Route Optimization Software Market Size & Share, by Component (Software, Services); Deployment Mode (Cloud, On-premises); End-user (On-Demand Food Delivery, Ride Hailing & Taxi Services, Field Services, Retail & FMCG); Organization Size (SMEs, Large Enterprise) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 5185
  • Published Date: Aug 23, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Route Optimization Software Market size is expected to cross USD 180 billion by the end of 2035, expanding around 15% CAGR during the forecast period i.e., 2023 – 2035. In the year 2022, the industry size of route optimization software was USD 6 billion. The growth of this market can be attributed to the escalating demand for advanced transportation management systems. As the work is moving towards urbanization and industrialization more and more people are owning vehicles which leading more congestion, traffic, and accidents on roads. Route optimization software to these issues by offering the shortest and fastest route to drivers as a result optimizing delivery routes, enhancing overall transportation efficiency, and lowering travel time. As per research, during the peak commute times on average Americans spend 41 hours annually battling with traffic.

Additionally, rapid advancement in technology is another substantial reason behind the expansion of the route optimization market in the projection period. Real-time insights and analytics are now possible because of the emergence of new technologies like the Internet of Things (IoT), big data analytics, and cloud computing. Through the use of these technologies, route optimization software can forecast traffic trends, closures of roads, and weather by learning from past data. This makes routing decisions more precise and effective.

Route Optimization Software Market
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Route Optimization Software Sector: Growth Drivers

Growth Drivers

  • Increasing Integration by Logistics Companies - In 2017, traffic in the United States accounted for around USD 305 million which comes to around 1445 per driver. Traffic congestion highly poses an impact on the logistics industry. These transportation issues affect the business model and expand the operational cost. Therefore, the growth of the route optimization software market is highly driven by its high usage by the logistics industry.
  • High Popularity of Online Shopping – As a result of digitalization, the e-commerce industry is moving on top, and more people have indulged in online shopping such as online retail these days. The high popularity of online shopping has pushed courier services and e-commerce companies to incorporate route optimization software technology in order to optimize delivery effectively and provide customer satisfaction. Additionally, trends such as 2-day delivery, 10 minutes delivery have boosted the demand for market across the globe. Approx 2.14 billion consumers are expected to have made online purchases in 2021. The prediction for worldwide e-commerce sales at the time was USD 4.891 trillion. Additionally, forecasts indicate that by 2024, global e-commerce revenues would reach USD 6.4 trillion.
  • Escalating Penetration of Internet Worldwide - The increased usage of route optimization software, cloud-based deployment, on-premises deployment, and other technologies has been significantly impacted by the expansion in internet penetration worldwide. Due to the quick internet, many businesses may utilize route optimization software to effectively determine their routes. The fast internet has made it feasible for products and services to be delivered in real-time. Data show that there are 4.95 billion internet users globally, with China having the most users at a little over a billion in 2021.


  • Numerous Route Complexities – Few route optimization software are found that do not pay in general and are used by small and medium enterprises. This software enables only one route facility from one place to another and it doesn’t show multiple routes.
  • Potential Security Problems
  • Lack of IT Infrastructure in Emerging Nations

Route Optimization Software Market: Key Insights

Base Year


Forecast Year

2023 – 2035



Base Year Market Size (2022)

~USD 6 billion

Forecast Year Market Size (2035)

~USD 180 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Route Optimization Software Segmentation

Deployment Mode (Cloud, On-premises)

The on-premises segment in the route optimization software market is set to experience the largest revenue share of 53% by the end of 2035. Some companies prefer using this as it offers total control over the data and system. This is crucial for companies that manage sensitive data or work in regulated sectors that need stringent security and privacy regulations. Businesses may more easily combine the application with other company applications and tailor it to their requirements with on-premises implementation.

Organization Size (SMEs, Large Enterprise)

The large enterprise segment is poised to account for the largest market share of 51% during the time period between 2023 – 2035. Due availability of more resources and planning methods in comparison with small and medium enterprises, the large enterprise deploys more route optimization software as a result boosting the growth of this segment in the projection period. End User industries such as logistics have raised their transportation potential and productivity with the help of route optimization software and planning.

Our in-depth analysis of the global market includes the following segments:



  • Software
  • Services


  Deployment Mode

  • Cloud
  • On-premises



  End User

  • On-Demand Food Delivery
  • Ride Hailing & Taxi Services
  • Field Services
  • Retail & FMCG


  Organization Size

  • SMEs
  • Large Enterprise

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Route Optimization Software Landscape: Regional Synopsis

North America Market Forecasts

The route optimization software market in the North American region is projected to witness the largest market growth of 35% by the end of 2035. The growth of this market can be attributed to the presence of significant market players in this region such as Caliper, Google, ALK Technologies, and others. Furthermore, factors such as the higher prevalence of software vendors providing route optimization software solutions and the growing number of partnerships between software providers and delivery services executives are anticipated to elevate the growth of the market in the region.

APAC Market Statistics

In the Asia Pacific region, the route optimization software market is set to account for a notable market share during the assessment period on the back of increasing internet penetration, a rise in the e-commerce sector, and an expansion of logistics service providers in the region. The majority of end-user groups that utilize route optimization software to improve company performance and satisfy consumer demand are being driven by the expansion in e-commerce products, and online shopping in nations such as India, China, Indonesia, Malaysia, and other APAC area countries. More than 500-600 million Indians are expected to be the world's 2nd largest consumer base for internet shopping by 2030.

Research Nester
Route Optimization Software Market Size
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Companies Dominating the Route Optimization Software Landscape

    • Google LLC
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Trimble Inc.
    • Caliper Corporation
    • Descartes Systems Group Inc
    • ESRI Global Inc.
    • Onfleet Software Company
    • Best Mile Sarl Software Company
    • Arundo Analytics, Inc
    • PTV Group
    • ALK Technologies


In The News

  • Google LLC announced the release of two new products, Google Cloud Fleet Routing API and Last Mile Fleet Solution on the Google Maps platform to help fleet operators improve delivery and optimize fleet performance optimization.
  • PTV Group launched a cloud-based route optimization product for the consumer packaged goods industry to help manufacturers, retailers, wholesalers, and carriers deliver goods packaging consumers by region and managing the complexities of urban delivery, enabling organizations to improve reliability and customer satisfaction with sustainably automated processes, and thus faster and more efficient. 

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 5185
  • Published Date: Aug 23, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing focus on advanced transportation management and the high penetration of the internet globally are some of the major factors anticipated to drive the growth of the route optimization software market.

The market is anticipated to attain a CAGR of ~15% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Trimble Inc., Caliper Corporation, Descartes Systems Group Inc, ESRI Global Inc., Onfleet Software Company, Best Mile Sarl Software Company, Arundo Analytics, Inc, PTV Group, and others.

The on-premises segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in North America is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Route Optimization Software Market Report Scope

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