+1-518-618-1030 866 - 552 - 3453 USA-Canada Toll Free

Rising Utilization of Intermodal Transportation to Generate Demand for Transportation Management Systems, says TMR

Posted on Aug 25, 2016

The global transportation management systems market is dominated by multinational companies such as Oracle Corporation, SAP SE, JDA Software, Manhattan Associates Inc., and Descartes Systems Group. Other key companies in the global market include CargoSmart Ltd., One Network Enterprises, Precision Software Inc., Lean Logistics Inc., JDA Software Group, Inc., and 3GTMS, Inc. According to Transparency Market Research, improving customer services is likely to be the focus of key players in the global transportation management systems market in the coming years.

Expanding their distribution networks is another complementary aspect expected to be emphasized by leading companies. Apart from this, innovations to iron out the flaws in existing transportation management systems are also expected to receive significant funding in the coming years. The annual revenue of the global transportation management systems market is expected to reach US$9.6 bn by the end of 2016 and further rise to US$19.2 bn by 2022. 

Rising Intermodal Transportation Necessitates Use of Modern Transportation Management Systems

One of the key drivers for the global transportation management systems market is the increasing adoption of intermodal transportation. Due to the increasing international and intercontinental trade, traditional companies relying on one specialty mode of transportation have faced difficulties in keeping up with the progressive demands posed by globalization. The solid emergence of the online retail sector has also acted as a considerable constraint on the operations of brick-and-mortar manufacturers. As a result, companies willing to update their operations and stay in touch with the contemporaneous technological framework have been the early adopters of advanced transportation management software.

“The need to update the existing transportation management systems to incorporate smartphones and other mobile devices has also driven the revenue of the transportation management systems industry,” said a TMR lead analyst. Transportation management systems are not a particularly new phenomenon, but many existing systems were originally developed before the era of smartphones and thus aren’t compatible with modern connected devices. Updating them to incorporate the now-ubiquitous use of smartphones as well as machine-to-machine communication has thus emerged as a promising revenue generation channel for leading players in the global transportation management systems industry.

Low Awareness among End Users Restricts Demand for Transportation Management Systems

The prime restraint on the global transportation management systems market is the lack of awareness in the shipping industry about the benefits of advanced transportation management systems. Despite the steady growth in their demand in developed regions, transportation management systems have still not gained widespread demand in emerging regions, where the majority of a high-volume shipping industry has stuck to conventional methods. Furthermore, most transportation management systems in use are from the pre-smartphone era, since awareness about the benefits of modern versions is yet to spread in even some developed countries.

The emergence of cloud-based and RFID-compatible transportation management systems is a key opportunity for the transportation management systems industry in the coming years, as cloud computing and RFID (radiofrequency identification) are already being used in several industries for inventory management and can bring about significant improvements in transportation management systems.

On-demand Transportation Management Systems to Exhibit Formidable Growth

By deployment, the transportation management systems market is segmented into on-premise and on-demand, which includes modalities such as cloud and software-as-a-service. While on-premise transportation management systems remain by far the more popular, the reduced costs of on-demand systems is likely to ensure solid growth of the segment in the coming years. The on-demand transportation management systems segment is expected to exhibit a 13.3% CAGR from 2014 to 2022.

Geographically, North America is likely to retain its dominance in the global transportation management systems market in the coming years. The annual revenue of the North America market is expected to reach US$7.4 bn by the end of 2022.

The information in this preview comes from a Transparency Market Research report titled ‘Transportation Management Systems Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2022.’

The global transportation management systems market is segmented as follows: 

Transportation Management Systems Market, By End-use Application:

  • Transportation and Logistics
  • Food and Beverage
  • Electrical and Electronics
  • Industrial
  • Retail
  • Others (Pharmaceutical, etc.)

Transportation Management Systems Market, By Software Deployment:

  • On-Premise
  • On-Demand

Transportation Management Systems Market, By Geography:

  • North America
  • Europe
  • Asia Pacific
  • RoW

About Us

Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

Each TMR syndicated research report covers a different sector - such as pharmaceuticals, chemicals, energy, food & beverages, semiconductors, med-devices, consumer goods and technology. These reports provide in-depth analysis and deep segmentation to possible micro levels. With wider scope and stratified research methodology, TMR’s syndicated reports strive to provide clients to serve their overall research requirement.

US Office Contact

90 State Street, Suite 700
Albany, NY 12207
Tel: +1-518-618-1030
USA - Canada Toll Free: 866-552-3453
Email: sales@transparencymarketresearch.com
Website: https://www.transparencymarketresearch.com

Back To Top