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The warehousing industry is undergoing a transformative shift driven by the exponential growth of online sales, marking a significant catalyst for the expansion of the Warehouse as a Service (WaaS) market. The changing landscape of consumer behavior, with a preference for online shopping over traditional brick-and-mortar stores, has resulted in an unprecedented surge in online orders. This shift has created a pressing need for businesses to manage and fulfill these orders efficiently. In response to this demand, Warehouse as a Service (WaaS) providers have emerged as a crucial solution, offering scalable and flexible warehousing services designed specifically for e-commerce operations.
The impact of e-commerce growth is evident in the numbers. According to Morgan Stanley, global e-commerce has witnessed substantial growth, with its share of total retail sales increasing from 15% in 2019 to 21% in 2021, and it is currently estimated to be around 22% of total sales. This underscores the profound change in consumer behavior, emphasizing the growing significance of e-commerce in the retail industry.
Forecasts from industry experts further emphasize the continuous rise of e-commerce. Predictions from OBERLO indicate that global e-commerce sales are expected to reach $6.3 trillion in 2023, reflecting a 10.4% increase from the previous year. Additionally, projections from TIDIO suggest that global e-commerce sales will likely surpass $7 trillion in value by 2024. Factors contributing to this growth include the surge in mobile shopping, the increasing influence of social media, and the rising popularity of subscription services.
The proliferation of online sales is also evident in the increasing number of e-commerce websites. TIDIO reports that the global online retail market is home to between 12 and 24 million online retailers, showcasing a dynamic landscape with a continuous influx of new businesses. Notably, many of these online stores leverage popular platforms like WooCommerce or Shopify, indicating a growing inclination among consumers to make significant purchases online.
Market research conducted by MRFR aligns with these trends, projecting that the e-commerce market is poised for remarkable growth in the coming years, with global e-commerce sales expected to double by the end of the decade. This highlights the robust expansion of the online retail industry and the promising prospects it offers for businesses globally, thereby increasing the demand for Warehouse as a Service (WaaS).
Furthermore, the competitive landscape of the WaaS market is becoming increasingly fragmented, with intense competition anticipated in the years ahead. Key players in the market are implementing various strategies to maintain their presence in the e-commerce sector. For instance, Amazon's acquisition of health care provider One Medical and Walmart-owned Flipkart's stake acquisition in online pharmacy start-up Pharmallana showcase the strategic moves made by major players to bolster their positions. Collaborations and expansions, such as Amazon's cooperation with Tegut and Walmart's investment in a new Distribution Center in Mexico, further underscore the dynamic nature of the market and its alignment with the burgeoning online sales trend.
The rapid growth of online sales, driven by changing consumer preferences and advancements in e-commerce, has become a pivotal force behind the expanding Warehouse as a Service (WaaS) market. The increasing demand for efficient and scalable warehousing solutions, particularly tailored for e-commerce operations, underscores the transformative role of WaaS in meeting the evolving needs of businesses worldwide. The ongoing developments in the industry, coupled with strategic initiatives by key players, highlight the resilience and dynamism of the WaaS market in the context of the surging demand for online sales.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Rapid adoption of automation and IoT |
| Market Dynamics | The growth in online salesThe scarcity of ecommerce fulfillment center space |
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
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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
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South America- Brazil
- Argentina
- Rest of South America
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