Booming Construction Activity Drives Growth of the Internet Of Things (IoT) In Warehouse Management Market by 2025

Internet Of Things (IoT) In Warehouse Management Market Size Outlook for 2025

The Internet of Things (IoT) in warehouse management market continues to expand at a rapid pace, expected to grow from $14.84 billion in 2024 to $17.17 billion in 2025, reflecting a strong CAGR of 15.7%. This historical rise is rooted in increased adoption of automated guided vehicles and robotics, a stronger demand for supply chain transparency, wider use of intelligent warehouse management platforms, growing utilization of cloud-based analytics, and a need for faster, error-free order fulfillment.

Projected Growth of the Internet Of Things (IoT) In Warehouse Management Market by 2029

By 2029, the Internet of Things (IoT) in warehouse management market is projected to reach $30.40 billion, progressing at a CAGR of 15.4%. This anticipated growth is driven by broader use of predictive maintenance tools, a heightened emphasis on energy-efficient warehouse operations, expanding deployment of digital twins, increasing reliance on blockchain for supply chain transparency, and rising demand for integrated IoT-robotics ecosystems. Expected developments during this phase include enhancements in warehouse-specific edge computing, fusing predictive analytics with digital twin frameworks, advanced sensor-based asset tracking, platforms enabling unified IoT orchestration, and strengthened 5G capabilities supporting highly automated warehouses.

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Key Drivers Influencing the Internet Of Things (IoT) In Warehouse Management Market

One of the major forces propelling the Internet of Things (IoT) in warehouse management market is the rising need for industrial automation. Automation enables warehouses to execute critical tasks-such as inventory tracking, equipment synchronization, and workflow coordination-through advanced software, machinery, and management systems that require far less manual involvement.

Additional Drivers Supporting Market Momentum

Persistent labor shortages continue to pressure warehouse operations, heightening the need for automated processes that improve efficiency and maintain service quality. IoT technologies provide the essential connected infrastructure-sensors, tags, communication networks, and centralized platforms-that supports real-time data flows, predictive maintenance, and reliable automated system performance. Eurostat reported in January 2024 that AI and automation adoption within EU businesses rose by 5.45 percentage points from 2023 to 2024, reaching 13.48%, underscoring the accelerating shift toward automated and IoT-enabled warehouse environments.

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Major Trends Reshaping the Internet Of Things (IoT) In Warehouse Management Market

Companies operating in the Internet of Things (IoT) in warehouse management market are increasingly introducing cloud-based platforms that enhance oversight of supply chain operations. These systems ensure seamless connectivity, instant visibility, and more informed decision-making by enabling organizations to manage inventory, monitor shipments, and analyze data across multiple locations without hardware constraints. A prime example is Bosch's July 2025 launch of Supply Chain Studio-a cloud platform built to elevate logistics efficiency through real-time shipment tracking, automated workflows, and predictive analytics for optimal resource management. Such advancements are redefining warehouse operations with scalable, flexible, and data-driven capabilities.

Key Segmentation of the Internet Of Things (IoT) In Warehouse Management Market

The Internet of Things (IoT) in warehouse management market is segmented as follows:

By Component:
Hardware, Services, Software

By Deployment Mode:
Cloud-Based, On-Premises

By Enterprise:
Small And Medium Enterprise, Large Enterprise

By Application:
Asset Tracking, Inventory Optimization, Warehouse Automation, Warehouse Management, Predictive Maintenance, Other Applications

Subsegments Include:

Hardware: Radio Frequency Identification Tags And Readers, Bluetooth Low Energy Beacons, Ultra Wideband Anchors And Tags, Internet Of Things Gateways And Edge Controllers, Environmental Sensors For Temperature Humidity And Vibration, Smart Shelves And Bin Level Sensors, Industrial Cameras And Computer Vision Systems, Autonomous Mobile Robots

Services: Consulting And Assessment, System Design And Engineering, Deployment And Integration, Managed Connectivity And Device Lifecycle Management, Remote Monitoring And Operations, Maintenance And Technical Support, Training And Change Management, Data Analytics And Visualization Services

Software: Device Management Platforms, Warehouse Management System Software, Warehouse Execution System Software, Inventory Visibility And Control Software, Real Time Location System Software, Predictive Maintenance And Analytics Software, Computer Vision And Quality Inspection Software, Digital Twin And Simulation Software

Leading Companies Influencing the Internet Of Things (IoT) In Warehouse Management Market

Key players in the Internet of Things (IoT) in warehouse management market include Microsoft Corporation; Robert Bosch GmbH; Siemens Aktiengesellschaft; International Business Machines Corporation (IBM); Cisco Systems Inc.; Intel Corporation; Oracle Corporation; Schneider Electric Societas Europaea; Honeywell International Inc.; ABB Limited; HCL Technologies Limited; Zebra Technologies Corporation; Arm Holdings Public Limited Company; PTC Incorporated; Argos Software Incorporated; Samsara Incorporated; Impinj; Tecsys Incorporated; Zyter Incorporated; Suntist Labs Private Limited.

Regional Insights Driving Internet Of Things (IoT) In Warehouse Management Market Growth

North America dominated the Internet of Things (IoT) in warehouse management market in 2024, while Asia-Pacific is forecast to be the fastest-growing region. The report encompasses Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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