Transportation Management Systems Market Growth Analysis | 2023-2028

Market Insights

The transportation management systems market was estimated at USD 11.15 billion in 2022 and is likely to grow at a CAGR of 19.10% during 2023-2028 to reach USD 31.9 billion in 2028.

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Market Dynamics

Introduction

A transportation management system is referred to as a platform that is designed to streamline the transportation process, a sub-segment of the supply chain. It engages with organizing, monitoring, managing, and handling any matter related to the transportation of products from placing the order until the final delivery.

COVID-19 Impact

The COVID-19 pandemic has negatively impacted the transportation management systems sector. Logistics companies involved in the handling, storage, and transportation of goods are directly affected by the COVID-19 pandemic. Transport organizations are needed to ensure transport networks can continue to operate during the lockdown period without compromising on the norms.

Organizations invest in Transportation Management Systems (TMS) every year in the wake of COVID-19 to increase efficiency, improve supply chain visibility, manage costs, and provide excellent customer service. Companies that have already deployed the Transportation Management System (TMS) are better equipped to meet the challenges of COVID-19.

Market Drivers

The growth of the transportation management systems market is primarily driven by several factors. Below given are a few-

• Growing e-commerce industry: The e-commerce industry is growing rapidly and is expected to cross 8 trillion dollars by 2026. This growth of e-commerce has led to an increased demand for TMSs since they help e-commerce businesses track and manage online orders.
• The adoption of disruptive technologies: Cloud computing, big data, blockchain, etc. is driving the growth of the TMS market since such disruptive technologies enable TMS providers to develop many advanced solutions that can help businesses enhance productivity, improve efficiency and reduce cost. These technologies help TMS solutions by providing real-time data, predictive analytics, seamless integration, etc.
• Increasing global trade: With the expansion of international trade, there has been a rise in the volume of goods being transported across borders. According to the World Trade Organization, the global commercial services trade crossed US$ 6.5 trillion in 2022 and is expected to rise in the coming years. As international trade expands, there will be a need for transportation management systems to handle the rising demand.
• Cost optimization: Through data analysis and cargo transportation optimization, TMS can reduce a shipper’s freight invoice payment by ~90%. Cerasis is now part of Global Tranz, a leading technology and multimodal third-party logistics solutions provider. Companies are looking for cost-saving options and TMS enables them to reduce transportation and other costs through route optimization, load consolidation, carrier selection, etc.

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Key Players

The following are the key players in the transportation management systems market (arranged alphabetically).

• 3Gtms Inc. (Sumeru Equity Partners) (US),
• CargoSmart Ltd (China),
• Descartes Systems Group, Inc. (Canada),
• JDA Software Group, Inc (US),
• Manhattan Associates, Inc. (US),
• MercuryGate International, Inc (Summit Partners) (US),
• Oracle Corporation (US),
• Precision Software, Inc. (QAD Inc.) (US),
• SAP SE (Germany),
• Trimble (US).

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

By Mode of Transportation Type

"The roadways segment accounted for the largest market share."

The market has been classified into roadways, railways, waterways, and airways. The roadways segment held a more than 40% market share in 2022 and is projected to grow at a robust CAGR in the coming years. One of the most popular ways of transportation worldwide is by road. Given that it can permit loading and unloading at any location, it is regarded as flexible and cost-effective. Several governments, particularly in emerging economies, are simultaneously working to enhance the infrastructure for transport, which is anticipated to fuel demand for logistics services provided by highways and, as a result, the expansion of the roadway segment. Over the projected period, the category of the waterway is anticipated to increase at the fastest rate. The significant investments made by various governments in the implementation of TMS for the effective management of waterways can be credited with the increase.

By Deployment Type

"The on-premise segment accounted for the largest market share."

The market has been classified into on-premise and cloud. The on-premise segment held a significant market share in 2022 and is expected to maintain its dominance during the forecast period. Many large manufacturing & distribution enterprises still opt for on-premise TMS due to the data safety requirements, improved control over customization, and convenient access to the server, thereby augmenting the segment growth in the coming years.

By End-Use Type

"The manufacturing segment accounted for the largest market share."

The market has been classified into retail & e-commerce, manufacturing, logistics, government organizations, and others. The manufacturing segment held a market share of more than 35% in 2022 and is projected to grow at a robust CAGR in the coming years. The requirement for outsourcing inventory and raw materials has expanded because of the rising number of manufacturing facilities in developing nations like Mexico and India.

Regional Insights

"North America accounted for the largest market share."

The North American market held a significant market share of more than 30% in 2022 and is projected to grow at a robust CAGR in the coming years. Increasing technology developments, a strong e-commerce market in the region, as well as the presence of a large number of industry players, further boost the regional market growth in the following years.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s transportation management systems market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The transportation management systems market is segmented into the following categories:

By Mode of Transportation Type

• Roadways
• Railways
• Waterways
• Airways

By Deployment Type

• On-Premise
• Cloud

By End-Use Type

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

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: technology portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Recent Developments

On 15 May 2023, Turvo, a supply chain business, announced a strategic partnership with the freight payment system Denim. The integration of Denim's goods payment capabilities into Turvo's transport management system (TMS) will make it simpler for logistics firms to process factored and non-factored payments. In addition, the deal offers eliminating the requirement of manual data entry, adaptable financing options for freight payments, direct contact with Denim's customer support staff, and touchless configurations on Turvo shipments, which do away with the need for emailed receipts and manual document upload procedures.

On 16 May 2023, DDC FPO, a leading global provider of front and back-office outsourcing solutions for the transportation and logistics industries, announced a partnership with Acordex, a dispatch and routing provider, to integrate its DDC Sync mobile data capture solution. The partnership with Acordex Mobile Dispatch brings the simple and automatic smart OCR Bill of Lading (BOL) capture features of DDC Sync seamlessly to Acordex customers.