Transportation Management System (TMS) Market (By Deployment: On-premise, Cloud; By Mode of Transportation: Roadways, Railways, Waterways, Airways; By End-use: Retail & E-commerce, Manufacturing, Logistics, Government Organizations, Others) - Global Industry Analysis, Market Size, Opportunities and Forecast 2021 - 2028

Category : Automotive, Transportation and Logistics | Delivery Format : PDF | Status: Published | Pages : 190

The global transportation management system (TMS) market is expected to grow at a CAGR of around 19.5% from 2021 to 2028 and expected to reach the market value of around US$ 25.5 Bn by 2028.

TMSs are used to plan freight movements, do freight rating and shopping across all modes, choose the best route and carrier, and manage freight bills and payments. Furthermore, TMS is used by organizations that want to digitally manage freight operations rather than calling and emailing internal and external partners. Transport Management System (TMS) is a platform that is designed to streamline the transportation process, which is a subset of supply chain because it deals with various cutting-edge functionality. These include monitoring, organizing, managing, and handling any aspect of product transportation from the time an order is placed until it is delivered.

Market Drivers

Technological advancement bolsters the growth of global transport management system (TMS) market

With the advancement of technology, a TMS provides a platform for organizations to plan and execute cargo shipment to destination with efficiency, dependability, and cost efficiency. The US General Service Administration's (GSA) transportation management system for freight shipping, for example, is TMSS 2.0. TMSS 2.0 is a comprehensive execution solution that provides streamlined transportation management services. TMSS 2.0 supports the entire transportation process life cycle, from order management to financial settlement via Us Bank's Syncada integration. These factors are propelling the global transportation management system (TMS) market forward. Transportation management system (TMS) is flourishing as one of the most useful transportation solutions in supply chain management, growing steadily as technological progress.

High government involvement fuel the growth of global transport management system (TMS) market

According to a report released by the US Department of Defense, the As per report released by the US Department of Defense, in December 2017, the US Transportation successfully completed testing of highly integrated and off the shelf transportation management system (TMS) for government intended platform. Through successful screening, the TMS users will possess the ability for proper planning and execution of the shipment that intend for cargo to move precisely, efficiently, and reliably with cost-effectiveness. Also, USTANSCOM's possess the potential to manage the logistics functions that involve delivering sea, and land movement associated solutions as well as real-time visibility of cargo from point-of-origin to destination. The command identified TMS as the preferred solution after evaluating readiness, life-cycle costs, and risks in the alternative decision to the Joint Staff approved program, Integrated Multi-modal operations. Such factors contribute to the expansion of the global transport management system (TMS) market. 

Segmental Analysis

The global transport management system (TMS) market is segmented as deployment, mode of transportation, and end-use. Based on deployment, the market is classified into on-premise and cloud. By mode of transportation, the market is segregated as roadways, railways, waterways, and airways. Based on end-user, the market is segmented as retail & e-commerce, manufacturing, logistics, government organizations, and others

The cloud segment is expected to have a dominant share of the global transportation management system (TMS) market based on deployment. Over on-premise software, cloud-based, software-as-a-service (SAAS) TMS are strongly preferred. They are much more agile and easier to install, maintain, and upgrade during implementation, resulting in a faster return on investment (ROI) and less hassle. Furthermore, cloud-based platforms provide a lucrative opportunity for next-level supply chain collaboration. Users can access software hosted on the cloud from anywhere, including mobile devices, and are not restricted to use within the office building or premises. It is a more cost-effective process for any organization to incorporate such cloud-based technology. Such factors have a positive impact on the global transport management system (TMS) market.

In terms of mode of transportation, the roadways segment has held the largest market share in the past and will continue to do so throughout the forecast period. Several organizations are involved in road network management, according to the PIARC report. Control centers dedicated to managing traffic control systems for urban networks, highways, and other strategic roads, as well as toll roads, tunnels, and bridges, are included. This has increased the adoption of TMS and related services in order to withstand some improvement in network efficiency.

According to end-use, the manufacturing segment accounted for the largest market share in 2020 and will continue to grow at a similar rate throughout the forecast period. Strong growth in manufacturing, aided by government involvement, has increased demand for high logistical efficiency, indicating that goods must not only be produced but also efficiently transported to markets at reasonable prices. For example, the Government of India (GOI) has launched the "Make in India" initiative to support the Indian economy's manufacturing sector and increase its contribution to GDP from 17% to 25%. As a result of the robust growth in manufacturing efficiency, there is a high demand for logistical efficiency. This has resulted in a phenomenal expansion of the global transportation management system (TMS) market.

Regional Landscape

North America dominates; Asia Pacific records fastest growing CAGR for the transport management system (TMS) market

North America has held the dominating share of the transportation management system (TMS) market in the past and is expected to do so again during the forecast period. Early adoption of advanced technologies such as cloud computing and mobile advanced technologies has resulted in a high level of responsiveness to TMS-based solutions and services. Furthermore, advanced technologies such as machine-to-machine (M2M) and mobile supportive cloud technologies have had a positive impact on improving the efficiency of business processes. As a result, enterprises have begun to adopt TMS solutions. Such factors have a positive impact on regional market growth, which in turn contributes to the global transport management system (TMS) market growth.

Asia Pacific, on the other hand, is expected to have the fastest growing CAGR in the transport management system (TMS) market. The Asia Pacific region's transportation complexity is increasing, necessitating the need for TMS solutions that provide local support, a regional carrier network, and vendor experience in the region. This is one of the prominent factors responsible for the stupendous growth of transport management system (TMS) market.

Competitive landscape

The prominent players involved in the global transport management system (TMS) market are 3Gtms, BluJay Solutions Ltd., C.H. Robinson, The Descartes Systems Group Inc., Infor, International Business Machines Corporation (IBM), Blue Yonder, Manhattan Associates, MercuryGate, Oracle, SAP SE, Trimble, Inc., and among others

Market Segmentation

Market By Deployment

On-premise
Cloud

Market By Mode of Transportation

Roadways
Railways
Waterways
Airways

Market By End-use

Retail & E-commerce
Manufacturing
Logistics
Government Organizations
Others

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa


Frequently Asked Questions

Transportation management system (TMS) market is expected to reach a market value of around US$ 25.5 Bn by 2028.

The transportation management system (TMS) market is expected to grow at a CAGR of around 19.5% from 2021 to 2028.

Based on deployment, cloud segment is the leading segment in the overall market.

Rising adoption of digitization is one of the prominent factors that drive the demand for transportation management system (TMS) market.

3Gtms, BluJay Solutions Ltd., C.H. Robinson, The Descartes Systems Group Inc., Infor, International Business Machines Corporation (IBM), Blue Yonder, Manhattan Associates, MercuryGate, Oracle, SAP SE, Trimble, Inc., and among others.

North America is anticipated to grab the highest market share in the regional market

Asia Pacific is expected to be the fastest growing market in the forthcoming years

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