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TMS market to reach $30 billion by 2025, report says

Growth driven by the rise of mobile computing platforms, intermodal transportation, and cloud-based solutions.

DC Velocity Staff
By DC Velocity StaffMay 21, 2017
DC Velocity Staff
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The global market for transportation management system (TMS) software is on track to reach $30.04 billion by the end of 2025, driven by the rise of mobile computing platforms, intermodal transportation, and cloud-based solutions, a report released Monday shows.

Worldwide revenue in the TMS sector is poised to surge from $9.6 billion in 2016 to a forecast $30.04 billion by the end of 2025, marking a compound annual growth rate (CAGR) of 13.6 percent, according to the research firm Transparency Market Research (TMR).

Three trends currently driving that growth are:

  • frequent upgrades to TMS portfolios,
  • a rising number of customized solutions, and
  • strong efforts made by smaller vendors to increase their market share, the report found.

However, future growth will be generated by three different factors, TMR found. First, many existing TMS users are looking to upgrade their systems to accommodate mobile computing platforms, since a majority of TMS solutions now running were deployed prior to the proliferation of smartphones and tablets. Other factors driving TMS market expansion are the rise in intermodal transportation and the growing popularity of software-as-a-service (SaaS)-based solutions, the report found.

Despite those beneficial market forces, TMS vendors face several hurdles to continued expansion, including high deployment costs and a lack of awareness by end users about the benefits of upgrading their software capabilities, TMR said.

The global TMS market is dominated by large providers such as SAP SE, Oracle Corp., Descartes Systems Group Inc., JDA Software Group Inc., and Manhattan Associates Inc., TMR said. But the report also identified fast growth of emerging firms, including BluJay Solutions, 3GTMS Inc., One Network Enterprise, Precision Software Inc., and CargoSmart Ltd.

The top end-use application for TMS software was for the dedicated transportation and logistics segment, which generated 67.5 percent of revenue in 2016 and finished above vertical applications in electrical and electronics, industrial, food and beverage, and retail sectors, according to the report, titled "Transportation Management System Market (Application—Electrical and Electronics, Industrial, Food and Beverage, Retail, and Transportation and Logistics; Software Deployment—On-Premise and On-Demand)—Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017–2025."

ArticleTechnology
3gtmsjda software groupsapprecision softwareone network enterprisesoracleblujay solutionsmanhattan associatestransparency market researchdescartes systems group inc.cargosmart
ArticleTechnology
3gtmsjda software groupsapprecision softwareone network enterprisesoracleblujay solutionsmanhattan associatestransparency market researchdescartes systems group inc.cargosmart

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