Global Smart Warehousing Market Overview
Smart Warehousing Market size is projected to reach USD 26.9 Billion by 2027 from an estimated USD 13.5 Billion in 2020, growing at a CAGR of 10.4% globally.
The ultimate of warehouse automation is a smart warehouse (in other words, automating various components of your warehousing operations). A smart warehouse, like a smart home, is equipped with several automated and networked technology. These technologies work together to boost warehouse productivity and efficiency while reducing mistakes and reducing the number of human workers. Smart warehouse solutions are designed to give businesses real-time visibility into their operations, allowing them to optimize procedures and make quick adjustments to boost efficiency. Smart warehouses can also eliminate the bulk of human error and improve facility safety and security. Overall, the key advantages of a smart warehouse are its capacity to save time and money, enhance profitability, and improve client and customer happiness. As the demand for inventory management accuracy develops as a result of the rise in online shopping, smart warehouses have become increasingly vital and useful. Online businesses must give consumers reliable, real-time information regarding product availability. This is made possible by the data visibility provided by smart warehouse systems, which also helps to reduce out-of-stock problems, improve customer service, and increase customer happiness, resulting in increased customer and brand loyalty.
Smart warehousing features like automated picking and mobile sorting solutions allow you to store more items in less space by allowing you to have taller racks and smaller lanes in the warehouse. Ocado, a British online food business, for example, employed warehouse automation and saved a lot of space. Simple bots are used to move and lift goods. They can lift boxes higher than a person can. The smart warehouse can process over 60,000 orders each week and is open 24 hours a day, seven days a week. According to Knight Frank's 2020 estimate, the United Kingdom alone would need 92 million square feet of warehouse space by 2024. This means that, in the future, it will be critical to make cost-effective use of the currently restricted places. As a result, warehouse automation was born.
Market Dynamics And Factors For Smart Warehousing Market
Order processing requires a disproportionate amount of time in a standard warehouse. Picking merchandise and filling orders on the warehouse floor takes a lot of time for associates. Picking mistakes also create further delays in order processing, sorting, and packaging. Picking errors are estimated to occur between 1% and 3% of the time in a typical warehouse. Picking mistake rates may be reduced to near zero using smart warehouse systems. Collaborative mobile robots and automated picking systems cut order picking time and eliminate the need for warehouse personnel to trek vast distances. These characteristics help to expedite order delivery. For e-commerce customers, shipping time is second only to the product price in terms of importance when making a purchase. In this era of e-commerce dominance, faster shipping is a crucial competitive advantage to have.
Augmented Warehouse Space Utilization
Warehouse space utilization may also be improved with smart warehouses. Because traffic and aisle congestion are decreased compared to traditional warehouses, automated picking and mobile sorting systems can allow for taller racks and narrower aisles, allowing for more items to be kept in the same amount of space. Increased warehouse space utilization helps reduce overhead costs per unit of goods sold. This cost reduction can be passed on to end-users in the form of cheaper pricing or improved profit margins for the operator.
Organizational readiness for smart warehousing is influenced by top management and cost, but adoption of smart warehousing is influenced by external pressure, government assistance, and geographic location.
Overall, there is a great deal of uncertainty as a result of developments such as globalization and supply chain interdependence, posing significant challenges for warehouse management. The current study is limited to configurations with a certain capacity and location characteristics; therefore, it isn't yet ready for large data, and the reading performance of passive and active RFID tags (Radio-Frequency Identification Systems) in various systems and components of the system is unknown.
Another challenge in creating a smart warehouse is ensuring the system's security. The need for technological advancements is undeniable, but the acceptance of these advancements is not. When it comes to the privacy and confidentiality of the data obtained by the system, there are significant concerns. Another security risk to consider is any hazardous harm caused by incompatibility between items within the warehouse since the system should be capable of preventing such threats. Last but not least, the system must consider human safety. It's difficult to judge how adaptable today's systems are in terms of data processing, storage, adapting to new technologies, security, and merging systems from multiple supply chain participants.
The Future of The Smart Warehouse
Smart warehouses represent a shift away from complex, unchanging, reactive supply chains and toward quicker, smarter, automated systems, which is anticipated to continue. As corporations install smart warehouse systems and can perform more efficiently at comparable, if not lower, prices, outsourcing and China's dominance in manufacturing will go away. The boundary between a warehouse and a factory may also blur as smart technology enable businesses to make things on demand and ship them to customers right away. This will be made feasible by cobots, or human-like robots, as well as an increase in 3D printing. Standards for how IoT devices communicate, store, and process data are expected to be developed.
