A transportation management system (TMS) is a software solution and a key component of supply chain management which is used to plan and manage the movement of freight. A transportation management system includes planning and managing all transportation and logistics activities. A transportation management system allows end-use customers to plan and execute transportation of goods in a cost-effective and reliable manner across the supply chain. The services offered by transportation management systems include freight consolidation, scheduling and routing, freight audit/payment, and load forwarding support among others.
Increasing preference for Software as a Service (SaaS) based TMS solutions is the major factor driving the TMS market sales growth. The increasing demand for SaaS based TMS solutions can be attributed to the growth in intermodal transport across geographies. Furthermore, the need for replacing and updating existing traditional TMS solutions is expected to support the demand for advanced transportation management solutions. However, lack of awareness among end-users coupled with high deployment cost is the major inhibitor to the growth of the market. Integration of cloud computing and Radio Frequency Identification (RFID) technologies with supply chain management systems offer healthy opportunities for the growth of Transportation Management Systems Market over the forecast period. Integration of cloud computing technologies has ensured limited capital expense, low total cost of ownership, and greater real-time visibility across the supply chain operations.
TMS market was dominated by on-premise solutions accounting for majority of the market share in 2013. Over the forecast period between 2014 and 2022, on-premise solutions are expected to exhibit moderate growth rate and are expected to be outpaced by on-demand solutions. Growing preference for SaaS-based solutions owing to the benefits such as greater visibility and high level of collaboration among supply chain participants is expected to drive the demand for on-demand software solutions. In terms of end-use applications, the TMS market was dominated by transportation and logistics vertical, accounting for over half of the market revenue in 2013. Evolving TMS capabilities and increasing demand for supply chain optimization is expected to drive the adoption of TMS solutions in transportation and logistics verticals.
In 2013, North America was the largest regional market for transportation management systems, accounting for majority of the market revenue. The dominance can be attributed to the growing demand for SaaS-based TMS solutions in the region. Along with the proliferation of cloud-computing technologies, increasing use of RFID technology in the supply chain system has also fueled the market momentum in the region. Major industry participants include Descartes System Group, JDA Software Group, Manhattan Associates, Oracle Corporation, SAP SE, 3GTMS Inc, CargoSmart Ltd., LeanLogistics Inc., Precision Software Inc., and One Network Enterprises among others. These transportation management system vendors are focusing on expanding the capabilities of TMS solutions beyond traditional features to enable end-users to coordinate all their processes in the supply chain.
The research study titled “Transportation Management Systems Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2022” provides strategic analysis of the global transportation management systems market along with the market growth (size in US$ Mn) forecast for the period from 2014 to 2022. The report includes competitive analysis of various market segments based on software deployment, end-use applications, and in-depth cross-sectional scrutiny across different geography segments of the transportation management systems market. In order to aid in strategic decision-making, the report also includes competitive profiling of the leading transportation management system vendors in the industry, their market positioning, recent developments, and the winning strategies adopted by them. The value chain analysis included in the report provides information on hardware and software suppliers, TMS vendors, and Value Added Resellers (VAR). It also highlights the role played by each in adding value to end products and services. The market attractiveness and other in-depth analysis covered in the report provide insights into industry competition, market dynamics, and the most profitable segments in the transportation management systems market. Furthermore, the report analyzes the current and future market potential for the transportation management systems across the globe.
On the basis of end-use applications, the transportation management systems market is segmented into: food and beverage, retail, electrical and electronics, industrial, and transportation and logistics among others. The market revenue and forecast for different end-use verticals have been included in the report for the period from 2012 to 2022 in terms of US$ million, along with the CAGR for the forecast period from 2014 to 2022. Furthermore, the report also segments the transportation management systems market on the basis of software deployment methods in to on-premise and on-demand solutions. The market revenue and forecast for different software deployment methods have been included in the report for the period from 2012 to 2022 in terms of US$ million, along with the CAGR for the forecast period from 2014 to 2022. The regional analysis of the transportation management systems market gives in-depth insights into the current trends prevailing in different regions including North America, Europe, Asia Pacific, and Rest of the World (RoW). Each of these segments provides market size and forecast for the period from 2012 to 2022, highlighting the key factors responsible for influencing and challenging the market growth.
The report also provides the breakdown and review of the various factors affecting the growth of the transportation management systems market, appropriately described as market drivers, restraints, and opportunities. These factors emphasize upon the existing trends and their impact on the market growth. In addition, the report provides a separate section focusing on the past trends and future outlook of the transportation management systems market. Overall, the report includes a holistic analysis of the global transportation management systems market and provides growth estimates for the period from 2014 to 2022, keeping in mind the various factors affecting the market.
Transportation Management Systems Market, By End-use Application:
- Transportation and Logistics
- Food and Beverage
- Electrical and Electronics
- Others (Pharmaceutical, etc.)
Transportation Management Systems Market, By Software Deployment:
Transportation Management Systems Market, By Geography:
- North America
- Asia Pacific
- RoW (Latin America, Middle East, and Africa)
The in-depth research and high level analysis will allow software providers and transportation management system vendors across the globe to make informed decisions about the transportation management systems market, formulate growth strategies, and gain competitive advantage in the market.