Transportation Management System Market Size, Share & Trends Analysis Report By Deployment (On-premise, Cloud), By Mode Of Transportation, By End-use (Manufacturing, Logistics), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global transportation management system market size was valued at USD 10.45 billion in 2022 and is expected to grow a compound annual growth rate (CAGR) of 14.8% from 2023 to 2030. Factors driving the global transportation management system (TMS) market include growth of e-commerce and retail industries, consistent advancements in technology leading to frequent introduction of innovative solutions in the market, and strengthening of bilateral trade relations between various nations. However, unusual circumstances of the COVID-19 pandemic adversely affected the market in terms of new sales and installations. Disruption of retail sector due to forced lockdowns, a change in consumer spending habits, and increased discrepancies in supply chains with regulatory limitations restricted market growth.

Several major system manufacturers had suspended their operations temporarily due to disruptions in supply of components, which ultimately affected adoption rate of TMS solutions. Conversely, existing transportation management systems installed across the globe are being used aggressively. Also, inevitable use of technology against disaster and growing significance of data-driven solutions in transportation & logistics industry to minimize the unprecedented effects of the pandemic have helped enhance scope of future adoption of TMS solutions considerably.

TMS helps incumbents of various industry verticals reduce overall costs, improve efficiency of shipments, and provide real-time supply chain visibility while enhancing customer service. Moreover, cloud-based solutions 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. Solutions with such features are creating considerable traction in the global market.

In recent years, APAC's transportation and logistics sector has come under pressure due to relentless consumer demands, arrival of new competition from start-ups and customer-turned-rival logistics operators and changing customer expectations. Most APAC logistics companies use IoT to manage orders and localized inventory instead of fleets, supply chains, and assets.

Here Technologies, a location platform provider based in Netherlands, conducted a survey, "APAC on the move 2023," to provide current trends in the areas of supply chain, fleets, and logistics management. The survey found that drones, robotics, artificial intelligence, and machine learning are most likely investments among logistics companies in APAC. The survey found that 45% of APAC logistics companies use asset tracking and shipment monitoring software with manual inputs to track assets, shipments, and cargo. With most logistics firms leveraging real-time tracking, Japan is leading without manual inputs.

Besides, inefficiencies while transferring goods between source and destination can significantly increase overall costs. At the same time, it can also add to customer frustrations and tarnish the brand's reputation. Hence, officials from various industries are aggressively deploying TMS in their business processes to avoid financial losses while protecting brand's reputation. Transportation management systems aim to provide new forms of optimization that can potentially drive operational efficiency and enhance the ROI for end-users.

The ROI derived from TMS implementation is primarily from load and inventory optimization. While shippers opt for TMS for several other reasons, TMS has continuously evolved, and ROI is derived across several functions. Deployment of TMS can be directly associated with noticeable freight savings stemming from process optimization, such as better procurement negotiations, efficient routing, and the selection of low-cost transport modes.

Integration of the latest technologies, such as blockchain and artificial intelligence with TMS to enhance the capabilities of these systems has been one of the latest trends gaining traction. Growing importance of cloud-based, anti-theft GPS and IoT-enabled systems for bringing transparency, and security in logistics process has also triggered adoption rate of advanced TMS solutions. For instance, in December 2022, Roole, an auto insurance company based in France, launched a geolocation solution with a mobile app called Wetrak to locate stolen or lost cars. The solution leverages IoT technologies - LoRaWAN and Abeeway’s geolocation expertise to offer quality service through a car dealership in France. The company has successfully deployed 4,000 devices and is launching a second phase that will include the launch of over 20,000 devices, following a successful first phase.

Market Dynamics

Cloud-based TMS platforms typically provide businesses with greater scalability, flexibility, and accessibility, which are crucial factors in meeting the dynamic demands of modern supply chains. This enhanced flexibility allows businesses to adapt to evolving market conditions and scale their transportation operations more efficiently. For instance, in July 2023, Parts Express, a logistics service provider based in Vianen, Netherlands, implemented a new, cloud-based Transport Management System (TMS) specifically designed by Boltrics for logistics industry as part of the company’s efforts to accelerate innovation and growth. Parts Express was particularly looking forward to gaining real-time visibility into its shipments to manage its operations and keep its customers informed. As businesses continue to recognize potential of cloud-based TMS solutions in achieving operational excellence and cost savings, demand for these solutions is expected to increase gradually, prompting suppliers to continue innovating and developing more robust and integrated cloud-based TMS solutions to meet the evolving needs of transportation and logistics.

Integration of advanced technologies, such as Artificial Intelligence (AI), Machine Learning (ML), and advanced analytics, into modern TMS solutions is also anticipated to drive the market growth. These technologies enable businesses to optimize routing, improve decision-making processes, and streamline operations, ultimately leading to cost reductions and enhanced operational efficiency. For instance, in September 2023, Uber Freight announced a strategic plan to incorporate AI-powered software into the company's products and services to transform global movement of goods. By leveraging AI capabilities, Uber Freight was looking forward to developing new products and services that can help shippers and carriers automate and optimize transportation planning and execution.

Deployment Insights

On-premise segment accounted for the largest market share of over 57% in 2022. Several large manufacturing and distribution companies still prefer on-premise TMS because of the data safety requirements, convenient access to the server, and better control over customization. However, as awareness about the benefits of cloud-based TMS continues to increase, incumbents of various industries are expected to aggressively opt for cloud-based TMS over the forecast period.

