Transportation Management System (TMS) Market: Expanding Opportunities in a Revolutionary Segment

The transportation management systems market is anticipated to expand from USD 48.9 billion in 2020 to USD 134.67 billion in 2028, at a CAGR of 13.5% over the forecast period of 2021–2028.

A transportation management system (TMS) is a logistics platform that makes use of technology to assist businesses in the planning, execution, and optimization of the physical movement of goods, both coming into and going out of the country, as well as in assuring compliance and the right documentation. With regard to purchasing and freight consignment, some of the most important operational tasks and capabilities that Transportation Management Systems (TMS) assist businesses and organisations with include accurate freight audit, payouts, route planning and optimization, yard management, load building, order visibility, and carrier management.

Systems for managing transportation are essential in supply chains because they have an impact on each stage of planning, from procurement to logistics and lifecycle management. Broad and deep visibility provided by a robust system enables more effective transportation planning and execution, which boosts customer satisfaction. More sales are produced as a result, enabling businesses to grow.

Due to rapid industrialization, population growth, and worsening traffic congestion in different cities, TMS sales are rising globally. The need to replace and modernize outdated traditional transportation management systems is driving demand for advanced transportation management solutions. Some of the key factors propelling the market growth include the development of advanced driver assistance systems (ADAS), the expansion of the retail and e-commerce sectors, and the strengthening of bilateral trade ties between various countries. As logistics and transportation become more complex, the value of transportation management systems cannot be overstated. Big data, artificial intelligence, and other cutting-edge technologies, including the Internet of Things (IoT), make transportation operations more creative and effective. Sales growth in the TMS market is being driven by the rise in demand for SaaS-based TMS systems. Data exploitation and theft concerns are expanding as shippers, transit agents, transport companies, and infrastructure providers digitize their processes. Data from companies could be exposed online and seen by unauthorized people, which would hinder market expansion. The use of self-driving cars has grown recently in the logistics and transportation sectors. Autonomous vehicles have the potential to revolutionize logistics by enabling new levels of safety, efficiency, and quality, from trucks to last-mile robots. A lot of businesses want to hasten the adoption of fully autonomous vehicles. This opens up fresh opportunities for market growth.

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Alpega Group, Oracle, SAP, Blue Yonder, Manhattan Associates, C.H. Robinson, Blujay Solutions, MercuryGate International, Transplace, Descartes Systems Group, E2open, MP Objects, Logistically, One Network Enterprises, Elemica, Tailwind Transportation Software, IntelliTrans, Allotrac (Australia), Revenova, Fretron, Ratelinx, Tracx Systems, WiseTech Global, and Princ are the major competitors in the T Leading companies are increasingly focusing on strategies like product innovation, mergers and acquisitions, new developments, joint ventures, collaborations, and partnerships to secure a prominent market position in the global Transportation Management System market.

By 2020, the on-premise segment would have a 60% market share, dominating the industry.
The Transportation Management System (TMS) Market is divided into On-premise and Cloud segments based on deployment. By 2020, the on-premise segment would have a 60% market share, dominating the industry. Several sizable manufacturing and distribution companies favour on-premise TMS due to the need for data security, ease of server access, and better customization control. Due to the fact that the TMS is licensed and installed on the premises of an organisation, it has a higher level of security than a cloud computing architecture. Though more companies are switching to cloud-based transportation management systems. Since cloud deployment offers many of the same business advantages as an on-premises deployment, including improved economies of scale, a lower total cost of ownership, no upgrade fees, and a quicker return on investment, it is anticipated that cloud deployment will rule the market in the ensuing decade (ROI). Additionally, it is accessible remotely in real time from any location.

In 2020, the Roadway segment held the largest market share (39%), dominating the industry.
The Transportation Management System (TMS) Market is divided into Roadways, Railways, Airways, and Waterways based on the mode of transportation. In 2020, the Roadway segment held the largest market share (39%), dominating the industry. Roadways are thought to be more affordable and useful than other solutions because they allow loading and unloading at any location. Several governments are also working on projects to improve transportation infrastructure, particularly in developing nations. These initiatives are anticipated to increase demand for road-based logistics and widen the highway network. Throughout the forecast period, there is forecasted rapid growth in the category of the waterway. The significant investments made by various governments in the implementation of TMS for effective canal management may be responsible for the expansion. Additionally, waterways are very cost-effective because they use significantly less fuel and can accommodate heavier loads.