Transportation Management System Market size is expected to cross USD 32 Billion by 2035, witnessing around 12% CAGR from 2023 to 2035. In the year 2022, the industry size of transportation management system was USD 12 Billion. In the ever-evolving e-commerce sector, businesses need to manage transportation operations more efficiently and effectively. In 2023, e-commerce sales are expected to grow by 11%, with Walmart, eBay, and AliExpress being the most popular shopping sites. A TMS provides real-time visibility into the shipping process, facilitates customer communication, and automates route planning, label generation, and package tracking in the e-commerce industry.
The increasing focus on the digitalization of transportation activities such as Improved DOT compliance, streamlined inspection processes, and support for multiple vehicle types as well as the rising trend of automation in the transportation industry is expected to have a positive impact on the TMS market.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~12% |
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Base Year Market Size (2022) |
~ USD 12 Billion |
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Forecast Year Market Size (2035) |
~ USD 32 Billion |
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Regional Scope |
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Deployment (Cloud, On-Premise)
Growth of the cloud segment, with a transportation management system market share of about 53% by 2035 can be attributed to the increasing need for the scalability and flexibility of transportation management systems. A cloud computing solution provides scalability and the ability to access data from anywhere with an internet connection, as well as the ability to increase or decrease IT resources to meet changing demands. Additionally, cloud solutions provide real-time visibility into companies' shipments, allowing them to better manage their supply chain operations.
End-use (Retail & E-commerce, Manufacturing, Logistics, Government Organizations)
A significant share of about 32% is expected to be gained by the manufacturing segment by 2035 attributable to rising automation in the manufacturing sector and increasing adoption of advanced technologies such as robots and artificial intelligence (AI). Over 36% of manufacturing companies use AI, while 41% are exploring using AI in future projects. In addition, advances in sensor and data storage technology have made it possible to track shipments in real-time, thereby reducing logistics and transportation costs.
Our in-depth analysis of the market includes the following segments:
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Deployment |
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Transportation Mode |
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End Use |
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North America Market Forecast
With the growth of airline courier services and an increase in exports and imports in the region, North America is forecast to dominate the transportation management system sector, holding a market share of about 32% by 2035. A US multinational shipping and receiving and supply chain management company, United Parcel Service was founded in 1907 and is one of the world's largest. Approximately 5% of U.S. GDP is attributed to commercial aviation. U.S. airlines transport 57,000 tons of cargo every day, making the U.S. the world's largest freight market.
Asia Pacific Market Analysis
A share of approximately 28% is projected for the Asia Pacific transportation management system market by 2035. Growing demand for efficient and secure transportation management for various commodities, such as food and beverages, pharmaceuticals, chemicals, and others, coupled with the rising need for reducing operating costs and optimizing supply chain processes. In countries such as India and China, roadway transportation activities are on a large scale, requiring TMS to ease traffic congestion, improve safety, and increase efficiency. Over 60% of India’s freight is transported by road.
Author Credits: Harshita Srivastava, Saima Khursheed
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