Intelligent Warehouse Market size is analysed to grow at a CAGR of 26.1% during the forecast 2021-2026 to reach $600 million by 2026. The main objective of warehouses is to control the differences in stock inflows and outflows. The goal of warehouse automation is to reduce both logistics costs and stock levels in order to achieve greater agility in customer service, as well as to create competitive and better monitoring of warehouse productivity. According to recent studies, optimising warehouse operations represent a significant improvement in the enterprise’s logistics process. Receiving goods, verifying them, transporting them internally between areas, storing them, preparing orders, consolidating loads, dispatching them, and obtaining information about stock, workflows, demand, and so on. To improve competitiveness, all of these functions should be run as efficiently and cheaply as possible. Warehouse management software provides visibility into an organization’s entire inventory and manages supply chain fulfilment operations from the distribution centre to the store shelf. Labour availability is one of the most important concerns confronting the logistics industry today. Companies all over the world struggle to find enough high-quality employees to move goods from suppliers to customers. Two competing factors make this particularly difficult and are driving the smart warehousing market. Intelligent warehouse solutions are increasingly being deployed across various end-use industry verticals as process automation become more widely adopted across all industry verticals.
Report Coverage
The report: “Intelligent Warehouse Industry Outlook – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Intelligent Warehouse industry.
By Type: Products, Services.
By Deployment Mode: Class 1, Class 2
By Vertical: Healthcare, Retail, Manufacturing, Transportation, Others.
By Geography: North America, South America, Europe, APAC, and RoW
Key Takeaways
The main objective of warehouses is to control the differences in stock inflows and outflows. The goal of warehouse automation is to reduce both logistics costs and stock levels in order to achieve greater agility in customer service, as well as to create a competitive and better monitoring of warehouse productivity.
The demand for intelligent warehouse solutions is also driven by the solution’s ability to monitor the progress of items going through production or delivery processes, identify losses, product damages, or process interruptions.
North America region dominates the market regarding revenue generation because of the continuous adaptations for new technologies in the field of logistics, aviation, and manufacturing.
Intelligent Warehouse Market, By Region, 2020
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Intelligent Warehouse Market Segment Analysis – By Deployment Mode
By deployment mode, the digital warehouse solutions market is segmented into cloud and on-premises. Cloud type is analyzed to grow at highest CAGR of 28.9% during the forecast period 2021-2026 as there is increased adoption of cloud-based solutions among both SMEs and large enterprises owing to the new functionalities that are deployed in customized form as per the business requirement, which leads to better customer’s satisfaction due to cloud-based solutions. Also, such solutions offer various benefits which include ability to scale their applications, flexibility and easy management capabilities. Thus, the adoption of cloud-based solutions significantly increases in the large enterprise and SMEs, which would broaden the growth of the market during the forecast period.
Intelligent Warehouse Market Segment Analysis – By Industry
By Industry, Healthcare industry segment is analysed to grow at highest CAGR of 7.2% during the forecast period 2021-2026. In the pharmaceutical industry, there is a growing need for increased output while improving operational efficiency. Maintaining high product quality and safety standards is driving a significant increase in demand for automation in the healthcare industry. As a result, there is a parallel increase in warehouse automation in the healthcare industry, as these systems allow for the timely availability of required products with minimal human interaction, allowing for the prevention of contamination during the drug manufacturing process. Furthermore, the need for samples and lot number tracking, serial number recording, strict timeframe demands, increased security demands, and strict confidentiality are all important factors driving the adoption of warehouse management software and robotic systems. Receiving, storage, put-away, replenishment, consolidation, order packing, and truck loading are examples of typical solutions. Vials, strips, blisters, cartons, totes, poly bags, drums, and pallets are among the various load types handled and conveyed in the pharmaceutical and healthcare markets.
Intelligent Warehouse Market Segment Analysis – By Geography
North America is analyzed to be the major region with a share of 35.2% in 2020 for the Intelligent Warehouse Market. North America region dominates the market regarding revenue generation because of the continuous adaptations for new technologies in the field of logistics, aviation, and manufacturing. Manufacturing companies’ demand for outsourced warehousing services has been growing as a result of their productional and operational expansions. This has resulted in an increase in logistics requirements for retailers and distributors in terms of raw material and finished goods storage. Furthermore, given the benefits of outsourcing in terms of increased operational efficiency and cost savings, shippers are increasingly outsourcing the logistics portion of their operations to warehouse service providers. This enables them to focus on their core competencies.
Intelligent Warehouse Market Drivers
Smart warehouses improves labour efficiency:
The more manual tasks one can automate, the fewer employees need to do those jobs. And, with labour costs on the rise, just lowering that figure can be beneficial. An even greater advantage of smart warehousing is that it adds more value to the work that employees are already doing. People are able to do more work in less time when things move more quickly. And, as more manual tasks are automated, employees will be able to shift their focus to higher-value tasks, thereby optimising current workforce. Warehouses that use IoT for warehouse management can respond to orders quickly, giving them a competitive advantage over companies that use manual warehouses. For example, instead of using a traditional first in/first out system, if one can efficiently automate tasks to ensure that the most critical customer demands are prioritised, one can significantly improve the customer experience. Warehousing could then be added to the organization’s overall offering as a value-added service.
Increase in the adoption rate of process automation:
Intelligent warehouses are being deployed at a rapid pace due to an increase in the adoption rate of process automation across various industry verticals. These warehouses are rapidly gaining traction as a result of rapid visual intelligence, which simplifies the management of various activities such as inventory management in the warehouses. These solutions are being used by operators to reduce damage to goods and increase market efficiency. The desire to reduce business risk and improve warehouse service quality is driving the adoption of these intelligent solutions. These solutions are becoming more popular in both service and product forms. Retail, manufacturing, healthcare, and transportation are some of the industries that use these solutions.
Intelligent Warehouse Market Challenges
High Initial Investment and Maintenance:
Implementing an automated storage and retrieval system is likely to reduce labour costs and increase productivity in the long run. However, these advantages come at a cost. The initial investment’s cost. Purchasing an AS/RS, like many other automation endeavours, is more expensive in the short term than hiring personnel or using other equipment such as forklifts. This initial investment can be difficult for smaller businesses that do not have ready access to capital. The key challenges restraining the growth of the intelligent warehouse solutions market are higher deployment and maintenance costs, as well as a lack of necessary technical knowledge. In addition, the low adoption rate of such technological solutions in developing countries is stifling the growth of the intelligent warehouse solution.
Intelligent Warehouse Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Intelligent Warehouse. Intelligent Warehouse top 10 companies are Mecalux, S.A., Panasonic Corporation, Teradata, Vanderlande Industries B.V., Cornerstone Automation Systems, LLC., EffiMat Storage Technology A/S, Inventory Management Systems, Beumer Group, Casi.
Acquisitions/Technology Launches/Partnerships
In January 2021, 4SIGHT launched Connect Digital Gate, a logistics solution for warehouse and distribution center dock operations to improve driver scheduling and communications.
In April 2020, UPS partnered with supply chain solutions provider Softeon to launch a warehouse execution system (WES) to make distribution centers smarter and more efficient.
Relevant Report Titles:
Warehouse Management System Market
Warehouse Robotics Market
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