The rapid growth of warehouse automation-related software solutions

by Inside Logistics Online Staff

According to a report from Interact Analysis, revenue generated from automation-related software solutions is growing at a faster rate than warehouse management software.

The report – Warehouse Software 2024 – says the warehouse software market reached a value of US$7.2 billion in 2023, and is expected to grow to $16.6 billion by 2030.

In 2023, the warehouse automation-related software market accounted for 31 per cent of the total warehouse software market, while warehouse management software made up 69 per cent. Interact Analysis anticipates that warehouse automation-related software will increase its market share to 46 per cent by the end of 2030, with warehouse management software expected to decrease to 54 per cent.

The report says the trend toward warehouse automation is reshaping the warehouse software market, including the consolidation of solutions and the blurring of lines between warehouse software providers.

Recently, Interact Analysis has seen the introduction of hardware solutions like automation and robotics which have further streamlined warehouse operations. These hardware solutions require additional software, on top of the WMS, to coordinate the movements of the mechatronics and robotics.

Sub-ordinate control software is used to control fine movements of the hardware, while Warehouse Control Systems (WCS) and Fleet Management Systems (FMS) provide the movement logic that enables pallets, cases, totes and other handling units to get from point A to point B through an automated system. Execution software, on the other hand, is used to orchestrate order release and task allocation to optimize a given output (e.g. maximize throughput or minimize cost).

As the complexity of warehouses continues to increase, and the need to fine-tune logistical processes grows, Interact Analysis expects significant growth in the deployment of warehouse software solutions.

Breaking the market up into WMS and automation-related software solutions, the report found that the market size for WMS-related solutions reached US$5 billion in 2023 and is expected to reach US$8.9 billion by 2030, growing at a CAGR of 8.6 per cent. Automation-related software solutions, on the other hand, reached US$2.2 billion in 2023, with the market anticipated to expand to US$7.7 billion by 2030, growing at a much higher rate of 19.5 per cent.

Interact Analysis’ Warehouse Software 2024 report is the first study to look at both WMS and automation-related software through the same lens.