In-Store Logistics Systems Market Report Overview
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The global in-store logistics systems market size is expanded rapidly in 2021 and market is expected to generate substantial revenue by 2031, exhibiting a high compound annual growth rate (CAGR) from 2021 to 2031.
In-store logistics system is a set of guidelines and procedures designed to streamline the operations of distribution centers and warehouses so they can achieve their goals. In addition, the main task of the warehouse management system is to keep records of warehouse arrivals and departures. The warehouse management system has various functions, such as maintaining the correct location of the inventory in the warehouse, using the available space as efficiently as possible or coordinating work to achieve the highest efficiency.
Strong growth in e-commerce and increased demand for cloud logistics solutions are fueling market growth. Additionally, the spread of multi-channel distribution networks is fueling the growth of the inventory systems market. However, the market growth is limited by the large investment required to set up an on-premises in-store logistics system for SMEs, and data privacy and security. On the other hand, the adoption of digital technologies in supply chain management offers many opportunities for the expansion of the in-store logistics systems industry during the forecast period.
COVID-19 Impact: Supply Chain Disruption Impeded Market Growth
The outbreak of the COVID-19 pandemic has damaged the consumer sector, which contributes the most to economic growth in. Retail, food service and travel services are under enormous monetary pressure due to declining sales and high fixed costs. Logistics and supply chain companies are under pressure as the national government puts more emphasis on the supply of essential goods and health products. Thus, logistics chains are witnessing an unusual and huge loss of due to the disruption caused by the COVID-19 pandemic. Factory closures and shortage of manpower to unload cargo and shortage of truck drivers to clear cargo derailed the smooth running of business and logistics. Digitization of core business functions (such as fleet tracking, documentation, seamless communication networks, turnover management and creating a digital foundation by modernizing systems during COVID) has helped logistics companies shorten innovation cycles, flexibility and rapid resolution.
Latest Trends
"Self-Driving Vehicles Change the Logistics Industry "
In recent years, the importance of self-driving vehicles in the logistics industry has increased as they are gradually introduced in highly controlled environments such as warehouses and yards.
However, the introduction of self-driving vehicles in common and public spaces such as highways and city streets could be the next big step for the industry, helping to optimize logistics operations and increase safety. The growing technological advances in artificial intelligence and the increasing heavy investment in the development of sensor and vision technology can help self-driving vehicles change the way vehicles are assembled, operated, used and maintained.
Self-driving vehicles aim to transform logistics from trucks to last-mile robots, unlocking new levels of safety, efficiency and quality. For example, digital logistics providers can use various driverless technologies such as crowdfunding and autonomous highway to support the health and safety of each driver.
Self-driving vehicles can perform traditionally labor-intensive tasks, improving internal and external logistics operations. Many companies are working to accelerate the approval of fully driverless vehicles. For example, Google and Tesla have made significant advances in driverless vehicle technologies. Leading electric car maker Tesla is taking steps to deploy fully autonomous heavy-duty trucks. Similarly, companies such as Amazon and UPS are investing in the development of flying drones to automate delivery processes.
In-Store Logistics Systems Market Segmentation
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- By Type Analysis
According to type, the market can be segmented into cloud based and web based
- By Application Analysis
Based on application, the market can be divided into large enterprises and SMEs.
Driving Factors
"The Explosive Growth of E-commerce to Bolster Market Growth"
The explosive growth of e-commerce over the past decade has been driven by the growth of e-commerce and the growing number of Internet users. This growth in e-commerce requires logistics service providers to operate faster and more efficiently to quickly process small individual orders. Online customers expect order accuracy, same-day or same-hour delivery and free returns. Internet commerce companies are exploring ways to reduce order delivery time and operating costs. The e-commerce industry demands transparency, affordability, convenience and speed of delivery and compelling frictionlessness. To satisfy this need, it is necessary to create new business models and solutions through automation of logistics operations digitization, material handling system, warehouse management and distribution management system. This ensured faster and more versatile delivery services, especially in the last mile. These factors are estimated to surge in-store logistics systems market growth.
"Increased Demand for Cloud WMS Solutions to Augment Product Demand"
Cloud in-store logistics system solutions due to its features such as better scalability, efficient work, traceable materials, optimized supply chain and other benefits of internal automation. These inherent advantages allow companies to optimally manage their inventory and supply chain needs, from labor requirements and space requirements to equipment and fulfillment. Thus, significant adoption of cloud-based logistics solutions has been observed across the world, which is expected to drive the growth of the market globally.
Additionally, this system has significant inventory management, order placement and warehouse automation capabilities. In addition, you benefit from an integrated WMS and ERP solution for inventory management and much more with a complete cloud-based ERP solution. This allows employees to eliminate all the hassle of dealing with multiple internal systems and all the maintenance and technology upgrades, ultimately increasing the size of the inventory systems market.
In addition, with the rapid development of technology, the introduction of micro service software using APIs is a significant step forward in connecting independent solutions to each other, which further enabled cloud technology integration opportunities. For example, in September 2022, enterprise software provider Yonyou Network Technology launched a next-generation cloud-based ERP product for external users. This ERP helps companies make better decisions by providing accurate inventory information. ERP warehouse management systems allow companies to manage logistics, operations, finance and inventory from a single system, reducing errors and improving efficiency. This in turn is expected to boost in-store logistics systems market growth. Additionally, large organizations are moving to cloud-based inventory management systems because it allows organizations to offload tedious tasks such as maintenance, infrastructure management, and timely updates. Thus, the inherent characteristics of cloud-based WMS solutions are expected to expand the market trends of warehouse management systems.
Restraining Factors
"Slow Adoption of Digital Logistics Solutions Due to Large Capital Investments "
Digitalization of logistics operations requires large capital investments, accompanied by the installation of automation equipment, software and solutions, which leads to high costs. Replacing existing processes is very expensive. Another factor hindering the growth of the digital in-store logistics logistics market is the slow adoption due to the complexity of integrating multiple IoT platforms, many protocols and many APIs. The adoption of digital logistics solutions is not accelerating because organizations do not want to move from a manual practice to a digitized process that involves large capital investments. Most companies are comfortable with new digital technologies and use their institutions to make informed business decisions rather than adopting digital technologies. Therefore, companies with limited financial resources cannot choose automated systems, thus limiting the growth of the in-store logistics systems market.
In-Store Logistics Systems Market Regional Insights
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"North America Accounted for the Highest Market Owing to the Rising Demand for Automate Industry Management"
North America to dominate the in-store logistics system market share in 2021 and is expected to maintain its position during the forecast period as manufacturers need to automate inventory management procedures to reduce costs in this region.
Asia-Pacific region is expected to grow significantly during the forecast period due to the adoption of new technology and emerging digital transformation due to increasing competition from market players in the region.
Key Industry Players
"Key Players Focus on Partnerships to Gain a Competitive Advantage"
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.
List of Market Players Profiled
- Adobe (Magento)
- SAP
- Oracle
- Manhattan Associates DSI
- IBM
- HighJump
Report Coverage
This research profiles a report with extensive studies that take into description the firms that exist in the in-store logistics systems market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.
Frequently Asked Questions
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Which are the driving factors of the in-store logistics systems market?
The explosive growth of e-commerce to bolster market growth and the increased demand for cloud WMS solutions to augment product demand are the driving factors of the in-store logistics systems market.
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Which are the top companies operating in the in-store logistics systems market?
Adobe (Magento), SAP, Oracle, Manhattan Associates DSI, IBM, HighJump and others are the leading in-store logistics systems market players.
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What Are the Segments of the in-store logistics systems Market?
According to type, the in-store logistics systems market can be segmented into cloud based and web based. Based on application, the market can be divided into large enterprises and SMEs.