Transportation Management System Market by Offering (Solutions (Planning & Execution, Order Management, Analytics & Reporting, Routing & Tracking), and Services), Transportation Mode, End User, Vertical and Region - Global Forecast to 2029
[320 Pages Report] The transportation management system market size is projected to grow from USD 16.0 billion in 2024 to USD 40.3 billion by 2029 at a CAGR of 20.2% during the forecast period. The exponential rise of e-commerce has transformed consumer expectations, leading to increased demand for efficient and reliable transportation solutions. TMS enables businesses to meet the demands of online retail by optimizing routes, managing inventory, and ensuring timely deliveries, thereby supporting the growth of e-commerce.
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Transportation Management System Market Dynamics
Driver: Rise of last-mile delivery in transportation
Customer expectations have driven the rise of last-mile deliveries, transforming the transportation industry. This crucial step in logistics, where products reach their final destination, has gained importance with the surge in eCommerce sales. In 2024, the industry is likely to undergo significant changes due to this trend, emphasizing the need for quick and reliable deliveries. The massive increase in last-mile deliveries is fueled by growing online shopping and the demand for enhanced supply chain visibility. Consumers now expect rapid delivery and real-time tracking.
Enhanced visibility is key to maintaining customer satisfaction, as detailed tracking and timely updates build transparency and trust. This shift in last-mile logistics, supported by sophisticated TMS solutions, is essential for meeting modern consumer demands. To meet these expectations, companies are turning to advanced transportation management systems (TMS) that optimize delivery routes, track shipments in real time, and ensure timely deliveries while reducing costs.
Restraint: Growing concerns over data security
As more shippers, forwarders, transport companies, and infrastructure operators digitalize their processes, the risk of data abuse and theft continues to rise. Enterprises hold sensitive information that must be safeguarded to prevent breaches and theft, which can harm their reputation. Unauthorized users may access this data through the internet, posing a significant threat to the security and privacy of the enterprise. For instance, TMS requires a multitenant architecture, which allows multiple customers to share a single software version on a server. However, this architecture may expose the data of competitors to enterprise subscribers, leading to security concerns. According to Hornet Security, logistics is the second most targeted industry by attackers, making security and privacy issues a growing concern for enterprises. This concern is expected to limit the growth of the TMS market during the forecast period.
Opportunity: Use of autonomous and connected vehicles in transportation and logistics
In recent years, the transportation and logistics industry has seen a significant rise in the adoption of autonomous vehicles. This growth can be attributed to the constant technological advancements in AI, as well as the heavy investments being made in sensors and vision technologies. Autonomous vehicles revolutionize the way vehicles are built, operated, utilized, and serviced, thereby unlocking new levels of safety, efficiency, and quality. One of the main objectives of several companies in this field is to accelerate the acceptance of fully driverless vehicles. Tech giants like Google and Tesla have made remarkable strides in driverless technology. Tesla, a major manufacturer of electric vehicles, is taking steps to introduce fully autonomous heavy-duty freight vehicles. Meanwhile, Amazon and UPS are investing in the development of flying drones to streamline delivery processes.
Challenge: Slow adoption due to high capital investment
Many organizations face challenges in adopting employee shuttle management solution due to the high capital investments required to purchase automation equipment, software, and solutions. Additionally, the replacement of existing processes can be expensive. Another factor hindering the growth of the TMS market is the slow adoption due to the complexities of integrating multiple IoT platforms, numerous protocols, and many APIs. Some companies are reluctant to shift from manual practices to the digitalized process involving high capital re-investment, which slows down the pace of TMS solution adoption. Many enterprises are skeptical about the use of new digital technologies and rely on their intuition instead to make informed business decisions. As a result, companies with limited financial resources may not be able to afford automation systems, which can restrain the growth of the TMS market.
Ecosystem Of Transportation Management System Market
The routing & tracking solution registered the highest CAGR in the transportation management system market during the forecast period
Routing and tracking solutions play a crucial role in modern logistics, enabling users to monitor both inbound and outbound transports effectively. According to a recent survey, 80% of users prioritize fundamental functions like route optimization and shipment tracking when implementing TMS software solutions. This software empowers shippers, carriers, and logistics service providers (LSPs) by streamlining operations, reducing inefficiencies, and maximizing return on investment. The increasing demand for such solutions is driven by the booming e-commerce sector and fierce competition in retail. It allows users to proactively identify opportunities for faster shipping, cost reduction, and continuous operational improvement in real time. SupplyChainBrain reports that route optimization capabilities can slash fleet expenses by up to 30%, providing a significant advantage to businesses aiming to boost profitability. Consequently, many enterprises are embracing routing and tracking solutions to achieve cost savings and operational excellence in their logistics operations.
