The global market for Internet of Things (IoT) deployments in warehouse management is expected to reach $19 billion by 2025, driven by increasing adoption of goods-to-person (GTP) technology in warehouses, a report says.
That milestone would mark torrid growth from the sector's current annual revenue of $2.3 billion in 2015, which is supported mainly by the increasing penetration of connected devices across the globe, according to the report from San Francisco-based market research firm Grand View Research Inc.
The spread of connected devices in warehouse applications will also follow a steep growth curve, driven by the growing number of machine-to-machine applications, including video surveillance, smart meters, transportation, health monitoring, and asset tracking, according to the report, "Internet of Things (IoT) in Warehouse Management Market Analysis."
Another factor pushing IoT-enabled operations is the rapid spread of telematics across trucks and other vehicles, the study found. The primary example of this trend is a U.S. Department of Transportation (DOT) mandate that trucking lines install electronic logging devices (ELDs) in every vehicle by the end of 2017.
Warehouse IoT deployments will also grow as DCs install growing automation in a search to maximize their throughput and boost order accuracy through platforms such as automated materials handling equipment, robotics applications, and high-speed conveyor systems.
Some of the major vendors supplying technology for warehouse IoT installation include Argos Software, GT Nexus, and IBM Corp. in the U.S. as well as Eurotech S.P.A. in Italy, the report found. These suppliers make equipment such as sensors and networks, which allow customers to share data from large numbers of platforms—or "things"—with machine-to-machine communication, industrial instrumentation, and application software, the report said.