Transportation Management System Market

Transportation Management System Market Outlook (2022-2032)

The global transportation management system market is expected to accumulate a market value of US$ 6.9 Bn in 2022. The industry will register a staggering double-digit CAGR of 10.7%. The sales of transportation system are expected to surpass US$ 19.1 Bn through the forecast period 2022-2032.

Report Attributes	Details
Market Size Value in 2022	US$ 6.9 Bn
Project Market Forecast Value in 2032	US$ 19.1 Bn
Global Growth Rate (2022-2032)	10.7%
Market Share of North America	60%
Key Companies Profiled	Oracle Corporation SAP Manhattan Associates C.H. Robinson Trimble Inc. Bluejay Solutions MercuryGate International Blue Yonder Transplace Descartes Systems Group E2open, LLC Alpega Group 3Gtms Inc. 3T Logistics & Technology Group Globaltranz Enterprises, LLC InMotion Global, Inc. vTradEx MP Objects Logistically, Inc. One Network Enterprises Elemica, Inc. Tailwind Transportation Software Ltd. IntelliTrans Limited Allotrac Revenova, LLC Fretron Private Limited RateLinx Tracx Systems WiseTech Global Princeton TMX CTSI Global Generix Group Unifaun Supplystack Efreightsolutions Ultraship TMS Infor

Transportation management solutions are expected generate higher revenue over the coming years, accounting for an absolute dollar opportunity of nearly US$ 8.2 Bn through 2032.

Revenue Analysis of Transportation Management Systems from 2017 to 2021 Compared to Demand Outlook for 2022 to 2032

As per the transportation management system industry research by Fact.MR - a market research and competitive intelligence provider, historically, from 2017 to 2021, market value of the transportation management system industry increased at around 7.5% CAGR, wherein, the U.S., Germany, and U.K. held significant share in the global TMS market.

Constant surge in urbanization has aggravated the need for advanced transportation infrastructure powered by software-based solutions. Owing to this, demand for transportation management systems is projected to surge at a CAGR of 10.7% over the coming 10 years.

• The transportation management system market reached a valuation of US$ 5.9 Bn in 2021; however; worldwide revenues was down -3.2% year-over-year owing to stalled transportation for a considerable time amid COVID-19.
• Fact.MR estimates that transportation management system revenue will grow 2.8X from 2022 to 2032, reaching nearly US$ 19.1 Bn by 2032.
• Transportation management solution revenue will account for over 65% share, owing to increasing adoption of advanced transportation management across emerging countries.
• Roadways command over 40% of transportation management system revenue; however, revenue from maritime is expected to grow at a significant pace.
• Among the verticals, manufacturing and transportation & logistics are expected to account for over 50% of market revenue by 2032.
• Top 5 providers of transportation management systems held around 17% market share in 2021.

Automation Driving Demand for Transportation Management Systems?

Rising Need for Centralizing Transportation Workflow Enhancing Prospects

Transportation management solutions are now being considered as a subset of modern supply chain management. Whether in-house or outsourced, supply chain is being burdened by timelines as well as perfection to meet the expectations of both, demand and supply sides.

Transportation management systems have been automating entire processes, from quotation to delivery. Furthermore, these systems centralize processes, enable planning for predicted and unpredicted events, and eliminate unnecessary stress from the overall supply chain.

Transportation Management System Improving Purchasing Managers’ Index?

Purchasing Managers’ Index (PMI) is a measure of the progress of economic trends in a country. Amid the pandemic, most sectors have undergone a rough patch in PMI.

With the resumption of economic activities at previous pace, the manufacturing sector will require prompt response from the supply chain to resume to its previous state. In this situation, transportation management systems are likely to prove beneficial to manage the misaligned supply chain.

PMI activities in countries such as India, Thailand, Philippines, Singapore, Mexico, Columbia, Russia, Uganda, and Lebanon have been observed to slide down in the past few months.

Transportation management system providers have the opportunity to associate with purchase managers across key sectors to help them improve their supply chain systems and recover their economic activities.

Country-wise Analysis

Increase in Manufacturing Units Surging Demand for Transportation Management Systems in South Asia?

Some of the key companies having manufacturing units in China have started to relocate their production units to South and South East Asian countries such as Vietnam, Thailand, India, and Indonesia.

While this implies a shift in trade dynamics, it essentially promises a significant opportunity for transportation management system providers across these countries.

Moreover, manufacturing and production units have increased at a rapid speed in countries like India and China. This, in turn, has increased the demand for transportation management systems in the region. Thus, with nearly 12% projected growth rate, transportation management system revenue is expected to grow at fastest pace in Asia Pacific.

Presence of Key Industry Players Bolstering Demand for Transportation Management Systems in North America?

North America has large corporations providing transportation management solutions, such as Oracle and C.H. Robinson. Along with these, it also has a large number of small players and start-ups.

Both, the U.S. and Canada feature amongst the largest consumers, and they are also exporters of several products, which makes their manufacturing robust. This consequently creates high demand for automation solutions in the entire supply chain, thus necessitating the use of transportation management systems.

Thus, with an absolute dollar opportunity of US$ 4 Bn, North America is set to remain the most lucrative region for transportation management systems.

Category-wise Insights

Automation Driving Demand for Transportation Management Solutions?

Transportation management systems have enjoyed considerable penetration across key countries. Moreover, several small- and mid-size companies are still aloof from their benefits.

In order to stay relevant amid the technology adoption of large players, tier-2 companies have started deploying transportation management solutions in their supply chain framework. Furthermore, technological advancement and automation is also playing a key role in creating opportunities for transportation management systems.

Thus, transportation management solutions are expected to account for over 65% revenue by accounting for an absolute dollar opportunity of nearly US$ 8.2 Bn through 2032 in the market in the sales indicator period.    

Quick Deliveries Making Airway Transportation Favourable?

There has been significant surge in the requirement for fast international shipments. Quick order deliveries require air transportation. During COVID-19, when airlines witnessed significant losses owing to restricted cross-border movements, air freight made significant strides in carrying medical emergency products across countries.

Over the years to come, transportation management system revenue through airways is expected to increase at nearly 11% CAGR.

Competitive Landscape

According to the market research analysis, order wins have been the prominent development in the transportation management system (TMS) market in recent years.

• In July 2021, GEFCO, an integrated logistics expert and provider of automotive logistics, selected the cloud-based transportation management system of Blue Yonder. It is oriented to bring about digital transformation to tackle complex logistics challenges. 
• In June 2021, Hy-Vee Inc., a retail store chain, deployed Manahattan Associate’s transportation management system.

Key Segments Covered

• By Component :

  • Transportation Management Solutions
    • Planning and Execution Solutions
    • Order Management Solutions
    • Audit, Payment and Claims Solutions
    • Reporting and Analytics Solutions
    • Routing and Tracking Solutions
  • Transportation Management Services
    • Consulting Services
    • Integration and Implementation Services
    • Support and Maintenance Services

• By Transportation Mode :

  • Roadways-based Transportation Management Systems
  • Railways-based Transportation Management Systems
  • Airways-based Transportation Management Systems
  • Maritime-based Transportation Management Systems

• By Deployment :

  • On-premise Deployment of Transportation Management Systems
  • Cloud Deployment of Transportation Management Systems

• By Vertical :

  • Manufacturing
  • Retail
  • Healthcare and Pharmaceuticals
  • Transportation and Logistics
  • Energy and Utilities
  • Government
  • Other Verticals