/Research/Digital-Logistics-Market-Research-500520

For more Information and Communications Technology related reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services. 

Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
Address:Madhapur
City: Hyderabad
Country: India
Website: https://www.industryarc.com/