The transportation management system is becoming an important part of the supply chain management system. It can be bought as a module for an enterprise resource planning system (ERP) or a supply chain management system (SCM). It helps users manage and plan both domestic and international shipments, as well as find the fastest and least expensive way to ship goods. The Transportation Management Systems market value chain is made up of designers and developers, module developers, distribution channels, and end-users.
The job of designers and developers is to make the overall architecture of a transportation management system based on what the client wants. The Module developers do sustainable modules for transportation management systems based on the needs of end-users in different industries and industry verticals. Both direct and indirect sales channels can be used by companies that sell transportation management systems to market and sell their products.
Logistics has changed with technology. AI, blockchain, IoT, and big data changed how transportation systems are designed, planned, built, and run. Logistics and transportation require a lot of customer-provider data exchange. Customers and service providers can quickly share information and data, thanks to tech advances. New technologies make it easier to see and control shipments, increasing efficiency, and customer satisfaction. Logistics, supply chain, and transportation use AI. Transportation management needs more complex data processing as data volume rises. Internet of Things (IoT) is a network of devices that can talk, connect, and share data. IoT has transformed logistics and the supply chain. SaaS-based TMS is becoming more popular because it is flexible and less expensive. The global TMS market is largely cloud-based. As demand for customized solutions rises, vendors introduce more advanced on-demand software, which is driving the market forward.
AI is used in many fields, such as logistics, supply chain, and transportation. Since the amount of data in transportation management is growing, there needs to be a better way to process it. Internet of Things (IoT) is an idea for a network of devices with electronics, sensors, software, and connections that can talk to each other, connect, and share data. The logistics and supply chain industries have changed a lot because of the Internet of Things (IoT). Software-as-a-Service (SaaS)-based TMS is becoming more popular because it is both affordable and flexible. A big part of the TMS market around the world is cloud-based services. As the need for customized solutions grows, vendors are putting out more advanced software that can be used on-demand to stay in business. With both these factors driving the market forward, the transportation management systems market is growing at an impeccable rate.
The growth of e-commerce and the high return on investment that comes with using transportation management systems are likely to drive the growth of the market. The fact that trade between developed and emerging economies is getting better, which has led to more imports and exports, affects the demand for this segment. At the same time, the need for raw materials to go in and out has grown because there are more factories in places like Mexico and India. These raw materials need to come from different places, so transportation management systems need to be both creative and effective. Also, the growing demand for luxury cars in emerging economies is good for the logistics market. The reason is that most luxury cars are made in Europe and then shipped to other places. So, the automotive industry uses TMS to track these shipments and make sure they get there on time. Also, car parts come from all over the world, which changes the demand for TMS in the industry. So, the other segment is expected to grow at the second-highest CAGR of 17.0% over the period of the forecast, which opens up a lot of opportunities in the market.
The global transportation management systems market is primarily divided into three regions, namely – North America, Europe, and Asia-Pacific, out of which North America is the most dominant region with the major market share.
North America is the most dominant region with a market value of USD 41 billion in 2021 and is expected to grow to USD 153 billion in 2030 at a CAGR of 16%.
The transportation and logistics business is a very competitive one in the said region, and a highly integrated supply chain network connects buyers and sellers through many types of transportation, such as freight rail, air, and express delivery services, truck transport, and maritime transport.
Europe had a significant market share of USD 33 billion in 2021, which is anticipated to rise to USD 108 billion by 2030 at a CAGR of 14%.
The government of European countries has taken a number of steps to improve the transportation system. For example, Universal Traffic Management and Control (UTMC) is a project started by the UK government to make sure that the intelligent transportation system is built and used in the right way. Its goal is to get rid of traffic jams, make public transportation more reliable and fast, and cut down on pollution from cars. This is why the European region owes a significant share of the market.
The Asia –Pacific region is the second most dominant region after North America, which has a market value registered at USD 32 billion in 2021 and growing to USD 156 billion by 2030 at a CAGR of 19%.
The major players in the global transportation management systems market are – 3GTms LLC, BluJay Solutions, Cerasis, C.H.Robinson Worldwide Inc., Descartes Systems Group,