Transportation Management Systems Market

Transportation Management System Market Overview

Transportation Management System Market Size was prized at USD 4.8 Billion in 2023. The transportation management system market industry is projected to expand from USD 5.0 Billion in 2024 to USD 9.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.20% during the forecast period (2024 - 2032).

The expansion of the retail and e-commerce sectors, the constant technological innovation that frequently results in the introduction of novel solutions, and the improvement of bilateral trade ties between various countries are the key market drivers enhancing market growth. The expanding acceptance of cloud computing and Industry 4.0, and the popularity of connected and autonomous vehicles, are expected to benefit market growth throughout the projected period.

Figure 1: Transportation Management System Market Size, 2024-2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Transportation Management System Market Trends

Growing number of online shoppers is driving the market growth

Market CAGR for transportation management systems is driven by the rising number of e-commerce website users. The surge in online purchasing and the rise in internet users have been the primary drivers of the eCommerce sector's exponential expansion over the past ten years. Internet searches are part of about 67% of consumer purchase journeys. Additionally, the World Economic Forum predicts that by 2025, the penetration rates of eCommerce will reach 17%. To quickly process small individual orders and keep up with the rising eCommerce sales trend, distributors, manufacturers, retailers, third-party freight brokers, reverse logistics managers, and logistics service providers must all work faster and more effectively. Online shoppers anticipate accurate orders, same-day or urgent deliveries, and cost-free exchanges. eCommerce businesses are looking into ways to cut back on operating expenses and order delivery delays. Since eCommerce impacts 96% of all shippers, there is a need to combine the advantages of eCommerce and TMS integration into a single, efficient logistics plan to meet the demand for transportation management systems.

Figure 2: Retail e-commerce sales globally from 2014 to 2025 in billion U.S.D

Source: Primary Research, Secondary Research,  MRFR Database and Analyst Review

As a fast-developing technology, cloud computing is one that many businesses are eager to adopt to boost productivity. Cost-effectiveness, planning, ease of use and integration, agility, and scalability are just a few advantages that cloud computing naturally offers. So, the transport and logistics sector is adopting cloud-based solutions like TMS, SCM, and various innovative Logistics-as-a-Service (LaaS)-based business models for complex, networked settings. Orders, billing, and track-and-trace services can all be integrated into a single platform using a modular cloud-based transportation management system. Utilizing forward- and backward-chain supply chain ecosystems to track and analyze the whole supply chain activities is the major benefit of cloud-based transport and logistics solutions. It also helps companies develop a reliable, integrated transportation management system that gives clients up-to-the-minute information. Thus, driving the transportation management system market revenue.

Transportation Management System Market Segment Insights

Transportation Management System Component Insights

The Transportation Management System Market segmentation, based on components, includes solutions, hardware, & services. The solutions segment acquired a major market share, accounting for 49.1% of market revenue (2.2 Billion). Better customer service, increased warehouse productivity, tracking deliveries, inventory management, reduced shipping costs, and others are some advantages of transportation management system solutions. Due to increased demand, the services category is anticipated to experience the quickest revenue CAGR over the projection period. TMS services are provided by companies that provide logistical services, such as Third-party Logistics (3PL) and Fourth-party Logistics (4PL) providers (LSPs).

Figure 3: Transportation Management System Market, by Component, 2022 & 2032 (USD Billion)

Source: Primary Research, Secondary Research,  MRFR Database and Analyst Review

Transportation Management System Deployment Insights

The Transportation Management System Market segmentation, based on deployment, includes on-premise and on-cloud. In 2022, the on-premise category contributed the most. Because of the demands for data security, easy access to the server, and greater customization flexibility, several sizable manufacturing and distribution organizations continue to favor on-premise TMS. Over the projected period, the cloud segment is anticipated to grow at the fastest rate. Shippers, vendors, and logistics companies can benefit from special planning and optimization advantages provided by cloud-based TMS.

February 2022 Oracle announced that RHI Magnesita, the world's top producer of refractory products, has chosen Oracle Fusion Cloud Transportation Management, has decided to assist the company's growth and technological modernization using Oracle Fusion Cloud Transportation Management, a part of Oracle Fusion Cloud Supply Chain & Manufacturing. Following deployment, RHI Magnesita's shipping locations will use a unified transport management system encompassing all areas of its logistics procedures.

Transportation Management System Industry Insights

The Transportation Management System Market segmentation, based on industry, includes retail, travel and tourism, healthcare, and construction. In 2022, the retail category dominated the market. The expansion can be linked to the continued expansion of the retail sectors in nations like China and India. Additionally, travel and tourism witnessed the fastest growth rate. The main drivers of the travel and tourism sector are the expansion of disposable money and the improvement in accessibility to several remote but breathtaking locations.

