The Global Intelligent Warehouse Market size is estimated to reach $14.5 Million by 2027, growing at a CAGR of 8.5% during the forecast period 2022-2027, attributed to increasing demand for smart warehousing technologies to reduce inventory loss, growing adoption of warehouse management software to increase efficiency and so on. Intelligent Warehouse reduces logistics costs and inventory levels to achieve greater agility in customer service and provides a competitive edge over others while enabling productivity monitoring. Process automation of warehouse operations improves the logistics of an enterprise, helps in 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 much more. Warehouse management software provides visibility into an organization's entire inventory and manages supply chain fulfillment operations from the distribution center to the store shelf. Additionally, increasing demands for minimizing product loss and accidents and widespread adoption of process automation solutions across all industry verticals are some of the major factors set to transform the Intelligent Warehouse industry outlook in the coming time.
Intelligent Warehouse Report Coverage
The “Intelligent Warehouse Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Intelligent Warehouse Market.
Key Takeaways
- The Cloud-deployed Intelligent Warehouse market is analyzed to grow with the highest CAGR during the forecast period 2022-2027, owing to increasing adoption of cloud-based services in enterprises, rising focus on efficient management of consumer data and so on.
- Healthcare industry for the Intelligent Warehouse market is analyzed to grow at the fastest rate during 2022-2027 attributed to growing focus on increasing supply chain efficiency, growing emphasis is being placed on ensuring that patients & healthcare providers receive the medications and treatments whenever they are required and so on.
- North America dominated the global Intelligent Warehouse market in 2021, attributed to production & operational expansion of manufacturing industries, increasing process automation across varied sectors and so on.
- Increasing demand for smart warehousing technologies to reduce inventory losses and growing adoption of process automation solutions across all industry verticals are analyzed to significantly drive the market growth of the Intelligent Warehouse market during the forecast period 2022-2027.
Global Intelligent Warehouse Market Value Share, by Region, 2021 (%)
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Intelligent Warehouse Market Segment Analysis - by Deployment Mode
Based on deployment mode, cloud deployment is analyzed to grow at the fastest rate of 10.5% in the global Intelligent Warehouse market during the forecast period 2022-2027, owing to increasing adoption of cloud-based services in enterprises, customer awareness, rising focus on efficient management of consumer data and so on. Cloud-based inventory management helps to keep track of inventory as it enters and exits the enterprise. These real-time updates prevent the problems associated with traditional methods of stock level measurement. Traditional inventory management practices leave a lot of room for mistakes such as simple manual errors, poor forecasting, outdated inventory control, product loss and so on. Software solutions like cloud-based inventory management can assist in avoiding such common pitfalls entirely and helps in improving maintenance, repair & operations in an enterprise. In April 2021, Data Systems International launched the updated version of Cloud Inventory, a cloud-based inventory management solution to enable accurate monitoring and control of inventory on a real-time basis by the manufacturers & distributors. It has the potential to significantly improve existing approaches to inventory management and increase productivity, compliance, inventory optimization and revenue generation. These factors have been significantly impacting the growth of cloud deployment mode in the Intelligent Warehouse industry outlook over time.
Intelligent Warehouse Market Segment Analysis - by Industry Vertical
The Healthcare industry for Intelligent Warehouse market is analyzed to grow with the highest CAGR of 9.3% during 2022-2027 attributed to growing focus on increasing supply chain efficiency, growing emphasis is being placed on ensuring that patients & healthcare providers receive the medications and treatments whenever they required and so on. Intelligent warehousing gives healthcare organizations greater visibility into their supply chains and enables real-time data sharing and seamless communication between supply partners. Additionally, it improves collaboration and simplifies the process of integrating supply chain & clinical data, resulting in improved demand forecast accuracy and inventory management resulting in better patient outcomes. In September 2020, Jump Technologies announced the expansion of JumpStock to include data analytics and supply chain visualizations, allowing hospitals and health systems to track the location of all supplies including critical items such as personal protective equipment (PPE) across multiple locations and track their usage. This level of real-time data is critical for pre-emptive supply management in order to avoid healthcare supply chain collapse. Such factors are analyzed to impact the growth of the healthcare industry within the global Intelligent Warehouse industry outlook in the coming time.
