According to our latest market study, titled "Warehouse Management System Market Forecast to 2028 –Global Analysis – by Component, Tier Type, and Industry," the market is expected to grow from US$ 14,517.07 million in 2022 to reach US$ 51,360.23 million by 2030; it is anticipated to register a CAGR of 17.3% from 2023 to 2030.
The rise in the adoption of automation in the US is a major factor driving the sales of warehouse management systems in North America. In 2020, Radwell International, Inc. constructed a new 86,000-square-foot automated distribution center in its Texas branch. They introduced AutoStore solution with Swisslog’s SynQ software in their distribution center. This automated solution helped the company improve material flow and automation control system functionality with the assistance of robots and warehouse management system software. In addition, the rising adoption of the cloud among enterprises across North America to optimize their business process contributes to the demand for WMS, and therefore fueling the warehouse management system market.
The countries in the MEA are witnessing growth in the warehouse management system market size owing to the growing adoption of technologies. Increasing cloud adoption in the region and growing launch of new warehouses are contributing to the rising demand for warehouse management systems in the region. In SAM, there is a rise in the opening of new warehouses in the region, which is further increasing the demand for warehouse management systems. For instance, in September 2022, Maersk opened a new 350,000-square-meter warehouse in Brazil. Opening of new warehouses would assist in propelling the growth of warehouse management system market.
Businesses in the MEA have found it crucial to benchmark their operations against world-class warehouse management practices. Moreover, according to Turner & Townsend, the demand for consumer goods rose in the Middle East in 2021, which strongly relied on logistics activities. The strong e-commerce sales in the UAE are propelling the need for warehousing in the country. Under Vision 2030, Saudi Arabia is investing heavily in the logistics sector, which will hold 30% of the country’s economy by 2030. Thus, the rising initiatives and e-commerce sales in MEA countries will propel the need for WMS, contributing to the warehouse management system market growth during the forecast period.
Impact of COVID-19 Pandemic on Middle East & Africa Warehouse Management System Market
During the global health crisis, the Middle East & Africa experienced significant growth in demand for WMS offerings. The COVID-19 outbreak affected economies and industries in various in the Middle East region due to lockdowns, travel bans, and business shutdowns. In addition, the automotive industry was one of the significant industries facing severe disruptions such as supply chain breaks, technology event cancellations, and manufacturing unit shutdowns. Moreover, most manufacturers were still closed and unsure when to resume work, resulting in massive delays to the scheduled lead time and subsequent deliveries. Due to the pandemic, there is a rising adoption of on-cloud WMS solutions among large companies with global warehousing and distribution operations. In addition, there is a growing e-commerce industry, and developed third-party logistics (3PL) networks are driving the warehouse management system market in Africa region. Retail, industrial, and consumer goods were some of the significant industries heavily affected by the COVID-19 outbreak. The mentioned industries witnessed demand for WMS solutions to keep businesses operational throughout the pandemic, which in turn has contributed positively towards the warehouse management system market growth.
Key Findings of Market Study
The rise of e-commerce and retail sectors within the UAE has given a major boost to launching new distribution and warehousing facilities. For instance, in January 2023, AD Ports Group partnered with Ghassan Aboud Group to launch a 3.3 square kilometer wholesale food trading and logistics hub in KIZAD. This “Regional Food Hub - Abu Dhabi” will use all advanced technologies for automation to ensure the business is running efficiently and successfully. Thus, development of the e-commerce sector and new installation of wholesale hubs in the UAE are fueling the warehouse management system market growth. Moreover, the presence of warehouse management system providers such as PACT Business Solutions across the UAE is propelling the warehouse management system market size.
The Rest of MEA warehouse management system market includes countries such as Qatar, Egypt, Turkey, and Kenya. There is a rise in the launch of new warehouses across various countries in the MEA. For instance, according to Transport and Logistics, in December 2022, GAC Qatar, in partnership with Qatar Free Zones Authority (QFZA), opened a new, sustainably built 27,000-meter square logistics facility in Qatar. By expanding the company’s infrastructure, the company will provide better customer services in local and international markets. Moreover, the Egypt e-commerce market is rising due to the large population of over 100 million people and a high number of internet users. Thus, enterprises choose logistics providers such as Aramax and DHL for warehousing solutions, which further increases the warehouse management system market. Furthermore, according to PeoplActive, in December 2022, cloud computing in Turkey boosted due to the rollout of 5G with rising internet usage. Thus, rise in adoption of cloud services by companies in Turkey will propel the demand for warehouse management systems. In addition, rising e-commerce activities, opening of new warehouse facilities, and adoption of cloud services across the countries in the MEA will fuel the warehouse management system market growth.
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