Dublin, Feb. 04, 2022 (GLOBE NEWSWIRE) -- The "Australia Route Optimization Software Market - Forecasts from 2021 to 2026" report has been added to ResearchAndMarkets.com's offering.
The Australia route optimization software market is projected to witness a compound annual growth rate of 9.94% to grow to US$120.808 million by 2026, from US$60.217 million in 2019.
The market is expected to surge in the country, due to the increasing food and home delivery services, growth in e-commerce, and other related factors. The increasing number of internet and smartphone users is also expected to play a major role in the market growth.
According to the data given by the Australia Bureau of Statistics, there were more than 15 million internet subscribers in the country in the year 2019, and the volume of data downloaded also increased at a significant rate. The growth in the hospitality industry had also been expected to play a major role in the market growth.
Major food delivery companies, such as Manulog, Deliveroo, and UberEATS had been transforming the country's eatery behavior. Nestle, one of the major food and beverage players in the market, had stated that around 68 million food orders are being made in the country every year, and the food delivery segment takes a major share of those orders. These trends and developments are expected to play a major role in the market growth, in the coming years.
Major companies have been making significant developments in the market. For instance, Verizon Connect, one of the major players in the market, has been providing route optimization and planning software to its customers in the country. The company had stated that their software helps in finding cost-effective routes and saves capital and time. These trends and developments are expected to play a major role in the market growth, in the coming years.
Growth in E-Commerce
The market is expected to surge in the coming years, due to the growth in e-commerce in the country. The increasing number of smartphone and internet users has propelled the e-commerce market growth.
The rise in online marketing and shopping application and the increasing involvement of millennials has become an imperative factor in the overall enhancement of the market. According to the International Trade Administration, the country has been one of the biggest e-commerce markets, worldwide and its revenue has been projected to reach US$32.3 billion in the year 2024. Online commerce has been representing around 9% of all the retail trade in the country.
Route optimization solutions help in the enhancement of the online delivery experience. It allows the user to save or reduce overhead costs and increase online delivery efficiency. Major companies have been making significant developments in the market.
For instance, MyRouteOnline has been providing route planning services to its customers in the country. The company has also created a navigation assistance app for smartphone users, which helps in making routing output easier to use.
Other players are also making key developments in the market. For instance, Caliper provides Maptitude software that finds and identifies routes for deliveries and travel and also calculates the distances between the respective destinations. These developments are expected to play a major role in the market growth, in the coming years.
Rising Adoption of Cloud-Based System
A cloud-based route optimization software offers all the features and functionalities of any advanced route optimization software, along with the added advantages of scalability, enhanced security, easier disaster recovery, and always-on customer support among others.
Everything becomes centrally managed when using a cloud-based product as it offers real-time optimization functionalities as well as reduces the need to constantly worry about scheduling time and resources to perform maintenance or to upgrade security.
Moreover, the cloud-based deployment model involves little capital costs and requires low maintenance, making it increasingly in demand by various companies, including small and medium-sized enterprises as well as large companies. The major factor contributing to the growth of this segment includes the growth of the e-commerce industry in Australia.
According to the Australian Bureau of Statistics, online sales in Australia registered a 55% rise in December 2020 compared to the same period last year.
Australia Post's Online Shopping Report published in January 2021 further reveals that over 5.6 million Australian households shopped online in December 2020, a 21.3% growth compared to the 2019 average, indicating the explosive growth of e-commerce in the country, which subsequently, is expected to propel the demand for route optimization software as well, considering its ability to plan and optimize efficient routes for an entire delivery fleet based on the business's constraints and goals and by assisting dispatchers by automating the work of manual planning.
Rising Use for Food Delivery Applications
Owing to the changing lifestyle, increasing disposable income, rapid urbanization, and surging population the demand for food delivery in the country has exponentially increased.
According to a survey conducted by Canstar Blue in Australia, Australians spend an average of $44 on food delivery services per month, which is $528 per year.
The flourishing food delivery market in Australia will subsequently strengthen the market growth for route optimization software in the country as this software help in determining the most cost-efficient route that delivery personnel should take to increase efficiency and reduce costs. The software helps in minimizing the drive time of the driver for multiple stops, which results in making the delivery faster.
The food delivery platforms such as Menulog, Deliveroo, Uber Eats, Hey You, Happy Cow, etc. allow users to place an order by simply taping on their mobile screens due to which such platforms have gained high traction in Australia. Menulog is Australia's widest-reaching food delivery service provider, covering the majority of the country.
DoorDash, a United States-based on-demand food platform, entered the Australian food delivery market in September 2019 to tap the market potential. The presence of new and existing players in the market will accelerate the demand for route optimization software in the Australian market.
Companies Mentioned
- Trimble Inc.
- ORTEC
- Microlise Ltd.
- OMNITRACS
- ESRI
- Route4Me Inc.
- Routific
- Verizon Connect
For more information about this report visit https://www.researchandmarkets.com/r/7hu30f
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