Route Optimization Software Market Trends

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.

Challenges

• 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