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The Internet of Things (IoT) in the Warehouse market is experiencing substantial growth, driven by a convergence of factors that collectively shape its trajectory within the logistics and supply chain industry. A primary driver is the increasing need for enhanced operational efficiency and real-time visibility in warehouse management. As the volume of goods and complexity of supply chain networks grow, IoT technologies provide a transformative solution by integrating sensors, devices, and connectivity to monitor, track, and optimize various warehouse processes. This demand stems from the industry's recognition that IoT can streamline operations, reduce costs, and improve overall supply chain visibility.
Technological advancements play a pivotal role in propelling the IoT in Warehouse market. The evolution of sensors, RFID (Radio-Frequency Identification), and connectivity solutions enables the deployment of IoT devices across warehouse facilities. These technologies empower warehouses to collect and analyze data in real time, enabling precise inventory management, asset tracking, and predictive maintenance. The integration of advanced technologies ensures that warehouses can leverage the full potential of IoT for data-driven decision-making.
The rise of e-commerce and the increasing demand for faster order fulfillment significantly impact the IoT in Warehouse market. With consumers expecting swift and accurate deliveries, warehouses face the challenge of optimizing their processes to meet these expectations. IoT technologies, such as smart sensors and location tracking, play a crucial role in improving order accuracy, reducing fulfillment times, and enhancing the overall customer experience. The adaptability of IoT to the dynamic requirements of e-commerce positions it as an essential tool in modern wareouse operations.
Supply chain visibility and traceability contribute to the growing adoption of IoT in warehouses. Businesses seek end-to-end visibility into their supply chains to identify bottlenecks, monitor inventory levels, and ensure timely deliveries. IoT solutions provide real-time data on the movement and condition of goods throughout the supply chain, enhancing traceability and enabling proactive decision-making to address potential issues before they impact operations.
Cost efficiency is a significant factor influencing the adoption of IoT in Warehouse solutions. While the initial investment in IoT technologies may be substantial, the long-term benefits in terms of operational savings, reduced errors, and optimized resource utilization make it a cost-effective choice for warehouses. The ability of IoT to streamline processes, minimize downtime, and prevent costly errors positions it as a strategic investment for warehouses seeking to achieve efficiency gains.
Competition among logistics and technology companies contributes to the evolution of the IoT in Warehouse market. Established players and emerging startups are investing in the development and integration of IoT solutions to gain a competitive edge. Partnerships between logistics providers and technology vendors further drive innovation, resulting in the continuous improvement of IoT applications tailored to the unique needs of warehouse operations.
Government regulations and sustainability initiatives influence the IoT in Warehouse market. As regulatory bodies emphasize transparency, safety, and environmental responsibility in supply chain operations, warehouses are compelled to adopt IoT solutions for compliance and adherence to industry standards. IoT technologies contribute to sustainable practices by optimizing energy usage, reducing waste, and enhancing overall resource efficiency in warehouse operations.
Interoperability and data integration are essential for the widespread adoption of IoT in Warehouse solutions. Warehouses often operate with diverse systems for inventory management, transportation, and order fulfillment. The seamless integration of IoT devices with existing warehouse management systems ensures a cohesive and efficient workflow. Interoperability enhances the scalability and adaptability of IoT solutions, allowing warehouses to integrate new technologies without disrupting their existing operations.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Growth Rate | Â Â 12.0% (2022-2032 |
IoT in Warehouse Market Highlights:
IoT in Warehouse Market Overview
The IoT in Warehouse market is expected to be valued at USD 10.376 billion in 2022 and will exceed USD 28.674 billion by 2032 with a CAGR of 12.0% during the forecast period (2022-2032). The growth of the IoT market is based on the demand of warehouse efficiency solutions in works such as workforce management, inventory management, electronic data interchange, and other daily operations requiring minimal or no human interference. It is expected that future warehouses will control their costs for operational logistics by utilising efficient automation technologies.
Figure 1: IoT in Warehouse Market Size, 2022-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
This report discusses the market overview, market dynamics, and its driving forces, possible opportunities. Additionally, it comprises of detailed analysis of the regional market, segment overview, competitive landscape and recent developments in the global market if IoT in warehouse.
On Oct. 17, 2022, du, from Emirates Integrated Telecommunications Company (EITC), announced a partnership with Huawei & SINOTRANS to deliver 5G-driven robot warehouse solutions. The MoU signed at GITEX Global 2022 presents du’s commitment towards innovations in powering governments, shaping the Emirates Reality’ featuring technologies such as IoT, AR, metaverse, blockchain, NFT, and robotics.
The UAE is a strategic global trade and logistics hub location, with world-class logistics facilities contributing to the UAE’s GDP. While the logistics sector has increasingly embraced warehousing automation to enhance productivity, many logistic companies are struggling with the lack of 5G automation.
