Transportation Management System Market Size

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.

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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.