Transportation Management Systems Market Size & Growth Analysis to 2030

The global transportation management systems market is expected to grow at a significant CAGR of over 11% during the forecast period from 2021 to 2027. The rapid growth in the retail and e-commerce sector and logistics industry around the world is a primary factor to drive the market growth. The introduction of new technologies such as Advanced Driver Assistance Systems (ADAS) is further expected to increase the demand for TMS. Moreover, the increasing use of cloud computing technologies is one of the emerging trends that is expected to fuel the market growth. In addition, the rising prevalence of SaaS-based solutions is another major factor to drive the market growth over the forecast period.

Market Drivers:

Increasing Global Trade: The growth of global trade has led to a rise in transportation and logistics activities. As businesses expand their operations globally, they require efficient management of their supply chains and transportation networks. Transportation management systems help streamline operations, optimize routes, and enhance visibility and control over shipments, making them essential tools for managing the complexities of global trade.

Need for Operational Efficiency: Transportation management systems enable companies to improve operational efficiency by automating manual processes and eliminating redundant tasks. TMS solutions offer features such as load optimization, route planning, carrier selection, freight audit, and payment automation, which help reduce costs, minimize errors, and improve overall productivity. The need to enhance operational efficiency and reduce transportation costs is a significant driving factor for the adoption of TMS solutions.

Growing E-commerce Industry: The rapid growth of the e-commerce industry has fueled the demand for efficient and reliable transportation services. E-commerce companies require robust logistics and transportation management solutions to handle increasing order volumes, manage multiple carriers, and ensure on-time deliveries. TMS solutions provide end-to-end visibility, order tracking, and efficient management of last-mile deliveries, making them crucial for the e-commerce sector.

Increasing Complexity of Supply Chains: Supply chains have become more complex, involving multiple transportation modes, numerous stakeholders, and global networks. Transportation management systems help businesses effectively manage and optimize these complex supply chains. TMS solutions provide visibility into shipments, enable collaboration among supply chain partners, and facilitate effective decision-making based on real-time data. The need to manage complex supply chains efficiently is driving the adoption of TMS solutions.

Technological Advancements: Advances in technology, such as cloud computing, big data analytics, artificial intelligence (AI), and the Internet of Things (IoT), have significantly enhanced the capabilities of transportation management systems. Cloud-based TMS solutions offer scalability, flexibility, and easy integration with other enterprise systems, making them accessible to businesses of all sizes. AI and data analytics capabilities help optimize routes, predict demand, and identify cost-saving opportunities. These technological advancements have played a crucial role in the growth of the TMS market.

Regulatory Compliance: The transportation industry is subject to various regulations and compliance requirements, such as safety regulations, customs regulations, and environmental standards. Transportation management systems assist companies in complying with these regulations by providing features like electronic documentation, automated reporting, and visibility into compliance-related data. The need for regulatory compliance and the ability of TMS solutions to facilitate it contribute to their adoption.

Focus on Sustainability: Sustainability has become a key consideration for businesses across industries, including transportation and logistics. Transportation management systems help optimize routes, reduce empty miles, and improve fuel efficiency, thereby reducing carbon emissions and environmental impact. The focus on sustainable practices and the ability of TMS solutions to support eco-friendly transportation contribute to their adoption.

Market Outlook:

Market Insights:

The global transportation management systems market is bifurcated into the mode of transportation, deployment, end-use, and geography. On the basis of transportation mode, the market is further segmented into roadways, railways, waterways, and airways. The roadways segment dominated the market in 2020 and accounted to hold the largest market share of over 40% of the market in terms of revenue. The demand growth is attributed to the increasing investment by the government and private sector to deploy the TMS around the globe. Roadways transportation is the most common transportation mode of the world and widely used in various sectors due to its cheap cost and flexible nature.

By end-use, the market is further fragmented into retail & e-commerce, manufacturing, logistics, government organizations, and others. The manufacturing segment dominated the market in 2020 and accounted to hold the largest revenue share of one-third percent of the market the increasing manufacturing units in emerging economies is a major factor to contributed the segment growth. Furthermore, the increasing government supports for small and large business organizations is further expected to drive the segment growth over the forecast period. On the other hand, the retail and e-commerce sector is expected to grow at the fastest CAGR during the forecast period due to the rising e-commerce industry in developing economies around the world.

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The transportation management systems comprehensive study offers an in-depth analysis of industry trends, market size, competitive analysis, and market forecast – 2020 to 2027. Research Corridor report provides detailed premium insight into the global market and reveals the potential revenue streams, commercial prospects, market drivers, challenges, opportunities, issues, and events affecting the industry. In addition, the report has a dedicated section covering market forecasts and analysis for leading geographies, profiles of major companies operating in the market and expert opinion obtained from interviews with industry executives and experts from prominent companies.

The transportation management systems market research report presents the analysis of each segment from 2018 to 2027 considering 2020 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2021 to 2027.

Historical & Forecast Period

• 2018-19 – Historical Year
• 2020 – Base Year
• 2021-2027 – Forecast Period

Market Segmentation:

By Mode of Transportation:

• Roadways
• Railways
• Waterways
• Airways

By Deployment:

• On-premise
• Cloud

By End-Use:

• Retail & E-commerce
• Manufacturing
• Logistics
• Government Organizations
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Geographic Coverage:

Geographically, North America dominated the global transportation management systems market in 2020 and accounted to hold the largest market share of over one-third percent of the market in terms of revenue. The early adoption of new technologies and the wide use of roadways transportation as a primary mode are some factors to drive the market growth in the region. Moreover, the presence of some major players such as Cerasis Inc, 3GTMS, etc, has contributed to the market growth in North America. In contrast, the Asia Pacific is accounted to register the fastest growth rate over the forecast period due to the growing retail and e-commerce sector in emerging economies such as India, China, and Indonesia.

Market Competition Assessment:

Some of the major players operating in the global transportation management systems market are 3GTMS, BluJay Solutions Ltd., Cerasis, Inc., C.H. Robinson Worldwide, Inc., and The Descartes Systems Group, Inc. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• 3GTMS
• BluJay Solutions Ltd.
• Cerasis, Inc.
• H. Robinson Worldwide, Inc.
• The Descartes Systems Group, Inc.
• SAP SE
• Infor, Inc.
• International Business Machines Corp.
• Oracle Corp.
• JDA Software Group, Inc.

Key Questions Answered by Transportation Management Systems Market Report:

• Global transportation management systems market forecasts from 2021-2027
• Regional transportation management systems market forecasts from 2021-2027 covering Asia-Pacific, North America, Europe, Middle East and Africa, and Latin America
• Country-level forecasts from 2021-2027 covering 15 major countries from the aforementioned regions
• Transportation management systems submarket forecasts from 2021-2027 covering the market by mode of transportation, by deployment, by end-use, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis pertaining to transportation management systems market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level transportation management systems markets from 2021-2027
• Competitive Landscape and market positioning of top 10 players operating in the transportation management systems market