ID: MRFR/ICT/7215-CR | January 2020 | Region: Global | 140 pages
The IoT in Warehouse Market is expected to grow at a 21.21% CAGR during the forecast period (2019 to 2025).
Warehouse automation increases efficiency, speed, and productivity. The use of IoT in warehouse management is predicted to grow in the recent future on the back of more businesses using them to efficiently manage their inventory.
The growing demand for efficient warehousing solutions such as inventory management, workforce management, electronic data interchange, and others that require minimum to no human interference in daily warehouse operations drive the market growth. Future warehouses would consider employing a combination of efficient automation technologies to control operational logistics costs.
Despite the recent COVID-19 crises, IoT in warehouse market key players experienced healthy growth due to the rising healthcare requirements and growing trends in e-commerce. On the one hand, COVID 19 fostered the IoT in warehouse market demand for the stocking and disbursing of medical supplies and healthcare products required to address virus treatments. And on the other hand, COVID-19 accelerated the growth in e-commerce, a trend likely to remain even after lockdown restrictions are lifted.
Also, recent vaccine distribution drives worldwide are pressing the need for IoT, warehouse automation that can help reduce COVID-19’s impact on the supply chain. This trend is expected to continue even in the later stages of vaccination drives, which could be favorable for the market in the years ahead. In e-commerce warehouses, a number of key processes require IoT intervention.
With brand owners increasingly using more variable data printing (VDP) and personalization to communicate with consumers during this time, the IoT in warehouse market demand is expected to accelerate further.
Technology Upgrades Boost the Market Growth
Increasing numbers of connected devices and the rising adoption of warehouse automation solutions drive the global IoT in the warehouse market demand. Warehouse managers face increasing pressure to optimize the supply chain, commoditization, and rising customer expectations.
Besides, some recent IoT in warehouse market trends, such as omnichannel retailing, complex global supply chain, and consignment inventory, boost the market growth. Increasing pressure on warehouse managers to cut operating costs, reduce inventory cycles, and increase throughput further positively impacts market growth.
Emerging Nations to Offer Vast Opportunities
IoT in warehouse is the most preferred technology for high quality and high-speed digital printing of variable data. This technology is used in many small, medium, and large-sized product manufacturing companies, which is expected to allow the IoT in Warehouse market to witness increased demand worldwide.
Rapidly developing regions, such as APAC, present untapped opportunities for IoT in warehouse uses in the healthcare and eCommerce industries. The burgeoning eCommerce industries worldwide are projected to offer significant market growth opportunities, creating substantial IoT in Warehouse market demand. Further, the adoption of electronic shelf labels and smart label printers is likely to provide the market with major growth opportunities.
Restraints & Challenges
Price Volatility & Demand-Supply Gap in Components Restrain Market Growth
The IoT in warehouse industry faces significant challenges, such as fluctuating prices and shortages of key components required for production. With most component manufacturing facilities closed during COVID 19, there is a huge disruption in the industry’s supply chains.
Usually, components’ prices depend on their availability with the manufacturers and government regulations, and global and local demand. As a result, key component prices fluctuate from time to time, causing an increase or decrease in the overall manufacturing cost of warehousing solutions. Therefore, rising/high cost is a key factor restraining the growth of the IoT in warehouse market.
The IoT in warehouse market research report is segmented based on solution, device, industry, and region. The solution segment is sub-segmented into inventory management, workforce management, electronic data interchange, and others (telematics and automation).
The device segment is sub-segmented into sensing devices, networking & gateways, and others. The industry segment is sub-segmented into retail & logistics, automotive, food & beverage, healthcare, electrical & electronics, and others.
By region, the market is bifurcated into the Americas (US, Canada, Mexico, Rest-of-North America) and South America, Europe (the UK, Germany, Italy, France, and Rest-of-Europe), Asia Pacific (Japan, India, China, South Korea, and Rest-of-the-APAC), and Rest-of-the-World.
North America is the Leading Market Share
North America is likely to remain a highly attractive market for IoT in warehouse during the review period. The region has a high level of skilled expertise, robust cloud infrastructure, and the presence of technology providers, such as Cisco Systems, Inc., Zebra Technologies Corporation, and Argos Software, offering IoT-based solutions for the supply chain management. Besides, factors such as the early adoption of IoT technology in warehouse operation applications foster market growth.
The US is the largest country-level market in the region, expected to grow at a 19.91% CAGR during the forecast period. Tier I companies like Walmart and Amazon are increasingly integrating disruptive technologies, such as artificial intelligence (AI), big data, and IoT-based drones with warehouse management systems. This, in turn, increases the IoT in warehouse market size, boosting the retail performance by streamlining the process of inventory management.
