Global Warehouse Execution System Market By Component (Software and Services), By Deployment Type (Cloud and On-premise), By End User (Third-Party Logistics (3PL), Automotive, Food & Beverages, Consumer Electronics, Healthcare and Others), By Regional Outlook, COVID-19 Impact Analysis Report and Forecast, 2021 - 2027

Analysis of Market Size & Trends

The Global Warehouse Execution System Market size is expected to reach $2.5 billion by 2027, rising at a market growth of 12.3% CAGR during the forecast period. A software solution, which controls and manages all the procedures that are followed within a distribution center, is referred to warehouse execution system (WES). The WES operates in real-time to sequence, manage, and coordinate all the warehouse resources such as devices, material handling equipment, or employees. In addition, WES takes care that orders are moved in a continuous flow. When a situation changes in a single portion of the process, the system would reprioritize work to accelerate fulfilment.

In addition, WES software enables companies to manage their sequences and controls DC resources that include people & automation systems, which are very important to moving goods in a warehouse or DC. This movement includes receiving, checking, and arranging inbound products for storage, replacement of picking locations from storage, put away of received goods into storage, picking of customer orders, checking & packing, order assembly, loading, and shipping. In addition, WES operates in real-time to allow better control of various components of a warehouse process in which shifting conditions in one work area or process would need changes in any other areas or upstream/downstream procedures.

The high penetration of these silicon photomultiplier products is witnessed in the emerging nations, especially in their healthcare and automotive sectors. Several technological advancements taking place in the silicon photomultiplier would contribute to the surging growth of the market. There are many key silicon photomultipliers manufacturers like On Semiconductor, TE Connectivity, and Broadcom, which are increasingly investing in developing cost-effective, technologically advanced, and more secure products & solutions for its further applications.

COVID-19 Impact Analysis

The COVID-19 pandemic has disrupted several industries across the globe. This pandemic has swiftly shifted consumer behavior toward online channels. Following that, online demand has also boosted for numerous categories like essentials, food & beverages, and pharmaceuticals, and these are being provided with advanced contactless formats. It has further pushed the growth of the 3PL, e-commerce, and FMCG industries. In addition, the demand for warehousing has also surged owing to the online demand for various products. Several multinational organizations are establishing the latest warehouses in various nations to fulfil this increased demand. It has led to the growing demand for warehouse management systems in 3PL (Third Party Logistics) industries and e-commerce. Many key e-commerce giants like Alibaba, Amazon, and eBay are fueling the demand for WMS because they constantly establish new warehouses all over the world.

Component Outlook

Based on Component, the market is segmented into Software and Services. The warehouse execution system helps in augmenting visibility within the warehouse because it includes the top components of the warehouse management system & warehouse control system. These capabilities that boost end-to-end visibility involve inventory management, replenishment management, receiving/shipping management, mobile scanner integration, among others.

Deployment Type Outlook

Based on Deployment Type, the market is segmented into Cloud and On-premise. On the basis of deployment, the cloud segment procured the highest revenue share in 2020. The increasing cloud-based technology in various industries has substantially changed various business processes. The implementation of the WES capabilities on the cloud allows the end-users to minimize the upfront cost and substantially improving warehouse efficiency. Cloud-based implementation has witnessed a strong advancement in security over the years. Security advancements in terms of curtailing data thefts have made cloud deployment a feasible alternative for on-premises system deployment.

End User Outlook

Based on End User, the market is segmented into Third-Party Logistics (3PL), Automotive, Food & Beverages, Consumer Electronics, Healthcare and Others. Based on End-user, the third-party logistics (3PL) segment dominated the market with the largest revenue share in 2020. This segment is also estimated to exhibit the fastest growth rate during the forecast period. Third-party service vendors manage a huge volume of products that makes it important to adopt automation technologies. In addition, the e-commerce sector is registering a huge spike in the last few years, with a huge number of people utilizing online channels for buying various products.

Warehouse Execution System Market Report Coverage

Report Attribute	Details
Market size value in 2020	USD 1 Billion
Market size forecast in 2027	USD 2.5 Billion
Base Year	2020
Historical Period	2017 to 2019
Forecast Period	2021 to 2027
Revenue Growth Rate	CAGR of 12.3% from 2021 to 2027
Number of Pages	231
Number of Tables	364
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling, Competitive Landscape
Segments covered	Type, Device Type, Application, End User, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Rising growth of the e-commerce sector owing to the pandemic The increasing investment of the global organizations in developing nations
Restraints	Absence of workforce for maintaining of WMS owing to the Covid-19 pandemic

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Region-wise, Europe emerged as a leading region in the warehouse execution system market by procuring the largest revenue share in 2020. This region is also anticipated to continue this trend during the forecast period. The growth of this region is attributed to the high awareness of cloud-based solutions across the region. In addition, the region also has numerous large and recognized automotive manufacturers in nations like Germany, the U.K., and France that would support the regional growth.

KBV Cardinal Matrix - Warehouse Execution System Market Competition Analysis

Free Valuable Insights: Global Warehouse Execution System Market size to reach USD 2.5 Billion by 2027

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Honeywell International, Inc. is the major forerunners in the Warehouse Execution System Market. Companies such as Fortna, Inc., SSI Schaefer Group, and Toyota Industries Corporation are some of the key innovators in the market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Toyota Industries Corporation (Bastian Solutions LLC), VARGO Integrated Systems, Inc., Softeon, SSI Schaefer Group,Fortna, Inc. - Thomas H. Lee Partners, Invata Intralogistics, Matthews International Corporation, Westfalia Technologies, Inc., Honeywell International, Inc., and Manhattan Associates, Inc.

Recent Strategies Deployed in Warehouse Execution System Market

» Partnerships, Collaborations, and Agreements:

• Jun-2021: Bastian Solutions came into partnership with Crocs, manufacturer, and marketer of the Crocs brand of foam clogs. This partnership aimed at setting up a new storage facility and fulfillment center in the Dayton, Ohio area. This new facility is called Saltwater, which would support Crocs’ existing and anticipated growth across North America and, upon completion, would become one of the most automated facilities in the region.
• Jun-2021: Manhattan Associates collaborated with Graybar, a leading distributor of electrical, communications, and data networking products. Under this collaboration, Graybar would deploy Manhattan Active Warehouse Management to maximize its warehouse operations and to transform and advance its supply chain operations.
• Jun-2021: Manhattan Associates came into partnership with Hot Topic, a retail chain. Under this partnership, Manhattan Associates would offer Hot Topic with Manhattan Active Warehouse Management to simplify the City of Industry. The company would also help in Hot Topic’s fulfillment processes and support its growth that include warehouse execution-system functionality, order streaming, and picking-and-packing capabilities.
• May-2021: VARGO entered into a distribution agreement with OPEX Corp., a producer of warehouse automation systems. The integrated solution from Fetch and VARGO helps a single system to offer improved batch, piece, and case picking workflows with payloads up to 1 1/2 tons for retail distribution, e-commerce, and Omni channel operations.
• Apr-2021: Softeon partnered with KSP Fulfillment (KSP), a rapidly growing third-party logistics (3PL) company. This partnership aimed to fulfil its need for a new WMS with the capability to scale, more improved features, and an advanced platform for continuous advancement. In this partnership, KSP has chosen Softeon as its WMS provider to assist power execution of their aggressive strategy.
• Oct-2020: VARGO formed a partnership with Fetch Robotics, the pioneer of On-Demand Automation. Together, the companies aimed to introduce an integrated fulfillment solution, which would integrate the power of Fetch's Autonomous Mobile Robots (AMRs) with Continuous Order Fulfillment Engine, VARGO's leading warehouse execution system (WES), to help distribution centers to maximize order fulfillment with new technology in real-time.
• Oct-2020: VARGO came into partnership with Kindred, an online gambling operator. In this agreement, Kindred would implement its artificial intelligence (AI) pick and place robotic solutions with VARGO’s warehouse execution system (WES) to improve both parties’ solutions for retail & e-commerce fulfillment. Together, the companies would bring strategic and advanced distribution solutions to the industry, which resolves real fulfillment challenges.
• Oct-2020: Manhattan Associates teamed up with L’Oréal, the world’s leading Beauty Company. Under this collaboration, L’Oréal deploys Manhattan Active Warehouse Management, a global, scalable and agile SaaS-based solution. The solution would help L’Oréal in enhancing its agility via the digitalization, efficiency, and productivity of its distribution centers.
• Sep-2020: VARGO entered into a partnership with McCombs-Wall, a California-based materials handling solutions provider. This partnership aimed to offer cross-business referral activity and joint solutions by enabling McCombs-Wall to get access to VARGO’s Continuous Order Fulfillment Engine (COFE) WES and other products & services.
• Apr-2020: VARGO formed a partnership with Körber, the global supply chain technology leader from software to material handling automation. This partnership aimed to offer a referral program via which Körber would provide VARGO’s Continuous Order Fulfillment Engine warehouse execution system (WES) and other VARGO solutions in North America.
• Feb-2020: Fortna came into partnership with AutoStore, an innovative storage solution. In this partnership, AutoStore and Fortna would continue to strengthen their global presence by providing additional solutions to a growing client base.
• Feb-2020: SSI Schaefer extended its contract by five years with BD Rowa, leader for automated stock handling. The extended contract aims to offer customers in the healthcare industry proper solution to train them for future processes like e-prescriptions or establishing Hub & Spoke models.
• Jan-2020: SSI Schaefer signed an agreement with Misumi, a global manufacturer, and provider of mechanical components. Under this agreement, Misumi selected SSI Schaefer to implement a new logistics center in Frankfurt / Main. The distribution center would be built in different stages with the capacity for 450,000 items on more than 10,000 sq. m of storage area

» Acquisition and Mergers:

• Jan-2020: Fortna took over Pierau Unternehmensberatung GmbH. Through the acquisition of Pierau Planung, Fortna would further strengthen its European presence and achieve greater capacity over its footprint to better serve its expanding customer base internationally.
• Nov-2018: Honeywell acquired Transnorm, a warehouse automation solutions provider. Transnorm became part of Honeywell Safety and Productivity Solutions (SPS). The acquisition complemented Honeywell Intelligrated business and broadened its warehouse automation solutions.
• Jun-2018: SSI Schaefer completed the acquisition of Incas, a provider of industrial automation solutions for logistics and production monitoring. This acquisition complemented the overall strategy of SSI Schaefer and strengthened its local presence in South West Europe substantially.
• May-2018: Toyota Advanced Logistics North America (TALNA) completed the acquisition of Peach State Integrated Technologies, a strategic supply chain consulting, engineering, and material handling integration firm. The acquisition supported TALNA’s growth strategy while offering clients an expanded network of services and knowledgeable supply chain professionals. This acquisition enabled both companies to better serve their current and future customer base by maximizing and sharing knowledge and resources.

» Product Launches and Product Expansions:

• May-2021: Manhattan Associates has introduced the Manhattan Active Transport Management system to its Active supply chain suite. The logistics management tool offers a unified distribution, transportation, labor, and automated solution within a single application. The new supply chain tool combines with Manhattan’s Active Warehouse Management to optimize inbound and outbound planning and execution.
• Apr-2021: Matthews Automation Solutions introduced its NEXUS warehouse execution system (WES). This NEXUS WES integrates data, operations, and material handling equipment, helping them to work collaboratively and boost throughput and material flow across the facility. In addition, this software features the latest web-based front end for enhanced usability & visualization on desktop and mobile gadgets.
• Nov-2020: Toyota Material Handling launched two automated guided vehicles (AGVs). Toyota Material Handling’s new Center-Controlled Rider Automated Forklift and Core Tow Tractor Automated Forklift modernize the way customers handle their manufacturing, warehousing, and dispensation problems.
• May-2020: Manhattan Associates launched the new Manhattan Active Warehouse Management solution. This solution is the world’s first cloud-native enterprise-class warehouse management system (WMS), which integrates every phase of distribution and never demands any update. It is developed entirely from microservices and is extraordinarily elastic, which adds to a new level of speed, adaptability, and ease of usage in distribution management.
• Mar-2020: Softeon launched its latest Warehouse Management and Execution System capabilities. This solution integrates Softeon’s improved Warehouse Management System (WMS) with the latest Warehouse Execution System (WES). The WES offers orchestration, visibility, and optimization of order picking and other related processes that involve optimizing materials handling system usage, leveraging offerings far above that are available in advanced WMS.
• Jan-2020: Fortna introduced its warehouse execution software platform, FortnaWES 2020 R1. This launch optimizes improved algorithms for dynamic picking and further supports labor-improving technologies like Goods to Person, AS/RS, and Autonomous Mobile Robots.

» Geographical Expansions:

• Dec-2020: SSI Schaefer expanded its business by establishing an automated warehouse in Sweden. The company has installed an automation solution with state-of-the-art technology for short throughput times and widens all functional areas like packaging, storage, picking, and shipping. The prevailing shuttle system would be double to 45,000 storage locations and 150 shuttles
• May-2020: Softeon expanded its business by opening its new, expanded Warehouse of the Future Innovation Lab. This lab would continue the company’s robust track record of innovation in Warehouse Management and Warehouse Execution Systems (WMS and WES) and beyond.

Scope of the Study

Market Segments Covered in the Report:

By Component

• Software
• Services

By Deployment Type

• Cloud
• On-premise

By End User

• Third-Party Logistics (3PL)
• Automotive
• Food & Beverages
• Consumer Electronics
• Healthcare
• Others

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Toyota Industries Corporation (Bastian Solutions LLC)
• VARGO Integrated Systems, Inc.
• Softeon
• SSI Schaefer Group
• Fortna, Inc. - Thomas H. Lee Partners
• Invata Intralogistics
• Matthews International Corporation
• Westfalia Technologies, Inc.
• Honeywell International, Inc.
• Manhattan Associates, Inc.