Market Overview The Transportation Management System market was valued at USD 110. 98 million in 2019 and is expected to reach USD 317. 23 million by 2025, at a CAGR of 13% over the forecast period 2020 – 2025.
New York, Feb. 21, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Transportation Management System Market – Growth, Trends, and Forecast (2020 – 2025)” – https://www.reportlinker.com/p05865850/?utm_source=GNW
According to Cerasis, by using a transportation management system (TMS) solution, a shipper can reduce freight invoice payments by 90-95%.TMS plays a crucial role in handling transportation-related activities, such as moving goods from the supplier to the place of production and then to the end-user. There is a high demand for an efficient TMS to reduce the overall delivery time, owing to the increase in global trade activities.
– Over the last couple of years, an increasing number of ERP vendors have jumped into the transportation and logistics sector. Led by companies like Oracle, this trend opened the doors for more shippers to use TMS as part of their overall enterprise solutions rather than having to purchase separate software applications from different vendors.
– The need for scalability, visibility, and flexibility across the supply chain is a major driving factor for the TMS market. With the growth in the e-commerce industry across the world, the online retail market is developing rapidly, and customers are looking for highly personalized retail experiences, which helps to drive the market.
– Moreover, as the logistics and transportation sectors continue to grow, the need for faster, smarter, and more efficient shipping services becomes crucial, which is expected to make a significant contribution to the growth of the market.
– According to Logistics Management, most users experience about 5 to 10% freight cost reductions after implementing TMS, with the higher end of the scale increasing by at least 2 percentage points.
– New technologies such as AI and Blockchain are significantly contributing to TMS. Moreover, companies are making huge investments in their technological R&D, to improve payment processing, freight location monitoring, and order fulfillment.
– However, issues related to low-level of awareness among consumers and high deployment costs are hindering the growth of the market.
Scope of the Report
A transportation management system (TMS) is a subset of supply chain management (SCM) concerning transportation operations and may be part of an enterprise resource planning (ERP) system.It helps various industries and organizations with freight shipment and procurement with the help of tools such as route planning and optimization, yard management, freight audit, order visibility, payments load building, and carrier management. TMS also improves the efficiency of shipments, lower the costs incurred, and gaining real-time supply chain visibility with enhanced customer service.
Key Market Trends
Shifting towards Cloud Technologies in Supply Chain Management to Augment the TMS Market
– Vendor innovation along with the proliferation of e-commerce and omnichannel distribution are both pushing more shippers to consider TMS as part of their overall supply chain management strategy.
– Growing demand to improve governance and transparency, while expanding business capabilities among transportation industries is likely to drive the demand for cloud-based services in their operation.
– Major companies, such as Amazon and Walmart utilize cloud-based services in supply chain management to gain both financial and operational benefits. As cloud-based technologies are universally accessible, cloud-based software in logistics is estimated to increase rapidly, primarily because of its ability to connect teams and monitor the exact whereabouts of a shipment.
– A lot of companies are moving from older, on-premise platforms to either multi-tenant (when a single instance of the software runs on a server and serves multiple tenants) or Cloud-based solutions.
– Moreover, third party logistic providers offer technology service of TMS 87% over the year 2019. This traction is due to the increasing usage of TMS across the transportation and logistics industries.
Asia – Pacific is expected to be the Fastest Growing Market
– Asia-Pacific is projected to be the fastest-growing region for the transportation management system market, owing to the increase in international trade, especially in developing economies, such as China and India. The growth in international business is an essential element that has supported infrastructural developments and solution deployments for logistics services.
– In many Asia-Pacific countries, the transportation infrastructure is inadequate for useful goods and public transportation, thus driving the demand for the transportation management system market.
– Moreover, the rate of technological change has been rapid with the Chinese government introducing new policies to create a favorable environment for smart transportation development.
– By 2020, over 50% of new vehicles produced in China are expected to have Driver Assistance (DA), Conditional Automation (CA) systems, with over 10% connected to an Advanced Driver Assistance System (ADAS). These factors are further expected to drive the demand for TMS solutions to accelerate the deployment of smart transportation.
The transportation management system market is consolidated due to a few players are having a large market. Some of the major players are 3GTMS Inc., CargoSmart Ltd ., Manhattan Associates Inc., JDA Software Group, Inc., Oracle Corporation, SAP SE, One Network Enterprises Inc., Precision Software Inc., among others.
– September 2019 – Manhattan Associates Inc. has expanded and enhanced its Indian operations with the opening of a new facility in Brigade Tech Gardens. This investment increases Manhattan’s footprint in India and reflects the company’s strong commitment to the country.
– June 2019 – 3Gtms Inc., has partnered with Trimble for commercial routing solutions. Trimble MAPS (Maps and Applications for Professional Solutions) brings together the company’s former ALK Technologies and TMW Appian Final Mile businesses, creating an integrated platform that delivers ALK’s mileage, mapping, routing, and navigation technology along with Appian’s fleet routing, scheduling, and optimization solutions. As a complementary offering to 3G-TM transportation management software, Trimble MAPS’ commercial data and map-centric technology can be leveraged by 3Gtms customers along with the robust Tier 1 transportation management features of the uniquely designed 3G-TM system, including rating, planning, execution and more.
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