The roadway transportation mode to contributed the largest market share in the transportation management system market during the forecast period.
Global commercial transportation on roads has surged significantly, straining current transport infrastructure capabilities. This underscores the critical need for effective monitoring and management of vehicular movement to ensure smooth carrier flow. The increasing adoption of TMS reflects their role in alleviating congestion and boosting carrier efficiency through advanced monitoring and management solutions. Moreover, the rise of autonomous and connected vehicles has further fueled the demand for TMS in road transportation. As of 2024, road transport dominates the market, holding the largest share at approximately 45% to 50%. This trend highlights TMS as pivotal tools in enhancing operational efficiency and addressing challenges posed by growing traffic volumes on roadways worldwide.
Retail vertical is expected to hold the largest market size during the forecast.
The retail industry encompasses diverse sectors including F&B, clothing, consumer products, and e-commerce, known for its dynamic and rapidly evolving nature with continual emergence of new players. E-commerce has notably propelled sector growth worldwide, bolstered by advancements in transportation management solutions tailored to meet enterprise requirements. Key priorities for retailers include ensuring customer satisfaction, fostering loyalty, expanding market reach, and effectively managing transportation logistics. However, challenges such as escalating shipping costs and tariffs across borders underscore the critical importance of cost management strategies. TMS solutions offer a scalable approach for retailers to optimize fleet management, streamline route planning, and provide real-time tracking updates for operators and shippers. These solutions are pivotal in enhancing operational efficiency, cutting costs, and elevating overall customer satisfaction levels within the competitive retail landscape.
Based on region, North America is expected to hold the largest market size during the forecast.
The transportation management market in North America is thriving, fueled by the increasing prominence of e-commerce activities and the complexity of the freight landscape. This region encompasses the United States and Canada, where early adoption of cloud computing and mobile technologies has significantly boosted the adoption of Transportation Management Systems (TMS). The integration of Machine-to-Machine (M2M), mobile, and cloud technologies has notably enhanced operational efficiencies across transportation sectors. With its robust IT infrastructure and early technology adoption, North America remains a major revenue driver in the global TMS market, supported by stable economic conditions and continuous technological advancements.
Market Players:
The major vendors in this market include Oracle (US), SAP (Germany), Manhattan Associates (US), C.H. Robinson (US), and Trimble (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and product enhancements, and acquisitions to expand their footprint in the transportation management system market.
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- Latest News, Updates & Trend analysis
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Report Metrics |
Details |
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Market size available for years |
2018-2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
Value (USD) Million/Billion |
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Segments Covered |
By Offering, solutions, and services, transportation mode, end user, vertical, and Region |
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Region covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
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List of Companies covered |
The major players in the transportation management system market are Oracle (US), SAP (Germany), Manhattan Associates (US), C.H. Robinson (US), Trimble (US), WiseTech Global (Australia), Descartes (Canada), E2open (US), Generix Group (France), MercuryGate (US), Blue Yonder (US), Uber Freight (US), Alpega Group (Belgium), Worldwide Express (US), Infor (US), Kinaxis (Canada), Shipwell (US), 3T Logistics & Technology Group (UK), Ratelinx (US), oTMS (China), nShift (UK), BlueRock TMS (Netherlands), Elemica (US), TESISQUARE (Italy), vTradEx (China), Shiptify (France), GlobalTranz (US), InMotion Global (US), Logistically (US), One Network Enterprises (US), IntelliTrans (US), Allotrac (Australia), Revenova (US), Princeton TMX (US), CTSI Global (US), PCS Software (US), and Shipsy (India). |
This research report categorizes the transportation management system market to forecast revenues and analyze trends in each of the following submarkets:
Based on Offering:
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Solutions
- Planning & Execution
- Order Management
- Audit, Payment, & Claims
- Analytics & Reporting
- Routing & Tracking
- Other Solutions
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Services
- Consulting
- Integration and Implementation
- Support and Maintenance
Based on Transportation mode:
- Roadways
- Railways
- Airways
- Maritime
Based on End User:
- Shippers
- 3PL
- Other End Users
Based on Vertical:
- Retail
- Healthcare and Pharmaceutical
- Manufacturing
- Transportation and Logistics
- Energy and Utilities
- Government
- Other Verticals
By Region:
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North America
- United States (US)
- Canada
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Europe
- United Kingdom (UK)
- Germany
- France
- Italy
- Spain
- Nordic Countries
- Rest of Europe
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Asia Pacific
- China
- Japan
- India
- Australia & New Zealand
- South Korea
- Southeast Asia
- Rest of Asia Pacific
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Middle East and Africa
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GCC Countries
- UAE
- KSA
- Rest of GCC Countries
- South Africa
- Rest of the Middle East & Africa
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GCC Countries
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Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
Recent Developments:
- In April 2024, Ocean State Job Lot (OSJL) chose Manhattan Active Transportation Management (TM) to enhance its logistics planning and efficiency. This strategic decision helped OSJL develop a fast and intelligent transportation network and a seamlessly integrated supply chain.