Intelligent Warehouse Market Segment Analysis - by Geography
North America dominated the global Intelligent Warehouse market with a share of 37% in 2021, attributed to production & operational expansion of manufacturing industries, increasing process automation across varied sectors, technological advancements in healthcare industries and so on. Additionally, smart warehouse technologies such as drones, guided vehicles and robots are being used to combat operational inefficiencies. Warehouse equipment scan items record their locations and monitor them on a real-time basis using the internet of things (IoT). These smart warehouse technologies protect workers from accidents or injuries. The reason behind the increasing adoption of warehouse management software in the region is well-established e-commerce companies & retailers with large warehousing operations and sales networks. In June 2022, Pozyx collaborated with Fabriek Logistiek to present its warehouse orchestration system based on real-time location designed to improve labor productivity, promote safety and optimize inventory control in warehouse & logistics operations. It delivers its services across 80 countries like USA & Belgium. The Pozyx RTLS improves the WMS (warehouse management system) by providing real-time asset monitoring & identification, faster inventory management, enhanced operator effectiveness, better space utilization, lower costs and increased warehouse safety. Increasing adoption of these kinds of smart warehousing technologies & presence of significant market players is set to transform the Intelligent Warehouse industry outlook within North American markets.
Intelligent Warehouse Market Drivers
Increasing Demands for Smart Warehousing Technologies to Reduce Inventory Losses is Positively Impacting the Growth of Intelligent Warehouse Market:
The growing use of smart warehousing technologies to reduce the chances of product loss or damage is accelerating the growth of the Intelligent Warehouse market. They use a variety of automated and interconnected technologies to create a technological environment in which goods and requests can be automatically received, organized and prepared for shipment. It assists warehouse workers in increasing productivity, improving quality and maximizing the efficiency of their enterprise and eliminating the chances of human errors. Smart warehouse robots automate the product retrieval process by physically delivering requested items to human employees who package the orders. The Internet of Things facilitates communication between robots. Robots employ artificial intelligence to determine the most efficient way to locate and select products. Other machines use AI to pack products in the most efficient ways. AI can determine the best box type for a specific shipment based on the type, size, weight and product number of an item. Furthermore, the combination of RFID, wearables & sensors allows warehouse managers to track the progress and location of all inventory in real-time. According to a report published by Forbes in 2021, two-thirds of consumers have chosen an e-commerce vendor based on delivery alternatives and 54% consider fast shipping to be two days or fewer. Such aspirations need efficiency, 54% of consumers are unlikely to purchase a product if the retailer has a poor or confusing return policy. Returns must be easy to keep operational costs under control, hence the need for the adoption of smart warehousing technologies arises. In June 2022, Increff collaborated with Shipway to create a cutting-edge SaaS solution for efficient warehousing, data-driven merchandising and smart inventory optimization. It intends to create a cutting-edge order fulfillment and automated shipping solution platform to promote D2C business growth. It digitizes and automates warehouse activities, decreasing reliance on labor and minimizing delays or manual errors in decision-making. Its real-time inventory-order sync technology provides quick updates on available inventory, reducing order cancellations and allowing faster order processing. Such factors will help in propelling the growth of the Intelligent Warehouse market size in the long run.
