Transportation Management System Market to reach $38 Billion by 2030; Growth of e-commerce, increased complexity of supply chains, need for faster and more reliable deliveries, stringent transportation regulations and real time visibility are driving

Transportation Management System market size is expected to reach $38 billion by 2030 after growing at a CAGR of 17.6% during the forecast period 2024-2030. Finds IndustryARC in its recent report, titled “By Offering (Solution and Service), By Transportation Mode (Roadways, Railways, Airways and Maritime), By Deployment (On Premise and Cloud), By Organization Size (Small & Medium Enterprises, Large Enterprise), By End Use Industry (Healthcare & Pharmaceuticals, Manufacturing, Mining, Automotive, Energy & Utilities, Retail & E-commerce, Food & Beverage, Others), By Geography - Opportunity Analysis & Industry Forecast, 2024-2030”

The demand for Transportation Management Systems (TMS) is significantly driven by the growth of e-commerce as consumers expect faster and more reliable deliveries. Additionally, the increasing complexity of global supply chains requires advanced TMS platforms to handle inventory, optimize routes, and manage carrier relationships efficiently. Stricter transportation regulations especially around emissions and safety, are another key driver, with companies needing TMS tools to ensure compliance and avoid penalties. Real-time visibility is also a growing demand, as businesses seek transparency in supply chains, enabling proactive issue resolution and improved customer service.

In 2023, the Asia-Pacific (APAC) region dominated the market. The region's rapid economic growth, robust infrastructure development and ecommerce. China's e-commerce sector saw growth in the first half of 2024. Online retail sales during this period surged 9.8% year on year to about $996 billion, of which the retail sales of goods reached  approximately $848 billion marking an increase of 8.8%, according to data released by the Ministry of Commerce in July 2024.  According to multiple reports from IBM and SAP, businesses in APAC are increasingly adopting cloud-based Transportation Management Systems (TMS) to address supply chain complexities and meet the growing demand for faster deliveries. The region's growing reliance on e-commerce and digital solutions, as noted by companies like DHL and Oracle, further contributed to its dominance in 2023. Additionally, governments across the region have invested heavily in infrastructure, creating favorable conditions for logistics and transportation advancements.

Real-time visibility has become a critical driver for the adoption of Transportation Management Systems (TMS) due to the increasing need for transparency in global supply chains. Nortera, a leading manufacturer of frozen and canned vegetables in North America, was struggling to maintain a complex logistics network with decentralized data and intensive manual processes. Additionally, burdened by insufficient visibility into logistics operations and a lack of coordinated strategy, the company was lagging behind the rest of the industry. Eager to catch up to other leaders in the space, Nortera recognized the need to modernize its logistics activities to reach its growth potential, and partnered with the supply chain consulting firm C2.0 and e2open to implement a transportation management system (TMS). 

The need for faster and more reliable deliveries has become a significant driver for Transportation Management Systems (TMS) as companies seek to meet increasing consumer expectations. Last Mile report, the average amount of time from order date to delivery in April 2023 is about 4 days (3.8 days), a decrease of 31% from April 2022, when the average was 5.6 days, and a decrease of 46% since the first week of April 2021, when the average amount of time from order date to delivery was 5.8 days. According to Project 44, the top three customer complaints (in April 2023) were delayed deliveries (24.8%), packages delivered but missing items (22.4%), and damaged items (20.9%). Together, these three complaints account for 65%.

Key companies profiled in the Transportation Management System Market are Oracle Corporation, SAP SE, C.H. Robinson, Descartes Systems Group, Blue Yonder, Inlet-Logistics, Alpega Group, Blujay Solutions, MercuryGate International Inc., 3T Logistics. 

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