Transportation Management System Regional Insights

By region, the report provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American transportation management system market area will dominate this market. One of the main factors influencing the industry in this area is the growth in local municipalities' expenditures for linked infrastructure for efficient transit. Additionally, the regional market is expanding due to the presence of top TMS suppliers, including Infor Inc., 3GTMS, Cerasis Inc., International Business Machines Corp., and MercuryGate International Inc.

Further, the leading countries studied in the market report are US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil.

Figure 4: TRANSPORTATION MANAGEMENT SYSTEM MARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research,  MRFR Database and Analyst Review

Europe transportation management system market accounts for the second-largest market share. It is linked to increased activity by important players in several regional nations. It is also predicted that the efforts being followed and the policies created by various companies in the area to foster the expansion of intelligent transportation would help the region's development. Further, the German transportation management system market held the largest market share, and the UK transportation management system market was the rapidly growing market in the region.

The Asia-Pacific Transportation Management System Market is expected to grow at the fastest CAGR from 2023 to 2032. Demand for transport management systems is increasing due to expanding regional government initiatives, which are anticipated to fuel the market's expansion in revenue. For instance, China's transport industry has set goals for 2022, including carrying out epidemic control and maintaining a stable and efficient logistics supply chain, according to the nation's Ministry of Transport, which will finish major duties in 12 categories in 2023. Moreover, China’s transportation management system market held the largest market share, and the Indian transportation management system market was the rapidly growing market in the region.

Transportation Management System Key Market Players & Competitive Insights

Leading market players are largely investing in research and development to expand their product lines, which will help the transportation management system market, grow even more. The launch of new products, larger-scale mergers and acquisitions, contractual agreements, and collaboration with other organizations are significant market developments in which market participants engage to increase their global presence. The transportation management system industry must provide affordable products to grow and thrive in a more competitive and challenging market environment.

One of the primary business strategies manufacturers use in the global transportation management system industry to increase market sector and benefit customers is local manufacturing to lower operational costs. In recent years, the transportation management system industry has stipulated some of the most important medicinal benefits. Major players in the transportation management system market, including MercuryGate (US), SAP SE (Germany), Alpega Group (Austria), Oracle Corporation (US), and others, are investing in research and development operations to improve market demand.

MercuryGate International is a transportation management system developer that aims to harness the speed of automation and the power of data. The company provides comprehensive logistics solutions that address all customer segments, including shippers, third-party logistics providers (3PLs), freight forwarders, freight brokers, and carriers, lowering shipping and inventory costs, improving order-to-delivery cycle times, and automating the movement of goods across the supply chain. In February 2022, MercuryGate International, Inc. improved its TMS solution by including smart transportation technologies like embedded analytics, artificial intelligence, and machine learning. This product is ready to help clients by delivering real-time insights about global and local supply chain needs.

Blue Yonder is an artificial intelligence-driven supply chain management service provider dedicated to enabling every person and organization to reach their full potential. Inventory management, order fulfillment services, and workforce management are among the company's services for retailers, manufacturers, and logistics providers, assisting companies in optimizing delivery to customers and seamlessly predicting, pivoting, and serving customer demand. In March 2022, Blue Yonder and Snowflake collaborated to improve access to diverse data for supply chain management. An end-to-end supply chain solution, the Blue Yonder Luminate Platform, powered by Snowflake, enables retailers, manufacturers, and third-party logistics providers (3PLs) to more accurately predict, prevent, and address disruptions across their businesses which help lower risks and deal with the industry's growing supply chain problems.

Key Companies in the transportation management system market include

• Oracle Corporation (US)
• JDA Software Group Inc. (US)
• Manhattan Associates Inc. (US)
• Descartes Systems Group Inc. (Canada)
• SAP SE (Germany)
• BluJay Solutions Ltd (US)
• CTSI-GLOBAL (US)
• EFKON GmbH (Austria)
• Alpega Group (Austria)
• HighJump (US)
• MercuryGate (US)

Transportation Management System Industry Developments

In April 2024, one of the top companies in the field of Specialized Transportation and Logistics Management solutions, MercuryGate International, Inc. announced that it appeared in the Challengers Quadrant for Ability to Execute and Completeness of Vision in the recent Gartner Magic Quadrant for Transportation Management Systems report. In 2024, MercuryGate's TMS acclaim was once again achieved, being the company's fourteenth such honor in a row.

