New York, April 17, 2023 (GLOBE NEWSWIRE) -- According to Market.us, the Transportation Management System Market size is projected to surpass around USD 46.2 billion by 2032 from a market size of USD 12.4 billion in 2022, and it is poised to reach a CAGR of 14.5% from 2023 to 2032.
A platform called a transportation management system is made to make the transportation process, which is part of the supply chain, easier to manage. From the time an order is placed until the final delivery. It oversees, organizes, manages, and handles all aspects of product transportation. The TMS platform is getting more and more popular all the time.
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Key Takeaway:
- By deployment mode, The On-Premise segment drives the market growth globally during the forecast period.
- By mode of transportation, the roadways segment dominates the market growth globally in 2022.
- By End-user, in 2022, the manufacturing sector held the largest share, with over 36.40%.
- North America held a revenue share of approximately 32.60% in 2022
- Asia Pacific market is anticipated to record the highest CAGR during the forecasted period.
The COVID-19 pandemic had a significant impact on the sector, resulting in unusually low sales and installation rates. Disruptions in the retail industry, such as compelled lockdowns and a shift in consumer spending habits, may impede market expansion. Several major system manufacturers had temporarily ceased production due to a lack of parts. The adoption of Transportation Management Systems (TMS) was sluggish as a result of this.
Factors affecting the growth of the Transportation Management System Market
Several factors can affect the growth of the transportation management system market. Some of these factors include:
- High Return on Investment: TMS solutions can directly impact freight savings, including better procurement negotiations, efficient routing, and the selection of low-cost modes.
- Advancements in Technology: The growth of E-Commerce in transportation is the main opportunity in the global market.
- Changes in Industry Landscape: The rapid evolution of the industry landscape is due to the widespread adoption of artificial intelligence (AI), including machine learning (ML), and computer vision technology.
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Top Trends in Global Transportation Management System Market
The widespread adoption of artificial intelligence (AI), which includes machine learning (ML) and computer vision technology, is the reason for the rapid evolution of the industry landscape. Because robot autonomy is necessary for staying competitive in global transportation management system market, artificial intelligence solutions and services will become increasingly popular. Because of this, advancements in data-based AI and deep learning continue to propel the global artificial intelligence market forward. The demand for cloud-based intelligence services and the growing use of multi-cloud functionality are driving market expansion. Modern AI tools have made cloud computing more valuable. This is essential for incorporating new technologies into the industry and increasing process viability as a whole. Artificial intelligence programming can likewise span the mechanical hole between distributed computing and present-day forward leaps. The AI cloud makes it possible to combine two technologies. An AI cloud hybrid system can be created by combining AI software and hardware with cloud computing and artificial intelligence. A cloud environment resembling the human brain is created as a result.
Market Growth
Modern supply chain management is now being considered a subset of transportation management solutions. Timelines and perfection are burdening the supply chain, whether in-house or outsourced, in order to meet demand and supply-side expectations. From quotation to delivery, transportation management systems have been automating entire processes. Additionally, these systems make processes more centralized, make it possible to plan for both anticipated and unanticipated occurrences, and remove unnecessary stress from the supply chain as a whole.
Regional Analysis
In 2022, North America was the most important market for TMS, accounting for a revenue share of more than 32.60%. The widespread use of roads as the primary mode of transportation for goods in North America is well-known. The expansion of spending on local infrastructure to ensure smooth transit is driving the market. Top TMS vendors like Infor Inc., 3GTMS, Cerasis Inc., International Business Machines Corp., and MercuryGate International Inc. are also helping this market grow. The Asia-Pacific region is expected to grow significantly over the forecast period. The expanding retail and e-commerce sectors in India and China will be the primary drivers of the region's expansion over the anticipated time frame. The various initiatives and policies that businesses in the region are implementing to promote intelligent transportation will also contribute to the growth of the region.
Competitive Landscape
The competitive landscape of the transportation management system market has also been examined in this report. Some of the major players include 3GTMS, BluJay Solutions Ltd., C.H. Robinson Worldwide, Inc., Cerasis, Inc., inet-logistics GmbH, Infor Inc., International Business Machines Corp., JDA Software Group, Inc., Manhattan Associates, MercuryGate International, Inc., Oracle Corp., SAP SE, The Descartes Systems Group Inc., Trimble Transportation Enterprise Solutions, Inc., and other key players.
Recent Development of the Transportation Management System Market
- March 2022: Data cloud company Snowflake and Blue Yonder, a provider of digital supply chains and omnichannel fulfillment, announced a partnership that will transform supply chain management's ability to access heterogeneous data sources. Blue Yonder's Luminate Platform powered by Snowflake is available to retailers, manufacturers, and third-party logistics providers (3PLs). This solution helps them better anticipate, prevent, and address disruptions throughout their business, reducing risks and addressing the growing supply chain challenges.
- February 2022: RHI Magnesita is the largest provider of refractory materials in the world. To support its growth, and technological modernization, Oracle Fusion Cloud Transportation Management (a component of Oracle Fusion Cloud Supply Chain & Manufacturing) was chosen. All of RHI Magnesita’s shipping facilities now use a single integrated transport management system to manage all logistics operations. Oracle Transportation Management allowed the company to reduce costs, improve service standards and automate processes to make its logistics operations more efficient.
