Press release
2025-2034 Transportation Management System Market Outlook: Key Drivers, Emerging Challenges, and Strategic Insights
Transportation Management System Market
What Will the Transportation Management System Industry Market Size Be by 2025?
The market size of the transportation management system has witnessed a swift expansion in the past few years. It's anticipated to escalate from $13.11 billion in 2024 to $15.28 billion in 2025, reflecting a compound annual growth rate (CAGR) of 16.5%. The rapid growth in the previous period is linked to the rising intricacy in logistics, regulatory commitment, surge in fuel expenses, the necessity for cost-effectiveness, consumer demand for prompt delivery services, and integration with other systems.
What's the Long-Term Growth Forecast for the Transportation Management System Market Size Through 2029?
In the next few years, the market size of the transportation management system is anticipated to witness swift expansion. It is projected to escalate to $28.25 billion by 2029, recording a Compound Annual Growth Rate (CAGR) of 16.6%. This growth trajectory in the projected phase is primarily due to the advent of self-driving vehicles, preference for sustainable methodologies, increasingly intricate last-mile delivery, amplified significance of data analytics, extension of transnational commerce, and an emphasis on scalability. The prospect phase is expected to see important trends like the adoption of cloud-based TMS, real-time visibility and tracking, synergistic platforms and ecosystems, mobile TMS applications, automated and autonomous vehicles in TMS, globalization and the coexistence of different modes of transport, and subscription-based TMS models.
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What Are the Key Growth Drivers Fueling the Transportation Management System Market Expansion?
The growth of the transportation management system market is forecasted to be fueled by the adoption of cloud and IoT applications. These applications encompass APIs and various interfaces that facilitate the transfer of data to and from IoT sensor devices and downstream applications. The Internet of Things (IoT) offers comprehensive and simplified solutions for transportation and warehouse management in the transport, logistics, and fleet management sectors. This is achieved by connecting in-vehicle sensors and other compatible digital devices via the network. As per AAG IT Services, a UK-based IT and digital transformation services firm, public cloud services saw profits swell, exceeding $415 billion in 2022, a significant increase from $343 billion in 2021. Predictions point to a further rise to $526 billion in 2023, as noted in January 2024. Furthermore, the Health Sector Cybersecurity Coordination Center (HC3) reported in August 2022 that approximately 7 billion devices were connected via the Internet of Things (IoT) in 2022, with a projected increase of around 20 billion more by 2025. As such, the transportation management system market is likely to be driven by the adoption of cloud and IoT applications.
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What Are the Key Trends Driving Transportation Management System Market Growth?
Innovations in technology and automation are becoming increasingly prevalent in the transportation management system market, a trend that key market players are actively pursuing. Their focus is on creating novel technologies for improved planning and implementation, rating, and integration. For example, in November 2023, ACERTUS, a logistics company from the US, unveiled a cutting-edge Transportation Management System (TMS) aimed at providing unparalleled insights into vehicle shipping. The said TMS acts as a link between shippers and North America's most extensive multimodal transport network, facilitating car shipping with features like on-the-spot quotes, single and multiple-VIN ordering, standard and swift shipping rates, and API connectivity, which allows easy integration with currently used operating systems.
How Is the Transportation Management System Market Segmented?
The transportation management systemmarket covered in this report is segmented -
1) By Solution Type: Planning And Execution, Order Management, Audit, Payment, And Claims, Reporting And Analytics, Routing And Tracking
2) By Deployment: On-Premise, Cloud
3) By Transportation Mode: Roadways, Railways, Airways, Maritime
4) By Industry Vertical: Retail, Healthcare And Pharmaceutical, Manufacturing, Energy And Utilities, Government Sector, Other Industry Verticals
Subsegments:
1) By Planning And Execution: Load Optimization, Carrier Selection, Route Planning
2) By Order Management: Order Entry And Tracking, Inventory Management, Order Fulfillment
3) By Audit, Payment, And Claims: Freight Audit And Payment, Claims Management, Billing Solutions
4) By Reporting And Analytics: Performance Dashboards, Cost Analysis Tools, KPI Tracking
5) By Routing And Tracking: Real-Time Tracking Solutions, Route Optimization Tools, Fleet Management Solutions
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Which Companies Are Leading the Charge in Transportation Management System Market Innovation?
Major companies operating in the transportation management system market are Oracle Corporation, SAP SE, C.H. Robinson Worldwide Inc., Trimble Transportation Enterprise Solutions, 3Gtms Inc., Alpega Group, Blue Yonder Group Inc., BluJay Solutions Ltd., CargoSmart Limited, Descartes Systems Group Inc., E2open LLC, FourKites Inc., Generix Group, GlobalTranz Enterprises Inc., InMotion Global Inc., JDA Software Group Inc., Kuebi*x LLC, LeanLogistics Inc., Loadsmart Inc., Logistically Inc., Manhattan Associates Inc., MercuryGate International Inc., MP Objects B.V., Omnitracs LLC, One Network Enterprises Inc., project44 Inc., Revenova Limited, ShipBob Inc., ShipCaddie, ShipEdge LLC
Which Regions Are Leading the Global Transportation Management System Market in Revenue?
North America was the largest region in the transportation management system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the transportation management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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