Transportation Management Systems Market Size, Share & Trends Analysis Report By Deployment, By Mode of Transportation (Roadways, Railways, Waterways, Airways), By End Use, By Region, And Segment Forecasts, 2022 - 2030

Transportation Management Systems Market Size, Share & Trends Analysis Report By Deployment, By Mode of Transportation (Roadways, Railways, Waterways, Airways), By End Use, By Region, And Segment Forecasts, 2022 - 2030

Transportation Management Systems Market Growth & Trends

The global transportation management systems market size is expected to reach USD 31.18 billion by 2030, registering a CAGR of 14.6% over the forecast period, according to a new report by Grand View Research, Inc. The market growth is attributed to the strong emphasis on automating the supply chain and logistics processes and the continuous development of e-commerce and retail industries. The growing need to increase visibility in the supply chain process by utilizing automated products and the increasing significance of data-driven technologies in the logistics industry are also likely to contribute to market growth.

The logistics industry has evolved significantly, corresponding to the inclusion of advanced technological solutions. The growing use of connected devices, data-driven software, and cloud-based platforms for various applications has encouraged companies to adopt advanced software such as Transportation Management Systems (TMS). TMS facilitates increased visibility, tracking of shipments in real-time, and timely delivery of services for satisfactory customer experiences. These factors are expected to drive the growth of the market.

The demand for Software-as-a-Service (SaaS)-based TMS is growing due to the cost-effectiveness and flexibility associated with the SaaS delivery model. Cloud-based services account for a significant share of the global TMS market. This large share is mainly ascribed to the increased adoption of cloud and subscription-based models by small & mid-sized companies in the industry. Furthermore, with the increasing demand for customized solutions, vendors are competing to offer advanced, on-demand software.

As part of the digital transformation trend, businesses are adopting various digital technologies for improving operational efficiencies and consumer experiences. TMS holds the potential to enhance productivity and decrease the cost of business operations. The higher ROI offered by TMS acts as a primary driver for market growth.

Transportation Management Systems Market Report Highlights

• The cloud segment is anticipated to register a significant CAGR over the forecast period owing to the continued digitalization, increasing adoption of subscription-based models at affordable prices, and rapid growth of the e-commerce industry in emerging economies
• The airways segment is expected to register a considerable CAGR over the forecast period due to the growing demand for quick delivery of products from incumbents in the retail, e-commerce, healthcare, and logistics industries
• The government organizations segment is anticipated to register a moderate CAGR over the forecast period due to the rising demand for traffic management solutions, including automatic number plate recognition, signaling, and parking management
• North America accounted for the largest revenue share in 2021 owing to the increasing import and export activities across the U.S. and Canada, in turn driving the need for real-time tracking of products