An increasing preference for goods-to person (GTP) technology at warehouses and a general increase of automation will propel growth in the warehouse management market.
The market is expected to hit $19.06 billion by 2025, according to a recent report from Million Insights.
Other general trends such as the high cost of labor and the growing penetration of electric trucks will drive the market forward.
Looking at some specific technologies, the report says that telematics will continue to play a crucial role in developing advanced solutions for the floor level workforce. The rising application of fleet management by various transport operators is anticipated to drive the demand for telematics in the upcoming years. And the penetration of telematics systems is projected to support companies in lowering their empty runs and fuel cost.
As far as Internet of Things (IoT) platforms, these gateways offer secured channels for data transmission. They act as platforms for applications that process data. IoT also performs several other functions such as data filtering, device connectivity, protocol translation, updating, and security. The shifting preference for cloud-based platforms is projected to augment the product demand from 2016 to 2025.
Sensing devices are predicted to lead the IoT in the warehouse management market in revenue over the next few years, due to increasing preference for sensors across various industries.
The EDI solution is anticipated to showcase steady growth in the upcoming years, owing to the rising need for data accuracy and consistency from the customers. The incorporation of the EDI is predicted to lower human errors and offer real-time information to consumers. The EDI is projected to ascend with a CAGR of 27.3% from, 2016 to 2025.
The increasing penetration of smartphones equipped with sensors is projected to further drive the product demand over the estimated period. On the other hand, the use of a workforce management solution is expected to reduce the overall labor cost. The functions of workforce management solutions are workforce forecast and picking optimization.
Further key findings from the report include:
- The increasing applications of technologies, such as automatic identification and data capturing (AIDC) and RFID, are predicted to accelerate the market growth from 2016 to 2025.
- Inventory management division occupied the major revenue share, in 2015.
- The growing penetration of pallet level tagging is projected to boost the demand for smart inventory management systems.
From a geographical perspective, North America occupied a noticeable market share of more than 43.71% in 2015 and is further predicted to maintain its dominance over the forecast period. However, theAsia Pacific region is anticipated to showcase the highest growth from 2016 to 2025. And Singapore and Germany occupied the top position in logistics performance index (LPI) countries
