Global Smart Warehousing Market Report 2022: Market is Expected to Reach $29 Billion by 2028, Rising at a CAGR of 11.2% with IBM, Oracle, SAP Dominating
The Global Smart Warehousing Market size is expected to reach $29 billion by 2028, rising at a market growth of 11.2% CAGR during the forecast period.
A smart warehouse is a large structure used for the storage of manufactured items and raw materials. Machines & computers are used in smart warehouse technology to undertake typical warehouse tasks that were previously performed by humans.
Receiving and recognizing orders, storing products, counting products, transferring orders to the relevant location, and recalling where orders are all accomplished in smart warehouses. All of these tasks are carried out with no or little errors, due to the use of various technologies like AGV, RFID, IoT, & analytics. The increased usage of modern technologies is a major element driving the market for smart warehousing forward.
In addition, a significant number of smart warehouses is moving toward automation of nearly all operations involved in getting goods from suppliers to customers. As a result, significant increases in the adoption of automation in warehouses throughout the world are expected to expand sales potential in the smart warehousing market in coming years.
The introduction of multi-channel distribution networks, as well as the globalization & dynamic nature of supply chain networks around the world, are expected to drive growth in the smart warehousing industry.
Big Data and analytics, Artificial Intelligence, autonomous robotics, augmented reality, as well as the internet of things, are all part of the Industry 4.0 revolution that is revolutionizing modern-day warehouse operations. Moreover, the rising popularity of e-commerce along with the development of digitization is moving the smart warehousing industry forward.
Many suppliers throughout the world are incorporating cutting-edge technologies like bar code scanning software, automated guided vehicles, and radio frequency identification technology to improve and speed up supply chain networks while reducing errors. The use of these technologies in warehousing is critical for the development of the market.
COVID-19 Impact Analysis
The COVID-19 pandemic caused a severe impact on numerous industries all over the world. Government across various countries imposed lockdown in order to stop the containment of the novel coronavirus. Under these lockdowns, the supply of several goods and services were hampered.
Global supply chains have been disrupted by the COVID-19 pandemic, which has outpaced & affected both supply and demand at a faster rate. COVID-19, on the other hand, can also have a long-term impact on the smart warehouse market. As the coronavirus spreads around the world, a transit delay in one region of the world might have a considerable effect on the rest of the world, prompting shutdowns owing to warehouse closures or supplies that are delayed or missing.
Market Growth Factors:
The rise in demand for Smartphones as a medium of managing operations quickly & efficiently
The warehouse is an important part of the whole supply chain. Order picking, inventory management, & asset tracking are all labour-intensive operations in the warehouse that can impair overall productivity. As a result, using mobile-based technologies and applications to streamline the entire warehouse process can boost operational efficiencies and enhance the bottom line.
Warehouse workers & logistics partners now have access to a multitude of tools and materials due to the widespread use of mobile devices such as smartphones and tablets. The functionality that is expected to benefit warehouse managers to manage the complete warehouse process efficiently includes scanning inventory with barcode scanning apps, viewing the accurate location of a shipment on a map, pulling up detailed shipping information & receiving data, as well as generating reports in less time.
The rising focus on warehouse 4.0 for a more efficient & safer warehouse
Warehouse 4.0 brings together digital and physical systems to create better-linked experiences that will affect the entire warehouse process, from product design and planning to supply chain and production. Warehouses are shifting to a voice-based plus screen-directed inventory picking & restocking process to reduce the time that is spent on the training of new employees.
Multi-modal picking, which combines picking with screen-directed picking via mobile devices, is being implemented by businesses. In addition, to build a strong warehouse automation system, IoT, big data & data science, wearable, AR, low-cost sensors, computer vision AI, robots, and high-level computers can be integrated.
Marketing Restraining Factor:
Lesser penetration of smart warehousing across small-scale businesses
Several small-scale businesses do not have their own warehouses due to the fact that these organizations stock lesser goods in contrast to large organizations. Due to the lower income of small-scale businesses, multiple organizations cannot afford to invest in smart warehousing solutions.
Small-scale business owners fail to understand the advantages of smart warehousing solutions due to a hesitation to upgrade existing systems and constrained growth plans. Furthermore, considerable investments and high upfront costs associated with the adoption of smart warehousing systems are also a barrier in the adoption of smart warehousing solutions across various small and medium-sized organizations.
Smart Warehousing Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; IBM Corporation, Oracle Corporation, SAP SE are the forerunners in the Smart Warehousing Market. Companies such as Epicor Software Corporation, Manhattan Associates, Inc. and Infor, Inc. are some of the key innovators in the Market.
