How are the major next-generation techniques/developments going to drive the growth of the Transportation Management Systems (TMS) market?
A TMS is a logistics platform that enables users to manage and optimize the daily operations of their transportation fleets. Basically, it is used to plan freight movements. It helps customers plan and executes transportation efficiently and effectively across the supply chain. Moreover, It offers a number of services such as strategic planning and optimization, freight consolidation, and freight audit and payment, which helps maximize efficiency and reduce transportation costs.
The functions involved with the TMS such as it handle and manage all the inbound and outbound supply chain management operations that involve planning, decision making, transport follow-up, transport execution and transportation management. Real-time tracking and vehicle optimization are the key drivers influencing organizations to carry out operations more efficiently. Furthermore, TMS provides a number of benefits such as transportation order planning and execution, supply chain visibility and better control of inventory management, and reduced invoice errors.
Increase in a number of smart connected devices; increasing use of vehicular communication systems; and multinational companies rolling out TMS operations are the key factors driving the growth of the market. TMS enhances the efficiency of an enterprise and improves the business value hence organizations are focusing on to employ the software in their organizations.
Increasing penetration of TMS in cloud-based solutions to enhance the existing market share
A number of companies are shifting from older, on-premise platforms to either multi-tenant or cloud-based solutions. Moreover, small to medium-sized shippers are also adopting TMS. Some of the cloud-based solutions are also available for free, quick and affordable, and subscription-based models. These factors contribute significantly to drive the growth of the market. For instance, AscendTMS (developed by InMotion Global) is a lesser-known worldwide largest vendor claims to have 15000 companies using their TMS with most of them using the free version of TMS.
North America dominated the global TMS market, followed by the Asia Pacific, and Europe
North America dominated the transport management system market and is expected to continue to dominate over the forecast period due to the integration of GPS and route planning system. Meanwhile, Europe is estimated to witness steady growth during the forecast period. This can be attributed to growing requirements for cost-effective business operations.
The Asia Pacific is expected to witness a significant growth in the coming years owing to rapidly developing economies coupled with an increasing focus on international trade. Stringent government regulations to drive their economies in the international market would propel the market growth over the forecast period. Also, emerging economies such as India and China are likely to offer several growth opportunities for the transportation management system market.