PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1401782
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1401782
Transportation Management System Market size was valued at USD 14,312 Million in 2022, expanding at a CAGR of 18.0% from 2023 to 2030.
Supply chains primarily depend on transportation management systems, which have a substantial impact on several process elements including operational planning, procurement, logistics, and lifecycle management. TMS provides comprehensive visibility to support effective planning and monitoring of transportation, resulting in improved customer experience.
Transportation Management System Market- Market Dynamics
Increasing utilization of transportation management system by logistics companies to propel market demand
The Transportation Management System market is expanding due to the growing tendency of retailers and logistics organizations using transportation management systems (TMS) and the rising demand for backhaul support services for reverse logistics. Supply chain processes such as planning and execution, route optimization, and shipment tracking can be automated with the use of TMS systems. Therefore, the main reasons propelling the market expansion are the reduction of manual errors, time savings, and costs associated with managing transportation operations. Growing customer expectations, increased competition from competing logistics operators and start-ups, and rising consumer demands have all put tremendous pressure on the transportation and logistics sectors in emerging economies. Further, the adoption of advanced transportation management systems is the increasing demand for cloud-based, anti-theft GPS and IoT-enabled systems to guarantee security and transparency.
Transportation Management System Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 18.0% over the forecast period (2023-2030)
Based on Solution segmentation, Fright & Order Management was predicted to show maximum market share in the year 2022, owing to high demand from logistics solutions for delivery management.
Based on Deployment segmentation, on premises segment was the leading segment in 2022, mainly due to increasing reliance on on-premises solutions.
Based on End-User segmentation, manufacturing was the leading End-User in 2022, mainly due to high demand for inventory & material management.
On the basis of region, North America was the leading revenue generator in 2022, owing to rising adoption of TMS in roadways and transportation.
The Global Transportation Management System Market is segmented on the basis of Solution, Deployment, End-User, and Region.
The market is divided into six categories based on Solution: operational planning, fright & order management, payment & claims management, monitoring & tracking, reporting & analytics, and others. The fright & order management segment dominates the market. Increasing demand from logistics and supply chain for TMS is contributing to segment growth.
The market is divided into two categories based on Deployment: on-premises and cloud-based. The on-premises segment dominates the market and is likely to maintain its dominance during the forecast period. The companies are looking for cloud based TMS solutions which is expected to fuel the market growth.
The market is divided into five categories based on End-User: retail & ecommerce, manufacturing, logistics, government organizations, and others. The manufacturing dominates the market and is likely to maintain its dominance during the forecast period. The retail segment is estimated grow at rapid pace owing to high urbanization in developing countries.
Transportation Management System Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
The increasing trend of multi-cloud functionality among companies and the growing need for cloud-based intelligence services are driving the overall growth of the market. This component is crucial for introducing new technologies into the industry and enhancing the overall viability of processes. Cloud computing and contemporary technical advancements are closer thanks in part to AI software. For instance, in 2022, Oracle declared that partners and customer developers would have access to its ERP apps platform. Some of the leading TMS vendors, including IBM Corporation, Manhattan Associates, JDA Software Group Inc., MercuryGate International Inc., etc.
In June 2022, Descartes Systems Group, the industry leader in logistics-intensive enterprises in commerce, announced the acquisition of XPS Technologies, a supplier of multi-carrier parcel shipping solutions for e-commerce.
In May 2022, MercuryGate International Inc., announced a partnership with Amazon Freight, an Amazon-powered freight delivery service.
The scope of this report covers the market by its major segments, which include as follows: