The global market for warehouse management system (WMS) software is on track to reach $3.23 billion by 2025, driven by the emergence of multi-channel distribution networks, growth of the e-commerce industry, increased adoption of on-cloud WMS solutions, and globalization of supply chain networks, a study shows.

Hitting that target would mark a sharp rise from the WMS market revenue of $1.32 billion in 2016, and establish a compound annual growth rate (CAGR) of 14.1 percent between 2017 and 2023, according to a report from Markets and Markets, a Pune, India-based market research firm with U.S. offices in Seattle.

The sector with the highest growth will be the food and beverage industry, which faces a need to establish automated and hygienic handling of food items, enhanced traceability of food items, and increased sale of packaged food products, the report said. In response, food and beverage companies are rushing to implement WMS solutions in their warehousing facilities, according to the report, "Warehouse Management System Market by Component (Software, Services), Implementation (On-Premise, On-Cloud), Tier Type (Advanced, Intermediate, Basic), Industry (Automotive, Food & Beverages, Healthcare, E-Commerce), and Region-Global Forecast to 2023."

The report also identified key vendors in the WMS sector, including Epicor Software Corp., JDA Software Group Inc., Manhattan Associates Inc. (US), Oracle Corp., SAP SE, IBM Corp., Infor Inc., PTC Inc., PSI AG, TECSYS Inc., BluJay Solutions, and HighJump.