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Scope of the Report
| Report Attribute | Details |
| Market Value (2022) | USD 12.4 billion |
| Market Size (2032) | USD 46.2 billion |
| CAGR (from 2023 to 2032) | 14.5% |
| North America Revenue Share | 32.6% |
| Historic Period | 2016 to 2022 |
| Base Year | 2022 |
| Forecast Year | 2023 to 2032 |
Market Drivers
Many transportation management systems can speed up the time between placing an order and receiving it. They can also reduce inventory management costs, assure compliance, lower freight prices, and shorten the time required to track customs paperwork. The market for transportation management systems could grow because of the higher return on investment (ROI). The return on investment (ROI), when a Transportation Management System has been used, often comes down to how well the load management is done. TMS is chosen by shippers for many reasons. TMS solutions change constantly, and there are many ways to increase ROI. TMS solutions can directly impact freight savings, including better procurement negotiations, efficient routing, and the selection of low-cost modes.
Market Restraints
Transportation management systems can be categorized as modular, scalable, and simple to use. They are compatible with all types of transportation. TMS providers have begun to choose the cloud as their new solutions will be more complex as supply chains expand around the globe. Because of concerns about data privacy, security breaches, and cyberattacks, companies prefer to have their solutions on-premise. For organizations without the resources or technical expertise to build their infrastructure, cloud-based solutions can be cheaper and more lucrative than traditional on-premise solutions.
Market Opportunities
The transportation management system market’s expansion is expected to be driven by the expansion of e-commerce and the high investment return on transportation management systems. The increase in trade between developed and emerging economies has led to an increase in demand for this segment. Both the number of imports and exports has gone up. The increasing number of factories in India and Mexico has led to an increase in the demand for raw materials. Transportation management systems need to be both creative and effective because these raw materials need to come from different places.
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Report Segmentation of the Transportation Management System Market
Deployment Mode Insight
In 2022, the on-premise segment made up more than 57.20%. Many large distribution and manufacturing companies still prefer to use on-premise TMS due to its data safety requirements, easy access to the server, and greater control over customization. As cloud-based TMS becomes more popular, incumbents in various industries will likely choose cloud-based TMS. Over the forecast period, the cloud segment will show the highest growth rate.
The cloud-based TMS provides shippers, logistics providers, and vendors with unique planning and optimization advantages. Cloud-based TMS is becoming more popular as companies continue to increase their data volumes. This is due to its superior configuration capabilities and efficiency. Cloud-based TMS is more cost-effective than on-premise TMS due to its lower licensing and management fees. As the information is stored on the cloud that can be easily accessible from anywhere is the significant advantage of the cloud-based TMS. The segment growth is expected to be driven by such benefits.
Mode of Transportation Insight
In 2022, the roadways segment made up more than 41.80%. Road freight is one of the most popular modes of transport worldwide. Because it is flexible and cost-effective, it can be loaded and unloaded at any location. Due to the increased dependence of consumers on e-commerce during COVID-19, companies had to increase their delivery options for the roadway segment. Many governments are simultaneously pursuing initiatives to improve transportation infrastructure. This is expected to increase the demand for logistics via roadways and, consequently, the growth in the roadways segment. Over the forecast period, the fastest-growing segment will be the waterways segment. This growth can be attributed in large part to the substantial investments made by different governments in TMS for the efficient management and maintenance of waterways.
End-User Insight
In 2022, the manufacturing sector held the largest share, with over 36.40%. The necessity for outsourcing inventory and raw materials has increased as a result of the rising number of manufacturing units in emerging economies like India and Mexico. For instance, the "Make in India" initiative launched by the Indian government places a significant emphasis on the growth of the domestic manufacturing sector and may even encourage indigenous manufacturing. Over the course of the forecast period, such initiatives bode well for the expansion of the manufacturing sector.
Over the forecast period, the retail and e-commerce segments are expected to experience a significant increase in sales. This growth is due to unabated growth in the retail and e-commerce industries in countries like India and China. China is responsible for almost 80% of all online sales in Asia-Pacific. However, India is poised to become the fastest-growing e-commerce marketplace by leveraging strong investments in the e-commerce sector and deeper smartphone penetration. TMS is being used by large e-commerce firms like Alibaba Group Holding Ltd., Walmart Inc., and Amazon.com, Inc., to maintain and strengthen their shipping operations.
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Market Segmentation
Based on the Deployment Mode
- On-Premise
- Cloud-Based
Based on the Mode of Transportation
- Roadways
- Railways
- Waterways
- Airways
Based on End-User
- Retail & E-commerce
- Manufacturing
- Logistics
- Government Organizations
- Other End-Use Verticals
By Geography
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Market Key Players:
- 3GTMS
- BluJay Solutions Ltd.
- H. Robinson Worldwide, Inc.
- Cerasis, Inc.
- inet-logistics GmbH
- Infor Inc.
- International Business Machines Corp.
- JDA Software Group, Inc.
- Manhattan Associates
- MercuryGate International, Inc.
- Oracle Corp.
- SAP SE
- The Descartes Systems Group Inc.
- Trimble Transportation Enterprise Solutions, Inc.
- Other key Players
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