Transportation Management Systems Market Size, Share & Trends Analysis Report By Deployment, By Mode of Transportation (Roadways, Railways, Waterways, Airways), By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global transportation management systems market size was valued at USD 9.22 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 14.6% from 2022 to 2030. The unabated growth of the retail and e-commerce industries, aggressive use of the existing transportation management systems, advances in technology and the subsequent introduction of innovative transportation management systems (TMS), and the strengthening bilateral trade relations between various nations are some of the factors that are expected to drive the growth of the market.

Transportation management systems help the incumbents of various industries in reducing the overall costs, improving the efficiency of shipments, and providing real-time supply chain visibility. Cloud-based solutions particularly allow users to efficiently manage logistics processes, connect and collaborate with trading partners, and reuse and share supply chain data to enhance time-to-value. Transportation management systems can also be directly associated with freight savings stemming from process optimization, efficient routing, and the selection of low-cost transport modes.

Any inefficiencies involved in the management of transportation of goods between the source and destination can significantly increase overall costs while adding to customers' frustration and tarnishing the brand's reputation. Hence, businesses are aggressively deploying TMS to prevent monetary losses and protect brand reputation. TMS can also drive operational efficiency and enhance the ROI derived primarily from load and inventory optimization. However, as TMS continues to evolve, ROI is being derived not only from load and inventory optimization but across several functions.

Integration of the latest technologies, such as blockchain and artificial intelligence, to enhance the capabilities of transportation management systems is one of the latest trends gaining traction. The growing preference for cloud-based, anti-theft GPS and IoT-enabled systems for ensuring transparency and security is driving the adoption of advanced transportation management systems. The advent of AI-enabled, self-driven trucks and the continued rollout of 5G networks are anticipated to revolutionize the transportation industry and open new opportunities for the growth of the market.

However, the outbreak of the COVID-19 pandemic has taken a severe toll on new sales and installations. Lockdowns and restrictions on the movement of people and goods imposed to arrest the spread of coronavirus, the subsequent changes in consumer behavior, and disruptions in the supply chain are restraining the growth of the market. Nevertheless, the inevitable use of innovative solutions based on the latest technologies for disaster management and the growing significance of data-driven solutions in transportation and logistics are expected to contribute to the growth of the market.

Deployment Insights

The on-premise segment accounted for the largest market share of over 57% in 2021. Several businesses still prefer using on-premise solutions to ensure convenient access to the server, better control over customization, and adequate security of data. This has contributed to the segment growth. However, incumbents of various industries and industry verticals are expected to switch aggressively to cloud-based transportation management systems in line with the growing awareness of the benefits of cloud-based solutions.

The cloud segment is anticipated to grow at the fastest CAGR over the forecast period. As the volumes of data continue to grow exponentially, shippers, vendors, and logistics providers are opting for cloud-based transportation management systems due to their superior and efficient configuration capabilities and the unique planning and optimization benefits they can offer. Cloud-based transportation management systems are cost-effective due to the lower licensing and management costs. These systems can also be accessed remotely from any geographic location in real-time.

Mode of Transportation Insights

The roadways segment accounted for the largest market share of more than 41% in 2021. Road transportation is considered cost-effective and flexible as it can facilitate loading and unloading at any destination. The growth of the e-commerce industry in the wake of the COVID-19 outbreak has also prompted businesses to strengthen their road transportation capabilities. Several governments, especially in emerging economies, are pursuing initiatives to improve the road transportation infrastructure, thereby driving the demand for logistics through roadways.

The waterways segment is anticipated to register a considerable growth rate over the forecast period. This can be attributed to the aggressive investments being made by various governments in the deployment of transportation management systems for the efficient management of waterways. The airways segment is also poised for noticeable growth over the forecast period. The strong emphasis incumbents of the retail, e-commerce, healthcare, and logistics industries are putting on fast-paced delivery of products is expected to drive the deployment of TMS for air transportation.

End-use Insights

The manufacturing segment accounted for the largest market share of over 35% in 2021. The increasing number of manufacturing units being established in emerging economies, such as India and Mexico, has increased the demand and subsequently the transportation of raw materials. For instance, the Government of India’s ‘Make in India’ initiative puts a strong emphasis on encouraging indigenous manufacturing and hence the development of the domestic manufacturing industry. Such initiatives bode well for the growth of the manufacturing segment over the forecast period.

The retail & e-commerce segment is expected to register a significant CAGR over the forecast period owing to the unabated growth of the retail and e-commerce industries in countries such as India and China. While China accounts for nearly 80% of the online sales in the Asia Pacific, India is poised to become the world’s fastest-growing e-commerce market. Some of the largest e-commerce companies, such as Alibaba Group Holding Limited; Walmart Inc.; and Amazon.com, Inc.; among others, are aggressively deploying transportation management systems to strengthen their shipping operations.

Regional Insights

North America dominated the global market in 2021 with a revenue share of over 32%. The strong emphasis local authorities across various North American countries have been putting on connected infrastructure to facilitate smooth transit allowed the region to dominate the global market. North America is also home to leading transportation management systems vendors, such as Infor Inc.; 3GTMS; Cerasis Inc.; International Business Machines Corporation; Kuebix; Manhattan Associates; JDA Software Group Inc., and MercuryGate International Inc.; among others.

Asia Pacific is anticipated to register a significant growth rate over the forecast period. The unabated growth of retail and e-commerce industries in India, China, Singapore, and Indonesia is expected to drive the growth of the regional market over the forecast period. The initiatives being pursued and the policies being drafted by various governments across Asia Pacific to create a favorable environment for the development and rollout of intelligent transportation systems are also anticipated to contribute to the growth of the regional market.

Key Companies & Market Share Insights

The transportation management systems market can be described as a highly competitive market, where key market players are investing aggressively in research & development activities to upgrade their existing solutions and launch new products. For instance, in February 2022, MercuryGate International, Inc. added smart transportation features, such as embedded analytics, artificial intelligence, and machine learning, to its transportation management solution. The enhanced solution was designed to provide real-time insights into global and local supply chain requirements.

As part of the efforts to stay competitive in the market, incumbents of the market are pursuing various strategies, such as mergers & acquisitions, and strategic partnerships, contracts, and agreements. For instance, in May 2021, BluJay Solutions Ltd., a leading global supply chain software and service provider, acquired rail transportation management systems and managed services company Raven Logistics to provide customers with end-to-end multimodal transportation solutions and invest in networks, data, and applications that can potentially enable frictionless supply chain operations. Some prominent players in the global transportation management systems market include:

• 3GTMS

• BluJay Solutions Ltd.

• Cerasis, Inc.

• C.H. Robinson Worldwide, Inc.

• The Descartes Systems Group Inc.

• Infor Inc.

• International Business Machines Corporation

• inet-logistics GmbH (Alpega Group)

• JDA Software Group, Inc.

• Manhattan Associates

• MercuryGate International, Inc.

• Oracle Corporation

• SAP SE

• Trimble Transportation Enterprise Solutions, Inc.

Transportation Management Systems Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global transportation management systems market report based on deployment, mode of transportation, end use, and region

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • On-premise

  • Cloud

• Mode of Transportation Outlook (Revenue, USD Million, 2017 - 2030)

  • Roadways

  • Railways

  • Waterways

  • Airways

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Retail & E-commerce

  • Manufacturing

  • Logistics

  • Government Organizations

  • Others

• Regional Outlook (Revenue, USD Million, 2017 – 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • MEA