The Transportation Management System market is expected to grow from USD 48.9 Billion in 2020 to USD 134.67 Billion by 2028, at a CAGR of 13.5% during the forecast period 2021-2028.
A transportation management system (TMS) is a logistics platform that uses technology to help businesses plan, execute, and optimize the physical movement of goods, both arriving and departing, while also assuring compliance and proper paperwork. Transportation Management Systems (TMS) help businesses and organizations with some of the most critical operational activities and functionalities associated with procurement and freight consignment, such as accurate freight audit, payouts, route planning and optimization, yard management, load building, order visibility, and carrier management.
Transportation management systems are crucial in supply chains, affecting every step of planning from procurement to logistics and lifecycle management. A powerful system’s broad and deep visibility allows for more efficient transportation planning and execution, which leads to improved customer satisfaction. As a result, more sales are generated, allowing firms to expand.
TMS sales are increasing over the world as a result of rapid industrialization, increased population, and increasing traffic congestion in various cities. The demand for advanced transportation management solutions is fuelled by replacing and updating existing and traditional transportation management systems. Advanced driver assistance systems (ADAS), the rise of the retail and e-commerce industries, and the improvement of bilateral trade links between various nations are some of the essential drivers driving the market growth. The importance of transportation management systems cannot be underestimated as the complexities of logistics and transportation expand. Advanced technologies such as the Internet of Things (IoT), big data, and artificial intelligence enable more innovative and efficient transportation operations. The increased desire for SaaS-based TMS systems is driving TMS market sales growth. As the shippers, transit agents, transport corporations, and infrastructure providers digitize their processes, data exploitation and theft concerns are growing. Businesses’ data may leak across the internet and be viewed by unauthorized individuals, hampering the market growth. The use of self-driving vehicles has increased in the transportation and logistics industries in recent years. From trucks to last-mile robots, autonomous vehicles have the potential to revolutionize logistics by enabling new levels of safety, efficiency, and quality. Many companies are aiming to accelerate the introduction of completely autonomous vehicles. This brings up new prospects for market development.
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The major players in the TMS market are Oracle, SAP, Blue Yonder, Manhattan Associates, C.H. Robinson, Blujay Solutions, MercuryGate International, Transplace, Descartes Systems Group, E2open, Alpega Group, 3T Logistics & Technology Group, GlobalTranz, InMotion Global, vTradEx, MP Objects, Logistically, One Network Enterprises, Elemica, Tailwind Transportation Software, IntelliTrans, Allotrac (Australia), Revenova, Fretron, Ratelinx, Tracx Systems, WiseTech Global, Princeton TMX, CTSI Global, and Supplystack. To achieve a prominent market position in the worldwide Transportation Management System market, leading companies are increasingly focused on strategies such as product innovation, mergers and acquisitions, new advancements, joint ventures, collaborations, and partnerships.
The on-premise segment dominated the market with the largest market share of 60% in the year 2020.
Based on deployment, the Transportation Management System (TMS) Market is segmented into On-premise and Cloud. The on-premise segment dominated the market with the largest market share of 60% in the year 2020. Because of data security requirements, simple access to the server, and better customization control, several large-scale manufacturing and distribution firms prefer on-premise TMS. The TMS has a higher level of security than a cloud computing architecture because it is licensed and installed on an organization’s premises. However, an increasing number of businesses are shifting to cloud-based transportation management systems. It is expected that cloud deployment will dominate the market in the coming decade as it offers many of the same business benefits, such as enhanced economies of scale, a lower total cost of ownership, no upgrade fees, and a faster return on investment (ROI). Also, it can be accessed remotely in real-time from any geographic area.
The Roadway segment dominated the market with the largest market share, 39%, in the year 2020.
Based on the mode of transportation, the Transportation Management System (TMS) Market is segmented into Roadways, Railways, Airways, and Waterways. The Roadway segment dominated the market with the largest market share, 39%, in the year 2020. Because roadways enable loading and unloading at any location, it is considered less expensive and more practical than other solutions. Additionally, several governments, particularly in developing countries, are pursuing projects to upgrade transportation infrastructure, which is expected to drive demand for logistics via roadways and expand the highway segment. The waterways category is expected to increase at a rapid pace throughout the forecast period. The expansion might be attributed to significant investments made by various governments in the deployment of TMS for efficient canal management. Also, waterways are very economical as they require comparatively less fuel and are suitable to carry heavier loads.
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