Growing Adoption of Process Automation Solutions Across all Industry Verticals is Accelerating the Growth of Intelligent Warehouse Market:
The rising use of automatic processes in various industries is surging the growth of the Intelligent Warehouse market. With increasing demand, booming eCommerce and stringent competition the integration of integrating automation technologies had become the need of the hour for storage, logistics and retail companies. In warehouses and distribution centers, the primary tools for physical process automation are robots, and semi and fully autonomous vehicles. These technologies are used to augment or replace human efforts by taking over repetitive or dangerous tasks. Additionally, it increases warehouse capacity & efficiency, improves service reliability & scalability and enhances performance. According to a report published in 2021 by SupplychainDive, Alibaba's logistics arm Cainiao Network announced plans to deploy 1,000 Xiamonanlv robots to universities across China. The decision was made after testing the unmanned delivery vehicle at 30 universities over the previous year and discovering the robot could deliver 150 packages per day with a 98%customer satisfaction rate. In May 2022, Shape Process Automation (SPA) collaborated with Mujin to improve robotic automation solutions from SPA using an intelligent robotics platform by Mujin. The alliance intends to automate tough jobs in a large number of warehouses and manufacturing plants. They employ modern technologies like machine intelligence, an AI that autonomously controls potential downtime scenarios without the need for human intervention through perception, autonomous decision making and real-time motion planning. These factors are set to expand the Intelligent Warehouse market size in the coming time.
Intelligent Warehouse Market Challenges
Lack of Awareness about Benefits of Smart Warehousing coupled with High Implementation Costs are Restraining the Growth of Intelligent Warehouse Market:
Lack of understanding about the benefits of smart warehousing in SMEs combined with high implementation costs is impeding the growth of the Intelligent Warehouse market. Small-scale industries operate their warehouses in a conventional fashion due to the lack of capital and low level of technological advancement. The annual income of a small-scale industry is not very high and investments to set up smart warehousing increase the burden on such a small-scale business. Business owners in small-scale companies fail to recognize the benefits of implementing smart warehousing solutions due to a reluctance to upgrade existing systems and restricted expansion plans. Smart warehousing solution deployment incurs additional expenditures for license acquisition, upgrades and employee training; this element also inhibits general adoption by small-scale enterprises. According to a report published in 2022 by Nextsmartship, the average base rental fee for smart warehousing is $1.50 per square foot per month, with an estimated operating expense (NNN) of $0.50. Furthermore, the expense of AI & IoT technology and warehouse management robots might increase the cost to $30,000 merely for 10,000 square feet of space. It is difficult for a small industry to deploy smart warehousing technology or use warehouse management software as it will increase the burden of training the employees for the best result which will further expand the cost of adoption. These factors are limiting demand for Intelligent Warehouse, while adversely impacting the growth of the Intelligent Warehouse industry.
Intelligent Warehouse Industry Outlook
Product launches, acquisitions and R&D activities are key strategies adopted by players in the Intelligent Warehouse Market. The top 10 companies in the Intelligent Warehouse market are:
- Mecalux
- S.A.
- Panasonic Corporation
- Teradata
- Vanderlande Industries B.V.
- Cornerstone Automation Systems LLC.
- EffiMat Storage Technology
- Inventory Management Systems
- Beumer Group
- Casi
Recent Developments
- In April 2022, Mecalux launched the Easy WMS warehouse management system, capable of operating at constant sub-zero temperatures. It has a high-density storage system and racks in blocks to hold more than 30,000 pallets at one time and is integrated with a stacker crane-automatic Pallet Shuttle combo. Additionally, it is designed with a process-focused conveyor circuit to streamline receipt and dispatch of the goods.
- In June 2022, Vanderlande announced the launch of its latest innovative warehousing solutions at LogiMAT 2022, an energy-efficient version of its QUICK STORE MINILOAD and an immersive 360-degree experience room. Its goal is to improve the speed, efficiency and sustainability of warehousing systems. The crane-and-rail system stores and retrieves cartons, trays and totes automatically and was designed with sustainability in mind. It has a variety of energy-saving technology and smart algorithms, making it the greenest mini-load on the market.
- In June 2022, Teradata collaborated with Ingram Micro to assist Singapore customers in installing Teradata Vantage on the cloud to meet the growing need for data-driven business insight and data warehousing. As part of the distributorship coverage expansion, this agreement integrates a multi-cloud data platform with massive networks to allow large-scale and uninterrupted access to various services in Southeast Asia.
