The global transportation management systems (TMS) market is on track to grow by an estimated $3,704.52 million between 2022 and 2027, as indicated in the latest report from Technavio.
The market's forward momentum is set to maintain a steady 11.24% compound annual growth rate (CAGR) throughout the forecast period. Geographically, the global transportation management systems market is divided into North America, Europe, APAC, the Middle East and Africa, and South America.
North America is poised to contribute significantly to the global market's expansion, accounting for an estimated 37% of growth during the forecast period. The region distinguishes itself as a pioneer in the cross-industry adoption of cloud technology, making it an appealing market for transportation management systems. North America's advanced economies foster the generation and utilisation of critical data, and the regional market is expected to burgeon rapidly, primarily due to the widespread adoption of transportation management systems in the manufacturing and pharmaceutical sectors.
The global transportation management systems market exhibits a fragmented landscape, featuring numerous global and regional vendors. Notable vendors offering transportation management systems in the market include 3M Co., 3T Logistics Ltd., Alpega SA NV, C H Robinson Worldwide Inc., Continental Traffic Service Inc., Descartes Systems Group Inc., E2open Parent Holdings Inc., GlobalTranz Enterprises LLC, Koch Industries Inc., Manhattan Associates Inc., MercuryGate International Inc., Next Generation Logistics Inc., Omnitracs LLC, One Network Enterprises Inc., Oracle Corp., Panasonic Holdings Corp., QAD Inc., SAP SE, Trimble Inc., and Uber Technologies Inc., among others.
The research organisation has methodically segmented the market based on the solution (on-premise and cloud-based), mode of transportation (roadways, railways, and airways), and geography (North America, Europe, APAC, the Middle East and Africa, and South America). The on-premise segment is expected to make a significant contribution to the overall market growth during the forecast period. These solutions are recognised for their enhanced security compared to cloud-based alternatives and are predominantly favoured by large organisations. Such enterprises place a premium on system functionality over cost-effectiveness, particularly when dealing with critical data.
The substantial growth of smart-connected devices is a pivotal driver propelling the transportation management systems market. As the number of devices proliferates, managing, monitoring, and maintaining data within organisations becomes increasingly complex. Consequently, the demand for machine-to-machine (M2M) and machine-to-human (M2H) communications is set to soar, offering end-users streamlined management, monitoring, and maintenance of connected devices.
An emerging trend impacting the growth of the transport management systems market is the concept of meta-intelligence. This concept offers transportation and logistics providers the ability to comprehend the environmental and financial costs of each process, optimise facility utilisation, and predict capacity constraints by regulating entry and exit dates. Major vendors are planning to integrate meta-intelligence concepts into their TMS to enhance business efficiency and business intelligence.
Challenges confronting the market's growth stem from data privacy concerns. The surge in connectivity and data sharing has given rise to cybersecurity issues and data breaches, which have traditionally focused on a limited number of connected devices. However, the transport management systems revolution is poised to unite the physical and virtual worlds on an extensive scale. Moreover, the potential economic damage from industrial cyberattacks far exceeds that of personal data breaches. Consequently, cyberattacks pose a threat to data from sensors and devices in industrial environments, presenting substantial challenges to the TMS market's growth during the forecast period.
Courtesy: Technavio. NB: Photo is representational.