Demand for warehouse software strengthens

By Staff -- Modern Materials Handling, 9/1/2005

After several slow years, the warehouse management system (WMS) market grew by more than 5% in 2004. The market was $1.07 billion in 2004 and is forecasted to be over $1.339 billion in 2009, according to a new ARC Advisory Group study, "Warehouse Management Systems Worldwide Outlook Through 2009" ( www.arcweb.com/res/wms).

"Based on the number of acquisitions and mergers in this market (more than 20 of late), the market's growth has been surprisingly strong," says Steve Banker, service director for supply chain management at ARC, and principal author of the study. "While some acquired companies with WMS solutions can expect to continue to grow their revenues, historically mergers and acquisitions have more often served as a drag on growth." However, Banker doesn't expect the drag to slow growth now.