PUBLISHER: Grand View Research, Inc. | PRODUCT CODE: 1224604
PUBLISHER: Grand View Research, Inc. | PRODUCT CODE: 1224604
Contact us about how to customize the report with add-on data.
The global transportation management systems market size is expected to reach USD 31.18 billion by 2030, registering a CAGR of 14.8% over the forecast period, according to a new report by Grand View Research, Inc. The growth of the industry is primarily attributed to the strong emphasis on automating supply chain & logistics processes using the latest technologies and continuous development of the e-commerce and retail industries. Moreover, the rising need to enhance visibility in the supply chain process by including automated products and the growing significance of data-driven technologies in the logistics industry is poised to offer numerous opportunities for the stakeholders in this market. The logistics industry has evolved significantly, corresponding to the inclusion of advanced technological solutions.
The growing use of connected devices, data-driven software, and cloud-based platforms for several applications has raised the companies' emphasis on adopting advanced software like Transportation Management Systems (TMS). Moreover, increased visibility, tracking shipments in real time, and timely delivery services for satisfactory customer experience are enabling companies to opt for TMS solutions. These factors, therefore, contribute to the growth of the global market. For instance, in January 2023, Descartes Systems Group, Inc. acquired Supply Vision, a shipment management solutions developer for North American Logistics Services Providers (LSPs). Supply Vision enables LSPs to digitize their processes and control the shipment lifecycle. The business offers modular systems that assist LSPs in managing shipments from initial quote generation through final delivery.
Moreover, the Supply Vision platform can integrate with real-time visibility solutions, including Descartes MacroPointTM, to offer LSPs and their end-users timely information on the shipment status and location. The demand for Software-as-a-Service (SaaS)-based TMS is growing owing to the cost-effectiveness and flexibility associated with the SaaS delivery model. Cloud-based services account for a significant share of global revenue. This high share is mainly attributed to the increased adoption of cloud- and subscription-based models by small- & mid-sized companies in the industry. Furthermore, owing to the increasing demand for customized solutions, vendors are competing aggressively to offer advanced, on-demand software.
TMSs help accelerate the order-to-delivery cycle times, reduce inventory management costs, ensure compliance, reduce freight costs, and cut the time spent on maintaining customs documentation. Moreover, companies are increasingly introducing various TMS to strengthen their industry positions. For instance, in February 2022, MercuryGate International, Inc. announced the inclusion of key intelligence and delivery capabilities into its platform to support customers in addressing supply chain concerns head-on using a unique feature titled Smart Transportation. The inclusion was aimed at allowing the company's customers to cater to local, national, and international supply chain requirements by utilizing technologies, such as embedded analytics, AI, and machine learning, integrated into Smart Transportation to provide real-time data, insights, and visibility.