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WMS market reaches $680 million

By Staff -- Logistics Management, 1/1/2000

North American companies spent about $680 million on warehouse-management systems (WMS), software, and support in 1998, according to market-research firm Venture Development Corp. (VDC) of Natick, Mass. A recent market study conducted by VDC found that software licenses accounted for 31 percent of all the dollars spent in the WMS marketplace. Systems integration represented 34 percent of the market expenditures, while hardware and consulting accounted for 13 percent and 18 percent of the WMS market, respectively.

VDC reported that the top five WMS vendors in 1998, based on revenue, were Catalyst, EXE Technologies, Manhattan Associates, McHugh Software, and the Summit Group.

Despite some lingering effects from Y2K issues, VDC says, the WMS market should grow at a rate of about 20 percent annually for the next two years. Most of that revenue growth will come from software licensing, the research firm predicts.

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