GVR Report cover Transportation Management Systems Market Size, Share & Trends Report

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, 2021 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-973-9
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 150

Report Overview

The global transportation management systems market size was valued at USD 8.78 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 14.3% from 2021 to 2028. Advances in the latest technologies, such as advanced driver assistance systems (ADAS), growth of the retail and e-commerce industries, and the strengthening of bilateral trade relations between various nations are some of the key factors that are expected to drive the growth of the market over the forecast period. Transportation Management Systems (TMS) help businesses and organizations in some of the key operational processes and functionalities, such as accurate freight audit, payments, route planning and optimization, yard management, load building, order visibility, and carrier management, associated with procurement and freight shipment.

U.S. transportation management systems market size, by deployment, 2018 - 2028 (USD Billion)

The COVID-19 pandemic has adversely affected the market in terms of new sales and installations. However, the existing transportation management systems installed across the globe are being used aggressively. Several major system manufacturers have suspended their operations temporarily due to disruptions in the supply of components. While the above inefficacies were brought to notice, a more important one was the inevitable use of technology against the disaster. Though the efforts undertaken by both private and public entities have been successful by varying measures, the implementation of smart technologies demonstrated the value of technology in shaping the future. S

TMS also helps the incumbents of various end-use industries and industry verticals in improving the efficiency of shipments, reducing the overall costs, and providing real-time supply chain visibility while enhancing customer service. Such benefits are expected to contribute to the growth of the market over the forecast period. Inefficiencies while transferring goods between the source and destination can lead to a significant increase in overall costs. At the same time, it can also add to the frustration of customers and tarnish the brand reputation. Hence, to avoid financial losses while protecting the brand reputation, incumbents of various end-use industries and industry verticals are aggressively adopting TMS. Transportation Management Systems are aimed at providing new forms of optimization that can potentially drive operational efficiency and enhance the ROI for end-users. The ROI derived from the implementation of TMS is primarily from load and inventory optimization. While shippers opt for TMS for several other reasons as well, TMS has been evolving continuously and ROI is being 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 selection of low-cost transport modes.

Integration of the latest technologies, such as blockchain and artificial intelligence, in TMS to enhance the capabilities of these systems has been one of the latest trends that have been gaining traction. For instance, in November 2019, Wal-Mart Canada Corp. launched a blockchain-based supply chain management solution, which includes freight tracking and payment processing for around 70 trucking companies with a distribution network of over 400 retail stores. The solution utilizes IoT sensors and GPS tracking systems installed in semi-trailer trucks along with a web portal for manual entry for both suppliers and operators.

TMS are capable of capturing and translating several data fields associated with complex shipments into the simple requirements of ERP, thereby helping end-users in saving on data re-entry while enabling efficient usage of the latest data communication standards, such as Electronic Data Interchange (EDI) and extensible markup language (XML). TMS are also being developed with built-in powerful optimization engines to offer efficient reporting capabilities. In line with the changing requirements of end-users, these systems are being developed in such a way that they are highly adaptable and easy to implement, thereby driving the growth of the transportation management systems market over the forecast period.

Deployment Insights

The on-premise segment accounted for the largest market share of over 55% in 2020. 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 the awareness about the benefits of cloud-based TMS continues to increase, incumbents of various industries and industry verticals are expected to aggressively opt for cloud-based TMS over the forecast period.

The 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 volumes of data continue to grow exponentially, companies are opting for cloud-based TMS due to the superior and efficient configuration capabilities they can offer. Cloud-based TMS can be cost-effective as compared to on-premise TMS, particularly due to the lower licensing and management costs associated with cloud-based TMS. Another major advantage of cloud-based TMS 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 the growth of the cloud segment.

Mode of Transportation Insights

The roadways segment accounted for the largest market share exceeding 40% in 2020. Road freight is one of the most common modes of transportation in the world. It is considered relatively cheaper as compared to other modes. It is also considered cost-effective and flexible as it can facilitate loading and unloading at any destination. At the same time, various governments, especially in the emerging economies, are pursuing initiatives to improve the transportation infrastructure, which is expected to drive the demand for logistics through roadways and subsequently drive the growth of the roadways segment.

