Transportation Management System Market – Forecast, 2024-2030.
The transportation management system (TMS) is a part of enterprise resource planning which is a subset of supply chain management through which enterprises are able to plan effectively for in- shipment of route planning documentation and others. Transportation management allows tracking freight that’s on the road and even receiving alerts to any transit exceptions or unforeseen delays from one location. The increasing complexities of logistics & transportation have resulted in connected warehouses to new mileage delivery services which ultimately increases the value and presence of TMS.?A major trend in the market is the use of electric vehicles for last mile delivery. The use of electric vehicles for last-mile delivery reduces carbon emissions and operational costs, aligning with sustainability goals. Additionally, they are quieter and more efficient, making them ideal for urban deliveries in congested areas. The growing reliance on digital solutions to streamline operations, such as AI-driven tracking systems and smart platforms enables TMS to enhance efficiency, transparency and real-time decision-making in managing the movement of goods. For example, in June 2024, Rygen Technologies launched Corsair, a Transportation Management System (TMS). Corsair is AI-enabled and built with cloud-native architecture to provide users with speed, ease of use and flexibility.
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Key Takeaways:
North America Leads the Market
North America is the dominant region in the Transportation Management System market. The growth of the U.S. Transportation Management System is majorly attributed to factors like the exceptional growth of e-commerce in the US which results in the high number of online purchases. In order to fulfil the growing demand, distributors, retailers and manufacturers are adopting robust TMS for managing customer expectations and streamlining the shipping process, while making it easier for businesses to manage and optimize their transportation operations. Furthermore, the trend of automation has penetrated into every industry vertical in the U.S. including the supply chain management market. In July 2024, Walmart announced that it was expanding four traditional perishable distribution centres by adding over 500,000 square feet of automation per site to increase capacity for fresh product. The company will expand facilities in Minnesota, North Carolin, Indiana and Tennessee. Therefore, logistics processes need to be planned more quickly and in greater detail. The Transportation Management Solution perfectly coordinates the warehouse and the road. Hence, Transportation management solution has been widely adopted in the U.S. among manufacturers, distributors and third-party logistics providers (3PLs) as a part of streamlining planning and executing the physical movement of goods.
SME is the Largest Segment
In the transportation management system market, the Small and Medium Enterprises (SMEs) category is expected to dominate and hold the largest market share. The transportation management software and services help SMEs improve overall business productivity by offering concise information with a faster response time. Implementing these applications in SMEs through cloud-based services can also help with tracking deliveries in real-time, increasing customer service and increasing supply chain management along with fleet management ultimately increasing the transportation management system market share. In July 2023, Flipkart’s supply chain arm, Ekart launched its business-to-business (B2B) India-wide delivery and first-mile pick-up services for businesses through a fleet of over 7,000 GPS-enabled trucks. The service will be offered through air and surface modes and will cater to MSMEs including manufacturers and retailers and brands across industries. Thus, as digitization reshapes organizations across various industries, the structure of small and medium-sized business models are bound to evolve significantly.
Solutions represent the Largest Segment
The solutions segment held the largest share in 2023. A transportation management solution acts as a logistics platform that uses technology to help businesses plan, execute and optimize the physical movement of goods, both incoming and outgoing, ensuring that the shipment is compliant and proper documentation is available. For instance, in November 2024, Kobo360, a truck-hailing startup, announced that it is developing a subscription-based fleet management software called HaulSight. The software enables businesses to track their fleet of vehicles, plan routes and access invoice discounting. TMS provides visibility into day-to-day transportation operations, trade compliance information and documentation and ensures the timely delivery of freight and goods. Transportation management systems also streamline the shipping process and make it easier for businesses to manage and optimize their transportation operations, thus driving the transportation management system market.
Growing Demand for E-Commerce to Boost the Market
Owing to the popularity of e-commerce, a rising number of consumers are purchasing goods online rather than visiting brick-and-mortar establishments. This popularity of e-commerce is forcing shippers to adjust their supply chains to new technologies such as cloud computing and new ways for consumers to purchase items online. The e-commerce sector is rapidly expanding as more consumers use online platforms. For instance, as per India Brand Equity Foundation, the Indian e-commerce sector is projected to reach $325 billion by 2030. This reflects a potential for growth that will boost the demand for transport management solutions. In addition, according to the International Trade Association (ITA) third party logistics providers will be handling close to 17 billion shipments over the next seven years, indicating the need for effective transportation management systems.
Concerns over Data Security to Hamper the growth
One of the biggest challenges faced by the transportation sector is safeguarding data. TMS systems often handle sensitive information including customer data, financial details and real-time location tracking. Cyberattacks, data breaches and unauthorized access pose serious risks to businesses. In recent years, cyberattacks and data breaches have become frequent. In September 2023, trucking and fleet management solutions provider ORBCOMM confirmed that a ransomware attack was behind the service outages preventing trucking companies from managing their fleets. As per BleepingComputer, this outage impacted some of USA’s largest freight transportation companies as they were unable to track their fleets and inventory. Therefore, such vulnerabilities can expose companies to financial loss, reputational damage and legal liabilities.
Key Market Players:?
Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Transportation Management System Market. The top 10 companies in this industry are listed below:
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7 小时前Cloud-based transportation systems offer cost-effective solutions for efficient shipping and improved customer service, driving the growth of the transport management market.