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The transportation management systems market size is projected to increase by USD 4.37 billion, at a CAGR of 11.87% between 2023 and 2028. The market's expansion hinges on numerous factors, notably the proliferation of smart-connected devices, the growing imperative for streamlined logistics, and the transition from the capital expenditure (CAPEX) model to the operating expenditure (OPEX) model. The rising prevalence of smart-connected devices across industries drives demand, enhancing operational efficiency and agility. This shift towards OPEX emphasizes cost-effective, scalable solutions, promoting flexibility and resource optimization. As organizations prioritize efficient operations and seek to leverage the benefits of digital transformation, the market for connected medical devices also continues to experience robust growth, paving the way for innovative solutions and improved business outcomes.
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The market is witnessing significant growth driven by the adoption of intelligent transport systems. The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about key companies, including 3T Logistics Ltd., Alpega SA NV, C H Robinson Worldwide Inc., Continental Traffic Service Inc., Descartes Systems Group Inc., E2open Parent Holdings Inc., GlobalTranz Enterprises LLC, Koch Industries Inc., Manhattan Associates Inc., MercuryGate International Inc., Next Generation Logistics Inc., Omnitracs LLC, One Network Enterprises Inc., Oracle Corp., Panasonic Holdings Corp., QAD Inc., SAP SE, Trimble Inc., and Uber Technologies Inc.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premise segment will be significant during the forecast period. The on-premises segment is expected to grow during the forecast period. On-premises solutions are more secure than cloud-based solutions. This market is dominated by large organizations. These organizations are more interested in system functionality than cost-effectiveness and prefer smart transportation. These organizations primarily deal with critical data. As a result, they are increasingly relying on an on-premises model with more secure end-to-end quality control.
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The on-premise segment was valued at USD 2.67 billion in 2018. On-premises solutions are installed and run on the organization's computers and servers. On-premises solutions typically generate revenue from one-time perpetual license fees and renewal fees. Organizations have more control over the implementation process, they don't have to worry about bandwidth availability and have greater customization availability. In today's technologically advanced and threat-enhanced environment, risk management and risk analytics are paramount to organizations. This trend has led to demand for on-premises solutions as larger organizations are less price-sensitive buyers and more concerned about data security. Therefore, the on-premise segment of the market is expected to grow during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. With advanced economies and significant data generation and utilization, North America's expanding healthcare market is a key driver for TMS growth. The United States, particularly, will experience substantial growth, driven by increased national spending on advanced technology due to the Affordable Care Act (ACA). The market's rapid expansion is also fueled by the widespread acceptance of TMS in the manufacturing and pharmaceutical industries. North America's technologically mature industrial sector creates numerous use cases, further promoting the adoption of advanced technologies. The strong presence and penetration of top TMS providers in the region complement overall market growth.
As logistics complexities surge, the Transportation Management Systems (TMS) market gains prominence. With a reliance on IT departments, companies deploy cloud-based freight audit and cloud-based SaaS solutions to streamline operations. Driven by technology advancement, TMS solutions optimize supply chain operations and enhance lifecycle management. In an era of an evolving global trade environment and intricate bilateral trade relations, TMS facilitates seamless coordination. Crucially, TMS prioritizes customer experience by offering real-time tracking and efficient route planning. As businesses navigate the complexities of global commerce, TMS emerges as a crucial tool for managing transportation needs and ensuring supply chain efficiency. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The increasing number of smart-connected devices is notably driving market growth. The number of smart connected devices is increasing worldwide and the total number of smart devices installed is expected to reach nearly 21 billion by 2020. As the number of devices grows, it becomes more difficult to manage, monitor, and maintain data within an organization. Therefore, the demand for M2M and M2H communications will increase as it helps end-users simplify the management, monitoring, and maintenance of connected devices. TMS uses data from many technologies, including radio frequency identification (RFID), sensors, barcodes, and global positioning systems (GPS). These technologies help many industries efficiently monitor and manage fixed assets. For example, RFID helps manage and maintain inventory levels. This increases the efficiency of the company and increases its corporate value.
Additionally, enterprises are now experiencing significant improvements in their business processes due to the adoption of IoT analytics. Close monitoring of business processes enables more effective real-time decision-making. Increasing number of connected devices worldwide is a major factor driving the demand for TMS. Connected devices include imaging devices with cellular communications, portable navigation devices, and media players. Such factors are expected to drive the growth of the market during the forecast period.
The emergence of the meta-intelligence concept in TMS is a key trend influencing the TMS Market growth. Vendors plan to integrate meta-intelligence concepts into their TMS to improve business efficiency and business intelligence. The vendor integrates big data and IoT analytics into the TMS to get a complete picture of business processes and build efficient decision-making processes. An organization wants to integrate sales, marketing, and customer service departments to get business intelligence from its transportation management network.
Additionally, in the future, transportation and logistics providers will be able to understand the environmental and financial costs of each process, maximize facility utilization and predict capacity constraints by controlling entry and exit dates. The integration of TMS and robotics is expected to encourage more companies to adopt business intelligence. This will significantly increase the demand for TMS with meta-intelligence concepts, driving the growth of the market during the forecast period.
Data privacy concerns are challenging the market growth. Privacy and security concerns are among the biggest challenges for any organization as devices are connected to the Internet and rely on the use of private and public networks. Sensitive data is transmitted over the TMS network, so a high-security environment should be set up. Additionally, a TMS network spans multiple devices, which can lead to interoperability issues. Increased connectivity and data sharing are increasing cybersecurity issues and data breaches. Cybersecurity has traditionally focused on a limited number of connected devices.
However, the TMS revolution will bring the physical and virtual worlds together on a massive scale. The potential economic damage from industrial cyberattacks is significant compared to personal data breaches. Cyberattacks can, therefore, compromise data from sensors and devices in industrial environments. Such data can be accessed over the Internet and must pass through an authentication layer. The potential for cyber breaches will reduce TMS adoption and hamper the growth of the transportation management systems market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing significant growth driven by the adoption of Intelligent TMS solutions. These solutions enable businesses to optimize routes and effectively manage disruptions in the supply chain. By automating carrier selection and reducing administrative tasks, TMS solutions enhance operational efficiency. The emergence of cloud-based transport management systems has revolutionized the industry, offering scalability and substantial cost savings. The integration of 5G technology ensures seamless connectivity for real-time communication and efficient data exchange within TMS platforms.
Moreover, technological advancements like AI, autonomous vehicles, and platooning systems are reshaping the transport network, enabling route planning, optimization, and improved scheduling. Cloud-based solutions also facilitate carrier management and freight audit, enhancing overall supply chain visibility and control. Furthermore, TMS solutions empower shippers with insights for strategic decision-making, especially in smart cities where IoT technologies, drones, and machine learning are leveraged for shipment tracking and asset tracking. The incorporation of cognitive visual recognition enhances monitoring solutions and reduces financial losses.
Furthermore, the market is experiencing rapid growth, fueled by advancements in digital technology and the adoption of cloud-based solutions like cloud-based freight audits and Cloud-based SaaS offerings. These solutions are particularly beneficial for Small and Medium Enterprises (SMEs) and their IT departments, providing scalable and cost-effective tools for managing transportation operations. The integration of smart, connected machines and artificial intelligence in TMS solutions has led to significant technological advancement in the industry. This includes capabilities such as route optimization, operational planning, efficient procurement processes, optimizing transits, and reducing costs.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.87% |
Market growth 2024-2028 |
USD 4.37 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.72 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., 3T Logistics Ltd., Alpega SA NV, C H Robinson Worldwide Inc., Continental Traffic Service Inc., Descartes Systems Group Inc., E2open Parent Holdings Inc., GlobalTranz Enterprises LLC, Koch Industries Inc., Manhattan Associates Inc., MercuryGate International Inc., Next Generation Logistics Inc., Omnitracs LLC, One Network Enterprises Inc., Oracle Corp., Panasonic Holdings Corp., QAD Inc., SAP SE, Trimble Inc., and Uber Technologies Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Solution
7 Market Segmentation by Mode of Transportation
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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