Route Optimization Software Market Forecasts to 2028 – Global Analysis By Deployment (Cloud and On-Premises), Component (Services, Software and Other Components), Organization Size (Small & Medium Enterprises and Large Enterprises), End User and By Geogra

Route Optimization Software Market Forecasts to 2028 – Global Analysis By Deployment (Cloud and On-Premises), Component (Services, Software and Other Components), Organization Size (Small & Medium Enterprises and Large Enterprises), End User and By Geography

According to Stratistics MRC, the Global Route Optimization Software Market is accounted for $4.68 billion in 2022 and is expected to reach $9.96 billion by 2028 growing at a CAGR of 13.4% during the forecast period. Utilising time and cost savings in addition to efficiency, route optimisation software plans, schedules, and calculates the most effective route for a vehicle. When there are various customer meetings, product deliveries, and pauses to make, route optimisation software is crucial. This software assists in avoiding traffic congestion by predicting which route will be the slowest or busiest using scenario testing and historical data.

According to Data Reportal, internet user worldwide is 4.95 billion among which China has the biggest number of internet users with just over a billion in 2021. The overall number is set to rise to 5.5 billion by 2021 with Asia accounting for over 40% of this number. Owing to these rising internet users there is rise in route optimization software across the globe.

Market Dynamics:

Driver:

Rising popularity of online shopping

Online purchasing is booming all around the world. Global e-Commerce is flourishing as a result of rising digitalization and smartphone use. Online delivery has increased as e-Commerce has grown in the Asia-Pacific region. Route optimisation solutions are being used more frequently by e-commerce businesses to increase both delivery effectiveness and customer happiness. Businesses rely on route optimisation software to keep clients because if a consumer receives an incorrect delivery, they stop doing business with that company. Operations in the supply chain and logistics are impeded by late deliveries, poor route planning, increasing delivery costs, and idle vehicles.

Restraint:

Lack of IT infrastructure in underdeveloped nations

In order to accelerate economic development and end poverty, African states must support industrial growth, according to a UNCTAD assessment. Additionally, Africa's digitalization rate is low and its IT infrastructure is underdeveloped. As a result, the market growth in the region is constrained by the limited adoption of route optimisation software. Government initiatives and the quick use of smartphones in the region are anticipated to accelerate the growth of the route optimisation software market in the near future.

Opportunity:

Surge in adoption of route optimization software

The use of route optimisation software has made it possible to reduce costs while also fulfilling requirements and removing fines for delays. Additionally, businesses using route optimisation software might serve more customers without making significant vehicle investments. Split orders and external transports can be eliminated as a result of the rapid adoption of this programme. Through the use of GPS tracking and this software, real-time vehicle tracking is also possible. By providing routes that are up to 35% shorter than those provided by manual planning, this type of software dramatically lowers fuel expenses. These elements are fueling the market growth over the forecast period.

Threat:

Multi-route issues, potential security issues

Small and medium-sized businesses and small vendors typically use some of the route optimisation software that is available but is not free. This programme simply offers route facilities between two locations; it does not offer multi-route facilities at every location. Because they are built using open-source code, these route planners are not necessarily safe to use. Additionally, these route planners are difficult to deploy. These route planners have relatively limited capability, which is preventing the market from expanding.

Covid-19 Impact

The COVID-19 outbreak had an impact on people's lives and businesses all around the world. The COVID-19 epidemic presents a number of challenges for delivery service providers. More consumers are making online purchases as a result of the tough limitations. As a result, delivering goods on time became a major problem for e-commerce and online retail & food businesses. Route optimisation software promoted the route optimisation software industry during the pandemic crisis by giving delivery executives the best routes to take, which decreased vehicle idling time and increased efficiency.

The cloud segment is expected to be the largest during the forecast period

The cloud segment is estimated to have a lucrative growth, due to lower shipping costs and increased productivity. By using a cloud-based deployment, distributors can deliver goods and services more effectively and on time thanks to tools for road planning, GPS mobile tracking, and idle time monitoring. These tools are all connected to the cloud via high-speed internet. Real-time, accurate data delivery is made possible by cloud-based deployment.

The large enterprises segment is expected to have the highest CAGR during the forecast period

The large enterprises segment is anticipated to witness the highest CAGR growth during the forecast period, due to the availability of more resources (software) and planning methodologies compared to small and medium firms, route optimisation software applications have become increasingly popular. Through route optimisation planning and software, one of the end users, such as logistics service providers, has increased their transportation performances and profitability. These elements are fueling the market's expansion.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the expansion of e-commerce, increased internet usage, increased number of logistics service providers, and other factors. The majority of end user groups who utilise route optimisation software to improve business performance and satisfy customer demand are being driven by the expansion in internet use and e-commerce services in nations like India, China, Indonesia, Malaysia, and other APAC area countries. Retail and logistics service companies make a significant contribution to the GDP of a nation like India.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period. To meet the different operational and development demands among several industries, including taxi service providers, food chains, FMCG, and others, vendors in this market have created cutting-edge location analytics route optimisation software solutions. There are several software suppliers in the area offering solutions for route optimisation, and the number of partnerships between software vendors and delivery service providers is on the rise.

Key players in the market

Some of the key players profiled in the Route Optimization Software Market include Route4me, Google, Caliper, Verizon Connect, Paragon Software Systems, Llamasoft, Workwave, Descartes, Quintiq, Microlise, ALK Technologies, Routific, PTV Group, Omnitracs, Ortec, ESRI, Routesolutions, Truckstops, Blujay Solutions and Geoconcept.

Key Developments:

In July 2018, The Greater Jakarta Transportation Agency, partnered with Google to launch a special feature on its Google Maps platform. Google Maps is working with third-party providers, public sources, and user contributors regarding the update of the product.

In July 2018, Paragon Software enhanced its routing and scheduling software to interface with more than 40 different vehicle tracking systems, with a number of new technology partnerships with telematics providers. This functionality would aid transport operations to use real-time information that will improve their transport planning process.

In August 2017, Descartes acquired MacroPoint, an electronic transportation network providing location-based truck tracking and predictive freight capacity data content. This acquisition helped customers research, plan, execute, and monitor multi-modal shipments around the world.

In February 2017, Omnitracs launched its integrated Routing, Dispatching, and Compliance (RDC) solution. RDC seamlessly combines routing, dispatching, trip management, proof of delivery, hours of service, and Driver-Vehicle Inspection Report (DVIR) compliance. RDC provides fleets with real-time information about routing efficiency, tracking, safety, and compliance.

Deployments Covered:
• Cloud
• On-Premises

Components Covered:
• Services
• Software
• Other Components

Organization Sizes Covered:
• Small & Medium Enterprises
• Large Enterprises

End Users Covered:
• Field Services
• On-demand Food Delivery
• Ride Hailing & Taxi Services
• Retail & FMCG
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements