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The Warehouse as a Service (WaaS) market is witnessing a surge in demand, primarily driven by the scarcity of space in eCommerce fulfillment centers. This scarcity has emerged as a significant catalyst as the eCommerce industry experiences rapid growth, necessitating efficient warehousing and fulfillment operations to keep pace with the increasing demands of online shopping and eCommerce platforms.
The expanding landscape of eCommerce, coupled with the rising popularity of online shopping, has resulted in an unprecedented demand for warehousing and fulfillment services. As more businesses venture into eCommerce and traditional retailers extend their online presence, the requirement for adequate storage space to manage inventory and facilitate seamless order fulfillment has reached unprecedented levels. The finite nature of warehouse space becomes particularly pronounced in sought-after locations near major urban centers and transportation hubs, intensifying the competition among businesses vying for these prime locations. Meeting customer expectations for swift shipping and delivery times further amplifies the pressure on companies to secure suitable warehouse facilities. This heightened competition and scarcity of available warehouse space have posed challenges for companies striving to support their eCommerce operations effectively, necessitating the adoption of Warehouse as a Service (WaaS) solutions.
Moreover, the financial constraints faced by end-users have become a pivotal factor influencing the growth of the WaaS market. Constructing and maintaining modern, technologically advanced fulfillment centers can be financially burdensome for businesses operating within limited budgets. Budgetary constraints often lead to resource limitations, making it challenging for businesses to optimize their warehousing and fulfillment operations. In response to these financial challenges, the adoption of WaaS solutions becomes a viable and pragmatic option, allowing businesses to leverage the benefits of advanced warehousing services without incurring prohibitive costs.
In essence, the scarcity of eCommerce fulfillment center space and budget constraints among end-users have emerged as driving forces behind the increasing demand for Warehouse as a Service (WaaS). As businesses strive to navigate the challenges posed by limited warehouse space and financial limitations, the adoption of WaaS solutions becomes instrumental in ensuring efficient and cost-effective warehousing and fulfillment operations in the dynamic landscape of the eCommerce industry.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Type, Customer Type, End-user and Region |
Warehouse as a Service WaaS Market Highlights:
Global Warehouse as a Service (WaaS) Market Overview
Warehouse as a Service (WaaS) Market Size was valued at USD 639.7 Million in 2022. The Warehouse as a Service (WaaS) market industry is projected to grow from USD 668.9 Million in 2023 to USD 3,990.9 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 22.0% during the forecast period (2023 - 2032). The Warehouse as a Service (WaaS) market is driven by various factors, including the growth in online sales and the increasing need to meet customer demands. As online sales continue to surge, businesses require efficient warehousing solutions to store, process, and fulfill orders.
Figure 1:Â Warehouse as a Service (WaaS) Market SIZE (USD BILLION) (2018-2032)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Warehouse as a Service (WaaS) Market Trends A significant Growth of Online Sales
The exponential growth of online sales has significantly impacted the warehousing industry and is a primary driver behind the expansion of the Warehouse as a Service (WaaS) market. The rise in e-commerce has transformed the way consumers shop, with increasing numbers of people choosing the convenience of online shopping over traditional brick-and-mortar stores. This shift in consumer behaviour has created a surge in the volume of online orders that businesses need to manage. To meet this demand, businesses require efficient and effective warehousing solutions.
In addition, the growth of online sales is evident through the increasing number of ecommerce websites. TIDIO reports that the global online retail market is currently home to a significant number of online retailers, estimated to be between 12 and 24 million. This dynamic landscape signifies a continuous influx of new businesses while some may cease operations. Notably, a majority of online stores leverage popular platforms like WooCommerce or Shopify for their e-commerce operations. These figures reflect the growing consumer inclination to make substantial purchases online, creating a lucrative opportunity for online business owners.
Warehouse as a Service (WaaS) Market Segment Insights
Warehouse as a Service (WaaS) by Type Insights
The Warehouse as a Service (WaaS) market segmentation, based on Type, includes General Warehousing, Refrigerated Warehousing. General Warehousing segment held a largest market share and is expected to be dominated in terms of CAGR over the forecasted period. General warehouses began plays a decisive role in logistics as online shopping became the new trend. To fulfil rising client demand for products, major e-commerce companies as well as financial institutes have made major investments in warehousing facilities. In May 2023, Investcorp Holdings BSC a asset management company rom Middle East region, increased its warehouse investments in India, owing to the country's manufacturing ambitions and e-commerce development helps feed demand for logistics.
Figure 2:Â Warehouse as a Service (WaaS) Market SIZE (USD BILLION) type 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Warehouse as a Service (WaaS) by Customer Type Insights
The Warehouse as a Service (WaaS) market segmentation, based on Customer Type, includes SMEs, Large Enterprises. Solution segment held a largest market share in terms of revenue and expected to dominate the market in upcoming period.
Figure 3:Â Warehouse as a Service (WaaS) Market SIZE (USD BILLION) Customer Type 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Warehouse as a Service (WaaS) End-user Insights
Warehouse as a Service (WaaS) market based on End-user, the segment is divided into E-commerce Companies, Other Businesses. Â Further, the Other Businesses category divided into Apparel & Fashion, Healthcare & Pharma, Consumer Goods/ Retail, Food & Organic, Others. Other Businesses segment anticipated to dominate in terms of CAGR in upcoming period owing to the factors such as rising demand for large storage facilities for apparel and fashion brands and growing need for refrigerated storage in Healthcare and Pharma industries. For instance, in March 2023, Americold invested in the RSA Global a cold storage company in Dubai. The collaboration resulted in the creation of a scalable, investable operational platform for Middle Eastern and Indian market entry and expansion.
Warehouse as a Service (WaaS) Market SIZE (USD BILLION) End-user 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Warehouse as a Service (WaaS) Regional Insights
By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South and Central America. Several factors contribute to the development of this market, including the region's well-established logistics infrastructure, technological advancements, and high adoption of cloud-based solutions. The enterprises in this region are gradually shifting towards cloud-based businesses increasing the need for cloud-based data storage systems in the developed countries like US and Canada.Â
Asia Pacific region is expected to dominate at CAGR in the Warehouse as a Service (WaaS) market. The Asia-Pacific region is experiencing significant growth due to the several factors including the region's rapid economic development, the rise of e-commerce, and the increasing demand for flexible and scalable warehousing solutions. The Asia-Pacific WaaS market is dominated by China, India, and Japan as a result of the country's booming e-commerce industry and the expansion of cross-border trade, warehousing needs have surged. Additionally, the need for effective technology to manage warehouse effectively and efficiently is booming the market growth in this region. For instance, in April 2021, Honeywell unveiled a new software-as-a-service version of its Warehouse Management System (WMS) aimed towards Southeast Asian warehouses, distribution facilities, and e-commerce fulfilment centres. The flexible, cloud-based WMS solution is intended to be plug-and-play with marketplaces that are connected with current systems and linked to the region's main e-commerce platforms and delivery services.
Further, the countries considered in the scope of the Warehouse as a Service (WaaS) market are the US, Canada, Mexico, UK, Germany, France, Spain, Italy, China, Japan, India, South Korea, GCC Countries, South Africa, Brazil, Argentina, and others.
Warehouse as a Service (WaaS) Market SIZE (USD BILLION) REGION 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Warehouse as a Service (WaaS) Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Warehouse as a Service (WaaS) market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Warehouse as a Service (WaaS) industry must offer efficient technologies to expand and survive in an increasingly competitive and rising market environment.
Key Companies in the Warehouse as a Service (WaaS) market include
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Total IT Global
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Clutter, Inc.
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ShipBob Inc.
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GXO Logistics Inc.
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GEODIS
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Waresix
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Stowga
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Edgstify (OptiSupply Chain Solution Pvt. Ltd.)
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Flowspace
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Saltbox
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Torqued LLC
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Waredock Estonia LLC
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Sino Shipping
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BIS Henderson Group
Warehouse as a Service (WaaS) Industry Developments
May 2023: GEODIS announces the launch of a new eLogistics platform in the UK. GEODIS eLogistics, assist e-retailers in outsourcing their logistical operations. It provides extensive logistics solutions for order preparation and personalization, inventory optimization, transportation organization, and returns administration.
Mach 2023: GXO Logistics, Inc. announced the global expansion of GXO Direct. GXO has built the most appealing shared space option available in the UK by combining the capabilities, resources, and knowledge of GXO and Clipper, a company acquired in 2022.
April 2022: Edgistify and Eunimart, a major eCommerce platform, partnered to provide businesses with convenient hyper-local delivery across India. Eunimart integrated with Edgistify's warehouses and have access to their extensive supply chain to provide merchants with hyper-local delivery.
Intended Audience
- E-commerce Industry
- Technology Investors
- Regulatory Industries
- Government Bodies
Warehouse as a Service (WaaS) Market Segmentation
Warehouse as a Service (WaaS) Type Outlook (USD Billion, 2018-2032)
- General Warehousing
- Refrigerated Warehousing
Warehouse as a Service (WaaS) Customer Type Outlook (USD Billion, 2018-2032)
- SMEs
- Large Enterprises
Warehouse as a Service (WaaS) End-user Outlook (USD Billion, 2018-2032)
- E-Commerce Companies
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Other Businesses- Apparel & Fashion
- Healthcare & Pharma
- Consumer Goods/ Retail
- Food & Organic
- Others
Warehouse as a Service (WaaS) Regional Outlook
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North America- US
- Canada
- Mexico
-
Europe- Germany
- UK
- France
- Spain
- Rest of Europe
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Asia-Pacific- China
- Japan
- India
- Singapore
- Rest of Asia-Pacific
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Middle East & Africa- GCC
- South Africa
- Rest of Middle East & Africa
-
South America- Brazil
- Argentina
- Rest of South America
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