|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 7,455.63 Million||USD 15,604.15 Million||9.84%||2022|
Warehouse Order Picking Market
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 report analyzes the global warehouse order picking market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the warehouse order picking market.
The warehouse order picking industry deals with businesses that provide solutions or services to their clients concerning efficient packaging and picking of products stored in distribution centers or a warehouse. The process of selecting the right items from a warehouse inventory to deliver to the customers is known as order picking.
The fraternity includes a variety of products and services such as order-picking software, automated picking systems, inventory management systems, and material handling equipment. The products and services provided with warehouse order picking systems are used in several sectors including retail, e-commerce, food & beverage, pharmaceuticals, and more. During the forecast period, the industry is expected to register a high growth rate as the demand for efficient warehouse order-picking systems is on the rise.
Rising application in the e-commerce segment to propel market growth
The global warehouse order picking market is projected to witness a high growth rate owing to the increasing use of tools and services in the e-commerce segment, which is a rapidly growing sector. These systems play a pivotal role in ensuring the smooth and error-free functioning of an e-commerce channel. For instance, warehouse order picking tools are used in batch picking which refers to selecting a large number of orders at once. This assists in helping the working professional fulfill orders in a more efficient way and without any errors. In this process, products are picked at once and then they are sorted out in individual orders. With the growing CAGR of the e-commerce industry along with the rising number of players and global expansion of domestic corporations could lead to higher demand for automated versions of warehouse order picking solutions.
Lack of skilled labor to restrict market growth
One of the key restraints that exist in the warehouse order picking industry is the lack of skilled professionals that can use advanced warehouse order picking systems for optimum performance. Several factors lead to the higher complexity of the tools and systems used in the market. For instance, most of the warehouses are home to a diverse and vast portfolio of products that need to be picked and shipped to the right customer. In addition to this, the large volumes of the product to be dispatched further add to the complexity. Not all professionals working in the logistics sector are well-versed in working with advanced tools limiting the industry growth.
Growing adoption of automation and robotics to provide growth opportunities
The global warehouse order picking market is expected to benefit from the rising adoption of automation and robotics in the industry. These automated technologies provide several benefits. They assist in not only improving the overall efficiency of the process but also reducing labor costs. Automated systems are known to be more accurate. For companies investing in advanced automated tools for warehouse order picking, the prospects are expected to be promising as business complexities continue to rise.
High cost of the tools to challenge market growth
Although the cost of manual warehouse order picking systems such as basic barcode scanning systems is relatively low, the automated tools are more expensive. Manual systems may not provide the same efficiency as automated tools but they are affordable. This is a major challenge for the business players as they are forced to choose between two prime aspects of a business that are cost and accuracy. There are a limited number of tools available that justify the cost and more companies need to invest in striking the right balance between the two criteria.
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.
Based on application, the global market segments are e-commerce, construction, retail, transportation & logistics, healthcare, and others. In 2022, the e-commerce segment was the largest market share holder and will continue to hold its dominance in the coming years. The exponential rise in the e-commerce industry, especially during Covid-19, has led to high demand for advanced tools that can assist in improving the overall performance of the industry. For instance, the Indian government's Ministry of Commerce and Industry has stated that the country’s e-commerce segment has grown by 30% between 2017 and 2020.
|Report Attributes||Report Details|
|Report Name||Warehouse Order Picking Market Research Report|
|Market Size in 2022||USD 7,455.63 Million|
|Market Forecast in 2030||USD 15,604.15 Million|
|Growth Rate||CAGR of 9.84%|
|Number of Pages||198|
|Key Companies Covered||Locus Robotics, Kion Group AG, Daifuku Co. Ltd., Honeywell International Inc., Vanderlande Industries BV, Dematic Corporation, Bastian Solutions LLC, KNAPP AG, Mecalux SA, SSI Schaefer AG, 6 River Systems, Inc., Swisslog Holding AG, TGW Logistics Group GmbH, Murata Machinery, Ltd., Geek+ Inc., BEUMER Group GmbH & Co. KG, I.D. Systems, Inc., System Logistics Spa, Magazino GmbH, Flexcon Company, Inc., IAM Robotics, Fetch Robotics, Inc., InVia Robotics, Inc., GreyOrange Pte. Ltd., and RightHand Robotics, Inc.|
|Segments Covered||By Deployment, By Solutions, By Application, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
North America to witness the highest growth
The global warehouse order picking market is expected to witness the highest growth in North America since the region currently holds the largest part of global revenue. The high growth rate is mainly driven due to the existing consumer database of advanced technologies such as automated warehouse order picking systems.
The region is one of the early adopters of the tools mainly driven by the excellent innovation activities undertaken by several companies including small-scale players and larger corporations. Furthermore, the e-commerce segment is one of the crucial contributors to the regional market as it is home to some of the largest e-commerce companies across the globe. Amazon is a prime example. In the US alone, the company has more than 250 operational warehouses. A recent report suggested that it ships out more than 1.5 million packages every day.
The global warehouse order picking market is led by players like:
The industry deals with businesses that provide solutions or services to their clients concerning efficient packaging and picking of products stored in distribution centers or a warehouse.
The global warehouse order picking market is projected to witness a high growth rate owing to the increasing use of tools and services in the e-commerce segment, which is a rapidly growing sector.
According to study, the global warehouse order picking market size is was around 7,455.63 million in 2023 and is expected to be worth around 15,604.15 million by 2030.
The CAGR value of warehouse order picking market is predicted to grow to around USD 9.84% during 2023-2030.
The global warehouse order picking market is expected to witness the highest growth in North America since the region currently holds the largest part of global revenue.
The global warehouse order picking market is led by players like Locus Robotics, Kion Group AG, Daifuku Co. Ltd., Honeywell International Inc., Vanderlande Industries BV, Dematic Corporation, Bastian Solutions LLC, KNAPP AG, Mecalux SA, SSI Schaefer AG, 6 River Systems, Inc., Swisslog Holding AG, TGW Logistics Group GmbH, Murata Machinery, Ltd., Geek+ Inc., BEUMER Group GmbH & Co. KG, I.D. Systems, Inc., System Logistics Spa, Magazino GmbH, Flexcon Company, Inc., IAM Robotics, Fetch Robotics, Inc., InVia Robotics, Inc., GreyOrange Pte. Ltd., and RightHand Robotics, Inc.