Transportation Management System Market Rising at a healthy CAGR of 13.6% from 2017 to 2025
Transportation Management System Market is forecast to reach US$30.04 bn by the end of 2025, from its earlier valuation of US$9.6 bn in 2016,market will exhibit a CAGR of 13.6% between 2017 and 2025
[UKPRwire, Mon Oct 22 2018] A transportation management system (TMS) is a subset of supply chain management and is centered mainly on transportation and logistics. The increasing use of cloud computing technologies for managing supply chain activities is one of the major trends prevailing in the transportation management systems market. Cloud-based deployments generally need less customization and configuration. These two factors are driving down lifecycle costs, making web-based applications more attractive and appealing to shippers.
Retailers across the globe have realized the importance of technology for achieving real-time visibility of operations to track products as they leave manufacturing facility and move through the supply chain. Thus, retailers are gradually moving away from platform-based solutions and are switching to cloud-based technologies. Cloud technologies enable retailers to process huge customer data faster, better match customer demand with a sales season, and offer personalized solutions. Thus, cloud technologies enable mass customization, which is of growing interest to both manufacturers and retailers.
The increasing preference for SaaS based TMS solutions is the major factor driving sales growth in the TMS market. Furthermore, the need to replace and update the existing and conventional transportation management systems is expected to support the demand for advanced transportation management solutions.
However, lack of awareness among end-users coupled with high deployment cost is the major inhibitor to the growth of the market. Nevertheless, the integration of cloud computing and Radio Frequency Identification (RFID) technologies with supply chain management systems will offer healthy opportunities for the growth of TMS Market over the forecast period.
The global market for transportation management systems stood at US$ 9,600.8 mn in 2016. Rising at a healthy CAGR of 13.6% from 2017 to 2025, the opportunity in this market is likely to touch US$ 30,044.1 mn by the end of 2025.
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North America to Continue Leading Global Transportation Management Systems Market
On the basis of the geography, the global market has been categorized into North America, Europe, Asia Pacific, the Middle East and Africa and Latin America. North America, closely followed by Europe, reports a greater deployment of TMS solutions, compared to other regions. In 2016, North America held over 37.5% of the global market and is expected to remain dominant over the next few years. Along with the proliferation of cloud-computing technologies, the increasing use of RFID technology in the supply chain system has helped the market gain momentum in the region.
Transportation management system vendors in North America are collaborating with RFID technology providers to develop advanced, integrated solutions and, in turn ensure better returns on R&D investments. These factors are expected to seal North America’s dominance in the global transportation management system market through the forecast period.
Transportation and Logistics Segment to Register Higher Demand Rate
The integration of automation and functions such as real-time market monitoring, coupled with shippers’ desire to ensure supply chain optimization and visibility, has expanded the application base for transportation management systems. The electrical and electronics, industrial, food and beverage, transportation and logistics, and retail sectors have emerged as the prime application areas of transportation management systems across the world.
Among these, the transportation and logistics segment is expected to continue its dominance over the forecast, majorly on account of demand from third-party logistics providers, with road transportation service providers being the largest end-users of TMS solutions. In 2016, the dominant 67.5% of the global market, the transportation and logistics segment emerged dominant.
Over the forecast period from 2017 to 2025, the emerging end-use verticals such as food and beverage, retail, and electronics and electrical are expected to witness the fastest growth, fueling market’s momentum. The increasing demand for supply chain optimization and visibility is expected to drive the adoption of TMS across these verticals.
Some of the major players in the global automotive transportation management systems market are: 3GTMS, Inc. (U.S.), CargoSmart Ltd. (Hong Kong), Descartes Systems Group, Inc. (Canada), Manhattan Associates, Inc. (U.S.), BluJay Solution (U.K.), One Network Enterprises (U.S.), JDA Software Group, Inc. (U.S.), Oracle Corporation (U.S.), SAP SE (Germany) and Precision Software, Inc. (U.S.) among others. These transportation management system vendors are continually striving to expand the capabilities of transport management solutions to enable end-users coordinate their supply chain operations effectively.