Smart Warehousing Market Size - By Component (Solution, Services), By Deployment Model (On-premises, Cloud), By Technology (IoT, AI & Machine Learning, Robotics & Automation, Augmented Reality & Virtual Reality), End-user & Forecast 2023 - 2032

Published Date: July - 2024 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format

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Smart Warehousing Market Size - By Component (Solution, Services), By Deployment Model (On-premises, Cloud), By Technology (IoT, AI & Machine Learning, Robotics & Automation, Augmented Reality & Virtual Reality), End-user & Forecast 2023 - 2032

Smart Warehousing Market Size

Hey, listen up! The smart warehousing market is booming, with a whopping $17.4 billion value in 2022. And guess what? It's predicted to shoot up by over 10.5% in the next decade or so. Companies are jumping on the bandwagon, investing in automation and robots for their warehouses and shipping centers. It's all about staying ahead and meeting what customers are looking for. Take Amazon, for example. They dropped a cool $1 billion into their Amazon Industrial Innovation Fund back in April 2022. Why? To bring in top-notch technology and robotics. It's a game-changer for them, making their warehouses run smoother, cutting costs, and getting orders to people faster and with fewer mistakes.

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Businesses are pouring money into improving warehouses with cutting-edge tech like robots, IoT, and AI. Why? Because these investments help businesses develop new ideas, adopt new technologies faster, and become more efficient, flexible, and cost-effective with how they store and move their goods. For example, in 2023, a big organization in Saudi Arabia called Modon invested $1 billion to build 14 new high-tech warehouses. These warehouses will be built with both public and private money, which will help Saudi Arabia improve its infrastructure for industry and technology.

Smart Warehousing Market Report Attributes
Report Attribute Details
Base Year 2022
Smart Warehousing Market Size in 2022 USD 17.4 Billion
Forecast Period 2023 to 2032
Forecast Period 2023 to 2032 CAGR 10.5%
2032 Value Projection USD 46.9 Billion
Historical Data for 2018 - 2022
No. of Pages 250
Tables, Charts & Figures 347
Segments covered Component deployment model, technology, and end-user
Growth Drivers
  • Growing e-commerce industry
  • Rising adoption of automation & robotics solutions
  • Rapid integration of Artificial Intelligence (AI) and Machine Learning (ML)
  • Increasing labor expenses
Pitfalls & Challenges
  • Integration challenges

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The high initial cost is a challenge in smart warehousing due to the substantial investments required for implementing advanced technologies. These expenses encompass the acquisition and installation of automation equipment, IoT devices, robotics, and sophisticated software systems. Small & Medium-sized Businesses (SMBs) may find these upfront costs prohibitive, thereby limiting their ability to adopt smart warehousing solutions. Careful financial planning, exploring cost-effective options, and assessing long-term benefits to ensure a successful and profitable transition to smart warehousing practices are required to overcome this challenge.

COVID-19 Impact

The COVID-19 pandemic had a positive impact on the smart warehousing market by accelerating the adoption of advanced technologies. The need for contactless operations, social distancing, and resilient supply chains drove warehouses to invest in automation, IoT sensors, and data analytics. Smart warehousing systems helped optimize inventory management, enhance order fulfillment speed, and improve worker safety. E-commerce, which surged during lockdowns, relied on these technologies for efficient order processing. Additionally, the pandemic highlighted the importance of real-time data visibility and remote monitoring, making cloud-based solutions more appealing.

Smart Warehousing Market Trends

Automation and robotics are emerging as the pivotal trends in the smart warehousing industry. The increasing pressure to enhance efficiency and meet the growing customer demand is compelling companies to deploy robots and automated systems for tasks such as order picking, inventory management, and goods transportation. These technologies reduce labor costs and improve accuracy and operational speed. The trend toward automation in smart warehousing aligns with the need for cost-effective & high-performance solutions, making it a key factor driving innovations and growth in the industry.

Artificial Intelligence (AI) is rapidly revolutionizing operations in the smart warehousing market. AI-powered systems can analyze vast volumes of data from sensors, cameras, and IoT devices in real-time, thereby enabling predictive analytics for inventory management, demand forecasting, and optimal resource allocation. AI-driven robotics and automation enhance the speed & accuracy of order fulfillments. Machine Learning (ML) algorithms continually improve efficiency & adaptability. The ability of AI to optimize complex processes, reduce errors, and enhance customer satisfaction makes it a transformative force in modern warehousing, thereby driving product adoption & growth.

