PUBLISHER: The Business Research Company | PRODUCT CODE: 1465887
PUBLISHER: The Business Research Company | PRODUCT CODE: 1465887
Route optimization software is a technological solution designed to streamline and enhance route planning and execution for vehicles, deliveries, and field service activities. This software leverages algorithms, real-time data, and geographic information systems (GIS) to generate optimal routes that maximize resource utilization while minimizing inefficiencies.
There are two main types of route optimization software, software and services. Route optimization software encompasses tools that facilitate the planning of efficient travel paths, commonly utilized in logistics and transportation to achieve cost and time savings. It can be deployed in various modes, including on-premise and cloud, catering to different enterprises such as large corporations and small to medium-sized businesses. This software finds applications across diverse industry verticals, including retail, fast-moving consumer goods (FMCG), on-demand food and grocery delivery, ride-hailing and taxi services, homecare and field services, as well as logistics and transportation.
The route optimization software research report is one of a series of new reports from The Business Research Company that provides route optimization software market statistics, including the route optimization software industry's global market size, regional shares, competitors with an route optimization software market share, detailed route optimization software market segments, market trends and opportunities, and any further data you may need to thrive in the route optimization software industry. This route optimization software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The route optimization software market size has grown rapidly in recent years. It will grow from $6.76 billion in 2023 to $7.75 billion in 2024 at a compound annual growth rate (CAGR) of 14.7%. The growth observed in the historical period can be credited to factors such as a heightened focus on customer experience, the adoption of cloud computing, integration with enterprise systems, the expansion of the transportation industry, and the emergence of optimization techniques.
The route optimization software market size is expected to see rapid growth in the next few years. It will grow to $13.27 billion in 2028 at a compound annual growth rate (CAGR) of 14.4%. The growth observed in the historical period can be credited to factors such as a heightened focus on customer experience, the adoption of cloud computing, integration with enterprise systems, the expansion of the transportation industry, and the emergence of optimization techniques.
The route optimization software market is poised for growth due to the increasing demand for online meal delivery services. Online meal delivery services involve platforms or applications allowing customers to order food from restaurants through websites or mobile apps, with the convenience, time-saving, and diverse culinary options driving their popularity. Route optimization software plays a crucial role in these services, streamlining delivery operations, reducing costs, and minimizing travel time and distance. This ensures efficient navigation and timely delivery of orders to customers. For example, a survey by DoorDash revealed that a significant percentage of consumers in the United States utilized delivery services, highlighting the growing trend in online meal ordering. The increased demand for these services is a key driver for the route optimization software market.
Major players in the route optimization software market are concentrating on innovative solutions, such as cloud-based real-time monitoring tools, to strengthen their market position. Cloud-based real-time monitoring solutions are multi-stop, multi-vehicle route optimization systems enabling businesses to plan and manage intricate delivery routes across multiple vehicles efficiently. Trimble Inc., a leading company in location-based software solutions, introduced the Appian Daily Planner, a cloud-based solution designed to simplify complex routing needs for multi-stop mixed and private fleets. This tool streamlines routing by employing a real-time planning approach and provides features such as real-time tracking, visual cues, and proactive alerts for dispatchers.
In December 2022, PTV Group, a Germany-based company specializing in software and consulting for traffic, transportation, and mobility, acquired Conundra for an undisclosed amount. This acquisition aims to enhance PTV's logistics offering by integrating Conundra's state-of-the-art software as a service (SAAS) product with PTV's route planning and optimization solutions. Conundra, based in Belgium, is known for its innovative logistics route optimization software, featuring fast algorithms and automation capabilities.
Major companies operating in the route optimization software market are Google LLC, Verizon Connect Solutions Inc, International Business Machines Corporation, Oracle Corporation, Dassault Systemes, Trimble MAPS Inc., FLSmidth & Co. AS, ESRI Global Inc, TomTom N.V., Omnitracs LLC, Descartes Systems Group Inc, WorkWave LLC, Microlise Group Limited, FarEye, Wise Systems Inc., Advanced Manufacturing Control Systems Limited, PTV Planung Transport Verkehr AG, Ortec BV, ScienceSoft USA Corporation, Mara Labs Inc., Caliper Corporation, GeoConcept SA, Paragon Software Systems PLC, Route4me LLC, Maxoptra, Portatour, Routific Inc., OptimoRoute Inc., Llamasoft Inc., OnTerra Systems LLC, RouteSolutions
North America was the largest region in the route optimization software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the route optimization software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the route optimization software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The route optimization software market consists of revenues earned by entities by providing services such as route planning, real-time tracking, support and maintenance, consulting, map integration and software deployment, dispatch and live tracking, vehicle monitoring, and route management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Route Optimization Software Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on route optimization software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for route optimization software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The route optimization software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.