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

Report Overview

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

Several major system manufacturers had suspended their operations temporarily due to disruptions in the supply of components, which ultimately affected the adoption rate of Transportation Management Systems (TMS) solutions. Conversely, the existing transportation management systems installed across the globe are being used aggressively. Also, the inevitable use of technology against disaster and the growing significance of data-driven solutions in the transportation & logistics industry to minimize the unprecedented effects of the pandemic enhance the scope of future adoption of TMS solutions considerably. TMS helps the incumbents of various industry verticals reduce overall costs, improve the 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 addition, inefficiencies while transferring goods between the source and destination can significantly increase overall costs. At the same time, it can also add to customers’ frustration 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 the brand’s reputation. TMS aims 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 been evolving continuously, and ROI is being derived across several functions. The 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. The 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 that have been gaining traction.

The growing importance of cloud-based, anti-theft GPS and IoT-enabled systems for bringing transparency and security to the logistics process has also triggered the adoption rate of advanced TMS solutions. For instance, in February 2022, Oracle Corp. announced the introduction of additional logistics management features into Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) to assist enterprises in improving efficiency and augmenting value throughout their global supply chains. The upgrades to Oracle Fusion Cloud Global Trade Management and Oracle Fusion Cloud Transportation Management were aimed at assisting businesses in lowering costs, mitigating risks, enhancing customer satisfaction, and becoming more resilient to market disruptions.

Deployment Insights

The on-premise segment accounted for the largest share of more than 57.20% of the overall revenue 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 opt for cloud-based TMS over the forecast period. The cloud segment is anticipated to exhibit the fastest growth rate over the forecast period.

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

Mode Of Transportation Insights

The roadways segment accounted for the largest share of more than 41.80% of the overall revenue 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 the COVID-19 pandemic, companies had to enhance their delivery options in the roadways segment.

Simultaneously, several governments, especially in emerging economies, are pursuing initiatives to improve the transportation infrastructure, which is expected to drive the demand for logistics through roadways and, subsequently, the growth of the roadways segment. The waterways segment is anticipated to register the fastest growth rate over the forecast period. The growth can be attributed to the heavy investments being made by various governments in the deployment of TMS for the efficient management of waterways.

End-use Insights

The manufacturing segment accounted for the largest share of over 36.40% in 2022. The increasing number of manufacturing units in emerging economies, such as India and Mexico, has increased the outsourcing of inventories and raw materials required. For instance, the Indian government’s ‘Make in India’ initiative strongly emphasizes the development of the domestic manufacturing industry and potentially encourages indigenous manufacturing. 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 growth rate over the forecast period. The growth can be attributed to the unabated growth of the retail and e-commerce industries in countries, such as India and China, among others. While China accounts for nearly 80% of online sales in the Asia-Pacific, India is poised to become the world’s fastest-growing e-commerce market leveraging robust investments in the e-commerce industry and deeper smartphone penetration. Some of the large e-commerce companies, such as Alibaba Group Holding Ltd., Walmart Inc., and Amazon.com, Inc., are maintaining and strengthening their shipping operations by deploying TMS.

Regional Insights

North America dominated the global TMS industry in 2022 with a revenue share of more than 32.60%. North America is known for the high adoption of roadways as the primary mode of transportation for moving freight. Growth in the spending by local municipalities for connected infrastructure for smooth transit is one of the key factors driving the market in this region. Moreover, the presence of leading TMS vendors, such as Infor Inc., 3GTMS, Cerasis Inc., International Business Machines Corp., and MercuryGate International Inc., is contributing to the growth of the regional market.

Asia Pacific is anticipated to register a significant growth rate over the forecast period. The growing retail and e-commerce industries in India, China, Singapore, and Indonesia are expected to drive the regional 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 the development of intelligent transportation, are also anticipated to contribute to the region’s growth.

Key Companies & Market Share Insights

Key players are investing heavily in research & development activities to upgrade their existing solutions and launch new products in the highly competitive industry. For instance, in February 2022, MercuryGate International, Inc. enhanced its TMS solution by adding smart transportation features, such as embedded analytics, artificial intelligence, and machine learning to it. This product is poised to support customers by providing real-time insights into global and local supply chain requirements. Furthermore, as part of their efforts to stay competitive, companies are pursuing various strategies, such as mergers & acquisitions and strategic partnerships, contracts, and agreements.

For instance, in February 2022, Infor Inc. partnered with DB Schenker, a supply chain management and logistics solution provider, to deliver a supply chain solution. As part of the partnership, DB Schenker’s customers are provided with complete access to Infor Nexus technology. DB Schenker’s Logistics Service Provider (LSP) business utilizes Infor Nexus technology to offer customers a comprehensive supply chain solution, which simplifies cost, factory, and transportation management for organizations while facilitating supplier collaboration and shipping automation. This, in turn, helps reduce inventory, cut costs, and enhance supply chain resilience. Some of the prominent players in the global transportation management systems market include:

• 3GTMS

• BluJay Solutions Ltd.

• C.H. Robinson Worldwide, Inc.

• Cerasis, Inc.

• inet-logistics GmbH

• Infor Inc.

• International Business Machines Corp.

• JDA Software Group, Inc.

• Manhattan Associates

• MercuryGate International, Inc.

• Oracle Corp.

• SAP SE

• The Descartes Systems Group Inc.

• Trimble Transportation Enterprise Solutions, Inc.

Transportation Management Systems Market Report Scope

Global Transportation Management Systems Market Segmentation

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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global transportation management systems market report on the basis of 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

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa