According to a new market research report "Smart Warehousing Market by Component (Hardware, Solutions, and Services), Technology (IoT & Analytics, RFID, AGV), Application (Inventory Management, Order Management), Organization Size, Deployment Mode, Vertical, and Region - Global Forecast to 2026", published by MarketsandMarkets™, the global Smart Warehousing Market size to grow from USD 14.8 billion in 2021 to USD 25.4 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 11.5% during the forecast period.
Various factors such as the proliferation of smartphones for faster goods management, the rising advancement in the eCommerce industry due to the onset of the COVID-19 pandemic, the emergence of multi-channel distribution networks, and the dynamic nature and globalization of supply chain networks are expected to drive the adoption of smart warehousing hardware, solutions, and services.
However, the market faces restraints, such as a lack of uniform governance standards in the fragmented logistics industry and growing data security and privacy concerns.The COVID-19 pandemic disrupted global supply chains has overtaken and impacted both supply and demand at a higher pace.
Highly secure data encryption and the complete data visibility and control feature boost the adoption of on-premises-based smart warehousing solutions across verticals, such as retail and eCommerce, transportation and logistics, and manufacturing, to have better and efficient warehouse operations.AI in warehouse segment to account for the highest CAGR during the forecast periodThe Smart Warehousing Market is segmented on the basis of the technology, which include IoT and Analytics, AI in warehouse, RFID, Automated Guided Vehicles (AGV), blockchain, and others (AR, security, Wi-Fi, and voice recognition).
This growth can be attributed to the increasing need to enhance the overall productivity with minimal errors The increasing usage of AI and ML technology with smart warehouse solutions ensures effective inventory process and enhanced route optimization.The large enterprises segment to hold a larger market size during the forecast periodThe Smart Warehousing Market has been segmented by organization size into large enterprises and SMEs.
With the help of smart warehousing solutions, healthcare companies can efficiently handle their warehousing activities to enhance productivity.North America to hold the largest market share during the forecast periodNorth America is estimated to have the largest market size in 2021, followed by Europe; this growth can be attributed to the technological upgrades in these regions.