- In April 2024, Descartes acquired OCR Services Inc., a global trade compliance solutions provider. The OCR team brings a wealth of domain expertise in global trade compliance to Descartes, including experience leveraging artificial intelligence (AI) in the content management process.
- In March 2024, Blue Yonder acquired software firm One Network Enterprises, aiming to become a top supply chain solutions provider. With One Network's capabilities, Blue Yonder aims to offer a unified, resilient end-to-end supply chain ecosystem integrated with innovative technologies.
- In September 2023, Trimble partnered with Next Generation Logistics to integrate the latter’s TMS with the Engage Lane procurement solution and Trimble's carrier TMS solutions. This integration provides a dynamic lane-level procurement process. It also streamlines the entire workflow from order tendering and bidding to awarding freight and fulfillment.
Frequently Asked Questions (FAQ):
What is transportation management system?
Transportation Management System (TMS) is a software solution that facilitates the efficient planning, execution, and optimization of transportation logistics. It encompasses various functionalities such as route planning, shipment tracking, carrier selection, freight audit, and payment. TMS aims to streamline transportation operations, improve resource utilization, enhance visibility across the supply chain, and reduce costs. By leveraging real-time data and analytics, TMS enables businesses to make informed decisions, optimize delivery routes, and ensure timely and accurate deliveries.
What is the market size of the transportation management system market?
The transportation management system market size is projected to grow from USD 16.0 billion in 2024 to USD 40.3 billion by 2029 at a CAGR of 20.2% during the forecast period.
What are the major drivers in the transportation management system market?
The major drivers in the TMS market are the increasing complexity of supply chains and logistics networks, which necessitate efficient management solutions. The rise of e-commerce and global trade is also a significant driver, requiring streamlined transportation operations to meet growing consumer demands. Additionally, advancements in technology such as cloud computing, AI, IoT, and big data analytics are revolutionizing TMS capabilities, enhancing visibility, optimizing routes, and improving overall operational efficiency.
Who are the key players operating in the transportation management system market?
The key vendors operating in the transportation management system market include Oracle (US), SAP (Germany), Manhattan Associates (US), C.H. Robinson (US), Trimble (US), WiseTech Global (Australia), Descartes (Canada), E2open (US), Generix Group (France), MercuryGate (US), Blue Yonder (US), Uber Freight (US), Alpega Group (Belgium), Worldwide Express (US), Infor (US), Kinaxis (Canada).
What are the opportunities for new market entrants in the transportation management system market?
New market entrants in the transportation management system market have several opportunities to capitalize on. They can differentiate themselves by offering innovative solutions that leverage emerging technologies such as artificial intelligence, machine learning, and blockchain to address evolving industry needs. Additionally, there is a growing demand for TMS solutions tailored to specific industry verticals or niche markets, presenting opportunities for specialization and customization. Furthermore, as businesses increasingly prioritize sustainability and green logistics, there is a need for TMS solutions that support environmentally friendly transportation practices, creating opportunities for new entrants to differentiate themselves in the market. .
