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The logistics services software market share is expected to increase by USD 2.88 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 8.94%.
This logistics services software market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentations by deployment (on-premise and cloud-based) and geography (North America, Europe, APAC, the Middle East and Africa, and South America). The market report also offers information on several market vendors, including Accenture Plc, Blue Yonder Group Inc., BluJay Solutions Inc., Descartes Systems Group Inc., E2open LLC, Epicor Software Corp, Fishbowl, Honeywell International Inc., International Business Machines Corp., Koch Industries Inc., Korber AG, Magaya Corp., Manhattan Associates Inc., Oracle Corp., ORBCOMM Inc., Ramco Systems Ltd., Royal 4 Systems, SAP SE, Siemens AG, Trimble Inc., and WiseTech Global Ltd. among others.
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Based on our research output, there has been a positive impact on the market growth during and post-COVID-19 era. The increasing adoption of 3PL and the emergence of 5PL are notably driving market growth. However, factors such as the growing number of malfunction cases related to WMS software may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Logistics Services Software Market Driver
The increasing adoption of 3PL and the emergence of 5PL is a major factor driving the global market share growth. 3PL providers provide value-added services (VAS), such as inventory management, cross-docking, break-bulk, kitting and assembling, door-to-door delivery, and the packaging of products. Fifth-party logistics (5PL) solution providers organize, construct, and implement various logistics solutions. 5PL is widely used by e-businesses to achieve minimum cost targets. It can have a positive impact on the logistics industry, as it can reduce costs, lower inventory levels, and improve response to customer demands. Data analytics that is implemented in the logistics software solutions provides insight into tactical and strategic decisions and helps streamline the supply chain. This helps 5PL solution providers to offer just-in-time (JIT) and other consulting services to customers. Moreover, vendors also offer logistics software solutions for both the 3PL and 5PL business models for the real-time tracking and visibility of logistics services. Due to such reasons, it is estimated that the market will continue to grow significantly during the forecast period.
Key Logistics Services Software Market Trend
The integration of technologically advanced solutions is another factor supporting the global market share growth. Operational inefficiencies in logistics management are a major concern for logistics companies across the world. To combat that, end-users are implementing logistics software solutions for transportation management, inventory management, and warehouse management. To capitalize on the growing adoption of logistics software solutions, vendors are introducing software solutions that have advanced technologies, such as AI. The use of AI in supply chain management solutions transforms warehousing operations, such as the collection and analysis of information and the processing of inventory. In addition, AI in the supply chain is used to predict the demand, plan demand and supply forecast, optimize warehouse management stock, and ensure accuracy in shipping to reduce lead time and transportation expenses Therefore, the integration of technologically advanced solutions in the supply chain management will have a positive impact on the growth of the market during the forecast period.
Key Logistics Services Software Market Challenge
The growing number of malfunction cases related to WMS software will be a major challenge for the global market share growth during the forecast period. The number of cases of malfunctioning logistics software solutions, which cause monetary loss and order delays for service providers, is increasing. Such incidents hamper service providers, as they result in financial losses and affect their reputation. For instance, in July 2019, The LCBO announced that deliveries were behind schedule due to the implementation of a WMS solution to provide inventory management. The increasing number of such cases has made service providers, especially small-scale and medium-scale service providers, reluctant to adopt such software solutions. Such obstacles will essentially restrict the growth of the global market during the forecast period.
This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global market as part of the global application software market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the market encompasses successful business strategies deployed by the key vendors. The software market is fragmented and the vendors are deploying growth strategies such as maintaining long-term partnerships with buyers to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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35% of the market's growth will originate from North America during the forecast period. The US is the key market for market in North America. Market growth in this region will be faster than the growth of the market in APAC, MEA, and South America.
The increasing adoption of transportation management systems (TMS) software as well as warehouse management systems (WMS) software will facilitate the market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
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The market share growth by the on-premise segment will be significant during the forecast period. On-premise solutions are widely used by large organizations and e-commerce service providers that have a global presence, as they enable the control and ownership of the performance of hardware and software and the data generated and stored within the software.
This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on the post-COVID-19 impact on each segment.
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Logistics Services Software Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.94% |
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Market growth 2022-2026 |
$ 2.88 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
8.46 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 35% |
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Key consumer countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Accenture Plc, Blue Yonder Group Inc., BluJay Solutions Inc., Descartes Systems Group Inc., E2open LLC, Epicor Software Corp, Fishbowl, Honeywell International Inc., International Business Machines Corp., Koch Industries Inc., Korber AG, Magaya Corp., Manhattan Associates Inc., Oracle Corp., ORBCOMM Inc., Ramco Systems Ltd., Royal 4 Systems, SAP SE, Siemens AG, Trimble Inc., and WiseTech Global Ltd. |
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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, and Market condition analysis for the forecast period |
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Customization purview |
If our 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 Five Forces Analysis
5 Market Segmentation by Deployment
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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