05-May-2023 | Zion Market Research
The global warehouse order picking market size was worth around USD 7,455.63 Million in 2022 and is predicted to grow to around USD 15,604.15 million by 2030 with a compound annual growth rate (CAGR) of roughly 9.84% between 2023 and 2030.
The warehouse order picking industry deals with services, products, and tools that are required to select and pick or retrieve products in a warehouse inventory with the end goal of meeting customer orders. The process is known as order picking or picking and packing.
The market comprises different technologies and techniques that are employed to carry out the process in large or small warehouses. It also includes deployments of software and other web-based programs that assist in managing inventory along with efficient and accurate order fulfillment. In recent years, the demand for advanced warehouse order picking systems and services has increased rapidly and is projected to continue the same trend in the coming years. However, it also faces certain growth restrictions and challenges which the industry players have to overcome in the coming years.
The global warehouse order picking market is expected to grow due to the rising business complexities and the increasing demand for automated systems that allow corporations to execute business operations with minimum to no error. The latest warehouse order picking systems are highly motorized and require minimal human assistance.
The accuracy rate of robotic systems is higher than humans. This means that companies can not only improve their business operations but also have more human resources for other crucial tasks. Furthermore, customer expectations in modern times have increased. They expect timely and accurate delivery of the products. With the assistance of modern-day technologies along with human resources, certain companies such as e-commerce are now able to meet customer demand in 1 or 2 days. Moreover, the growing importance given to the optimization of warehouse space by industry giants has led to higher research & development to encourage the launch of better and improved versions of warehouse order picking tools.
However, the global warehouse order picking industry also deals with several growth restraints and one of the primary concerns is the high cost of tools, especially the more advanced systems. This greatly restricts the adoption of the technology for smaller players that work on limited budgets. Additionally, the technological complexities associated with operating automated order picking tools lead to higher resistance against adoption amongst human resources. The tools may not be highly efficient in countries that lack the necessary infrastructural constraints such as warehouse space, transportation infrastructure, and access to skilled labor.
The growing adoption of automation and robotics provides growth opportunities while the high cost of the tools could challenge market growth.
The global warehouse order picking market is segmented based on deployment, solutions, application, and region.
Based on deployment, the global market segments are cloud and on-premise. During the forecast period, the industry is expected to witness the highest growth in the cloud segment as companies are including more toward cloud-based systems.
One of the primary benefits of using cloud-oriented warehouse order picking systems is the scalability of the tools. Businesses can increase or decrease the consumption level depending on business needs and requirements. This ensures that the companies do not spend more than required on technology. Furthermore, in cloud-based systems, facilities such as updates and maintenance are managed by vendors thus freeing more resources from the client that can be used on other productive tasks. As of 2019, 6 River Systems, a leading player in the industry, amassed a revenue of USD 30 million.
Based on solutions, the global warehouse order picking industry segments are barcode scanning/RFID picking, and paper-based. In 2022, the largest market share holder was the barcode scanning/RFID picking segment. RFID stands for Radio Frequency Identification. These tools are highly beneficial in improving the accuracy and efficiency of order fulfillment.
The barcode scanning picking systems make use of mobile devices to scan barcodes placed on an object. The scanner reads the code and correctly identifies the product. RFIC tracking is conducted through RFID readers and trackers and both systems are highly efficient. With the rising complexities in businesses and the large volumes of products that are delivered every day, the demand for automated versions of the order picking system is expected to rise. In 2020, Amazon spent nearly 42 billion on technology and content.
Based on application, the global market segments are e-commerce, construction, retail, transportation & logistics, healthcare, and others.
The global warehouse order picking market is expected to be dominated by North America during the forecast period. The US and Canada could emerge as the largest revenue generators mainly due to the presence of some of the largest end-user verticals in these countries. Additionally, there are several world-renowned manufacturers of highly advanced warehouse order picking tools that are catering to the needs of clients across the globe. The increasing investment toward research & development and the rising launch of new tools could act as additional drivers for the regional market.
In Asia-Pacific, the e-commerce segment along with the transportation & logistics industry could be a major growth propeller. Countries such as China and India are witnessing tremendous growth in the regional e-commerce sector as the population and disposable income continues to rise.
Browse the full “Warehouse Order Picking Market By Deployment (Cloud and On-Premise), By Solutions (Barcode Scanning/RFID Picking, and Paper-Based), By Application (E-Commerce, Construction, Retail, Transportation & Logistics, Healthcare, and Others), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2023 – 2030.” Report at https://www.zionmarketresearch.com/report/warehouse-order-picking-market
The global warehouse order picking market is led by players like:
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