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Rising Demand For Online Meal Delivery Services Drives Growth In Route Optimization Software: Transformative Forces Shaping the Route Optimization Software Market Landscape in 2025
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shiftsWhat Will the Route Optimization Software Industry Market Size Be by 2025?
The market size for software focusing on route optimization has experienced speedy expansion in the last few years. The market is projected to rise from $7.75 billion in 2024 to $8.86 billion in 2025, achieving a compound annual growth rate (CAGR) of 14.3%. The remarkable growth witnessed in the historical period derives from an emphasis on customer experience, the surge in cloud computing, the integration with business systems, the expansion of the transportation sector, and the development of optimization techniques.
What's the Long-Term Growth Forecast for the Route Optimization Software Market Size Through 2029?
The market size of route optimization software is predicted to experience a swift expansion in the immediate coming years. Forecasts predict it will surge to $15.22 billion by 2029, with an annual growth rate of 14.5% compounded. The growth during the projected period can be credited to factors such as expanding urbanization, the proliferation of e-commerce, an emphasis on sustainability, the requirement for real-time visibility, the emergence of electric vehicles, and the need for customization and scalability. Key trends anticipated in the forecast period encompass progressions in computing, GPS (Global Positioning System) technology, enhancements in GIS (Geographic information system) technology, advancements in IoT (Internet of Things), and incorporation with autonomous vehicle systems.
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What Are the Key Growth Drivers Fueling the Route Optimization Software Market Expansion?
The surge in the usage of online meal delivery services is projected to be a major driver for the expansion of the route optimization software market. Online meal delivery services signify platforms or apps that facilitate customers in ordering food from restaurants or food cooperatives via an app or website and getting it delivered to their home. The popularity of these services is increasing due to factors such as ease of use, time-savings, and a growing taste for various culinary dishes. To ensure orders are delivered in a timely and cost-effective manner, route optimization software is heavily relied upon within these services. It aids in precisely navigating, thereby minimizing travel duration and distance. For example, a survey conducted by the US-based food delivery service provider, DoorDash, in October 2023 with more than 1,500 consumers, suggested that 77% of the surveyed individuals ordered their food for delivery, 76% got it as takeout, and 61% ate in the restaurant during the previous month. Furthermore, in the same month, 44% of US diners ordered food for delivery through a third-party app two to four times, and an additional 23% did so five to seven times. Remarkably, 80% of diners in the United States either kept or surpassed their online food ordering frequency from the previous year. Hence, the escalating demand for online meal delivery services is fuelling the growth of the route optimization software market.
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What Are the Key Trends Driving Route Optimization Software Market Growth?
Leading players in the route optimization software market are concentrating on creating cutting-edge solutions, like cloud-based real-time monitoring systems, to solidify their market presence. These are multi-stop, multi-vehicle route organizing systems that aid companies in effectively planning and supervising intricate delivery routes across several vehicles. For instance, in October 2023, Trimble Inc., an American firm known for its superior location-based software solutions, introduced the Appian Daily Planner. This cloud-based tool is intended to untangle and enhance the involved routing needs of multi-stop mixed and private fleets, allowing them to adopt a real-time planning approach. The tool provides real-time tracking and supervising functional attributes, which come with visual indicators and proactive notifications for dispatchers.
How Is the Route Optimization Software Market Segmented?
The route optimization software market covered in this report is segmented -
1) By Solution: Software, Services
2) By Deployment: On-Premise, Cloud
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprises
4) By Industry Vertical: Retail And Fast Moving Consumer Goods (FMCG), On-Demand Food And Grocery Delivery, Ride Hailing And Taxi Services, Homecare And Field Services, Logistics And Transportation, Other Industry Verticals
Subsegments:
1) By Software: Cloud-Based Software, On-Premise Software, Mobile/Tablet-Based Software
2) By Services: Consulting Services, Integration Services, Support and Maintenance Services
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Which Companies Are Leading the Charge in Route Optimization Software Market Innovation?
Major companies operating in the route optimization software market are Google LLC, Verizon Connect Solutions Inc., International Business Machines Corporation, Oracle Corporation, Dassault Systemes, Trimble MAPS Inc., FLSmidth & Co. AS, ESRI Global Inc., TomTom N.V., Omnitracs LLC, Descartes Systems Group Inc., WorkWave LLC, Microlise Group Limited, FarEye, Wise Systems Inc., Advanced Manufacturing Control Systems Limited, PTV Planung Transport Verkehr AG, Ortec BV, ScienceSoft USA Corporation, Mara Labs Inc., Caliper Corporation, GeoConcept SA, Paragon Software Systems PLC, Route4me LLC, Maxoptra, Portatour, Routific Inc., OptimoRoute Inc., Llamasoft Inc., OnTerra Systems LLC, RouteSolutions
Which Regions Are Leading the Global Route Optimization Software Market in Revenue?
North America was the largest region in the route optimization software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the route optimization software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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