This approach cuts costs, boosts shipping efficiency, and improves customer service. It connects order processing and delivery within a business and is useful in creating a network of good customer services while cutting costs by implementing a cloud-based transportation system.
Transportation management systems play an vital role in supply chains, influencing many areas of the process, including operational planning, procurement, logistics, and lifecycle management. TMS provides deep visibility, allowing for more effective transportation planning and monitoring, resulting in a better client experience. Furthermore, the rapidly developing global trade environment and transits make it critical for enterprises to have a TMS system that can help them effectively negotiate complicated transit operations and processes involving trade rules and compliance.
The global transportation management system (TMS) market is being driven by the growth of the retail and e-commerce industries, consistent technological advancements that have resulted in the introduction of innovative solutions to the market, and the strengthening of bilateral trade relations between various countries worldwide. TMS technologies also help to automate manual supply chain functions such as planning and execution, route optimization, and shipment tracking. As a result, it reduces manual errors, saves time, and lowers the expenses associated with managing transportation operations, which are significant factors driving market growth.
Large organizations typically have their IT department to manage business processes, but startups and SMEs sometimes lack such a system. Managing an IT department incurs additional costs. Cloud-based transport management systems are popular among SMEs and startups as they provide the benefits of an IT department without the need for additional hiring or costs. This allows internal employees to focus on ongoing business operations. The cloud-based transport management system's storage flexibility allows for expansion, making it ideal for SMEs to manage unexpected growth. The cloud-based transport management system offers cost reductions and a pay-as-you-go strategy, enabling SMEs to compete effectively. This includes real-time payment over the cloud.
The introduction of 5G technology opens up a variety of options for the Transportation Management System (TMS) business opportunities, including better connectivity, real-time communication, and data interchange between cars and TMS platforms. 5G allows vehicles to communicate information about road conditions, traffic, and accidents, improving route planning and optimization. 5G technology can help TMS platforms acquire real-time data from cars and use advanced analytics for efficient fleet management, proactive decision-making, and predictive maintenance. 5G technology enables seamless connection between TMS platforms and supply chain stakeholders, providing real-time visibility, inventory control, and responsive coordination. Autonomous vehicles and platooning systems can benefit from 5G's fast, low-latency communication.
Key segments that contributed to the derivation of the transportation management system market analysis are component, function, deployment type, and industry verticals.
The geographic scope of the transportation management system market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. The North American region is well-known for its rapid adoption of roads as the primary form of transportation for moving freight and delivering goods. Local communities' increased spending on linked infrastructure aims to provide a positive and smooth transit environment. It is one of the primary drivers of growth in the North American TMS market. Furthermore, the presence of several significant TMS vendors, like IBM Corporation and JDA Software Group Inc., propelled the growth of the market.
The transportation management system market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
(Source: Trimble, Company Website, 2023)
(Source: Descartes, Company Website, 2023)
The regional trends and factors influencing the Transportation Management System Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Transportation Management System Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 13.56 billion |
| Market Size by 2031 | US$ 51.58 billion |
| Global CAGR (2023 - 2031) | 18.20 % |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Transportation Management System Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Transportation Management System Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The "Transportation Management System Market Size and Forecast (2023–2031)" report provides a detailed analysis of the market covering below areas:
The global transportation management system market was estimated to be US$ 13.56 billion in 2023 and is expected to grow at a CAGR of 18.2% during the forecast period 2023 - 2031.
Cloud-based SaaS solutions are the major factors that propel the global transportation management system market.
Growth in e-commerce sales to play a significant role in the global transportation management system market in the coming years.
The global transportation management system market is expected to reach US$ 51.58 billion by 2031.
The key players holding the majority of shares in the global transportation management system market are IBM Corporation, BluJay Solutions Ltd., Cargobase, Cerasis, Inc., and Oracle.