Transportation Management System Market Size, Share, Growth Analysis, By component (Solution, Services), By Deployment Mode (On-Premises, Cloud), By Transportation Mode (Roadways, Railways), By Region -Industry Forecast 2024-2031
Report ID:
SQMIG45F2153 |
Region:
Global |
Published Date: November, 2024
Pages:
183
|Tables:
0
|Figures:
0
Transportation Management System Market Insights
Global Transportation Management System Market size was valued at USD 13.61 Billion in 2022 and is poised to grow from USD 15.98 Billion in 2023 to USD 49.11 Billion by 2031, growing at a CAGR of 17.4% in the forecast period (2024-2031).
Factors fueling growth of the global transportation management system market include expansion of the retail and e-commerce sectors globally, sustained technological advancement that keeps giving birth to new solutions that enter the market, and continuing progress in the two-way trade relationship between several countries globally. TMS systems enable the automatic processing of manual supply chain management activities such as shipment tracking and route optimization as well as planning and execution. Hence, the key drivers of market growth focus on error reduction by human intervention, time saving, and the cost associated with transportation management operations. Supply chains tend to depend on transportation management systems, which constitute a crucial component of most elements of the process, such as operational planning, procurement, logistics, and lifecycle management. TMS provides wide visibility that aids in the proper planning and monitoring of transport, thereby improving the customer experience. With this dynamic change in the trade environment and transits in the global arena, enterprises need a system of TMS that will help them negotiate complicated transit operations and procedures around trade rules and compliance. The following, therefore, are expected to drive market growth. According to the World Economic Forum, many industries, including those in logistics, supply chain, and transportation, now use AI. Increased amounts of data in supply chain management and transportation call for more efficient ways to process data, meaning there is a growing need to have AI used by the transportation management system to track data in real time to maximize efficiency. For instance, IBM Watson is already using AI adaptation in transport management for identification of damages to logistics assets by many organizations operating in the transportation sector. The solution also leverages on cognitive visual recognition capabilities that are expected to foster market growth, through its exploitation of predictive analysis for better routes and management of networks.
Market Snapshot - (2024-2031)
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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Transportation Management System Market Segmental Analysis
The Global Transportation Management System Market is segmented into component, deployment model, solution type, transportation mode, industry vertical. By component, the market is bifurcated into solution and services. Depending on deployment mode, it is classified into on-premises and cloud. According to solution type, the market is categorized into planning & execution, order management, audit, and payment. As per transportation mode, it is segregated into roadways, airways, railways, and maritime. By industry vertical, the market is fragmented into retail, healthcare & pharmaceutical, manufacturing, and transportation & logistics. Regionally, it is studied across North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Deployment Model
The on-premises segment accounted for more than 56.85% market share in 2023 due to the factors such as safety regulations, ease of accessing the server, and greater flexibility for customization, where most of the manufacturing and distributing companies prefer an on-premise deployment strategy for their transportation management system solutions. This traditional approach helps them keep the sensitive data on-site and be remain compliant with the regulatory requirements. But as user demand for the advantages cloud computing has to offer, scalability, lower installation costs, and better collaboration—is gradually taking hold, end users should expect the more advanced cloud-based transportation management solutions to migrate. This eventually changes the market environment and heralds increasing demand for efficiency and flexibility in managing logistics of transportation.
In the projection period, it is estimated that the cloud-based category should grow at an 18.4% CAGR. It is true that the popularity of cloud-based transportation management systems has recently been increasing as they can be set up with low starting cost and less hardware dependency. Its planning and optimization functionality may easily benefit vendors, shippers, and logistics providers. These days, companies are in pursuit of cloud-based TMS solutions because data generation is getting huge. Such solutions tend to be cheaper than premise deployment. This is mainly because they save on licensing, data storage, and technical labor that lowers the cost of operation.
Analysis by Transportation Mode
As of 2023, the roadways segment leads with a share of more than 41.76%. Roadways are relatively cheaper than other alternatives amongst the most widely used modes of transportation. It is also flexible and permits loading and unloading at any place. Some of the negatives for road transportation include road traffic, lousy conditions for roads, carrying capacity constraint, multipoint police checks, and many more issues. The ongoing government initiatives in emerging nations that target the improvement of transport infrastructures are predicted to boost the demand for roadway-based logistics, which in turn will influence the demand for the roads segment of the market.