Smart Warehousing Market Analysis

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The solutions segment accounted for a market share of about 65% in 2022 and is estimated to register significant growth owing to the increasing demand for comprehensive technology solutions. Companies are seeking end-to-end packages that encompass Warehouse Management Systems (WMS), automation, robotics, IoT, and data analytics. These integrated solutions offer improved visibility, real-time data insights, and streamlined operations. As businesses aim to enhance efficiency and reduce costs, they are turning to these all-in-one smart warehousing solutions to optimize their supply chains. This trend reflects a shift toward the holistic approach to warehouse management for greater agility and competitiveness.

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The cloud segment captured a market share of around 35% in 2022 and is slated to witness significant growth due to its inherent advantages. Cloud-based solutions offer scalability, flexibility, and accessibility, enabling companies to remotely manage & optimize their warehouses. This trend is being driven by the need for real-time data access, cost-effective operations, and seamless scalability. Cloud-based Warehouse Management Systems (WMS) and other cloud-enabled technologies provide businesses with the agility to adapt to changing demands and enhance the overall efficiency, making them an integral part of modern smart warehousing strategies.

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In 2022, North America dominated the world market for smart warehouses, holding a hefty portion of over 30%. This is largely because of the strong e-commerce market in the region, which has created a huge need for efficient and automated warehousing solutions. As businesses adopt advanced technologies like IoT, robotics, and cloud systems, their supply chain operations are getting a big boost. Also, the push for sustainability and cutting costs is making more companies look into smart warehousing practices. For example, in September 2023, Afresh Technologies released an AI-powered software that manages fresh inventory. Afresh's platform is revolutionizing the way grocers handle orders and inventory in their fresh produce departments with solutions designed specifically for the challenges of dealing with fresh food.

Smart Warehousing Market Share

Major players operating in the market-

  • Oracle Corporation
  • SAP SE
  • Infor
  • Blue Yonder Group, Inc.
  • Korber AG
  • IBM Corporation
  • Microsoft Corporation

Oracle and SAP are dominant players in the smart warehousing industry, holding over 10% of the market share. They offer end-to-end supply chain visibility and real-time data analytics capabilities, which are essential for efficient warehouse operations. Both companies provide integration with emerging technologies like IoT, AI, and cloud computing, allowing businesses to adopt a holistic approach to smart warehousing. Their established reputations and global customer base further solidify their dominance in the market.

Smart Warehousing Industry News

  • In October 2023, Nokia launched a cutting-edge Autonomous Inventory Monitoring Service (AIMS) to improve warehouse inventory management by combining AI-integrated drones, indoor localization through cameras, and data analytics. It utilizes computer vision technology to optimize inventory tracking, streamline operations, and enhance the overall efficiency in warehousing processes.

This market research report on smart warehousing includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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By Component

  • Solutions
  • Inventory management solutions
  • Order fulfillment solutions
  • Goods sorting & packaging solutions
  • Transportation management solutions  
  • Services

By Deployment Model

  • On-premises
  • Cloud

By Technology

  • Internet of Things (IoT)
  • Artificial Intelligence (AI) & Machine Learning (ML)
  • Robotics & automation
  • Augmented Reality (AR) & Virtual Reality (VR)
  • Others

By End-user

  • Retail & e-commerce
  • Manufacturing
  • Automotive
  • Healthcare
  • Food & beverages
  • Logistics & transportation
  • Others

The above information is provided for the following regions and countries

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Southeast Asia
    • ANZ 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa

Frequently Asked Questions (FAQ)

What is the size of the smart warehousing market?

The market size of smart warehousing was worth USD 17.4 billion in 2022 and is set to expand at more than 10.5% CAGR between 2023 and 2032, attributed to the multiple investments and initiatives to promote the adoption of automation and robotics in warehousing and logistics.

Why are smart warehousing solutions gaining traction?

The solutions segment held 65% share of the smart warehousing market in 2022 and is estimated to record notable growth through 2032, driven by the increasing demand for comprehensive technology solutions.

How big is the North America smart warehousing market?

North America held more than 30% share of the smart warehousing industry in 2022 and is anticipated to witness considerable growth between 2023 and 2032, attributed to the presence of robust e-commerce sector and the rising adoption of advanced technologies.

Which are the prominent firms operating in the smart warehousing industry?

Some of the leading smart warehousing companies are Oracle Corporation, SAP SE, Infor, Blue Yonder Group, Inc., Korber AG, IBM Corporation, and Microsoft Corporation.

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