Europe Seizes Second Highest Share in Global Market
Europe accounts for the second-largest share in the global IoT in warehouse market. Factors such as the availability of strong wireless network infrastructure and connectivity act as a tailwind contributing to the growth of IoT in the warehouse management market. Additionally, the rising eCommerce ventures and increase in the online shopping sector escalate the IoT in warehouse market share of the region.
Proliferation of IoT-enabled Warehousing Solutions in the APAC
There is a tremendous opportunity for IoT technologies and warehouse management solutions in this region due to the rising demand from the booming eCommerce, healthcare, pharmaceutical, and packaged food & beverage industries. The UK and Germany are the major revenue contributors to the regional market. According to MRFR experts, countries such as Italy, Spain, and the Netherlands are increasingly adopting IoT solutions in their warehouses.
The Asia Pacific region is witnessing steady growth in the global IoT in the warehouse market. Increasing strategic partnerships and collaborations across the region and huge investments by the domestic e-commerce sector substantiate the IoT in the warehouse market share. Furthermore, the increasing adoption of inexpensive RFID tags in the retail sector and the growth of smart logistics are some of the key driving forces behind the APAC IoT warehouse management market.
Additionally, the region is witnessing strong growth in the e-commerce sector, particularly in remote areas, which allow third-party logistics (3PLs) to offer seamless logistics services for the retailers. The IoT in the warehouse market in the Asia Pacific region is expected to register a 23.06% CAGR during the forecast period.
Players Focus on Product Development & Expansion
The market appears extremely competitive due to the strong presence of well-established IoT in warehouse market players. They seek opportunities to integrate across the extensive value chain while focusing on R&D investments, production facility expansion, and M&A activities to gain impetus. New players enter the market with aggressive pricing to undercut the established providers and gain footholds in international markets.
Link Labs is an American company developing computer network technology marketed for the Internet of things applications and devices for business and industrial customers. Link Labs provides the most competent, end-to-end IoT platform for tagging, locating, monitoring equipment, and supplies & assets. With more than 20 patented technologies, its flagship platform, AirFinder, helps companies across the industries to locate, monitor, and manage business assets from anywhere, anytime, indoor, outdoor, and everywhere.
Jan. 27, 2021 ---- Link Labs, a leading provider of an end-to-end IoT platform for locating, managing & monitoring equipment and supplies & assets anywhere, announced the availability of its AirFinder SuperTag Pro Evaluation Kit on Amazon. AirFinder SuperTag is a commercial IoT tracking device that blends five different technologies, including GPS/GNSS, WiFi location lookup, Cell ID, and indoor positioning network.
Nov. 25, 2020 ---- Visionstate Corp. (Visionstate) announced that it has sold an application for RFID technology to enhance the growing suite of products under the Wanda smart technology platform in the oil and gas sector. The RFID solution provides the ability to track and streamline inventory and product movement.
Tracking critical assets is an important part of efficient operations, and Visionstate’s RFID tracking helps control inventory and accurately measure its use and consumption.
Oct. 27, 2020 ---- RFID Journal hosted a virtual (online) event - RFID and IoT for Inventory and Warehouse Management. The event was sponsored by Zebra Technologies and NXP Semiconductors. During the event, the presenters explained how to benefit from deploying radio frequency identification (RFID) technology at a warehouse by managing inventory and coordinating a supply chain.
The IoT in warehouse market report features unique and relevant factors anticipated to significantly impact the market growth during the assessment period. The detailed IoT in warehouse market forecast would help industry players to understand the market better. The report defines the historical and current IoT in warehouse market trends boosting the growth of the market.
Additionally, the COVID-19 impact on the IoT in warehouse industry is also included in the report. Regional assessment in this report unlocks several untapped opportunities in regional and international markets. Detailed company profiling of IoT in warehouse market key players enables users to evaluate company shares, scope of existing and emerging product lines in new markets, pricing strategies, innovation possibilities, and much more.
Frequently Asked Questions (FAQ) :
The global IoT in warehouse market is expected to record a substantial market valuation due to the growing need for fuel efficiency consequently leading to fuel cost efficiency.
The global IoT in warehouse market is projected to register a moderate 21.21% CAGR in the forecast period.
The workforce management segment is slated to expand as the fastest-growing segment.
The sensing devices segment is slated to expand as the fastest-growing segment.
A few major market players operating in the global IoT in warehouse market are Schaeffler Technologies AG & Co. KG (Germany), BorgWarner Inc. (U.S.), Delphi Technologies, Inc. (U.K.), and Allison Transmission (U.S.), among others.
The IoT in warehouse market in North America recorded a value of 2.6 billion over the review period.
The APAC region is expected to witness the fatest growth at a 23.06% CAGR by 2025.