SAN FRANCISCO, July 15, 2021 /PRNewswire/ -- The global warehouse execution system market size is expected to reach USD 2.97 billion by 2028, registering a CAGR of 14.2% from 2021 to 2028, according to a new report by Grand View Research, Inc. The E-commerce market is growing at a rapid pace, increasing the number of operations in Distributions Centers (DCs). Increasing order volume and speed is facilitating the adoption of advanced software solutions in warehouses, which is escalating the demand for Warehouse Execution Systems (WES) in the market.
Warehouse execution system software offers several functionalities that include labor management and planning and inventory management. Companies that implement WES into their warehouses/distribution centers majorly utilize these two functions of WES. Moreover, the software also encompasses real-time analytics and reporting functions enabling users to visualize operational and labor data in real-time.
Key Insights & Findings:
The market is majorly driven by the growing need to improve the efficiency of the warehouses and distribution centers
The software segment accounted for the largest revenue share of more than 68% in 2020. This is primarily attributable to the cost and operational benefits such as enhanced productivity and improved visibility, among others, offered by the WES software
The cloud-based deployment segment held the majority share in the market and is also projected to register the fastest CAGR over the forecast period. Cloud-based systems reduce the upfront cost of software implementation to a significant level which is contributing to the high revenue share and growth
The third-party logistics (3PL) segment held the largest share in the market in 2020. The high growth of the e-commerce industry and the subsequent increasing complexity of the logistical operations are contributing to the segmental growth
Some of the prominent players in the WES market include Honeywell International Inc.; SSI SCHAEFER; Manhattan Associates; Fortna Inc.; and Bastian Solutions, LLC
WES can be a perfect single solution for several warehouses; however, it may not be suitable for warehouses with larger and complex operations. In such cases, the replacement of the existing WMS solutions may not be a feasible option. Therefore, WES can be integrated within the existing WMS. The ability of WES solutions to be implemented with WMS or WCS software makes it a practical solution for large warehouses or DCs. Moreover, as companies are increasingly adopting various automation technologies to suffice the increasing operational activities, advanced software solutions such as WES are also gaining traction in the market.
Further, due to the stringent government regulations, it is becoming crucial that manufacturers and distributors focus on not supplying damaged products to the end-users. Damaged or contaminated products may result in product recall scenarios, thereby degrading the brand value. Such instances are reduced by the implementation of a warehouse execution system as it encompasses the traceability feature, which indicates the presence of damaged products in the inventory.
The increased burden on the warehouses due to the outbreak of the COVID-19 pandemic has motivated distributors and logistics providers to adopt various automation technologies. The advanced features of the WES software and the combined benefits of WMS and WCS offered by the software are resulting in the increased adoption of WES among the various industries, including healthcare, automotive, food & beverage, among others.
Grand View Research has segmented the global warehouse execution system market based on component, deployment, end-user, and region:
Warehouse Execution System Component Outlook (Revenue, USD Million, 2017 - 2028)
Installation & Integration
Training and Support & Maintenance
Warehouse Execution System Deployment Outlook (Revenue, USD Million, 2017 - 2028)
Warehouse Execution System End-user Outlook (Revenue, USD Million, 2017 - 2028)
Food & Beverages
Third-Party Logistics (3PL)
Warehouse Execution System Regional Outlook (Revenue, USD Million, 2017 - 2028)
Middle East & Africa
List of Key Players of Warehouse Execution System Market
Honeywell International Inc
Bastian Solutions, LLC
Matthews International Corporation
WESTFALIA TECHNOLOGIES, INC.
Check out more studies related to warehouse management technologies, by Grand View Research:
Warehouse Management Systems Market – The global warehouse management systems market size was valued at USD 2.64 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 15.3% from 2021 to 2028.
Warehouse Robotics Market – The global warehouse robotics marketsize valued at USD 3.19 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 11% from 2019 to 2025.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.