Transportation Management System Market Size was prized at USD 4.8 Billion in 2023. The transportation management system market industry is projected to expand from USD 5.0 Billion in 2024 to USD 9.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.20% during the forecast period (2024 - 2032).
The expansion of the retail and e-commerce sectors, the constant technological innovation that frequently results in the introduction of novel solutions, and the improvement of bilateral trade ties between various countries are the key market drivers enhancing market growth. The expanding acceptance of cloud computing and Industry 4.0, and the popularity of connected and autonomous vehicles, are expected to benefit market growth throughout the projected period.
Figure 1: Transportation Management System Market Size, 2024-2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Market CAGR for transportation management systems is driven by the rising number of e-commerce website users. The surge in online purchasing and the rise in internet users have been the primary drivers of the eCommerce sector's exponential expansion over the past ten years. Internet searches are part of about 67% of consumer purchase journeys. Additionally, the World Economic Forum predicts that by 2025, the penetration rates of eCommerce will reach 17%. To quickly process small individual orders and keep up with the rising eCommerce sales trend, distributors, manufacturers, retailers, third-party freight brokers, reverse logistics managers, and logistics service providers must all work faster and more effectively. Online shoppers anticipate accurate orders, same-day or urgent deliveries, and cost-free exchanges. eCommerce businesses are looking into ways to cut back on operating expenses and order delivery delays. Since eCommerce impacts 96% of all shippers, there is a need to combine the advantages of eCommerce and TMS integration into a single, efficient logistics plan to meet the demand for transportation management systems.
Figure 2: Retail e-commerce sales globally from 2014 to 2025 in billion U.S.D
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
As a fast-developing technology, cloud computing is one that many businesses are eager to adopt to boost productivity. Cost-effectiveness, planning, ease of use and integration, agility, and scalability are just a few advantages that cloud computing naturally offers. So, the transport and logistics sector is adopting cloud-based solutions like TMS, SCM, and various innovative Logistics-as-a-Service (LaaS)-based business models for complex, networked settings. Orders, billing, and track-and-trace services can all be integrated into a single platform using a modular cloud-based transportation management system. Utilizing forward- and backward-chain supply chain ecosystems to track and analyze the whole supply chain activities is the major benefit of cloud-based transport and logistics solutions. It also helps companies develop a reliable, integrated transportation management system that gives clients up-to-the-minute information. Thus, driving the transportation management system market revenue.
The Transportation Management System Market segmentation, based on components, includes solutions, hardware, & services. The solutions segment acquired a major market share, accounting for 49.1% of market revenue (2.2 Billion). Better customer service, increased warehouse productivity, tracking deliveries, inventory management, reduced shipping costs, and others are some advantages of transportation management system solutions. Due to increased demand, the services category is anticipated to experience the quickest revenue CAGR over the projection period. TMS services are provided by companies that provide logistical services, such as Third-party Logistics (3PL) and Fourth-party Logistics (4PL) providers (LSPs).
Figure 3: Transportation Management System Market, by Component, 2022 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Transportation Management System Market segmentation, based on deployment, includes on-premise and on-cloud. In 2022, the on-premise category contributed the most. Because of the demands for data security, easy access to the server, and greater customization flexibility, several sizable manufacturing and distribution organizations continue to favor on-premise TMS. Over the projected period, the cloud segment is anticipated to grow at the fastest rate. Shippers, vendors, and logistics companies can benefit from special planning and optimization advantages provided by cloud-based TMS.
February 2022 Oracle announced that RHI Magnesita, the world's top producer of refractory products, has chosen Oracle Fusion Cloud Transportation Management, has decided to assist the company's growth and technological modernization using Oracle Fusion Cloud Transportation Management, a part of Oracle Fusion Cloud Supply Chain & Manufacturing. Following deployment, RHI Magnesita's shipping locations will use a unified transport management system encompassing all areas of its logistics procedures.
The Transportation Management System Market segmentation, based on industry, includes retail, travel and tourism, healthcare, and construction. In 2022, the retail category dominated the market. The expansion can be linked to the continued expansion of the retail sectors in nations like China and India. Additionally, travel and tourism witnessed the fastest growth rate. The main drivers of the travel and tourism sector are the expansion of disposable money and the improvement in accessibility to several remote but breathtaking locations.
By region, the report provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American transportation management system market area will dominate this market. One of the main factors influencing the industry in this area is the growth in local municipalities' expenditures for linked infrastructure for efficient transit. Additionally, the regional market is expanding due to the presence of top TMS suppliers, including Infor Inc., 3GTMS, Cerasis Inc., International Business Machines Corp., and MercuryGate International Inc.
Further, the leading countries studied in the market report are US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil.
Figure 4: TRANSPORTATION MANAGEMENT SYSTEM MARKET SHARE BY REGION 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe transportation management system market accounts for the second-largest market share. It is linked to increased activity by important players in several regional nations. It is also predicted that the efforts being followed and the policies created by various companies in the area to foster the expansion of intelligent transportation would help the region's development. Further, the German transportation management system market held the largest market share, and the UK transportation management system market was the rapidly growing market in the region.
The Asia-Pacific Transportation Management System Market is expected to grow at the fastest CAGR from 2023 to 2032. Demand for transport management systems is increasing due to expanding regional government initiatives, which are anticipated to fuel the market's expansion in revenue. For instance, China's transport industry has set goals for 2022, including carrying out epidemic control and maintaining a stable and efficient logistics supply chain, according to the nation's Ministry of Transport, which will finish major duties in 12 categories in 2023. Moreover, China’s transportation management system market held the largest market share, and the Indian transportation management system market was the rapidly growing market in the region.
