PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1584550
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1584550
Global smart warehousing market is projected to witness a CAGR of 10.70% during the forecast period 2024-2031, growing from USD 20.01 billion in 2023 to USD 45.13 billion in 2031. The market is witnessing significant technological improvements in production and growing demand for more efficient delivery operations. Companies are looking to streamline logistics and reduce operational costs by adopting automation, robotics players, and artificial intelligence. These innovations improve payroll management, streamline ordering, and increase productivity throughout the warehouse, accelerating the rise of e-commerce. Sellers and retail companies are trying to meet consumer expectations for faster distribution and accuracy. The integration of IoT devices allows for real-time inventory tracking and management, facilitating more informed decision-making. With the growing attention to stability, companies will invest in intelligent warehouse solutions that reduce waste consumption and energy. The increase in the investment of new participants is leading to make profit from this transformation. The market of intellectual warehouses is expected to grow rapidly in the forecast years.
For instance, in January 2022, HAI ROBOTICS EUROPE B.V. partnered with Greece's Voyatzoglou Systems to enhance smart warehousing solutions in Greece and Balkan. This collaboration aims to leverage Voyatzoglou's local service expertise and Hai Robotics' advanced Autonomous Case-handling Robotic (ACR) systems, particularly the HaiPick, which has successfully operated in over 300 projects globally. The HaiPick robots offer precise picking and transporting capabilities, enhancing warehouse efficiency and storage utilization. Companies expect the partnership to drive automation in warehouses and deliver innovative solutions to meet the growing demands of the local supply chain.
E-commerce to Fuel the Smart Warehousing Market Growth
E-commerce is a significant catalyst for the growth of the smart warehousing market, driven by the rising demand for effective, scalable, and flexible logistics. As online retail continues to expand, businesses face challenges of managing complex force chains and high order volumes. Smart warehousing technologies, including robotization, robotics, and data analytics, enable speedy order fulfillment, optimized force operation, and enhanced delicacy. These inventions help e-commerce companies reduce functional costs and improve client satisfaction through quicker delivery times. Likewise, the integration of Internet of Things (IoT) allows for real-time monitoring and data-driven decision- making, streamlining storehouse operations. As e-commerce continues to evolve, the need for advanced smart warehousing becomes pivotal, driving investment and invention in the sector, thereby reshaping the logistics landscape to meet ultramodern consumer prospects.
In November 2023, Tecsys Inc. launched Elite warehouse management system (WMS) for Healthcare Distribution. The first WMS designed to ensure compliance with the U.S. Drug Supply Chain Security Act. This system features embedded serialized support, maintaining full inference data on GS1 standards such as the Serial Global Trade Item Number and Serial Shipping Container Code. It streamlines critical warehouse functions, supports real-time compliance, and reduces the need for multiple systems, thus enhancing efficiency and traceability for pharmaceutical distributors and healthcare clients.
Technology and Automation to Drive Market Growth
Technology and automation play a significant role in the growth of the global smart warehousing market by improving operational efficiency and accuracy. Advanced technologies, such as the Internet of Things, enable real-time tracking of inventory and assets and seamless communication across devices. Automatic solutions, such as automated robots and vehicles (AGV), optimize the selection, sorting, and packaging processes and greatly reduce human errors and operating costs. In addition, artificial intelligence can optimize reservations due to predictive analysis, for companies to make demand better and minimize reserves. These innovations increase the speed of warehouse operations and improve safety by reducing the risk of accidents caused by manual handling. As businesses increasingly realize the importance of flexible supply chains, the adoption of smart warehousing solutions is becoming imperative, thereby driving market growth and transforming traditional logistics practices into more efficient and cost-effective operations driven by data.
In November 2023, FORTNA Inc. and Geekplus Technology Co., Ltd. announced a strategic partnership to revolutionize order fulfillment with advanced automated robotics solutions. The collaboration combines FORTNA's expertise in supply chain optimization with Geek+'s innovative mobile robotics technology to enable businesses to streamline operations, increase efficiency, and improve order accuracy. Projects in the United States and EMEA, including installation for large-scale retailers, promise partnerships an advanced and adapted solution to increase speed and create a safer work environment. The two companies are engaged in innovation and sustainability and position themselves to respond to the growing demand for electronic commercial transactions.
On-Premises Segment to Dominate the Smart Warehousing Market Share
On-premises solutions currently dominate the smart warehousing market due to several key factors, such as businesses opting for local systems with security options and hardened settings to maintain control over their data and operations. The approach allows companies to tailor warehouse solutions to their specific needs while complying with industry regulations and protecting sensitive information. Additionally, on-premises systems typically offer faster access to data and reduced latency, which is essential for real-time decision-making in a dynamic warehouse environment. The demand for local technology is growing as the organization optimizes operations in supply chains and aims to reduce dependence on external suppliers. In addition, existing companies that have invested considerably in existing infrastructure are expected to update their existing systems rather than migrate cloud solutions and increase the benefits of local warehouses. This trend highlights the importance of control, safety, and parameters in modern folding operations.
For instance, in October 2024, Proteus is Amazon.com, Inc.'s first autonomous mobile robot, designed to navigate fulfillment centers independently without the need for fencing or set paths. Utilizing advanced sensors and technologies, such as Simultaneous Localization and Mapping (SLAM), Proteus efficiently lifts and transports heavy carts of packages, enhancing productivity while reducing the risk of injury for human workers. This innovative approach accelerates package processing and opens new roles for employees in robotics and AI, supporting the growth of the global smart warehousing market. By integrating advanced robotics into logistics, companies can achieve greater efficiency, faster delivery times, and improved safety, driving the demand for smart warehousing solutions worldwide.
North America Dominates the Global Smart Warehousing Market Share
North America is at the forefront of the smart warehousing market owing to technological advancements and logistics infrastructure. The region has benefited from the early adoption of automation technologies, such as robotics, AI, and IoT, which improve operational efficiency and reduce labor costs. Large companies, including Amazon and Walmart, invest large-scale funds in smart warehousing solutions and optimize supplies to meet the increasing demand of consumers. In addition, the emphasis on a dynamic technical ecosystem and important innovation investment in capital venture investment accelerates the development of advanced solutions in warehouses. The growing need to manage reserves and data analysis in real time contributes to the adoption of intelligent warehouse technology. While electronic commerce continues to grow, the strategic location of North America and access to the experimental workforce have positioned it as a leader in the global smart warehousing market, establishing the level of efficiency and scalability that affects global markets.
On January 17, 2023, Tecsys Inc. announced its warehouse-in-a-warehouse e-commerce fulfillment solution, designed to enhance operational efficiency for retailers while maintaining existing wholesale systems. This model allows brands to run separate distribution operations for wholesale and e-commerce within the same facility, optimizing space and resources for faster order processing. Tecsys implemented this solution for a global luxury cosmetics brand, significantly reducing enterprise resource planning (ERP)-driven processes by over 90% through its Omni WMS. This approach enables flexibility in picking methods, which is essential for meeting evolving customer demands in a competitive landscape.
Future Market Scenario (2024 - 2031F)
The rapid expansion of online shopping will drive demand for more efficient and strategically located warehousing solutions to facilitate faster delivery times and accommodate higher inventory levels.
Advancements in automation, robotics, and AI will enhance warehouse operations, leading to increased efficiency, accuracy, and cost-effectiveness. Smart warehousing solutions will become more prevalent.
The need for more robust supply chains, especially in the wake of global disruptions, such as the COVID-19 pandemic or war situations, will encourage companies to diversify their warehousing strategies and increase inventory levels to mitigate risks.
As urban populations grow, there will be a greater focus on last-mile delivery solutions. Warehouses near urban centers will become critical for meeting consumer demand for quick deliveries.
Key Players Landscape and Outlook
Smart warehousing companies are using advanced technology to improve efficiency and stay competitive in the market. They integrate automation solutions, such as robotics and artificial intelligence, to efficient operations, reduce labor costs, and improve inventory management accuracy. Using IoT devices to track goods in real time improves visibility. It enables faster decision-making while companies are implementing data analytics to forecast demand, optimize warehouse space, and improve supply chain agility. Sustainability has become a priority, and many companies are adopting environmentally friendly practices such as energy-efficient systems and reducing waste. Companies invest in collaboration technology to promote communication between warehouses, suppliers, and customers and ensure smooth operation. To adapt to the changing conditions, they look for a flexible storage solution that can adapt to the operation to satisfy the changing needs. By implementing these innovations and remaining agile, intelligent storage companies can improve operational efficiency, enhance customer satisfaction, and effectively position themselves in a competitive marketplace.
In May 2023, Manhattan Associates unveiled its reimagined Manhattan Active Yard Management solution, designed to enhance unified supply chains by integrating with its warehouse and transportation management systems on a single cloud-native platform. This innovative approach creates a digital twin of the yard, offering real-time insights and updates that improve visibility into dock doors, trailer statuses, and warehouse operations. The Director of Product Management emphasized that this integration optimizes yard execution and enhances overall supply chain efficiency.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.