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Transportation Management System (TMS) Market Size to Reach USD 44.96 Billion in 2030 | Emergen Research
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A TMS sometimes referred to as a transportation management system or transportation management software, offers insight into daily transportation operations, documentation and information regarding trade compliance, and assurances regarding the prompt delivery of freight and goods. In addition to streamlining the shipping process, transportation management systems help companies manage and optimize all aspects of their transportation operations, whether they involve land, air, or sea transportation.
TMS' steady market revenue growth can be attributed to technological advancements in the transportation and logistics industry. One such advancement is the increasing adoption of electric vehicles. Electric vehicles, which are becoming more and more ubiquitous on city streets throughout the globe, have caught the attention of both customers and logistics companies for transportation. Industry leaders such as Amazon, which collaborated with automaker Rivian to create electric prime vans for last-mile delivery, General Motors, which unveiled its BrightDrop electric vehicle spinoff business in early 2021, and FedEx, which promised to replace 100% of its fleet with battery-powered vehicles by 2040, have all embraced electric vehicles widely.
Another factor driving market revenue growth is the exponential growth in the e-Commerce industry. Over the past 15 or so years, as the internet has grown in popularity and influence across many facets of daily life, parcel delivery has also seen an increase in its reach and impact. More individuals are making online purchases as opposed to going to physical stores to make purchases due to the popularity of e-commerce. Shippers are being forced to adjust their supply chains to new technology and new ways that customers are completing online purchases as a result of the market's tremendous move toward e-commerce. In the past, most businesses distanced themselves from the parcel delivery difficulty and handled it separately from other modes and types of freight.
Growing concerns about data security are a major factor that is expected to restrain market revenue growth. Digitalization has increased T&L companies' vulnerability to assaults by revealing a variety of internal weaknesses. Including shipping, rail, transportation, logistics companies, and package delivery services, every aspect of the sector is affected. It is expensive, a hindrance to business operations, and perhaps increases liability, especially when private customer information is breached. Operational Technology (OT) is becoming more widely used, which makes it a target for hackers since it opens up new wireless and communication channels that are directly connected to the digital ecologies of T&L companies. The T&L industry is also troubled by a lack of talent in cyber defense, out-of-date cyber laws, and insufficient cybersecurity awareness.
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The transportation management system Market is expected to register a CAGR of 19.1% over the forecast period and revenue is projected to increase from USD 9.26 Billion in 2021 to USD 44.96 Billion in 2030. Increased adoption of Cloud-based SaaS solutions is expected to drive revenue growth of the market.
Fuel alternatives is a current commercial trend. For the time being, at least, electric cars are not really an option for shippers of the ocean and air freight. Businesses will probably keep looking into fuel alternatives such as sustainable aviation fuel and Liquefied Natural Gas (LNG) for maritime freight until battery-powered ships and aircraft become a practical choice. For instance, in the fall of 2020, CMA CGM launched the Jacques Saadé. It was the largest LNG-powered container ship in the world with a capacity of 23,000 TEU and was to be the first of nine such vessels for the French shipping business. After Jacques Saadé's inaugural trip, which was a resounding success, CMA CGM decided to proceed with its plans to build a fleet of six LNG-powered ships for the United States market, each having a capacity of 15,000 TEUs.
Major companies included in the market report are Oracle, SAP, Manhattan Associates, C.H. Robinson Worldwide, Inc., e2open, LLC., Trimble Inc., WiseTech Global, The Descartes Systems Group Inc., MercuryGate, Blue Yonder Group, Inc.
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