IoT in Warehouse Market Covid-19 impact Analysis
Although, covid 19 pandemic has affected industries all across the world negatively, it has helped Iot in warehouses to grow more through e-commerce. During the pandemic, the IoT in warehouses came in great help to the healthcare industry as it contributed in stocking and distributing the medical supplies and all the other healthcare products that were required to fight the pandemic. Recently, Iot in warehouse is in great demand because of the vaccine distribution required to reduce the impact of covid-19. The demand is expected to accelerate more in this period because of the brand owner's increasing usage of VDP (variable data printing) and personalised connection with their customer. In a nutshell, covid-19 has proven to be a favourable factor for the IoT in warehouse market. Moreover, it is likely to increase the demand in the market of e-commerce in the future as well.
On Aug. 10, 2020, Zebra Technologies Corporation (the US), a leading provider of innovative digital solutions, published a study about how Fetch Robotics Cart has transformed warehouse picking during the COVID-19 pandemic. Later, in August 2021, Zebra Technologies acquired Fetch Robotics.
Fetch Robotics Cart technology that can help workers and customers practice social distancing emerged in 2020 alongside intelligent automation, IoT, and 5G. Also, smart robotics solutions in warehousing and retail environments came onto the scene precisely at the right time. Zebra Technologies mentioned that employing its cobots to retrieve picked items & transport them to packing stations can reduce warehouse workers’ movements and interactions.
Market Dynamics
Drivers
The market is witnessing a high rate of adoption for warehouse technology solutions and an increasing amount of connected devices, which are propelling the growth in the global IoT in warehouse industry hugely. Also, the managers of the warehouses are facing difficulties to cope up with the rising customer expectation, commoditization, and supply chain. Therefore, they are cutting operational costs and reducing inventory cycles and embracing a few new IoT in warehouse market trends following-complex global supply chain, omnichannel retailing, and consignment inventory.
Additionally, some other driving forces behind the IoT in warehouse market are- low electricity bills, low operating cost, and simple design. Electricity bills are automatically lowered by the elimination of expensive battery backup and having the latest grids. Government encouraging renewable energy production and installing solar panels can also give a boost to the market. The market is likely to be favoured by the introduction of subsidies and incentives.
- On Sept. 12, 2022, Amazon announced the acquisition of Cloostermans mechatronics robotic solutions, a warehouse robotics company, to continue to expand its robotic capabilities. As the retail giant continues robotic integration at its warehouses, the addition of Cloostermans robotic assistants will aid Amazon in heavy-duty tasks such as stacking & moving heavy objects and packaging products for customers.
- In 2012, Amazon started integrating robotics into its warehouse operations and has ramped up investments in robotics to improve warehouse safety in recent years. In 2021, Amazon also opened a robotics innovation lab in Italy and R&D facilities in Germany to further develop its warehouse robotics capabilities.
Opportunities
All the budding e-commerce industries across the world are expected to offer a huge opportunity and demand in IoT in warehouse market. Additionally, the smart label printers and electric shelf label being rapidly adopted is only about to contribute to the growth of the market.
Challenges
The major challenge of the IoT in warehouse industry is the unstable pricing and key components shortage for production requirements. A huge gap in the supply chain has been created due to the shut down of manufacturing companies forced by the covid-19 pandemic.
Restrains
The price of the key components depends on their availability. Therefore, unstable stocking of the key components in making the pricing always fluctuating. Therefore, the increasing and decreasing of the pricing is acting as the restraining factor against the IoT in Warehouse Market Growth.
IoT in Warehouse Market Segment Overview
The IoT in warehouse market research is based on four segments- device, solution, industry, and region.
By Solution
Based on solutions, the market of IoT in warehouse is further segmented into-
- Inventory management
- Electronic data interchange
- Workforce management
- Telematics and automation
By Device
Based on device, the market is sub-segmented into-
- Networking and gateways
- Sensing devices
- Others
By Industry
Depending on the industry, the IoT in warehouse market is further classified into-
- Logistics & retails
- Automotive
- Beverage and food
- Electrical and electronics
- Healthcare
- Others
By Region
By region, the global market of IoT in warehouse is further segmented into-
- America
- South America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
On Apr.26, 2022, Amazon announced a venture investment program worth US$1 BN – the Amazon Industrial Innovation Fund (AIIF) for warehouse robotics to spur supply chain, fulfillment, and logistics innovation. The first round of financing will be used for wearable tech focusing on workplace safety, specifically automation and workplace robotics.
Amazon’s new fund would aid in developing solutions that can respond to a shifting market landscape, including increasing online shopping, expectations around delivery times, and online experiences. Amazon sees an opportunity to empower companies developing emerging technologies in customer fulfillment operations, logistics, and the supply chain.
IoT in Warehouse Market Regional Analysis
North America is the dominant region among the global, regional market, and it is likely to maintain its place in the IoT in Warehouse Market Size, IoT in Warehouse Market Share. The region has prominent key players, robust cloud infrastructure, and skilled expertise. The presence and implementation of new strategies of players like Cisco Systems, Inc., Argos Software, Zebra Technologies are fostering the growth of the market. US is the largest market in the North American region which is likely to grow with the highest CAGR of 19.91% during the review period.
Europe holds the second-largest share of the global market of the IoT in warehouse. Factors like increasing online shopping sectors, eCommerce ventures, and infrastructure of strong and wireless networks are driving the market growth of the region.
The Asia Pacific, owing to the increasing demand and investment in energy resources and solar projects, holds the largest share in the market. Constant efforts on reducing the dependency on fossil fuel can add a great boost to the IoT in Warehouse Market Trends.
- On Oct. 06, 2022, A Dutch Bitcoiner announced that it has installed a Bitcoin miner - Solar Bazooka, in a warehouse replacing the heating system powered by natural gas. The Bitcoin miner heating warms the warehouse amid Europe’s energy crisis, saving money, efficiency, and the planet. Workers in the warehouse can enjoy the warm temperature, with low noise.
- On Oct. 26, 2022, Cognizant, a provider of IT services, and Qualcomm, the developer of chips, extended their partnership and opened the first 5G innovation center in North America. The combination of 5G and MEC allows businesses to build multiple virtual networks using the same physical hardware, supporting thousands of connected devices. The facility will concentrate on manufacturing, supply chain management, and autonomous mobile robots that are controlled, operated, and integrated via 5G into warehouse management.
IoT in Warehouse Market Competitive Landscape
The market has been highly competitive, and the lockdown has only contributed to enhancing it. Many well-established, strong, and prominent players being in the market makes the competition only tougher. Moreover, many new market players are trying to get hold of the market with aggressively low pricing. The objective is to undercut the already established players in the IoT in warehouse industry market. On the other hand, the old players are focusing on strategies like R&D investments, M&A activities, and product facility expansion.
IoT in Warehouse Market Dominant Key Players
- TECSYS Inc.
- Zebra Technologies
- Omnitracs LLC
- Cisco System Inc
- IBM Corporation
- Hcl Technologies Limited
- Software AG
- Infor Inc
- Oracle Corporation
- Eurotech SpA
- UltraShipTMS
- Intel Corporation
- PTC Incorporation
Recent Development
April 2024:
In conjunction with Huawei, the Indonesian telecoms carrier Telkomsel has opened a 5G Smart Warehouse and 5G Innovation Center in the Bekasi Regency of West Java. The business claims that this facility is the first of its kind in Indonesia. According to Telkomsel, this facility demonstrates the potential of 5G technology to revolutionize warehouse management, hence increasing operating efficiency and generating new possibilities for the logistics sector.
In its statement regarding the inauguration, Telkomsel stated, "We are optimistic that the deployment of the 5G Smart Warehouse alongside the 5G Innovation Center's conceptual solutions will inaugurate a transformative era for professionals within the logistics sector, particularly by enhancing managerial competencies and amplifying the operational efficacy of warehousing systems."
Telkomsel was quoted as saying that the 5G Smart Warehouse makes use of cutting-edge technologies such as the Internet of Things (IoT) and big data analytics in order to simplify operations, improve safety and security, boost efficiency, and cut down on energy usage as well as any unexpected losses. In addition, warehouse managers can make use of digital twins and real-time data analysis in order to improve inventory management and avoid stockouts.
Additionally, the 5G network allows staff members and autonomous guided vehicles (AGVs) to communicate in a timely and precise manner, maximizing the efficiency of the flow of products. Furthermore, the business said that clever security systems driven by video and infrared sensors safeguard the safety of the warehouse.
In addition, the 5G BTS technology used to power the warehouse uses just 5 Watts, which is the same amount of energy saved by a single energy-saving light bulb. This makes it a sustainable option for the future.
As part of its efforts to modernize warehouse management in order to promote the digital economy and get closer to the Golden Indonesia Vision 2045, Telkomsel has said that this technological advancement is happening.
Jan 23, 2024: Walmart partners with Cisco: Walmart partners with Cisco to deploy AI-powered cameras and sensors for real-time inventory tracking and theft prevention.
Jan 15, 2024: Honeywell launches new software: Honeywell launches a new software platform that integrates data from various IoT devices for warehouse optimization and predictive maintenance.
Report Overview
The global market of IoT in warehouse research report consists-
- Market Overview
- Covid-19 impact
- Market dynamics
- Drivers
- Challenges
- Opportunities
- Restrains
- Challenges
- Segmental analysis
- Regional analysis
- Recent development
- Competitive landscape
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