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The research study involved four major activities in estimating the transportation management system market size. Exhaustive secondary research has been done to collect important information about the market and peer markets. The next step has been to validate these findings and assumptions and size them with the help of primary research with industry experts across the value chain. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
The market size of the companies offering transportation management system solutions to various end users was arrived at based on the secondary data available through paid and unpaid sources and by analyzing the product portfolios of major companies in the ecosystem and rating the companies based on their performance and quality. In the secondary research process, various sources were referred to identify and collect information for the study. The secondary sources included annual reports, press releases, investor presentations of companies, white papers, certified publications, and articles from recognized associations and government publishing sources.
Secondary research was mainly used to obtain critical information about industry insights, the market’s monetary chain, the overall pool of key players, market classification, and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, various sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information for the report. The primary sources from the supply side included Chief Executive Officers (CEOs), Chief Technology Officers (CTOs), Chief Operating Officers (COOs), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the transportation management system market.
Primary interviews were conducted to gather insights, such as market statistics, data on revenue collected from software and services, market breakups, market size estimations, market forecasts, and data triangulation. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Finance Officers (CFOs), Chief Strategy Officers (CSOs), and the installation team of end users who use transportation management system, were interviewed to understand buyers’ perspectives on suppliers, products, service providers, and their current usage of transportation management system hardware, solutions and services, which is expected to affect the overall transportation management system market growth.
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Market Size Estimation
In the market engineering process, the top-down and bottom-up approaches were used along with multiple data triangulation methods to estimate and validate the size of the transportation management system market, as well as other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
- Initially, MarketsandMarkets focuses on top-line investments and spending in the ecosystems. Further, significant developments in the critical market area have been considered.
- Tracking the recent and upcoming developments in the transportation management system market that include investments, R&D activities, product launches, collaborations, mergers and acquisitions, and partnerships, as well as forecasting the market size based on these developments and other critical parameters.
- Conduct multiple discussions with key opinion leaders to learn about the diverse types of authentications and brand protection offerings used and the applications for which they are used to analyze the breakdown of the scope of work carried out by major companies.
- Segmenting the market based on technology types concerning applications wherein the types are to be used and deriving the size of the global application market.
- Segmenting the overall market into various market segments
- Validating the estimates at every level through discussions with key opinion leaders, such as chief executives (CXOs), directors, and operation managers, and finally with the domain experts at MarketsandMarkets
Market Size Estimation Methodology-Bottom-up approach
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Market Size Estimation Methodology-top-down approach
Data Triangulation
After arriving at the overall market size from the above estimation process, the transportation management system market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments, data triangulation and market breakdown procedures have been used, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides.
The transportation management system market size has been validated using top-down and bottom-up approaches.
Market Definition
Transportation management systems (TMS) are crucial tools for businesses to choose the most cost-efficient and effective carrier and mode of shipment. A strong TMS can optimize multi-leg carrier routes and provide visibility into every stage of the supply chain. It also offers global trade management functionality, including information on trade and tariffs, as well as potential delays due to customs and other regulations.
Stakeholders
- TMS vendors
- Technology partners
- Consulting firms
- Resellers and distributors of TMS
- Enterprise users
- Technology providers
- System integrators
- Support service providers
- Consulting service providers
- Logistics service providers
- Government and standardization bodies
Report Objectives
- To determine and forecast the global transportation management system market by offering, solutions, and services, transportation mode, end user, vertical, and region from 2024 to 2029, and analyze the various macroeconomic and microeconomic factors affecting market growth.
- To forecast the size of the market segments concerning five central regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America.
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the transportation management system market.
- Analyze each submarket concerning individual growth trends, prospects, and contributions to the overall transportation management system market.
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the transportation management system market.
- To profile the key market players; provide a comparative analysis based on business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the market’s competitive landscape.
- Track and analyze competitive developments in the market, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities.
Available Customizations
With the given market data, MarketsandMarkets offers customizations per the company’s specific needs. The following customization options are available for the report:
Geographic Analysis
- Further break-up of the Asia Pacific market into countries contributing 75% to the regional market size
- Further break-up of the North American market into countries contributing 75% to the regional market size
- Further break-up of the Latin American market into countries contributing 75% to the regional market size
- Further break-up of the Middle East African market into countries contributing 75% to the regional market size
- Further break-up of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Transportation Management System Market