The 2026 Software Survey (Software/Automation Outlook 2026) from Peerless Research Group and Modern Materials Handling examines how warehouse and distribution operations are using, evaluating, and planning investments in the software platforms that orchestrate automation, labor, inventory, and transportation. Respondents include a cross-section of supply-chain roles, with manufacturers representing 36 percent, wholesalers 15 percent, and transportation or warehousing services 14 percent. Large companies are well represented: 38 percent report 2025 revenues of $250 million or more (including 19 percent at $2.5 billion or higher).
Software remains central to automated fulfillment. Forty percent of companies describe themselves as cautiously embracing change (up from 34 percent), while 17 percent take a wait-and-see stance. The current economy has led 38 percent to hold off on software investments this year (up from 34 percent).
Fifty-five percent report that their use of materials-handling software has stayed the same, while 42 percent report an increase. Roughly half (49 percent) currently use warehouse management systems (WMS) or inventory-management software, and 30 percent use supply-chain management (SCM) or planning software. Other widely used applications include labor-management systems, transportation-management systems (TMS), asset-tracking software, warehouse execution systems (WES), and yard-management systems (YMS).
Over the next two years, 25 percent plan to evaluate, purchase, or upgrade their WMS, 21 percent their WES, 18 percent their SCM/SCP, 17 percent robotic control systems, 15 percent asset-tracking systems, 13 percent LMS, and 12 percent TMS. Common adoption challenges include total cost of ownership (32 percent), compatibility with existing systems (31 percent), user acceptance (30 percent), integration with existing applications (29 percent), and lack of implementation/management resources (28 percent). WMS remains the workhorse: 32 percent of systems are five to ten years old, 27 percent one to five years old, 18 percent ten to less than fifteen years old, and 14 percent fifteen-plus years old.
ROI timelines vary, with 32 percent reporting more than 18 months, 22 percent six to twelve months, and 15 percent less than six months. The primary reason for WMS upgrades is replacement of existing platforms (62 percent), followed by improved labor management (29 percent) and inventory deployment (28 percent). TMS adoption shows similar patterns, with notable recent upgrades (39 percent within the past year) and faster ROI for many (39 percent realizing returns in six to twelve months).
Cloud-based applications are used by 41 percent, with another 36 percent evaluating or planning evaluation; scalability, analytical access, and shared information are the top cited benefits. Sixty-one percent are using or evaluating cloud solutions for core warehouse applications. AI adoption has accelerated: 26 percent now use AI (up from 19 percent), 29 percent are evaluating it, and only 10 percent have no plans (down from 25 percent).
Machine learning follows a parallel trajectory (19 percent in use, 26 percent evaluating). IoT is used by 22 percent and under evaluation by 24 percent; blockchain usage has risen to 17 percent. The survey confirms that software is no longer peripheral but the essential orchestration layer enabling heterogeneous automation fleets, real-time decision-making, and continuous operational improvement in modern warehouses.