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Transportation Management System Market Size Report, 2019-2025

Transportation Management Systems Market Analysis Report, By Deployment Mode, By Mode of Transportation, By End User, By Region And Regional Forecasts From 2019 To 2025

Report ID: MN17619778  |  Published: May 2020  |  No of Pages: 150
Format: Electronic (PDF)  |  Industry: Automotive & Transport  |  Publisher: Grand View Research

Industry  Insights

The global transportation management systems market accounted for USD 61.27 billion, in 2018 and is anticipated to grow at a CAGR of 16.2% over the forecast period of 2019 to 2025. The growing e-commerce sector, deployment of advanced technologies, high return on investment and increase in bilateral trading relation between several nations are the major factors propelling the market growth.

Transportation management system (TMS) is available as a module for Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) suites. It helps several organizations and industries with freight and procurement shipment by using tools like payments, freight audits, optimization and route planning, load building, yard management, carrier management and order visibility. TMS mainly aims at enhancing the efficiency of shipments, gaining real-time visibility of supply chain with improved customer service and minimize the costs incurred.

U.S. transportation management systems market

Failing in shipping packages on-time can result in significant losses in profit margins and lead to customer dissatisfaction and frustration. To prevent this, end-use industries have started adapting TMS. This is mainly focused at providing enhanced levels of optimization that continues to propel the overall efficiency of the TMS and increase the developer’s RoI.

The recent solutions are competent of translating and capturing various data fields associated with critical shipments to ERP. This helps users to avoid duplication of data and allows the usage of standards like ANSI X12 or EDIFACT in Extensible Markup Language (XML) and Electronic Data Interchange (EDI) with carriers. These systems are also equipped with built-in powerful optimization engines to provide efficient reporting capabilities. Keeping the changing requirements of customers in mind, these systems are programmed in such a way that they are fast-to-implement, easy-to-use and highly-adaptable; and thus, these systems have the capability of delivering a significant RoI.

Bilateral trading relations between several countries have propelled the demand for definitive transportation management systems. Japan-U.S. bilateral relations associate in significant investment and trade. Japan is a primary market for various U.S. goods and services like machinery, metals, agricultural products, organic chemicals, plastics, and pharmaceuticals. Similarly, India and U.S. have bilateral trade relations where U.S. yearly exports rare stones and metal, mineral fuels, machinery and aircraft to India, while U.S. imports processed food products, rice, spices, agricultural products, and essential oils from India.

Deployment Mode Insights

On the grounds of deployment mode, the transportation management system market can be divided into cloud and on-premise. The on-premise deployment mode dominated the market with the largest share in 2018. Many leading distribution and manufacturing companies still preferred the on-premise deployment method for TMS solutions because of the safety protocols, easiness to access the server and wide authority over customization. However, increasing awareness regarding the advantages of the cloud, industries are projected to adapt cloud in the forecast period.

The cloud segment is anticipated to grow at the fastest CAGR in the forecast period. Cloud TMS provides with unique optimizing and planning advantages to logistics providers, shippers and vendors. With rapid increase in the amount of data being generated, industries are preferring the cloud-based TMS solutions. They are mostly cost-effective, especially with minimum licensing cost and prevents having extra technical staff. They store the information in a central location and ensures easy and fast access to the system from any topographical location without any disruptions.

Mode of Transportation Insights

On the basis of mode of transportation, the TMS market can be segmented into waterways, airways, railways and roadways. The roadways segment dominated the market with the largest share in 2018. One of the most prevalent modes of transportation is road freight as it is cheaper when compared to others. It is a flexible and cost-efficient mode of transport that makes unloading and loading viable at any place. However, it has certain restrains like limited carrying capacity, heavy traffic, poor road conditions, multiple police check points and several others.

The railway segment is anticipated to be grow at the fastest CAGR in the forecast period due to the initiatives of the government for upgrading the rail network through Public Private Partnerships (PPP). Trains can transport huge volume of cargo in a shorter duration over a longer distance. The limitation to this are high fixed costs involved in maintaining the railway infrastructure, limitations on the routes, no flexibility to load and unload cargo at any place and scarcity of labor in secluded parts of the country.

End User Insights

The end user segments consists of a detailed study on manufacturing, e-commerce and retail, logistics, government organizations and several others. The increasing number of units of manufacturing in developing countries like India and Mexico has resulted in a rise in the outsourcing of inventories, raw materials and various others. Moreover, increasing exports and imports and bilateral relations in between countries are projected to propel the growth of the market.

Global transportation management systems marketThe e-commerce and retail sector is anticipated to grow at the fastest CAGR in the forecast period because of rising number of retail industries in countries like U.S. and China. China contribute for about 80% of the total online sales in the Asia Pacific region while India is anticipated to grow as the world’s fastest developing e-commerce market driven by huge investments and higher penetration. E-commerce companies like Amazon.com; Walmart; and Alibaba Group maintain their operations of shipping through TMS.

Regional Insights

North America dominated the regional market in 2018 because of extensive use of roadways for freight movement. Some of the major companies present in this region are 3GTMS; IBM Corporation; Manhattan Associates; MercuryGate International Inc.; Cerasis, Infor Inc.; and JDA Software Group, Inc.

Asia Pacific is anticipated to grow as one of the fastest developing market in the forecast period owing to developing e-commerce and retail sector in India, Japan and China. The increasing investments in railway and advancement of traditional freight infrastructure are anticipated to propel the market growth in the forecast period.

Transportation Management Systems Market Share Insights

The major players in the industry that hold a significant position include JDA Software Group, Inc.; Oracle Corporation; 3GTMS; The Descartes Systems Group, Inc.; and SAP SE. Some of the niche players in the market include Infor Inc.; inet-Logistics GmbH and C.H. Robinson Worldwide, Inc. These companies are majorly investing in R&D and developing product upgrades. Mergers & acquisitions, partnerships and contracts and agreements have affected the market significantly and are propelling the growth of the market.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage        

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

Country Scope

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

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global transportation management system market report on the basis of deployment mode, mode of transportation, end user, and region:

• Deployment Mode Outlook (Revenue, USD Billion, 2015 - 2025)
    • On-Premise
    • Cloud

• Mode of Transportation Outlook (Revenue, USD Billion, 2015 - 2025)
    • Roadways
    • Railways
    • Waterways
    • Airways

• End User Outlook (Revenue, USD Billion, 2015 - 2025)
    • Retail & Ecommerce
    • Manufacturing
    • Logistics
    • Government Organizations
    • Others

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • 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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