Normal 0 false false false EN-US ZH-CN X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} The global IoT in warehouse management market consists of various global and local providers that are continuously developing new solutions and systems based on IoT for warehouse management to enable global expansion to solidify their market position. The providers compete on the basis of cost, products, and solutions in the IoT in warehouse management market. IoT is used for warehouse management in various industrial verticals such as healthcare, automotive, and food & beverages among others. The IoT in warehouse management involves the management of various warehouse processes of the businesses from equipment maintenance and inventory control to distribution optimization. It is a key part of any warehousing business and with the utilization of IoT devices and solutions improves the efficiency and speed of the entire supply chain. IoT also allows the user to gather the data in real-time.
The companies are primarily focusing on partnerships, acquisitions, and product development. Various key players in the market such as IBM Corporation, Intel Corporation, Oracle Corporation, Zebra Technologies and others are focusing on acquisition and partnership to strengthen their product portfolio and increase their presence in untapped markets. The improvement of the global economic scenario combined with technological advancement in the emerging economies like India, South Africa, China, Brazil, Argentina, and others is likely to fuel the market growth, making it an ideal time to expand IoT in warehouse management market geographically and increase the global market share.
According to the Wantstats analysis, IBM Corporation is currently leading the global IoT in warehouse management market in terms of market share. The company offers various IoT-based software platforms and solutions, which includes integrated workplace management system (IWMS), Watson IoT Platform, enterprise asset management, and facilities management. Additionally, the company invests heavily in research and development of new solutions to maintain its market position. Moreover, it provides services to banking, retail, government, aerospace, and other industry verticals. It is operating globally across 174 countries worldwide.
Intel Corporation has the second-largest share IoT in warehouse management market. Intel Corporation (Intel) is one of the global leaders in the designing and manufacturing of computing, networking, communications, and data storage solutions. The company operates through five major business segments, namely client computing group, data center group, the Internet of Things group, nonvolatile memory solutions group, and programmable solutions group. The company offers various IoT-based solutions such as Intel IoT market-ready solutions, Intel Cyclone V SoC, Intel MAX 10 FPGAs, IoT gateway software, retail sensor platform, RFID Sensor Platform, and IoT-based warehouse solutions. The company follows both organic and inorganic strategies to expand its market and reach the untapped market.
Zebra Technologies is ranked third in the IoT in warehouse management market. The company offers various different solutions, services, hardware devices for warehouse management integrated with the IoT devices, which includes Zebra OneCare services, visibility services, vehicle-mounted computers, Savanna platform, and others. Zebra Technologies designs, manufactures, and sells automatic identification and data capture products. The company provides mobile computers, radio frequency identification devices (RFID) readers, barcode scanners, and specialty printers for barcode labeling and personal identification, and real-time location systems.
Oracle Corporation ranks fourth in the IoT in warehouse management market. Oracle Corporation (Oracle) specializes in developing and marketing database software and technology, cloud engineered systems, and enterprise software products. It provides products and services in the field of information technology. The company operates through the cloud and on-premise software, hardware, and services segments. The company offers various solutions based on IoT, which includes Oracle IoT asset monitoring cloud service, V5 Systems, Oracle internet of things (IoT) asset monitoring cloud and others. The company heavily invests in innovation with respect to its products and services offered through its cloud and on-premise software, hardware, and services businesses
Cisco Systems, Inc. has occupied the fifth position in the IoT in warehouse management market. Cisco focuses on accelerating the pace of innovation by transforming its business model to obtain a competitive position in the market. Cisco has been involved in product innovation and conducting R&D to ensure a diversified product portfolio in order to increase its market presence. The company offers various solutions for the market which includes Cisco Kinetic, IoT management and automation, IoT Networking and others
Conclusively, to increase their stability in the market, key players are required to increase investments in research and development to enhance the performance of the existing services and leverage innovation in technology to meet the market demand.
Porter’s five forces model gives a framework for the IoT in warehouse management market, which gives an understanding of the competitiveness of the business environment and identifies potential strategies to increase market profitability. The IoT device providers for warehouse management can utilize this model to better comprehend the market environment in which their firm operates. The components of each of the forces and the degree of impact of each component in context with the IoT in warehouse management market have been broken down and analyzed.
BARGAINING POWER OF SUPPLIERS The suppliers for IoT solutions for warehouse management include providers of components such as sensors, networking technology, and cloud services. The number of suppliers in the global IoT in warehouse management market is high as many established and local players manufacture these components. The components used in IoT devices have moderate differentiation—the only differentiation being the technical specifications of components. Therefore, due to the high switching cost, a large number of suppliers, and moderate raw material differentiation, the bargaining power of suppliers is expected to moderately affect the market during the forecast period.
BARGAINING POWER OF BUYERS The IoT in warehouse management market is witnessing significant demand from various industry verticals including automotive, food and beverages, healthcare, retail and logistics, and others. Moreover, vendors in the market offer solutions such as inventory management, workforce management, automation and others in a wide price range that allows buyers to choose the best product according to their end-use requirements. The buyer concentration is high in this market, and vendors have created a moderate brand identity as well. The switching cost of buyers is high due to the high cost of IoT devices. Furthermore, due to the presence of a significant number of buyers in the market, the bargaining power of buyers is expected to be moderate during the forecast period.
THREAT OF NEW ENTRANTS The major vendors in the IoT in warehouse management market such as Oracle Corporation, IBM Corporation, and HCL Technologies are pioneers in this field and have become popular brands globally. These players collectively have occupied a larger market share in IoT in warehouse management market due to the presence of required resources, capital funds, customer base, and high technical expertise. Whereas, the capital investment required for a new vendor to enter the market is high due to the high initial cost associated with the manufacturing of IoT devices and the implementation of this technology in warehouses. Furthermore, the technological complexity of the IoT device is high; developing an ecosystem also requires significant technical expertise as IoT devices should be compatible with various networking technologies. The diversity in product offerings, expertise, and excellence in business strategy have enabled the existing players to dominate the market. Therefore, new entrants are likely to possess a low threat to the major vendors in the market during the forecast period.
THREAT OF SUBSTITUTES
There are various substitutes available for IoT solutions in the market that can be used for warehouse management and perform similar tasks; such devices include sensors, network gateway devices, and other low-cost IoT cloud devices. The preference of the buyers is shifting towards IoT devices due to the advent of cloud technology and increasing number of compatible devices. The buyers’ propensity toward the substitutes is low since buyers are inclined to purchase IoT solutions from well-established providers with high brand identity. Therefore, the threat of substitutes in the IoT in warehouse management market is expected to be moderate.
INTENSITY OF RIVALRY The IoT in warehouse management market is expected to witness a high degree of rivalry among the existing vendors due to their increasing concentration in the market. The IoT industry is also growing at a significant rate and major players such as IBM Corporation, HCL Technologies, have a significant market share as they focus on delivering differentiated products to capture a larger market share. Also, the end users are more inclined to tier I companies exhibiting high brand loyalty. The product differentiation is also moderate which depends on the type of solution the customers require. Therefore, the competition among the existing players is high and expected to remain the same during the forecast period.
