Smart Warehousing Market To Reach $57.97 Billion By 2030

Smart Warehousing Market Growth & Trends

The global smart warehousing market is anticipated to reach USD 57.97 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to grow at a CAGR of 14.2% from 2023 to 2030. The market growth is driven by increasing demand for automation and robotics solutions across various industries, the increasing online shopping, and rising focus on the green initiatives and sustainability to minimize waste. The rising focus on green initiatives and sustainability significantly influences the increasing use of smart warehouse solutions in warehouses. As businesses prioritize environmental responsibility, smart warehouse technologies contribute to minimizing waste and optimizing resource utilization.

Automation and digitization within smart warehouses lead to more efficient inventory management, reducing excess stock and minimizing the environmental impact of overproduction. Smart technologies enable precise demand forecasting and inventory optimization, aligning warehouse operations with actual consumption patterns to avoid unnecessary waste. Additionally, real-time monitoring and data analytics empower warehouses to identify inefficiencies, leading to more sustainable practices and reduced energy consumption. The implementation of autonomous vehicles and optimized routing further contributes to minimizing carbon footprints in the transportation of goods within smart warehouses. Overall, the integration of smart warehouse solutions aligns with broader sustainability goals, offering businesses the tools to operate more efficiently, reduce waste, and contribute to environmentally conscious practices in their supply chain operations.

Furthermore, the emergence of multi-channel distribution networks significantly influences the increasing adoption of smart warehouse solutions in the market. As businesses expand their reach across various channels, including online platforms, retail outlets, and direct-to-consumer models, the complexity of supply chain management grows. Smart warehouse solutions play a crucial role in streamlining operations within these multi-channel distribution networks by offering real-time visibility, inventory optimization, and efficient order fulfillment. These technologies enable seamless coordination and synchronization of inventory across diverse channels, ensuring accurate stock levels, reducing order processing times, and enhancing overall operational efficiency. The integration of smart warehouse solutions becomes imperative for businesses seeking to meet the dynamic demands of multi-channel distribution, providing a scalable and agile infrastructure to adapt to changing market trends and customer preferences. Ultimately, the adoption of smart warehouse solutions is a strategic response to the evolving landscape of multi-channel distribution, offering businesses the tools to enhance visibility, responsiveness, and effectiveness in managing their supply chain across diverse sales channels.

The adoption of augmented reality (AR) and virtual reality (VR) technologies presents a significant opportunity for the market. AR and VR offer advanced visualization and interactive capabilities, allowing warehouse operators to optimize various aspects of their operations. AR technology can be utilized for enhanced order-picking processes, providing workers with real-time information and visual cues through smart glasses or headsets, leading to increased accuracy and efficiency. VR, on the other hand, can be employed for immersive training simulations, allowing warehouse staff to undergo realistic training scenarios without the need for physical setups. These technologies contribute to improved worker productivity, reduced errors, and enhanced training programs, ultimately optimizing warehouse operations. As the technology continues to mature, the integration of AR and VR in smart warehousing not only improves current processes but also unlocks innovative possibilities for creating more intelligent, responsive, and efficient warehouse environments.

The market is competitive and has the presence of several key market players. Some prominent players in the market include Honeywell International Inc., Siemens, Zebra Technologies Corporation, IBM Corporation, Oracle Corporation, SAP SE, KION Group AG, Cognex Corporation, ABB Ltd., Tecsys, Inc., Manhattan Associates, PSI Logistics, and Reply, among others. These players are adopting strategies such as new product launches to stay ahead of their competition. For instance, in September 2023, OMRON Corporation, a leader in factory automation and Industry 4.0 solutions, launched the MD-650 autonomous mobile robot (AMR) with a payload of 650 kg, expanding its lineup of autonomous robots for part and material transport applications. The MD-650 features unique control technology, ensuring safe and smooth transport in production sites where human-machine collaboration is prevalent, addressing the increasing demand for efficiency in heavy-material transport operations.

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Smart Warehousing Market Report Highlights

• The hardware segment held the largest market share of 50.1% in 2022, owing to its foundational role in implementing advanced technologies, such as automated guided vehicles, robotic systems, and IoT-enabled devices, which contribute to significant labor savings and enable seamless connectivity for data-driven decision-making and optimization of warehouse processes.

• The cloud deployment is expected to witness the fastest CAGR over the forecast period, due to its unparalleled scalability, cost-efficient subscription models, rapid deployment, remote accessibility, automatic updates, integration capabilities, and efficient data analytics, offering businesses an agile and connected ecosystem for optimized operations.

• The robotics and automation segment dominated the market in 2022. The segment's growth is attributable to its role in significantly enhancing operational efficiency through task automation and process streamlining.

• The order fulfillment segment held the largest market share of 33.9% in 2022, owing to the its role in optimizing processes, reducing errors, and ensuring swift and accurate product delivery through the integration of technologies such as real-time tracking, automation, and advanced analytics.

• The large warehouse size segment held the largest market share in 2022, as the large warehouses are well-suited for smart warehousing due to the scalability and operational complexities that come with managing extensive inventories and high-volume order processing.

• The retail & e-commerce segment registered the fastest CAGR of 15.4% over the forecast period. The segment’s growth is attributable to rapid growth of online shopping and the need for prompt order fulfillment.

• North America dominated the market and held a share of 31.8% in 2022, owing to the advanced technological infrastructure and a well-established logistics industry.

Smart Warehousing Market Segmentation

Grand View Research has segmented the global smart warehousing market based on component, deployment, technology, application, warehouse size, vertical, and region:

Smart Warehousing Component Outlook (Revenue, USD Million, 2017 - 2030)

• Hardware

• Software

• Services

Smart Warehousing Deployment Outlook (Revenue, USD Million, 2017 - 2030)

• Cloud

• On-premises

Smart Warehousing Technology Outlook (Revenue, USD Million, 2017 - 2030)

• IoT

• Robotics and Automation

• AI and Analytics

• Networking and Communication

• AR and VR

• Others

Smart Warehousing Application Outlook (Revenue, USD Million, 2017 - 2030)

• Inventory Management

• Order Fulfillment

• Asset Tracking

• Predictive Analytics

• Others

Smart Warehousing Warehouse Size Outlook (Revenue, USD Million, 2017 - 2030)

• Small

• Medium

• Large

Smart Warehousing Vertical Outlook (Revenue, USD Million, 2017 - 2030)

• Transportation & Logistics

• Retail & E-commerce

• Manufacturing

• Healthcare

• Energy and Utilities

• Automotive

• Food & Beverages

• Others

Smart Warehousing Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

• South America

  • Brazil

  • Mexico

• Middle East and Africa (MEA)

  • Kingdom of Saudi Arabia (KSA)

  • UAE

  • South Africa

List of Key Players in the Smart Warehousing Market

• Honeywell International Inc.

• Siemens

• Zebra Technologies Corporation

• IBM Corporation

• Oracle Corporation

• SAP SE

• KION Group AG

• Cognex Corporation

• ABB Ltd.

• Tecsys, Inc.

• Manhattan Associates

• PSI Logistics

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