Cloud segment is anticipated to exhibit the fastest growth over the forecast period. Cloud-based TMS offers unique planning and optimization benefits to shippers, vendors, and logistics providers. As the volume of data continues to grow exponentially, companies are opting for cloud based TMS due to superior and efficient configuration capabilities. Cloud-based TMS can be cost-effective compared to on-premise TMS, mainly due to lower licensing and management costs associated with it. Another significant advantage of cloud based TMS is that the information is stored on cloud and can be accessed remotely from any geographic location in real-time. Such benefits are anticipated to drive the growth of the cloud segment.

Mode of Transportation Insights

Roadways segment accounted for the largest market share of over 41% in 2022. Road freight is one of the most common modes of transportation globally. It is considered cost-effective and flexible as it can facilitate loading and unloading at any destination. In addition, due to consumers' increased reliance on e-commerce during COVID-19 pandemic, companies had to enhance their delivery options to the roadways segment. Simultaneously, several governments, especially in emerging economies, are pursuing initiatives to improve transportation infrastructure, which is expected to drive demand for logistics through roadways and, subsequently, growth of the roadways segment in the transportation management systems market.

Waterways segment is anticipated to expand considerably over the forecast period. The growth can be attributed to aggressive investments made by various governments in deploying TMS for efficient management of waterways. For instance, in January 2023, the Union Minister for Waterway India inaugurated a single window logistics portal named The National Logistics Portal (NLP) for marine. The platform is designed to connect logistics stakeholders using technology to improve transparency and efficiency by reducing costs and time delays, promoting the logistics sector's growth, and helping improve trade.

End-use Insights

Manufacturing segment accounted for the largest market share of over 36% in 2022. Increasing number of manufacturing units in emerging economies, such as India and Mexico, has increased the required outsourcing of inventories and raw materials. For instance, Indian government’s ‘Make in India’ initiative strongly emphasizes the development of domestic manufacturing industry and potentially encourages indigenous manufacturing. Such initiatives bode well for growth of the manufacturing segment over the forecast period.

Retail & e-commerce segment is expected to register a significant growth rate over the forecast period. The growth can be attributable to the unabated development of retail and e-commerce industries in countries such as India and China, among others. While China accounts for nearly 80% of the online sales in Asia-Pacific, India is poised to become the world’s fastest-growing e-commerce market by leveraging robust investments in e-commerce industry and deeper smartphone penetration. Some of the major e-commerce companies, such as Alibaba Group Holding Limited, Walmart Inc., and Amazon.com, Inc., are maintaining and strengthening their shipping operations by deploying transportation management systems.

Regional Insights

North America dominated the global TMS market with a revenue share of over 32% in 2022. North America is known for aggressive adoption of roadways as the primary mode of transportation for moving freight. Growth in spending by local municipalities for connected infrastructure favorable for smooth transit is one of the key factors driving the market in this region. Moreover, presence of leading TMS 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, offering various solutions to consumers, is also contributing to the regional market growth.

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

Key Companies & Market Share Insights

Key market players are investing aggressively in research & development activities to upgrade their existing solutions and launch new products in the highly competitive market. For instance, in June 2023, Adobe, Inc. announced new developments in Adobe Experience Cloud, a customer experience management tool. The new products allowed businesses to provide customized experiences at every point of contact while maximizing operational effectiveness. Along with important updates to Adobe Mix Modeller, Adobe Experience Manager, Adobe Real-Time Customer Data Platform, and Adobe Journey Optimizer, Adobe also announced release of Adobe Product Analytics for enterprise customers.

Furthermore, as part of the efforts to stay competitive, incumbents of TMS market are pursuing various strategies, such as mergers & acquisitions, strategic partnerships, contracts, and agreements, among others. For instance, in January 2023, The Descartes Systems Group, Inc. acquired Supply Vision, a shipment management solutions developer for North American Logistics Services Providers (LSPs). Supply Vision enables LSPs to digitize their processes and control the shipment lifecycle. The business offers modular systems that assist LSPs in managing shipments from initial quote generation through final delivery. Moreover, Supply Vision platform can integrate with real-time visibility solutions, including Descartes MacroPointTM, to offer LSPs and their end users with timely information on shipment status and location. Some of the prominent players in the global transportation management system market include:

• 3Gtms

• BluJay Solutions Ltd.

• C.H. Robinson Worldwide, Inc.

• Cerasis, Inc.

• inet-logistics GmbH

• Infor Inc.

• International Business Machines Corporation

• JDA Software Group, Inc.

• Manhattan Associates

• MercuryGate International, Inc.

• Oracle Corporation

• SAP SE

• The Descartes Systems Group Inc.

• Trimble Transportation Enterprise Solutions, Inc.

Transportation Management System Market Report Scope

Global Transportation Management System Market Report Segmentation

This report forecasts revenue growth at the global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global transportation management system market report based on deployment, mode of transportation, end-use, and region:

• Deployment Outlook (Revenue, USD Million, 2018 - 2030)

  • On-premise

  • Cloud

• Mode of transportation Outlook (Revenue, USD Million, 2018 - 2030)

  • Roadways

  • Railways

  • Waterways

  • Airways

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Retail & E-commerce

  • Manufacturing

  • Logistics

  • Government Organizations

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • South America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa