Surge In E-Commerce Fueling The Growth Of The Market Due To Increasing Online Shopping And Operational Efficiency: Core Growth Enabler in the Logistics Management Software Market, 2025

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What Will the Logistics Management Software Industry Market Size Be by 2025?
The market size for logistics management software has seen a swift expansion in the previous years. The market is projected to increase from $12.19 billion in 2024 to $13.46 billion in 2025, with a compound annual growth rate (CAGR) of 10.4%. This robust growth during the historical period can be credited to factors such as the amplification of global trade, the surge in the use of third-party logistics, growth in e-commerce operations, the widening of retail distribution channels, and a rise in the need for fleet visibility.

What's the Long-Term Growth Forecast for the Logistics Management Software Market Size Through 2029?
In the upcoming years, the market size of logistics management software is projected to experience swift expansion, escalating to $19.85 billion by 2029 with a compound annual growth rate (CAGR) of 10.2%. A surge in cloud-based platform utilization, the rising need for real-time data accessibility, increased emphasis on sustainable logistics practices, growth in omnichannel retail, and enhanced integration with transportation management systems are contributing to this projected growth. In the future forecast period, significant trends will include technological progression in supply chain transparency, AI-powered logistics tools' innovation, investment in blockchain for logistics solutions, digital twin technology evolution, and advanced IoT-based tracking systems.

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What Are the Key Growth Drivers Fueling the Logistics Management Software Market Expansion?
The surge in the e-commerce sector is predicted to fuel the escalation of the logistics management software market in the future. E-commerce involves the online transaction of goods or services, made possible through the use of the internet. The ascent of e-commerce is propelled by the increasing accessibility of the internet and the pervasiveness of smartphones, especially in burgeoning markets, allowing people to make online purchases at their convenience. Logistics management software plays a crucial role in this sector, aiding in the simplification of order processing, refining warehouse and inventory operations, monitoring shipments in real-time and ensuring prompt deliveries, ultimately boosting customer satisfaction and lowering operational expenses. For instance, data provided by the United States Census Bureau, a government agency based in the US, in February 2025 indicated that e-commerce sales for 2024 amounted to $1,192.6 billion, exhibiting a growth of 8.1% (±1.1) when compared to 2023. Therefore, the upswing in the e-commerce segment is stimulating the expansion of the logistics management software market.

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What Are the Key Trends Driving Logistics Management Software Market Growth?
In a bid to enhance route optimization, predictive analytics, and supply chain visibility in real time, leading players in the logistics management software market are concentrating on the creation of highly advanced solutions, including AI-powered logistics management. This type of logistics management applies artificial intelligence to refine and automate aspects like route mapping, demand prediction, and live tracking to enhance efficiency and lower costs. For instance, HERE Technologies, a software firm from Netherlands, debuted an AI-powered Fleet Optimization solution in June 2024, which promises to transform logistics and fleet management. The cloud-native software, supported by sophisticated AI algorithms and extensive location-based APIs, is geared towards optimizing multi-vehicle routing, delivery planning, and live adaptability, taking into account factors like traffic, road barriers, and driver timetables. The software, which features integration with the HERE AI Assistant to facilitate voice-controlled, natural language guidance, aims to increase efficiency by reducing fleet management expenses by approximately 20%, slashing rerouting durations by 90%, and improving driver productivity by 20%.

How Is the Logistics Management Software Market Segmented?
The logistics management software market covered in this report is segmented -

1) By Software Type: Warehouse Management System (WMS), Transportation Management System (TMS), Supply Chain Planning (SCP) Software, Order Management System (OMS)
2) By Deployment Model: Cloud-Based, On-Premises, Hybrid
3) By Size Of Organization: Small Enterprises, Medium-Sized Enterprises, Large Enterprises
4) By End-User: Retail, Manufacturing, Healthcare, Transportation And Logistics, Automotive, Other End-Users

Subsegments:
1) By Warehouse Management System (WMS): Inventory Management, Order Fulfillment, Warehouse Control Systems (WCS), Barcode Scanning And RFID, Labor Management Systems, Shipping And Receiving Management
2) By Transportation Management System (TMS): Route Optimization, Freight Management, Carrier Management, Load Optimization, Shipment Tracking And Visibility, Fleet Management
3) By Supply Chain Planning (SCP) Software: Demand Planning, Supply Planning, Sales And Operations Planning, Production Planning, Inventory Optimization, Forecasting And Analytics
4) By Order Management System (OMS): Order Processing, Returns Management, Multi-Channel Order Management, Customer Order Tracking, Payment Processing Integration, Order Fulfillment And Shipping Management

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Which Companies Are Leading the Charge in Logistics Management Software Market Innovation?
Major companies operating in the logistics management software market are Blue Yonder Group Inc., Manhattan Associates Inc., E2open LLC, The Descartes Systems Group Inc., QAD Digital Supply Chain Planning, RELEX Solutions Oy, Experion Technologies, Kinaxis Inc., Generix Group SA, Viastore Systems GmbH, Turvo Inc., Conexiom, Waresix Pte. Ltd., Arkieva LLC, Unleashed Software Limited, John Galt Solutions LLC, Sage X3, Anchanto Pte. Ltd., OpenGeeksLab, StockIQ Technologies LLC

Which Regions Are Leading the Global Logistics Management Software Market in Revenue?
North America was the largest region in the logistics management software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the logistics management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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