In April 2024, MODE Global, one of the world's largest logistics companies and multi-brand 3PL platform, announced the partnership with Transporeon. The partnership aims to automate tendering operations for both spot and dedicated freight by leveraging Transporeon’s Autonomous Procurement.

In September 2023, during the Express Logistics and Supply Chain Conclave 2023, 3SC Solutions launched its latest offering, iTMS. 3SC Solutions began the benefit of iTMS (Intelligent Transport Management Solution) during the Express Logistics and Supply Chain Conclave 2023. It is an end-to-end platform for the planning, settlement, and execution of transportation that uses advanced analytics to create exceptional cost and logistic capabilities.

In March 2022, Snowflake, a data cloud organization, announced a partnership with digital supply chain and omnichannel commerce fulfillment provider Blue Yonder. The two organizations aimed at enhancing supply chain management with heterogeneous data sources across various sectors. Retailers, manufacturers, and third-party logistics providers (3PLs) can all benefit from the running of a complete end-to-end supply chain management solution through Snowflake-powered Blue Yonder’s Luminate Platform that empowers them to better anticipate, resist, and manage disruptions throughout the entire organization to mitigate risks and counter the dynamic challenges in the supply chain.

In February 2022, the world's largest manufacturer of refractory materials, RHI Magnesita, selected Oracle Fusion Cloud Transportation Management, which is part of Oracle Fusion Cloud Supply Chain & Manufacturing (SCM), to enable growth and modernization of technology. Post the deployment.

Transportation Management System Market Segmentation

Transportation Management System Component Outlook

• Solution
• Hardware
• Services

Transportation Management System Deployment Outlook

• On-Premise
• On-Cloud

Transportation Management System Industry Outlook

• Retail
• Travel and Tourism
• Healthcare
• Construction

Transportation Management System Regional Outlook

• North America

  • US

  • Canada

• Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• Rest of the World

  • Middle East

  • Africa

  • Latin America

Transportation Management System Market Segmentation

Transportation Management System Component Outlook (USD Billion, 2018-2032)

• Solution

• Hardware

• Services

Transportation Management System Deployment Outlook (USD Billion, 2018-2032)

• On-Premise

• On-Cloud

Transportation Management System Industry Outlook (USD Billion, 2018-2032)

• Retail

• Travel and Tourism

• Healthcare

• Construction

Transportation Management System Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

• North America Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• North America Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• North America Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

  • Construction

• US Outlook (USD Billion, 2018-2032)

• US Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• US Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• US Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • CANADA Outlook (USD Billion, 2018-2032)

• CANADA Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• CANADA Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• CANADA Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

• Europe Outlook (USD Billion, 2018-2032)

• Europe Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Europe Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Europe Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • Germany Outlook (USD Billion, 2018-2032)

• Germany Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Germany Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Germany Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • France Outlook (USD Billion, 2018-2032)

• France Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• France Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• France Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • UK Outlook (USD Billion, 2018-2032)

• UK Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• UK Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• UK Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • ITALY Outlook (USD Billion, 2018-2032)

• ITALY Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• ITALY Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• ITALY Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • SPAIN Outlook (USD Billion, 2018-2032)

• SPAIN Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• SPAIN Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• SPAIN Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • Rest Of Europe Outlook (USD Billion, 2018-2032)

• Rest Of Europe Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Rest Of Europe Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Rest Of Europe Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

• Asia-Pacific Outlook (USD Billion, 2018-2032)

• Asia-Pacific Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Asia-Pacific Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Asia-Pacific Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

  • Construction

• China Outlook (USD Billion, 2018-2032)

• China Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• China Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• China Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • Japan Outlook (USD Billion, 2018-2032)

• Japan Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Japan Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Japan Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • India Outlook (USD Billion, 2018-2032)

• India Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• India Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• India Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • Australia Outlook (USD Billion, 2018-2032)

• Australia Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Australia Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Australia Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

• Rest of Asia-Pacific Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Rest of Asia-Pacific Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Rest of Asia-Pacific Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

• Rest of the World Outlook (USD Billion, 2018-2032)

• Rest of the World Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Rest of the World Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Rest of the World Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • Middle East Outlook (USD Billion, 2018-2032)

• Middle East Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Middle East Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Middle East Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • Africa Outlook (USD Billion, 2018-2032)

• Africa Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Africa Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Africa Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

• • Construction

  • Latin America Outlook (USD Billion, 2018-2032)

• Latin America Transportation Management System by Component

• • Solution

  • Hardware

  • Services

• Latin America Transportation Management System by Deployment

• • On-Premise

  • On-Cloud

• Latin America Transportation Management System by Industry

• • Retail

  • Travel and Tourism

  • Healthcare

  • Construction