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The transportation management systems (TMS) market size is estimated to grow at a CAGR of 11.24% between 2022 and 2027. The market size is forecast to increase by USD 3,704.52 million. The growth of the market depends on several factors, including the increasing number of smart-connected devices, the increasing need for efficient operations, and the shift from the capital expenditure (CAPEX) model to the operating expenditure (OPEX) model.A transportation management system (TMS) is specialized software for planning, executing and optimizing the shipment of goods. Users perform three main tasks in a TMS: Find and compare the rates (prices) and services of carriers available to ship a customer's order, book the shipment and then track its movement to delivery.
This transportation management systems market report extensively covers market segmentation by solution (on-premise and cloud-based), mode of transportation (roadways, railways, and airways), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growth of the transportation management systems (TMS) market is driven by the increasing number of smart-connected devices worldwide, reaching around 21 billion by 2020. Managing and maintaining data within organizations becomes more challenging with this surge in devices, leading to a higher demand for M2M and M2H communications to simplify management. TMS utilizes technologies like RFID, sensors, barcodes, and GPS to efficiently monitor and manage fixed assets in various industries. Enterprises also benefit from improved business processes through IoT analytics, enabling better real-time decision-making. The rising number of connected devices, including imaging devices, portable navigation devices, and media players, contributes to the market's growth during the forecast period.
The TMS market is growing due to the rise of the meta-intelligence concept. Vendors are integrating big data and IoT analytics into TMS to enhance business efficiency and decision-making. By integrating departments like sales and marketing, organizations can extract valuable business intelligence from their transportation management network. This integration will allow transportation providers to optimize facility utilization, predict capacity constraints, and understand environmental and financial costs. The combination of TMS and robotics will further drive the adoption of business intelligence, leading to increased demand for TMS with meta-intelligence concepts, and fueling market growth.
The data privacy concerns is challenging the TMS market growth. The use of private and public networks raises security issues, and interoperability problems arise from the TMS network spanning multiple devices. Increased data sharing leads to cybersecurity issues and breaches, especially with the convergence of physical and virtual worlds. Industrial cyberattacks can compromise sensitive data from sensors and devices, affecting TMS adoption and hindering market growth.
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. 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 2,498.89 million in 2017 and continued to grow until 2021. 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 is 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.
Roadways play a crucial role in the global transportation management systems (TMS) market, serving as a vital component of the logistics industry for the movement of goods and people between locations. Roadways are segmented based on vehicle type, distance, and geography. Vehicle type segmentation determines the appropriate vehicle for transportation needs, with trucks for long-haul, and vans or smaller vehicles for local transportation. This segmentation helps consider shipment size, distance, and delivery urgency. The primary categories under this segmentation are short-haul, medium-haul, and long-haul transportation, catering to movement within a region or across multiple regions or states.
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North America is expected to contribute 37% to the global TMS market growth during the forecast period. The region's cross-industry adoption of cloud technology makes it an attractive market for transportation management systems. 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 widespread acceptance of TMS in 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.
The Transportation Management Systems (TMS) industry report includes the adoption lifecycle of the market, 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 growth strategies.
Global Transportation Management Systems (TMS) Market Customer Landscape
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.
3M Co: Under its subsidiary, HighJump Software, the company offers transportation management system solutions.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 transportation management systems (tms) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Transportation Management Systems (TMS) Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.24% |
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Market growth 2023-2027 |
USD 3704.52 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
10.25 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 37% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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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, Market condition analysis for 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 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 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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