The waterways segment is anticipated to register a considerable growth rate over the forecast period. The growth can be attributable to the aggressive investments being made by various governments in the deployment of TMS for the efficient management of waterways. For instance, according to The World Bank Group, in March 2019, Vietnam’s Ministry of Transport proposed the Southern Waterways Logistics Corridor, which also included the establishment of a Vietnam Trade Information Portal for collecting and managing the import, export, and transit of goods in Vietnam. Additionally, the project would also include the installation of navigation aids and the deployment of vessel TMS along the Cho Gao Canal to improve safety and reduce the transit time of shipments. Such initiatives are expected to drive the growth of the waterways segment.

End-use Insights

The manufacturing segment accounted for the largest market share of over 35% in 2020. 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 manufacturing activities. For instance, the Indian government’s ‘Make in India’ initiative puts a strong emphasis on 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.

Global transportation management systems market share, by end use 2020 (%)

The retail & e-commerce segment is anticipated to register a significant growth rate over the forecast period. The growth can be attributable 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 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 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 in 2020 with a revenue share of over 30%. North America is known for an aggressive adoption of roadways as the primary mode of transportation for moving freight. Furthermore, the region is also home to some of the 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, which is also 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, and Indonesia are 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 in the region to create a favorable environment for the development of smart transportation are also anticipated to contribute to the growth of the Asia Pacific regional market. For instance, in February 2017, the “13th Five-Year Plan for Modern Comprehensive Transportation System”, announced by the Government of China, envisages rolling out a safe, efficient, modern, and green integrated transportation system by 2020.

Key Companies & Market Share Insights

Key market players are investing aggressively in research and development activities to upgrade their existing solutions and launch new products in the highly competitive market. For instance, in November 2019, BluJay Solutions Ltd. announced the launch of the Freight Management Index (FMI), a monthly report providing transportation market intelligence for carriers, industry professionals, and shippers. Furthermore, as part of the efforts to stay competitive in the market, incumbents of the TMS market are pursuing various strategies, such as mergers & acquisitions, and strategic partnerships, contracts, and agreements. For instance, in September 2019, Infor, Inc. partnered with QAD Precision to deliver multi-carrier parcel execution capabilities within the Infor Nexus TMS solution. Some of the prominent players operating in the global transportation management systems market are:

  • 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

  • JDA Software Group, Inc.

  • Manhattan Associates

  • MercuryGate International Inc.

  • Oracle Corporation

  • SAP SE

  • Trimble Transportation Enterprise Solutions, Inc.

Transportation Management Systems Market Report Scope

Report Attribute


Market size value in 2021

USD 10.75 billion

Revenue forecast in 2028

USD 27.48 billion

Growth rate

CAGR of 14.3% from 2021 to 2028

Base year for estimation


Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Deployment, mode of transportation, end-use, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; China; India; Japan; Brazil

Key companies profiled

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; JDA Software Group, Inc.; Manhattan Associates; MercuryGate International Inc.; Oracle Corporation; SAP SE; Trimble Transportation Enterprise Solutions, Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

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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 2018 to 2028. For this study, Grand View Research has segmented the global transportation management systems market report by deployment, mode of transportation, end-use, and region:

  • Deployment Outlook (Revenue, USD Billion, 2018 - 2028)

    • On-premise

    • Cloud

  • Mode of transportation Outlook (Revenue, USD Billion, 2018 - 2028)

    • Roadways

    • Railways

    • Waterways

    • Airways

  • End-use Outlook (Revenue, USD Billion, 2018 - 2028)

    • Retail & E-commerce

    • Manufacturing

    • Logistics

    • Government Organizations

    • Others

  • Regional Outlook (Revenue, USD Billion, 2018 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

    • Middle East & Africa

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