The "Market Report: WMS Software 2023" by STIQ, authored by Thomas Andersson and Yassir Al-Refaie, highlights robust growth in the WMS sector despite challenges in the automation industry. The report indicates healthy performance among WMS vendors in 2023, with factors such as multi- and omni-channel adoption, cloud deployment, and supply chain resilience driving demand. However, the growth of WCS and WES vendors appears more subdued, possibly influenced by trends in automation hardware. The outlook remains positive in the short to medium term, particularly with a continued shift towards WMS cloud deployments. The report also delves into the WMS sector's segmentation, pricing complexities, and the emergence of the Warehouse Execution System (WES). Additionally, it notes the impact of warehouse automation on revenue growth and the prevalence of M&A activity in the WMS software sector, with 30 transactions recorded since 2020.and more info here https://kalkinemedia.com/news/world-news/robots-taking-over-the-warehouse-is-disrupting-the-wms-industry-and-bringing-innovation
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DISCLAIMER, USING CONTENT, ACCURACY
• DISCLAIMER: This document does not constitute investment advice
and is provided free of charge for information purposes only. STIQ
Ltd and advertisers accept no liability for any loss or damage arising
directly or indirectly from your use of this document
• USING CONTENT & SOURCING: Copying or using content from this
report is permitted with the correctsourcing: “Source: STIQ Ltd, 2023
WAREHOUSE MANAGEMENT SOFTWARE report”
• DATA ACCURACY: Data in this report uses a number of third party
and proprietary data sources. We recommend readers do their own
research to confirm any data before using in decks or presentations
FOR BUYERS : STIQ OFFERS BUYERS AN OPPORTUNITY TO [OFF THE
RECORD] DISCUSS REQUIREMENTS WITH OUR ANALYSTS. GET OUR
VIEWS ON THE SECTOR, HAVE YOU MISSED KEY VENDORS, WHAT USE
CASES EXIST, PROCESSES, ETC. CONTACT DETAILS ON FRONT PAGE
EXEC SUMMARY: STRONG CONTINUED WMS SECTOR GROWTH ISOLATED FROM CURRENT
AUTOMATION SECTOR CHALLENGES. ACCESS TO EXPERIENCED STAFF, A GROWTH LIMITER
ONGOING PIVOT TO CLOUD WMS PRICING OFTEN CONFUSING
• Whilst the WMS sector has been late to the cloud,
vendors highlighted healthy growth with an
increasing number of cloud native vendors
• Few industries required on-prem deployments and
if so, often for security or compliance reasons
• Increasing geopolitical tensions may increase
demand for on-prem or private cloud deployments
• WCS and WES solutions remained on-prem
primarily due to potential latency issues
WMS SECTOR SEGMENTATION
• There was a wide range of different WMS vendors,
from ERP companies to pureplay WMS businesses
and warehouse automation providers
• Many WMS vendors offer additional products and
31% of all vendors offered one additional software
product, the most popular being an OMS
WES – THE MISSING LINK?
• In recent years, the WES has emerged with a variety
of definitions, but most often used in connection
with some form of automation, frequently robots
• Interviews suggested the WES could be a ‘missing
link’ between the WMS and WCS, but also that WES
functionalityhas been around since early 2000’s
• Some WMS vendors suggested an increased use of
warehouse automation in the medium to longer
term may have a detrimental impact on revenue
growth with less seats/ users being needed
• Furthermore, often confusing and opaque pricing
practices in the wider WMS sector has led to
younger players offering simpler pricing options
HIGH VOLUME M&A TRANSACTIONS
• The WMS software sector has experienced a
relatively high level of M&A activity with 30
transactions since 2020
• STIQs research also indicated nearly a third of all
vendors identified in the sector had been involved
in an M&A transaction
WMS, STRONG 2023 PERFORMANCE
• Most WMS vendors interviewed for this report
indicated very healthy growth in 2023, continuing a
longer-term sector trend
• WCS and WES vendors reported somewhat muted
growth in 2023, primarily as these solutions often
follow trends in automation hardware where there
has been some headwinds in 1H23
• Primary drivers of demand include a continued
switch towards multi- and omni-channel, wider
cloud adoption and supply chain resilience
• Interviews suggested higher growth could have
been achieved but for a lack of experienced
logisticians with WMS knowledge
POSITIVE MEDIUM-TERM OUTLOOK
• Vendors expressed a high level of confidence and
optimism for short- to medium-term growth
• Continued appetite for WMS cloud deployments
was viewed as a a key market driver
Weaker Stronger
2022 Performance:
2023 Outlook:
Competitive pressures:
WMS MARKET SECTOR HIGHLIGHTS
Key:Direction of travel
Source: STIQ Research & Analysis
Published by STIQLtd
September2023
www.stiq.ltd
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5. 56
INTERVIEWEES
• ADDVERB
• inFlow Inventory
• Avectous
• Barcodes Inc
• Bastian Solutions
• Blue Yonder
• Bowe
• Bricz
• Clarus WMS
• ConsafeLogistics
• DA Davidson & Co
• E3 Consulting
• Embassy Data Logistics
• enVista
• Fidus Global
• Ground Inc
• i9Supply
• KPI Solutions
• Logiwa
• Manhattan Associates
• Mews Consulting
• ModernLogic
• OpenWMS (Interface21)
• OPLOG
• Pendant Automation
• Prime Robotics
• Sedlak
• SnapFulfil/Synergy
• SSI Schaefer
• SVT Robotics
• Syncware
• Tecsys
• TGW Logistics Group
• vTradEx
• Zion SolutionsGroup
CEO EMEA
Business Strategist
VP Sales
Product Manager
VP of Software
Sr Industry Strategy Director
Managing Director
CEO
CEO
Product Manager
Sr Software Analyst
Sr Manager
CEO
SVP Supply Chain Technology
Business Analyst
Manager Solution Sales
Director of Technology Projects
VP Product Development
CEO
Sr Director Product Management
Partner
Managing Director
Managing Director
CEO & Founder
President
CEO & Founder
Director of Client Services
CEO
Consultant
SVP Product
CEO & Co-founder
VP Product Marketing
Director Process & SoftwareConsulting
CEO
CEO & Co-founder
ANONYMOUS INTERVIEWEES
• Several stakeholders also provided anonymous insights
on the sector for this report
• Anonymous interviewees included 3PLs, FMCG, Global
Consulting Firms, and Retailers
TRADE SHOWS
STIQ visited these trade shows in the productionof this
report:
• eCommerce Expo
• LogiMAT
• LogisTech Tokyo
• Modex
• NRF Big Show
• Promat
(UK)
(DE)
(JP)
(US)
(US)
(US)
Website
Website
Website
Website
Website
Website
CONTRIBUTING TO FUTURE STIQ REPORTS
Are you a vendor that’s not included? Do you work in the
sector and want to contribute to STIQ reports? Do you have
questionsand/or want to meet up at a trade show, etc.?
TALK TO A STIQ ANALYST
Did you know STIQ also provides analysts for free to buyers of
warehouse software and automation/ robotics? Some buyers
use this to sense-check vendor selection, suitable robot
applications and trends and much more. A conversation can
be structured around a topic, as a Q&A session, etc. and is
always treated as confidential.
Contact us > tom@styleintelligence.com
GLOSSARY
3PL Third-Party Logistics
AMR Autonomous Mobile Robot
AGV Automatic Guided Vehicle
APAC Asia-Pacific
ASRS Automatic Storage & Retrieval System
B2B Business-to-Business
B2C/D2C Business-to-Consumer / Direct-to-Consumer
CAGR Compound Annual Growth Rate
CPG/FMCG Consumer Packaged Goods (US/UK)
DC Distribution Centre
ERP Enterprise Resource Planning
EU Europe
FIFO/LIFO First-In-First-Out / Last-In-First-Out
FTE Full Time Employee
G2P, GTP Goods to Person
HW Hardware
LMS Labor Management Software
M&A Mergers & Acquisitions
MHE Material Handling Equipment
NA North America
OMS Order Management System
PID Physical Inventory Document
PLC Programmable Logic Controller
PTL Pick-to-Light
RCS Robotic Control System
ROI Return On Investment
SAAS Softwareas a Service
SCADA Supervisory Control and Data Acquisition
SCM Supply Chain Management (software)
SI System Integrator
SMB/SME Small & Medium Businesses (US/UK)
SW Software
TCO Total Cost of Ownership
TMS Transportation Management System
WES Warehouse Execution System
WFM WorkforceManagement
WCS Warehouse ControlSystem
WMS Warehouse Management System
Y2K Year 2000
CREDITS, INTERVIEWS, TRADE SHOWS AND GLOSSARY
Published by STIQLtd
September2023
www.stiq.ltd
6. Published by
STIQ Ltd
www.stiq.ltd
WAREHOUSE MANAGEMENT
SOFTWARE 2023
The full report is available as a free download from The Mobile Robot Directory by following this link:
https://www.mobile-robots.com/market-research/market-report-wms-software-2023/
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