IoT in Warehouse Market

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;} IoT has paved its way across every industry area and warehousing is no exception. Enterprises are adopting IoT across warehouses to gain a competitive advantage through smart warehousing. By adopting IoT, the assets and goods in the warehouse can be controlled and monitored through wireless networks. The IoT-based warehouse management solutions help in increasing the efficiency of warehouse operations and offer new revenue opportunities to the enterprises. IBM Corporation, Intel Corporation, Zebra Technologies Ltd, Cisco Systems Inc., Oracle Corporation, and Software AG are some of the major vendors that offer solutions for IoT in warehouse management. These vendors have adopted several organic and inorganic growth approaches, such as new product development, partnerships and collaborations, and mergers and acquisitions, to increase their offerings in the market.

Warehouses have been used for storing various supply chain goods. By incorporating advanced technologies such as IoT, enterprises can ensure that the stored goods can be retrieved, processed, and delivered as quickly as possible. IoT provides managers with insights regarding effective utilization of assets, utilization of inventory in real-time, updates related to stock levels. Applying IoT technology to warehousing operations also helps in improving operational and workforce safety. The use of smart solutions such as inventory management, workforce management, and damage detection help the managers to easily track the incoming and outgoing inventory shipments, employee engagement and asset performance monitoring. With the use of sensors, cameras, autonomous robots, and wearable devices warehouse environment and machines are continuously monitored. Analyzing the machine data obtained from these devices help in predictive maintenance. Monitoring the usage patterns of machines and conducting preventative maintenance checks at regular intervals further helps to improve safety conditions at warehouses. Owing to the benefits offered by IoT, enterprises are leveraging it to improve the efficiency and safety of warehouse operations.

The global IoT in warehouse management market generated a revenue of USD 4.88 billion in 2018 and is expected to reach a market value of USD 17.94 billion by 2025, registering a CAGR of 21.21%. North America accounts for 53% market share followed by Europe, Asia-Pacific, and the rest of the world accounting for 23%, 16%, and 9% market shares respectively in the IoT in warehouse management market. The US holds a major share in the global market owing to the presence of network infrastructure, skilled expertise, and major market players IBM Corporation, Cisco Systems Inc., Intel Corporation, and Oracle Corporation among others. Furthermore, retail giants such as Amazon and Walmart are also increasingly adopting advanced technologies such as IoT, AI, and automation to increase its warehouse efficiency which in turn boosts its operational and sales performance. Enterprises across Europe are also leveraging the benefits of IoT for increasing the efficiency of warehouse management systems. Europe-based logistics companies such as DHL and Inconso have adopted IoT-based warehouse management system to visualize and monitor real-time operations, material handling, gain warehouse insights, and have witnessed improved operational efficiency. Asia-Pacific is the fastest-growing region registering 23.06% CAGR during the forecast period.

The market growth in the region is driven by China, Japan, South Korea, Singapore, and India. Major companies in the region such as Alibaba and JD.com are increasingly adopting IoT-based smart warehouse solutions which drive the market growth. However, high initial cost and network connectivity issues in some regions are expected to hamper the market growth.