By Component, Smart Warehousing has been segmented into:
By Technology, Smart Warehousing has been segmented into:
- IOT & Analytics
By Application, Smart Warehousing has been segmented into:
- Inventory Management
- Transport Management
- Shipping Management
- Order Management
- Yard Management
- Labor Management
By Verticals, Smart Warehousing has been segmented into:
- Energy & Utilities
- Transportation & Logistics
- Retail And Ecommerce
- Food And Beverages
- Healthcare & Life Sciences
Regions and Countries Level Analysis:
- North America (U.S., Canada, Mexico)
- Europe (Germany, U.K., France, Italy, Russia, Spain etc.)
- Asia-Pacific (China, India, Japan, Southeast Asia etc.)
- South America (Brazil, Argentina etc.)
- Middle East & Africa (Saudi Arabia, South Africa etc.)
Segmentation Analysis of Smart Warehousing Market:
Based on the component, the hardware segment is expected to hold the maximum market share during the forecast period. This rise can be due to the growing popularity of smartphone devices across multiple sectors, which can quickly deploy inventory management systems and automated picking tools to handle the inventory process and lower total labor costs. Vendors are developing smart warehousing hardware in response to a growth in consumer demand for IoT, sensors, and AI technologies to enhance warehouse operations.
Based on the technology, the AI segment is expected to dominate the smart warehousing market throughout the forecast period. AI can assist warehouses in becoming "smart." The entire operation, from purchase to delivery, will be managed by AI in a 'smart warehouse.' Pick-and-pack processes may be streamlined with the use of artificial intelligence. AI solutions may operate 24 hours a day, seven days a week. To ensure accurate and precise inventory control, AI robots may be used to scan digital tags. AI robots can figure out the quickest paths to arrange objects and even avoid colliding with one another. They can assist in reducing the time and distance required to place items in warehouse inventory. As a result of these reasons, this segment is expected to increase throughout the projected period.
Based on the application, the inventory management segment is anticipated to register significant market growth during the forecast period. Due to they keep the most crucial aspect of the business, inventory, warehouses are critical to e-commerce success. Internal operations must be as efficient as possible, regardless of whether the warehouse is in-house or outsourced to a 3PL fulfillment business. Prioritizing efficiency guarantees prompt order fulfillment for the end consumer while lowering costs thanks to a well-functioning supply chain. Warehouses, on the other hand, lose money every day due to incorrect shipments, refunds, erroneous inventory counts, and human error. Inefficient procedures are the root of all of these mistakes. For example, a corporation must spend an average of $22 in labor expenses and consumer effect each time a faulty cargo is sent out. Through barcode scanning, warehouse management software combined with an inventory management system may solve these inefficiencies and reduce errors.
Regional Analysis of Smart Warehousing Market:
North America accounts for the largest revenue share contribution to the global smart warehousing market owing to various factors such as rising adoption of smart warehousing hardware, software, and services, early adoption of new technological advancements, and the presence of key players in this region. Because of the growing demand for automated warehouse cycles for increased productivity, effectiveness, and precision, smart warehousing technologies, solutions, and services are expected to gain traction in this area. Smart warehouse solutions allow for greater adaptability and increase employee capacity. Manhattan Associates, for example, announced the Manhattan Active Warehouse Management agreement in May 2020. Inside distribution management, Manhattan Active WMS clients enjoy a new level of speed, agility, and ease. In addition, the market in North America is driven by the early adoption of modern technologies and the presence of important competitors.
Due to rapid technological progress and the growing e-commerce sector, Asia Pacific is predicted to have the quickest growth in the worldwide smart warehousing market. Malaysia, for example, would leverage the new Cainiao emphasis to expand as an air freight center, according to news released on November 4th, 2021. It includes a 100,000-square-meter warehouse for freight terminal operations, warehousing, and logistics, as well as a computerized customs clearing technology that reduces clearance time from 24-48 hours to only an hour and a half. The e-commerce business is growing as a result of the increased usage of smartphones, which is driving the smart warehousing market in this area. According to the Indian Brand Equity Foundation (IBEF), smartphone consumers are predicted to reach 476 million by 2022, and e-commerce sales are expected to increase by 1,200 percent by 2026.
