Transportation Management System Market Report 2031
The transportation management system market size is projected to reach US$ 51.58 billion by 2031 from US$ 13.56 billion in 2023. The market is expected to register a CAGR of 18.20 % from 2023 to 2031.
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 System Market Analysis
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.
Transportation Management System Market Overview
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.
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Transportation Management System Market: Strategic Insights
Market Size Value in US$ 1,920.6 Million in 2017 Market Size Value by US$ 3,262.3 Million by 2025 Growth rate CAGR of 7.02% from 2018-2025 Forecast Period 2018-2025 Base Year 2018
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Transportation Management System Market: Strategic Insights
| Market Size Value in | US$ 1,920.6 Million in 2017 |
| Market Size Value by | US$ 3,262.3 Million by 2025 |
| Growth rate | CAGR of 7.02% from 2018-2025 |
| Forecast Period | 2018-2025 |
| Base Year | 2018 |
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Transportation Management System Market Drivers and Opportunities
Cloud-based SaaS Solutions Will Boost the Transportation Management System Industry to Favor the Market
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.
Developing 5G to Change Traffic Management Systems
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.
Transportation Management System Market Report Segmentation Analysis
Key segments that contributed to the derivation of the transportation management system market analysis are component, function, deployment type, and industry verticals.
- Based on components, the transportation management system market is segmented into software and solutions & services.
- By function, the market is segmented into large enterprises and SMEs.
- By deployment type, the market is segmented into on-premise and cloud
- In terms of industry vertical, the market is segmented into E-commerce, healthcare, retail, industrial, food & beverage, chemicals, and automotive.
Transportation Management System Market Share Analysis by Geography
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.
Transportation Management System Market News and Recent Developments
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:
- In April 2023, Trimble announced the completion of its previously announced acquisition of Transporeon, the platform powers a global network of 145,000 carriers, 1400 shippers, and load recipients, offering integrated capabilities for sourcing, planning, execution, monitoring, and settlement.
(Source: Trimble, Company Website, 2023)
- In April 2023, Descartes purchased Localz, a 10-year-old startup that enables shops to communicate with customers during delivery. Localz's technology platform uses real-time truck tracking and communication to enhance the client delivery experience.
(Source: Descartes, Company Website, 2023)
Transportation Management System Market Report Scope
Transportation Management System Market Report Coverage and Deliverables
The "Transportation Management System Market Size and Forecast (2023–2031)" report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component ; Function ; Deployment Type ; and Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
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.
- IBM Corporation
- BluJay Solutions Ltd.
- Cargobase
- Cerasis, Inc.
- Oracle
- SAP
- Trimble Transportation Enterprise Solutions, Inc.
- MercuryGate International, Inc.
- Manhattan Associates
- Infor Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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