PUBLISHER: Allied Market Research | PRODUCT CODE: 1513400
PUBLISHER: Allied Market Research | PRODUCT CODE: 1513400
The global smart warehousing market size was valued at $32.34 billion in 2022 and is projected to reach $83.74 million by 2032, registering a CAGR of 10.8% from 2023 to 2032.
Smart warehousing is a process of incorporating autonomous machines and computer-based systems to aid workers with handling of inventory from the moment the inventory enters to the moment it leaves the warehouse. Highly automated machines, and state-of-the-art material handling components are used to automate the warehouse facilities. This optimizes the warehouse operation, while making it more cost effective and free from human errors.
In addition, industries such as automotive, food and beverages, pharmaceuticals, manufacturing, and others are witnessing considerable growth. This is attributed to rise in global trade, increase in global population, and rise in disposable income of masses across the world. However, high initial cost associated with the setting up of warehouse automation is a major factor restraining the growth of the market. Advancements in technology that have enabled automated material handling machines, are anticipated to provide lucrative opportunities for the growth of the smart warehousing market.
More than 60% of the firms that operate in every industry are small-medium enterprises, except for oligopoly and monopoly in a few industries such as the defense and weapons industry. Furthermore, owing to increase in the number of players, and rise in competition, the small- and medium enterprises are adopting warehouse automation. Warehouse automation enables the companies to improve their material handling and inventory handling activities. Moreover, elimination of human factor from most of the warehousing activities has reduced possibilities of errors. Such factors are driving the growth of the smart warehousing market.
The rise in population is playing significant role in increasing the demand for various products. Industries organize their raw material, intermediate, and final inventories, in a warehouse for better management. This rise in demand for goods has stressed the traditional form of warehouse operation and management. Manual warehouse operation and management is slow, subject to human errors, and has high operational cost. On the other hand, warehouse automation has enabled the warehouses to be more productive and quicker, with minimal human errors. In addition to that, reduction in human workforce leads to lesser operational cost. Along with the machinery, software is widely used in warehouses for better management and execution of orders.
Increase in volume of inventory has stressed out the labor-intensive traditional warehouses. This brings inefficiency in the warehouse management, while making it expensive to manage. Thus, companies are adopting warehouse automation, thereby, driving the growth of the market. Europe is the world's biggest exporter of manufactured goods. Its manufacturing sector is dominated by the automotive, food & beverage, pharmaceutical, textile, and other industries.
These industries are using smart warehouses to streamline their operation. For instance, handling food and beverages involves complexity, involving factors such as a diverse range of commodities, and stringent regulatory compliance. Consequently, the food and beverage industry has undergone a substantial transformation in recent years. Specifically, within the food sector, there has been a shift from manual inventory management systems to comprehensive automation. The smart warehousing market is segmented on the basis of offering, application, and region. On the basis of offering, the market is divided into hardware, and software. On the basis of application, it is categorized into automotive, food and beverages, chemicals, pharmaceutical and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.
Key players covered in the report include Locus Robotics, Smart Warehousing, Tecsys, ABB, Epicor Software Corporation, Infor, IBM Corporation, Microsoft, Blue Yonder, Inc., and Softeon among others.
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