Leading market players are largely investing in research and development to expand their product lines, which will help the transportation management system market, grow even more. The launch of new products, larger-scale mergers and acquisitions, contractual agreements, and collaboration with other organizations are significant market developments in which market participants engage to increase their global presence. The transportation management system industry must provide affordable products to grow and thrive in a more competitive and challenging market environment.
One of the primary business strategies manufacturers use in the global transportation management system industry to increase market sector and benefit customers is local manufacturing to lower operational costs. In recent years, the transportation management system industry has stipulated some of the most important medicinal benefits. Major players in the transportation management system market, including MercuryGate (US), SAP SE (Germany), Alpega Group (Austria), Oracle Corporation (US), and others, are investing in research and development operations to improve market demand.
MercuryGate International is a transportation management system developer that aims to harness the speed of automation and the power of data. The company provides comprehensive logistics solutions that address all customer segments, including shippers, third-party logistics providers (3PLs), freight forwarders, freight brokers, and carriers, lowering shipping and inventory costs, improving order-to-delivery cycle times, and automating the movement of goods across the supply chain. In February 2022, MercuryGate International, Inc. improved its TMS solution by including smart transportation technologies like embedded analytics, artificial intelligence, and machine learning. This product is ready to help clients by delivering real-time insights about global and local supply chain needs.
Blue Yonder is an artificial intelligence-driven supply chain management service provider dedicated to enabling every person and organization to reach their full potential. Inventory management, order fulfillment services, and workforce management are among the company's services for retailers, manufacturers, and logistics providers, assisting companies in optimizing delivery to customers and seamlessly predicting, pivoting, and serving customer demand. In March 2022, Blue Yonder and Snowflake collaborated to improve access to diverse data for supply chain management. An end-to-end supply chain solution, the Blue Yonder Luminate Platform, powered by Snowflake, enables retailers, manufacturers, and third-party logistics providers (3PLs) to more accurately predict, prevent, and address disruptions across their businesses which help lower risks and deal with the industry's growing supply chain problems.
To add on, The Descartes System Group, Inc., for example, in October 2023 announced a series of solutions which included a fleet control tower, customer engagement platform, proactive driving safety training, as well as advanced optimization for couriers’ and asset tracking, among other solution. This was to enhance the company’s capabilities in telematics, routing and mobile solutions.
For example, In May 2023, BlackBerry Limited announced its partnership with McLeod Software, which is known as one of the top transport management system providers. As part of this partnership, BlackBerry Radar, which provides innovative asset tracking and monitoring for intermodal containers, chassis, trailers, equipment and railcars, will be directly integrated into McLeod Software’s Loadmaster trucking dispatch management system designed to enable McLeod’s customers to gain actionable real-time insights about their assets state.
In May 2023, Manhattan Associates revealed its Manhattan Active Yard Management solution. By seamlessly integrating it into both warehouse and transportation management systems within an enterprise yard management gets revolutionized by this new offering. It allows organizations to connect all logistics operations through a facility from warehouse to transportation to yard, giving them more ease in making informed decisions faster. Due to the fact it is cloud-native, the solution has scalability benefits so that businesses can adapt to dynamic Market Conditions as well as Operation Needs without carrying the burden of managing a complex IT infrastructure around it.
Oracle unveiled new logistic capabilities under the Oracle Transportation Management Suite in January 2023. One of these additions was the New Oracle Transportation Management Mobile App. Its aim was to simplify logistics operations by providing real-time tracing reports instantly through any mobile device so that managers and operators can perform their logistics functions while they are traveling. Implementing these innovations seeks to respond to evolving challenges in transportation and logistics, such as increasing the need for visibility at the item level across multiple channels where the supply chain must have flexibility and scalability.
For its expansion and technological modernization, the biggest global refractory products supplier, RHI Magnesita, chose Oracle Fusion Cloud Transportation Management as part of Oracle Fusion Cloud Supply Chain & Manufacturing (SCM). All shipments in all logistics operations at RHI Magnesita’s shipping facilities are managed with one unified transport management system after the implementation.
In February 2020, this company, Power Distribution, an American provider of mission-critical power distribution, static switching and power monitoring equipment and services for data centers, industrial and commercial customers was acquired by Eaton. As a result of this acquisition, it will expand its data center power distribution and monitoring solutions.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 4.8 Billion |
| Market Size 2024 | USD 5.0 Billion |
| Market Size 2032 | USD 9.6 Billion |
| Compound Annual Growth Rate (CAGR) | 8.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Market Competitive Landscape, Revenue Forecast, Growth Factors, and Trends |
| Segments Covered | Component, Deployment, and Industry |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil. |
| Key Companies Profiled | MercuryGate (US), SAP SE (Germany), Alpega Group (Austria), and Oracle Corporation (US). |
| Key Market Opportunities | · Connected and autonomous vehicles will revolutionize the logistics and transportation sectors. |
| Key Market Dynamics | · Cloud-based SaaS solutions to drive the market |
Frequently Asked Questions (FAQ) :
The global market size of the transportation management system was prized at USD 4.8 Billion in 2023.
The global market is anticipated to expand at a CAGR of 8.20% from 2024 to 2032.
North America had the major share of the global market
The leading market players are MercuryGate (US), SAP SE (Germany), Alpega Group (Austria), and Oracle Corporation (US).
The solution category acquired a major market share in 2022.
The retail industry had the largest share of the global market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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