The segment of railways is expected to grow at an 18.1% CAGR during the forecast period. Another major factor behind this upward trend is increased government initiatives for the development of railway infrastructure through PPP, which increase the efficiency of operations and quality of service. As the transportation of goods demands the movement of massive amounts of products in specialized carriages manufactured specifically for fast transport, railways are more suitable for freight transportation. Some of the advantages of rail transport over road transport include higher productivity, lower in-transit times and logistics cost for bulky goods. The category is expected to gain size due to increased usage of Transportation Management Systems because the government invests in railway upgrading and technical development.
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Transportation Management System Market Regional Insights
With a revenue share of more than 32.44% in 2023, North America led the global transportation management system market. North America is renowned for having adopted roads as the primary means of transportation for delivering commodities and transporting freight at a rapid rate. The goal of local governments' increasing investments in linked infrastructure is to provide a transit environment that is convenient and efficient. It is one of the main elements propelling the TMS market's expansion in North America. Furthermore, it is anticipated that the existence of many top TMS providers offering a wide range of solutions to customers, among them, IBM Corporation, JDA Software Group Inc., Manhattan Associates, and MercuryGate International Inc.—will support the expansion of the regional market.
The growing retail and e-commerce sectors in nations such as China, India, Singapore, and Indonesia are expected to propel the Asia-Pacific segment's growth at a compound annual growth rate (CAGR) of 19.9% over the course of the projection year. The market is expanding as a result of the growing need for effective logistics and transportation solutions to serve these industries. Furthermore, it is anticipated that the establishment of the ASEAN Economic Community (AEC) will further advance regional economic integration, encouraging trade and cooperation among member countries. The Asia Pacific transportation management system market is expected to grow significantly with the adoption of policies that promote commerce, positioning the region as a major participant in the global economy.
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Transportation Management System Market Dynamics
Drivers
Growing Need for Supply Chain Optimization
- The fastest growing factor in dominating the market is the rising need for supply chain optimization. Companies want their logistical operations to become more cost-effective and operationally efficient, and therefore, ever-increasing numbers of these firms are looking for transportation management systems. Transportation management systems enable firms to optimize loads, carry out freight audits, and plan routes, and in this respect, facilitate the automation of supply chains. TMS systems will reduce transportation costs and deliver faster for companies, critiquing the data it received and giving meaningful information. Further complexities of supply chains and expansion of global commerce require more TMSs, making it one important tool in companies that need to appear flexible in an increasingly aggressive market.
High Retail and E-commerce Activity
- There has been an immense surge in the retail and online e-commerce sectors, with emerging demands for transportation management solutions. These are customers who are shopping online, and there is pressure upon business houses to speed up order processing with utmost efficiency. With TMS, real-time monitoring of shipments, route optimization, and complex distribution networks can be accessed. With the voluminous order management and volume along with the growth of merchants' online business, the logistics systems need to be strong and equipped to cater to such voluminous orders that would satisfy the customers. E-commerce trends are on the rise, and this is increasing the importance of transportation management, making TMS an imperative tool in the eyes of companies who wish to improve their logistical capacities and satisfy changing customer demands.
Restraints
High Implementation Costs
- The primary dissuader in the transportation management system market is high up-front outlay. High front-end investments include equipment, licensing of software, and training of staff. It might pose serious financial challenges for small and medium-sized businesses when keeping all these subscriptions running to further upkeep them. Given this, most companies can choose to delay optimization or consider partial solutions that at best will only limit their ability to improve transportation efficiency and genuinely compete with the changing market.
Integration Issues from Existing Systems
- On the other hand, as organizations implement new transportation management systems into their current supply chain and logistics structures, they also encounter problems in integration. Compatibility problems, data migration on a huge scale, and the requirement for reengineering process could be issues that could complicate the implementation. All these may make some firms desist from using new TMS technology, leading to side effects in terms of delays, increased costs, and disrupted operations. Real-time visibility and data flow can be impeded by integration that is not sufficient, negating the potential advantages which could come with the application of TMS. Businesses thus have to encounter such integration challenges if they expect fully to derive benefits from TMS and optimize transportation management procedures.
