Warehouse Execution System Market Long-Term Growth Outlook 2028

Warehouse Execution System Industry Overview

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.

China warehouse execution system market size, by component, 2017 - 2028 (USD Million)

Warehouse Execution System Market Segmentation

Grand View Research has segmented the global warehouse execution system market based on component, deployment, end-user, and region:

Based on the Component Insights, the market is segmented into Software and Service.

  • The software segment dominated the market in 2020 and accounted for the largest revenue share of over 68.0% in 2020. The segment is also anticipated to remain dominant over the forecast period. The high growth of this segment is attributed to the capability of the WES solutions to increase the potential of automated warehouses. This is achieved by managing labor, inventory resources, and machines against high order volumes and strict delivery timelines.
  • The warehouse execution system heightens visibility across the warehouse as it comprises the best parts of both the warehouse management system and warehouse control system. The features that increase end-to-end visibility include replenishment management, inventory management, mobile scanner integration, receiving/shipping management, among others.
  • The services segment is anticipated to register the highest growth rate from 2021 to 2028. The increasing usage of WMS services, including consulting and training, support & maintenance, among others, is contributing to the WES market growth.  

Based on the Deployment Insights, the market is segmented into On-premises and Cloud.

  • The cloud segment dominated the market and held the largest revenue share of more than 54.0% in 2020. The rise of cloud-based technology across industries has significantly transformed business processes. The deployment of the WES offering on the cloud enables the end-users to reduce the upfront cost while substantially increasing warehouse efficiency.
  • Cloud-based system solution offers various advantages over legacy on-premises deployment. New technological innovations are always around the corner, which can make on-premises systems obsolete within a short span. The excellent compatibility of cloud-based systems with newer technology and services makes it a more justifiable and flexible option over on-premises deployment.

Based on the End-user Insights, the market is segmented into Consumer Electronics, Healthcare, Food & Beverages, Automotive, Third-Party Logistics (3PL), and Others.

  • The third-party logistics(3PL) segment held the largest revenue share of more than 29.0% in 2020. Also, the segment is anticipated to register the fastest CAGR of around 15.9% over the forecast period. Third-party service providers handle a large volume of products, which necessitate the adoption of automation technologies. 
  • The automotive and food & beverages segment held the second and the third-largest share in the market in 2020. Automotive manufacturers, component providers, and resellers highly utilize warehouses for storing numerous products for long periods.

Warehouse Execution System Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Key Companies Profile & Market Share Insights

The market players are trying to gain higher market shares by adopting strategies such as collaborations and partnerships, investments, and mergers and acquisitions. Moreover, the companies are also launching new products & services and are also focusing on maintaining competitive prices.   

Some of the prominent players operating in the global warehouse execution system market include,

  • Honeywell International Inc
  • Fortna Inc.
  • Manhattan Associates
  • Bastian Solutions, LLC
  • Matthews International Corporation
  • Invata Intralogistics
  • Softeon

Order a free sample PDF of the Warehouse Execution System Market Intelligence Study, published by Grand View Research.

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