IoT in Warehouse Market

Normal 0 false false false EN-US ZH-CN X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} Recent years have seen a tremendous rise in the connected technologies in manufacturing and distribution value chain. The integration of digital and physical systems has paved the way for increasingly connected experiences that have impacted the aspects of product designs and production. The advent of Industry 4.0 has impacted the processes of designing and producing goods as well as the manner in which the finished goods are warehoused, distributed, and moved. The connected devices, also known as the Internet of Things, are granting warehouses a new level of visibility into every aspect of supply chain. The IoT technologies are facilitating real-time workforce interaction to increase productivity and adding a new level of precision for tracking the route of inventory throughout the supply chain. The volume of connected devices is increasing to make the world a connected place and to gain benefits such as better quality of life and greater insights into the business and industrial processes. The growing number of connected devices is a direct result of emerging applications and business models. The growing e-commerce and retail market are driving the use of warehouse management. The increasing number of connected devices, on the other hand, is also providing efficient and faster management of warehouses. For instance, the use of real-time location systems and warehouse management systems enables organizations to track objects in real-time; these systems are rapidly replacing the legacy systems. The cost of connected devices has been continuously decreasing since 2004, due to increasing number of component manufacturers, and continuous evolution in the microprocessor and microcontrollers. This decreased cost results in the increasing volume of the connected devices which is encouraging the adoption of connected IoT devices for the warehouse management applications across industry verticals including automotive, food & beverages, retail and logistics, electrical and electronics and others. As a result, the increasing volume of connected devices is driving the growth of IoT in warehouse management market.

Normal 0 false false false EN-US ZH-CN X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} Technological advancement is a continuous process. There is an increasing trend of using artificial intelligence, cloud technology, edge computing, and machine learning along with IoT technology. These technologies are developing at an astonishing rate which may create several opportunities for the IoT in warehouse management market. The IoT is totally depended on the network connectivity of the devices. The advent of is 5G technology, in combination with IoT technology, is also expected to create opportunities across various industry verticals. Further developments in 5G would result in faster internet connection and an unmatched degree of connectivity among connected devices in an IoT environment which is not possible with the current connectivity technologies. Edge computing also provides numerous opportunities for the growth IoT technology by enabling the data to be stored in micro-centers; this localizes the access to the data and provides necessary insights from it to the warehouse manager. Thus, edge computing provides a streamlined flow of data traffic from IoT devices by providing real-time data analysis without the need of cloud; it is also less time consuming as compared to the cloud. Artificial intelligence, on the other hand, enables the smart decision making in the warehouse management in integration with the IoT technology. The IoT devices provide the additional data required by the AI systems which offer predictive analysis, augmented real-time decision making, and strategic optimization. AI, in integration with the IoT technology, provides the ability to identify inventory and order patterns which can be used to determine patterns in the selling of the items and enable the warehouse manager to restock such items. Companies such as DHL are investing in emerging technologies such as intelligent robotics for its warehouses and air freight centers to increase the delivery efficiency of its services.

Normal 0 false false false EN-US ZH-CN X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin;} The cost of IoT infrastructure includes the cost of IoT devices i.e., hardware, software, services along with their implementation. The hardware component constitutes around 70-80% of the total initial IoT cost. This cost may vary depending on the complexity and type of the IoT solution. For warehouse management purposes, the cost of manufacturing the IoT hardware is high as the companies need to invest in the research, analysis of the requirements, development of the prototype, and testing of the end product. Also, the government of various countries such as the US requires certified IoT hardware design. The certification involves FCC certification, RoHS certification, CE certification, and CSA certification. These certifications significantly contribute to the overall hardware cost of the IoT devices. IoT infrastructure requires various components such as networks, middleware, and cloud. To make IoT enabled warehouses, the warehouses must have network infrastructure, may it be wired or wireless. The warehouse mainly uses short range wireless networks such as Wi-Fi and Bluetooth. The software cost involves the development of software that enables the users to operate the connected IoT devices from a tablet, PC, wearable, or smartphone. The implementation includes installation of the IoT devices in warehouses at the required position, along with testing which incurs high labor cost of installing IoT hardware in large warehouses. Due to such high costs, the small- and medium-sized enterprises make use of the traditional ways for the warehouse management. Thus, the high cost of installation is expected to hamper the market growth during the forecast period.