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Growth Of Manufacturing Units Driving The Managed Transportation Services Market: A Key Driver Powering Managed Transportation Services Market Growth In 2025
Managed Transportation Services
What Is the Current Managed Transportation Services Market Size and Its Estimated Growth Rate?
The managed transportation services market is also expanding rapidly, projected to grow from $13.03 billion in 2024 to $15.48 billion in 2025, at a CAGR of 18.8%. Growth is driven by the rise of e-commerce, increasing fuel costs, higher transportation management costs, the demand for flexible transportation solutions, and the optimization of transportation networks.
The managed transportation services market size is projected to experience rapid growth in the coming years. It is expected to reach $30.45 billion by 2029, growing at a compound annual growth rate (CAGR) of 18.4%. The growth during the forecast period can be attributed to increasing demand for real-time freight visibility, efficient route planning solutions, scalable transportation systems, rising investments in digital transformation initiatives, and the demand for improved customer service. Key trends in the forecast period include advancements in technology, the adoption of artificial intelligence and machine learning, real-time tracking, omnichannel logistics, and blockchain technology integration.
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How Are Emerging Segments Shaping the Managed Transportation Services Market Landscape?
The managed transportation services market covered in this report is segmented -
1) By Service Type: Planning And Optimization, Execution And Operations, Freight Audit And Payment, Reporting And Analytics, Consulting Services
2) By Application: Roadways, Railways, Waterways, Airways
3) By End Use Industry: Manufacturing, Retail, Healthcare And Pharmaceuticals, Food And Beverages, Automotive, E-Commerce, Other End Use Industries
1) By Planning and Optimization: Route Planning Or Load Optimization or Network Design and Optimization
2) By Execution and Operations: Freight Forwarding or Shipment Tracking Or Transportation Execution
3) By Freight Audit and Payment: Invoice Verification Or Payment Processing Or Freight Cost Auditing
4) By Reporting and Analytics: Performance Reporting or Data Analytics for Freight Movement or Real-Time Monitoring and Reporting
5) By Consulting Services: Supply Chain Optimization or Transportation Strategy Consulting or Regulatory Compliance Consulting
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Which Growth Factors Are Influencing Managed Transportation Services Market Expansion?
The growth of the manufacturing sector is expected to boost the demand for managed transportation services. The manufacturing sector involves producing goods from raw materials using machinery and labor. The sector's expansion is fueled by automation, global trade, and enhanced infrastructure. Managed transportation services support manufacturers by providing expertise, technology, and solutions that optimize transportation and logistics operations. This leads to cost savings, improved efficiency, and better risk management. In February 2023, Statistics Canada reported that Canadian manufacturing sales increased by 17.9% to reach $850.9 billion in 2022. Therefore, the growing manufacturing sector is driving the growth of the managed transportation services market.
Who Are the Dominant Players Across Different Managed Transportation Services Market Segments?
Major companies operating in the managed transportation services market are UPS Supply Chain Solutions, FedEx Supply Chain, Oracle Corporation, Kuehne + Nagel International AG, SAP SE, C.H. Robinson Worldwide Inc., Expeditors International of Washington Inc., J.B. Hunt Transport Services Inc., GEODIS, Ryder Systems Inc., Schneider National Inc., GlobalTranz, XPO Logistics Inc., Penske Logistics, Livingston International, Descartes Systems Group, Uber Freight LLC, MIQ Logistics, Aptean, Practical Law, Endicia, CLX Logistics LLC, Amber Road Inc., BluJay Solution, DHL Supply Chain, Supply Chain Brain
What Are the Major Trends Shaping the Managed Transportation Services Market?
Leading firms in the managed transportation services market are honing their focus on the development of next-generation technologies like visual AI to fine-tune their logistics operations. This type of AI technology harnesses the power of artificial intelligence to process and analyze visual data derived from images or video footage, to gather insights or carry out tasks independently. For example, in January 2024, RXO Inc., a U.S.-based transportation solutions provider, rolled out an AI-based truck check-in technology devised for logistics hubs and distribution centers. The innovation utilises cutting-edge artificial intelligence to automatize and enhance the truck check-in procedure, therefore resulting in lowered waiting durations and boosting operational effectiveness. The technology comes equipped with functionalities like instantaneous vehicle recognition, automatic scheduling, and flexible dock allotment to refine the management of incoming and outgoing cargo. The system conveniently blends with existing warehouse management software allowing for uninterrupted data sharing and real-time updates on truck movements.
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Which Geographic Regions Are Expected to Dominate the Managed Transportation Services Market in the Coming Years?
Asia-Pacific was the largest region in the managed transportation services market in 2023. The regions covered in the managed transportation services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Managed Transportation Services Market?
2. What is the CAGR expected in the Managed Transportation Services Market?
3. What Are the Key Innovations Transforming the Managed Transportation Services Industry?
4. Which Region Is Leading the Managed Transportation Services Market?
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