Players Covered in Smart Warehousing Market are:
- IBM (US)
- Oracle (US)
- SAP (Germany)
- EasyEcom (India)
- Manhattan Associates (US)
- PSI Logistics (Germany)
- PTC (US)
- Tecsys (Canada)
- Reply (Italy)
- Infor (US)
- Korber (Germany)
- Softeon (US)
- Generic (France)
- Microlistics (Australia)
- Blue Yonder (US)
- Vinculum (India)
- IAM Robotics (US)
- Epicor (US)
- 3PL Central (US)
- BlueJay Solutions (US)
- Mantis (US)
- Synergy Logistics (US)
- WareIQ (India)
- Foysonis (US)
- Increff (India)
- Locus Robotics (US)
- ShipHero (US)
- Orderhive US)
- Unicommerce (India)
- Logiwa (US)
COVID-19 Impact on Smart Warehousing Market
Global supply chains have been affected by the COVID-19 pandemic, which has outpaced and impacted both supply and demand at a faster rate. COVID, on the other hand, will have a long-term influence on the warehouse. As the virus spreads throughout the world, an outbreak or transit delay in one region of the world might have a disastrous effect on the rest of the world, prompting shutdowns owing to warehouse closures or supplies that are missing or delayed. The overall outlook for storage is quite positive. The convergence of retail and warehousing has been advanced through COVID-19. Overall, members agreed that while consumption may decline this year, e-commerce and warehousing will gain significant market share. The pricing power is a source of worry among members. The industry will prosper as the tenant portfolio diversifies. Nonetheless, renters are consolidating at a rate of 25% of the overall pool, shifting price power to the tenant. Of course, the effort to automate warehouses was in full swing before the Covid-19, but the global epidemic prompted enterprises to shift their warehouse automation strategy from "nice to have" to "must-have" if they wanted to stay in business. One of the lessons learned from the COVID-19 pandemic is that mega-trends such as aging populations, globalization, health and safety, mobility, green logistics, autonomous worlds, urbanization, individualization, and digitization must be given more attention and weight than in the past, with a long-term perspective, so that we are prepared to face any challenge. Some industries saw record demand, while others saw demand decline, resulting in a negative influence on the smart warehousing market as a whole. Following COVID-19, warehouse and supply chain industries have adopted and deployed automation technology such as Assisted Guided Vehicles (AGV), forklift automation, robots, and smart sorting to help firms operate more efficiently to turn the development of the smart warehousing market.
Key Industry Developments In Smart Warehousing Market
- In October 2021, Smart Warehousing, a nationwide provider of warehousing and fulfillment services, has opened an Innovation Hub in its Edgerton, Kansas headquarters. The move, according to the firm, would allow it to become a major fulfillment player while also promoting strategic alliances with warehousing automation companies, which will utilize the Kansas site to test the technology in real-world circumstances.
- In August 2021, SwoopTalent, a prominent provider of AI-powered platforms, has been purchased by SAP to boost organizational agility and accelerate corporate growth. SAP intends to employ SwoopTalent's technology to improve its AI capabilities and give customers a comprehensive and constantly updated view of their customers.
Frequently Asked Questions :
1. What would be forecast period in the market research report?
The forecast period in the market research report is 2021-2027.
2. Who are the key players in Smart Warehousing market?
The key players mentioned are IBM (US), Oracle (US), SAP (Germany), EasyEcom (India), Manhattan Associates (US), PSI Logistics (Germany), PTC (US), Tecsys (Canada), Reply (Italy), Infor (US), Korber (Germany), Softeon (US), Generic (France), Microlistics (Australia), Blue Yonder (US), Vinculum (India), IAM Robotics (US), Epicor (US), 3PL Central (US), BlueJay Solutions (US), Mantis (US), Synergy Logistics (US), WareIQ (India), Foysonis (US), Increff (India), Locus Robotics (US), ShipHero (US), Orderhive US), Unicommerce (India), Logiwa (US).
3. What are the segments of Smart Warehousing market?
The Smart Warehousing market is segmented into Component, Technology, Application, Verticals and region. By Component, it is classified into: Hardware, Solutions, Services. By Technology, it is classified into: IOT & Analytics, RFID, AI, AGV. By Application, it is classified into: Inventory Management, Transport Management, Shipping Management, Order Management, Yard Management, Labor Management, Others Applications. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain etc.), Asia-Pacific (China; India; Japan; Southeast Asia etc.), South America (Brazil; Argentina etc.), Middle East & Africa (Saudi Arabia; South Africa etc.).
4. What is the Smart Warehousing market?
A smart warehouse, like a smart home, is equipped with several automated and networked technology. These technologies work together to boost warehouse productivity and efficiency while reducing mistakes and reducing the number of human workers.
5. How big is the Smart Warehousing market?
Smart Warehousing Market size is projected to reach USD 26.9 Billion by 2027 from an estimated USD 13.5 Billion in 2020, growing at a CAGR of 10.4% globally.