Enjoy complimentary customisation on priority with our Enterprise License!
The route optimization software market share is expected to increase by USD 4.52 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 18.69%.
This route optimization 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 route optimization software market segmentation by deployment (cloud-based and on-premise) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The route optimization software market report also offers information on several market vendors, including Alphabet Inc., AMCS Group, Aptean Group of Companies, BluJay Solutions Inc., Caliper Corp., Dassault Systemes SE, Descartes Systems Group Inc., Environmental Systems Research Institute Inc., FLS GmbH, IFS World Operations AB, Microlise Group Plc, Nomadia, OptimoRoute Inc., ORTEC B.V, Prism Visual Software Inc., PTV Planung Transport Verkehr AG, Route4Me Inc., Routific Solutions Inc., Trimble Inc., Verizon Communications Inc., and Wise Systems Inc. among others.
Download the Free Report Sample to Unlock the Route Optimization Software Market Size for the Forecast Period and Other Important Statistics
The advanced route optimization that strengthens shippers, LSPs, and carriers is notably driving the route optimization software market growth, although factors such as security concerns may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the route optimization software industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Route Optimization Software Market Driver
One of the key factors driving the global route optimization software market growth is advanced route optimization that strengthens shippers, LSPs, and carriers. The route optimization software is used in a variety of industries, including retail and e-commerce, 3PL service providers, home services, retail, consumer products and goods (CPG), and fast-moving consumer goods (FMCG). Advanced route optimization considers internal and external data for uninterrupted freight management from origin to destination. The route optimization capability within the TMS validates freights location, identifies potential risks, generates reports to uncover insights, and provides analytics that allows the user to manage or prevent risks. Such factors are expected to positively impact the growth of the market in focus during the forecast period.
Key Route Optimization Software Market Trend
Another key factor driving the global route optimization software market growth is the real-time reporting to enhance service levels and operational efficiency throughout the supply chain. The ongoing deployment of smart devices across the supply chain whether its gadgets tracking the passage of a pallet across an ocean or the progress of a truck in the Southwest allows for far more complete monitoring of products and/or delivery. Moving items faster when they arrive at a distribution center or providing more precise arrival times to clients eventually improves operational efficiency and enhances profitability. Route optimization also reports on key performance indicators (KPIs), such as the number of deliveries completed and the percentage completed on time. This will further support the market growth during the forecast period.
Key Route Optimization Software Market Challenge
One of the key challenges to the global route optimization software market growth is the security concerns, as the software is used in many industries including retail, e-commerce, and fast-moving consumer goods (FMCG). The retail and e-commerce sectors account for the lion's share of the route optimization software industry. The program assists businesses in avoiding costly delivery blunders by guaranteeing proper client addresses, tracking delivery personnel, and keeping consumers updated on the delivery progress. VRPTWs must be resolved everywhere, including bank, postal, restaurant, and grocery deliveries, as well as school bus routing and security patrol services. The risk of package loss or damage or theft is most in such cases. This is expected to limit the adoption of the software, thereby negatively impacting the market growth throughout the forecast period.
This route optimization software 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 route optimization software market as a 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 route optimization software 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 route optimization software market encompasses successful business strategies deployed by the key vendors. The route optimization software market is fragmented and the vendors are deploying organic and inorganic growth strategies 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 route optimization software 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 route optimization software 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.
For more insights on the market share of various regions Request for a FREE sample now!
57% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for route optimization software in North America. Market growth in this region will be faster than the growth of the market in the Middle East and Africa, Europe, and South America.
The significant increase in the demand for route optimization software to ensure a continuous and timely supply of services will facilitate the route optimization software 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.
To gain further insights on the market contribution of various segments Request for a FREE sample
The route optimization software market share growth by the cloud-based segment will be significant during the forecast period. The high demand for cloud-based route optimization software will drive the growth of the market in focus in the coming years. This is attractive to businesses that perform route planning functions from multiple distribution centers and want to centralize or coordinate these functions without being tied to physical access points.
This report provides an accurate prediction of the contribution of all the segments to the growth of the route optimization software market size and actionable market insights on post COVID-19 impact on each segment.
Route Optimization Software Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.69% |
Market growth 2022-2026 |
$ 4.52 billion |
Market structure |
Fragmented |
YoY growth (%) |
17.65 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 57% |
Key consumer countries |
US, Canada, China, Japan, and UK |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Alphabet Inc., AMCS Group, Aptean Group of Companies, BluJay Solutions Inc., Caliper Corp., Dassault Systemes SE, Descartes Systems Group Inc., Environmental Systems Research Institute Inc., FLS GmbH, IFS World Operations AB, Microlise Group Plc, Nomadia, OptimoRoute Inc., ORTEC B.V, Prism Visual Software Inc., PTV Planung Transport Verkehr AG, Route4Me Inc., Routific Solutions Inc., Trimble Inc., Verizon Communications Inc., and Wise Systems 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 the forecast period |
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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.