Currently, the IoT industry has multiple operating standards and competing alliances to be formed between major companies, to push their preferred solutions into the industry. For instance, Open Interconnect Consortium (OIC) is an alliance, formed to develop interconnection standards for IoT devices.
Products with embedded systems are expected to gain traction over the forecast period. Embedded non-volatile memories offer lower power, high security, adequate battery power, and lower manufacturing costs. Consumers are also attracted toward wearables, advancing toward head, body, and footwear, beyond the realm of wristbands and smartwatches.
In terms of technology trends, the increasing use of RFID and Automatic Identification and Data Capture (AIDC) has improved the order fulfillment processes. The AIDC technology is expected to become more prevalent in the market, owing to the growing penetration of Bluetooth technologies and RFID sensors throughout the logistics industry. AIDC provides real-time insights into shipment location, explanation of delayed delivery, and estimated time of delivery.
France IoT in warehouse management market, by solution, 2015
The growing penetration of connected devices is likely to spur the market demand over the projected period. As per Global Web Index (GWI), by 2017, over 2.80 billion users are estimated to use Internet over their phones, which is more than 85% of the total internet users across the globe. Over the past few years, the internet has revolutionized the way of communication between people and now devices. Internet has emerged as a universal source in various sectors across the globe.
As per the Broadband Commission for Digital Development, the number of users accessing internet over phones and tablets are expected to reach over 6.5 billion by 2020. The increasing shift from 2G to 3G, 4G, and LTE technologies is estimated to trigger the internet usage across the globe.
Operators across the globe are using RFID readers, barcode scanners, and other handheld devices to streamline shipping and inventory management. The rising e-commerce industry is likely to further increase the function of the warehouses including value added services, packaging, and customer services. Automating a warehouse is expected to ensure transparency in the work environment. The growing need of automating logistics processes has caused robot vendors to rely on software to enhance the solution productivity and ensure seamless operation.
In a smart warehouse, all the software and hardware technologies interface each other. A rising trend in the software applications for warehouse management is the warehouse control system, which helps to maximize the throughput using various applications. The top players of the market use technologies, such as pick/put to light and voice directed picking, to reduce labor costs and improve accuracy. High initial investments are expected to restrain the warehouse automation market, however, automation is expected to reduce the typical warehousing costs such as recharging of batteries, staffing costs, and regular mechanical & electrical maintenance cost.
However, the high initial investments and increasing concerns toward safety and security are likely to restrain the market demand. High initial investment costs, running costs, and scalabilities of different picking methods are the key factors restraining the market players to automate warehouses. Additionally, lack of skilled labor availability is likely to further restrain the market growth over the forecast period. Employee recognition is the major need for the logistics and warehouse sectors that are taken care by training the employees.
Lack of infrastructure availability and unstable government regulations in the emerging economies are expected to increase warehouse automation costs for companies. Though warehouse automation requires high capital investment, the return on investment is high compared to the conventional methods. The need for operators to lift heavy products is eliminated.
In-depth report on global internet of things (IoT) in warehouse management market by Grand View Research:
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