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Transportation Management System Market Competitive Landscape
Major transportation management system companies are expanding the products and services they offer through a variety of calculated moves, including partnerships, acquisitions, and mergers. For instance, The Descartes System Group, Inc. reports new products in October 2023 include asset monitoring, proactive driver safety training, improvement in courier optimization, proactive control tower, and customer interaction platform. The above solutions will enable the firm to be equipped with capabilities towards mobile, routing, and telematics.
Top Player’s Company Profile
- GoComet
- Cerasis, Inc.
- BluJay Solutions Ltd.
- Infor Inc.
- IBM Corporation
- SAP SE
- JDA Software Group, Inc.
- Oracle Corporation
- MercuryGate International, Inc.
- The Descartes System Group Inc.
- Cargobase
- C.H. Robinson
- Transplace
- Blue Yonder
- E2Open
Recent Developments
- May 2022: the largest independent TMS provider, MercuryGate International Inc., announced a collaboration with Amazon Freight. Amazon Freight is an Amazon-powered business for freight delivery. Through the MercuryGate platform, the shipper would then get access to Amazon Freight's dependable network and reasonable dynamic pricing.
- March 2022: Blue Yonder, a provider of omnichannel commerce fulfillment and digital supply chain solutions, has teamed up with Snowflake, a popular data cloud company, for transforming the current access by supply chain management to heterogeneous data sources. The end-to-end supply chain solution by Blue Yonder's Luminate Platform powered by Snowflake helps retailers, manufacturers, and 3PLs better predict, prevent, and address disruptions across their whole business, thereby reducing risks and tackling growing supply chain challenges.
- February 2022: Oracle Fusion Cloud Transportation Management, part of Oracle Fusion Cloud Supply Chain & Manufacturing (SCM), has been selected by the world's largest supplier of refractory products, RHI Magnesita, to enable its growth and digitalization. All shipping facilities of RHI Magnesita will go live with a single, integrated transport management system for all logistical activities. The company would be able to reduce costs, increase service levels, and automate processes due to the new Oracle Transportation Management possibility of running logistics operations even more profitably.
Transportation Management System Key Market Trends
- Growth in Cloud-Based Solutions: The rise of scalable, flexible, and low-cost solutions is driving the adoption of cloud-based transportation management systems. Compared to on-premise solutions, cloud-based TMS has many benefits, such as easier 'deployment time' and reduced 'point of entry.' Real-time information is made available to organizations from anywhere, encouraging better stakeholder coordination and evidence-based decision-making. Moreover, cloud solutions enable companies to use the latest technologies and get updates on a regular basis with the view of staying competitive in an ever-changing market. The face of transportation management will soon be different due to embracing cloud-based TMS use and small and medium-sized businesses finding the benefits of this technology.
- Emphasis on Sustainability and Green Logistics: TMS companies are witnessing increasing focus on sustainability as a dominant trend in their business. Businesses are shifting to look for mobility management strategies that provide them with low carbon footprint and promote pro-environmental behavior. TMS solutions focusing on reduction of fuel usage, enhancement of load management capabilities, and optimization of route planning capabilities will benefit projects related to green logistics. Such a trend is to be expected to increase demand for TMS solutions related to achieving these objectives, as environmental regulations get tighter, and the customer begins to shift their preference towards sustainable options. Companies embracing sustainable mobility strategies enhance their reputation but also get a better edge over competition in a market that is rapidly becoming more environmentally conscious and corporate socially responsible.
Transportation Management System Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the transport management systems market is expanding hugely for many reasons, including the growing need for supply chain optimization and the growth of e-commerce. However, among smaller companies, challenges still prevail: integration problems and high costs of implementation. Despite these challenges, the shift toward cloud-based solutions and an emphasis on sustainability changes the game in a new way, providing opportunities for efficiency and creativity. TMS will play a role of going beyond improving operations capabilities and in satisfying the expectations of their customers once business prioritizes logistics and transportation efficiencies. Companies that invest in an advanced TMS solution are sure to reap the rewards of a competitive advantage in an evolving market.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 13.61 Billion |
| Market size value in 2031 | USD 49.11 Billion |
| Growth Rate | 17.4% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Transportation Management System Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Transportation Management System Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Transportation Management System Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Transportation Management System Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Transportation Management System Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Transportation Management System Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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