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

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 relations 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 the supply chain with improved customer service, and minimize the costs incurred.

U.S. transportation management systems market

Failing to ship 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 on providing enhanced levels of optimization that continue to propel the overall efficiency of the TMS and increase the developer’s RoI.

The recent solutions are competent in 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 the 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 model 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, with increasing awareness regarding the advantages of the cloud, industries are projected to adopt the cloud in the forecast period.

The cloud segment is anticipated to grow at the fastest CAGR in the forecast period. Cloud TMS provides unique optimizing and planning advantages to logistics providers, shippers, and vendors. With the rapid increase in the amount of data being generated, industries are preferring cloud-based TMS solutions. They are mostly cost-effective, especially with minimum licensing cost, and prevent 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

Based on 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 restraints like limited carrying capacity, heavy traffic, poor road conditions, multiple police checkpoints, and several others.

The railway segment is anticipated to 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 volumes of cargo in a shorter duration over a longer distance. The limitation to this is 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 consist 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 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 the rising number of retail industries in countries like the U.S. and China. China contributes to 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; Walmart; and Alibaba Group maintain their operations of shipping through TMS.

Regional Insights

North America dominated the regional market in 2018 because of the 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.

The Asia Pacific is anticipated to grow as one of the fastest developing markets in the forecast period owing to the developing e-commerce and retail sector in India, Japan, and China. The increasing investments in railways and the 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



The base year for estimation


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

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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 2015 to 2025. For the purpose of this study, Million Insights has segmented the global transportation management system market report based on 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
    • the Asia Pacific
        • China
        • India
        • Japan
    • South America
        • Brazil
    • Middle East & Africa

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