While a new report from Infiniti Research predicts a CAGR of almost 9% between 2020 and 2024 for the global logistics services software market, growth might be slower due to the costs of deploying the software and data security and privacy issues.
This logistics services software market analysis considers sales from both warehouse management system (WMS) and transportation management system (TMS) applications. The study also analyzes sales of logistics services software in APAC, Europe, MEA, North America, and South America.
In 2019, the WMS segment had a significant market share, and this trend is expected to continue over the forecast period. Factors such as increased employee productivity and efficiency will play a significant role in the WMS segment to maintain its market position. The global logistics services software market report looks at factors such as increasing adoption of 3PL and the emergence of 5PL, rising PE investments in logistics industry, and growth of e-commerce. However, the growing number of malfunction cases related to WMS software, data security, and privacy issues, as well as high deployment cost of on-premise software may hamper the growth of the logistics services software industry over the forecast period.
Growth in the e-commerce industry
Logistics software solutions are used in the e-commerce sector for transportation and warehouse management. Such solutions provide e-commerce companies updates about stock and freight forwarding. The adoption of WMS software solutions helps users save time and improve the efficiency of checking stock and new shipments on a daily and monthly basis. Furthermore, these solutions enable e-commerce service providers to track consumer behavior and purchase patterns. Therefore, the growing e-commerce industry will lead to the expansion of the global logistics services software market at a CAGR of almost 9% during the forecast period.
Rise in number of strategic partnerships
Vendors are forming strategic partnerships with market participants, such as software providers and technology platform providers, that operate in a wide range of industries, such as industrial manufacturing, pharmaceuticals, automobile, aerospace and defense, and oil and gas. Strategic partnerships and collaborations enable vendors to expand their product portfolios and develop products and solutions that cater to a wide range of industries. For instance, Porsche AG (Porsche) announced a new strategic partnership with SAP, a software provider. The aim of the partnership was to provide joint innovation in the digital transformation of their production, logistics, and ordering processes. This development is expected to have a positive impact on the overall market growth.
With the presence of several major players, the global logistics services software market is fragmented. The report provides a detailed analysis of several leading logistics services software manufacturers, including BluJay Solutions Ltd., E2open LLC, Epicor Software Corp., Infor Inc., JDA Software Group Inc., Manhattan Associates Inc., Oracle Corp., SAP SE, The Descartes Systems Group Inc., and WiseTech Global Ltd.
Also, the logistics services software market analysis report includes information on upcoming trends and challenges that will influence market growth. This is to help companies strategize and leverage all forthcoming growth opportunities.
Read the full report here.