Transportation Management System Market Size - By Platform (Solution, Services), Industry Vertical (Retail & E-commerce, Healthcare & Pharmaceuticals, Distribution & Logistics, Manufacturing, Government), Transportation Mode & Global Forecast, 2023 - 2032

Transportation Management System Market Size

Transportation Management System Market size was valued at USD 10.8 billion in 2022 and is projected to grow at a CAGR of over 9.5% between 2023 and 2032, owing to the booming e-commerce industry worldwide. According to the EuroCommerce report, the turnover in European B2C e-commerce experienced growth, rising from USD 898.3 billion in 2021 to USD 951.2 billion in 2022. Although the growth rate declined from 12% in 2021 to 6% in 2022, it is anticipated that the growth rate for 2023 will show a slight increase, reaching 8%. This indicates that the turnover in European B2C e-commerce is expected to maintain its positive growth trajectory.

The rapid growth of e-commerce and changing consumer expectations for fast andreliable delivery create a surge in demand for efficient transportation and logistics operations. TMS software plays a crucial role in helping companies meet these demands by providing tools for route optimization, order tracking, and inventory management, thus contributing to market growth.
 

Stricter regulations related to transportation and sustainability initiatives were driving the adoption of TMS solutions. For instance, the US Environmental Protection Agency sets emission standards for new vehicles sold in the US. These standards have become increasingly stricter over time and have played a major role in reducing emissions from the transportation sector. The EU has a similar set of emission standards for new vehicles. In fact, the EU is also planning to phase out the sale of new gasoline and diesel cars by 2035.
 

Companies need to adhere to environmental regulations and implement more sustainable transportation practices. TMS software allows them to reduce carbon footprints by optimizing routes, load capacity, and vehicle utilization, further strengthening the TMS market outlook. However, resistance to change within organizations may impact industry dynamics. Implementing TMS often requires a shift in operational processes and a cultural change within a company. Employees might be resistant to adopting new technologies or changing their established work routines. This resistance could slow down the adoption and successful implementation of TMS solutions.
 

COVID-19 Impact

The COVID-19 pandemic had a profound impact on the transportation management system (TMS) market. Lockdowns and supply chain disruptions increased the demand for TMS to enhance logistics visibility and agility. Yet, economic uncertainty and budget constraints hindered adoption for some companies. Overall, COVID-19 underscored the critical role of TMS in navigating supply chain challenges and adapting to a rapidly changing global logistics landscape.
 

Transportation Management System Market Trends

Rapid integration of advanced analytics and artificial intelligence will accelerate the transport management system business through 2032. TMS solutions are increasingly incorporating advanced analytics and artificial intelligence (AI) for predictive analytics, real-time decision support, and more accurate demand forecasting. These technologies enable more efficient route optimization, cost reduction, and improved decision-making in transportation management. These benefits have prompted companies worldwide to leverage these technologies and innovate new products to keep up with the increasing market demand.
 

For instance, in September 2023, 3SC Solutions introduced iTMS (Intelligent Transport Management Solution), a cutting-edge platform for comprehensive transportation planning, settlement, and execution. Leveraging advanced analytics, this integrated solution enhances logistics efficiency and financial performance. iTMS utilizes artificial intelligence and data analytics to streamline the intricacies of the complete logistics transportation process, providing a holistic approach to managing transportation operations.
 

Transportation Management System Market Analysis

The roadways segment will expand at a decent CAGR from 2023 to 2032, due to their ability to address the growing complexities and challenges in the road transportation sector. With the expansion of e-commerce and global supply chains, TMS software offers real-time visibility, route optimization, and load planning, which helps reduce transportation costs and improve delivery times. Moreover, the increasing regulatory requirements and sustainability goals in the transportation industry are driving the need for TMS solutions that assist in compliance and promote eco-friendly practices, further fueling their adoption in roadways.
 

The retail & e-commerce segment accounted for 29% of the transportation management system market share in 2022, driven by the need for streamlined supply chain operations and optimized logistics. In this highly competitive industry, TMS solutions enable retailers and e-commerce businesses to offer faster, more reliable deliveries, meeting the expectations of today's consumers. These systems provide real-time visibility, route optimization, and inventory management, which are essential for efficient order fulfilment. Additionally, the growth of online shopping has led to increased shipping volumes, making TMS crucial for cost reduction, improved delivery performance, and sustainable practices in this sector.
 

North America transportation management system market size dominated around USD 3.4 billion in 2022, due to the region's vast and complex supply chain network, making TMS solutions crucial for optimizing transportation operations and improving efficiency. Additionally, the rapid growth of e-commerce and the need for timely, cost-effective deliveries have driven higher TMS adoption. Furthermore, stringent regulatory requirements and sustainability initiatives have prompted North American companies to invest in TMS to enhance compliance and promote eco-friendly practices. Overall, these factors are propelling the growth of the TMS industry in North America.
 

Transportation Management System Market Share

Major enterprises dominating the competitive landscape of the TMS industry include:

• Infor
• CH Robinson
• Descartes
• Wise Tech Global
• Generix Group
• SAP
• Manhattan Associates
• E2open
• Trimble
• Worldwide Express
• Oracle

Oracle holds the largest market share due to long-standing reputation as a global technology giant, with a vast customer base and a strong presence in enterprise software. Oracle offer a wide range of features, from order management and route optimization to real-time tracking and reporting. This end-to-end functionality makes Oracle's TMS particularly attractive to businesses looking for a one-stop solution to manage their transportation operations efficiently.
 

Transportation Management System Industry News

• In May 2023, at the Sapphire conference in Orlando, Florida, SAP SE unveiled SAP Business AI, a new solution. In collaboration with Microsoft, the company is set to integrate its solutions with Microsoft 365 Copilot and Azure OpenAI. This integration aims to empower customers to enhance their logistics capabilities while equipping their workforce with the skills needed to navigate forthcoming logistics challenges.
   

The transportation management system market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Platform

• Solutions
  • Shipment Planning
  • Order Management
  • Audit & Payments
  • Analytics & Reporting
  • Routing & Tracking
  • Others
• Services
  • Consulting
  • Implementation & Integration
  • Support & Maintenance

Market, By Transportation Mode

• Roadways
• Railways
• Airways
• Waterways

Market, By Industry Vertical

• Retail & E-commerce
• Healthcare & Pharmaceuticals
• Distribution & Logistics
• Manufacturing
• Government
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Norway
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia