Transport management systems market ‘offers opportunities for emerging players’

Dominance in the global transportation management systems (TMS) market lies with a few companies, despite which the market exhibits considerable opportunities for emerging players, according to a new report by Transparency Market Research (TMR). Currently, companies such as SAP SE, Oracle Corporation, Descartes Systems Group, JDA Software Group, and Manhattan Association hold dominance in the global transportation management system market, says the study. The report also identifies companies such as BluJa
May 23, 2017 Read time: 3 mins

Dominance in the global transportation management systems (TMS) market lies with a few companies, despite which the market exhibits considerable opportunities for emerging players, according to a new report by 7801 Transparency Market Research (TMR). Currently, companies such as SAP SE, Oracle Corporation, Descartes Systems Group, JDA Software Group, and Manhattan Association hold dominance in the global transportation management system market, says the study. The report also identifies companies such as BluJay Solutions, One Network Enterprise, Precision Software and CargoSmart as key emerging players in the global transportation management system market.

"Companies targeting dominance are focusing on upgrading their existing transportation management product portfolio," said a TMR analyst. In addition, closely monitoring consumer preference to provide them with customised solution is a key strategy adopted by the market players. Considering conscious efforts made my market players to gain traction, the market is poised to surge at an exponential pace.

According to TMR, the global transportation management systems market is forecast to reach US$30.04 billion by the end of 2025, from its earlier valuation of US$9.6 billion in 2016. If these figures hold true, the market will exhibit a CAGR of 13.6 per cent between 2017 and 2025.

By end-use application, the transportation and logistics segment held dominance in the market with a share of 67.5 per cent in 2016. Regionally, North America emerged as the dominant segment with a share of 37.5 per cent in the overall revenue generated by the global transportation management system market. The rising demand for cloud-based transportation management system is forecast to help the market continue strongly through the forecast period.

Globally the demand for advanced technologies to replace their conventional counterparts is at its peak. Cashing in on the trend, the manufacturers of transportation management system are likely to offer innovative solutions. A majority of TMR solutions in operation at present were deployed prior to the proliferation of smartphones and tablets. Updating supply chain applications although a difficult task, has thus become imperative.

Furthermore, it will provide several cost benefits to transportation companies, which is a key factor aiding growth in the global transportation management system market.

In addition, the rise in intermodal transportation is expected to fuel the demand for TMR solutions. Also with the growing popularity of software-as-a-service (SaaS)-based TMR solutions, the market is expected to witness greater demand from logistics and transportation companies.

On the downside, the lack of awareness among end users and high deployment costs are the prime challenges that the market players are faced with at present. While there has been a gradual increase in awareness about upgrading TMS capabilities, a large section in the shipping industry is still unaware of its associated benefits. This could hinder the market's trajectory to an extent. Also deploying evolving technologies necessitate regular up gradation of older versions of software. This increases software cost, which is also expected to create challenges for the market.

Nevertheless, the advent of cloud computing and integration of RFID technologies in transport management are expected to bolster opportunities for the global transportation management system market in the near future.

Urban Traffic Control

For more information on companies in this article

Related Content

  • Calculating the cost of stellar solutions
    August 10, 2016
    The increasing availability and accuracy of global navigation satellite system (GNSS) is opening up low-cost options in many areas as David Crawford finds out. Boosting commercialisation of European global navigation satellite system (EGNSS) technologies for ITS initially depends heavily on demonstrating competitive and cost/benefit advantages obtainable from the deployment of EGNOS (the current European Geostationary Navigation Overlay Service), and ultimately the EU’s Galileo constellation (see box). So,
    Read More
  • Decline in global shipments of PNDs
    March 22, 2012
    According to a new research report from the analyst firm Berg Insight, global shipments of personal navigation devices (PNDs) declined to about 33 million units in 2011, while the number of subscribers using a turn-by-turn navigation app or service on their handset doubled in 2011 and reached 130 million worldwide. The subscriber base is forecasted to grow at a compound annual growth rate (CAGR) of 21.9 per cent to reach 340 million users worldwide in 2016.
    Read More
  • Gearing up for the global electric vehicle revolution
    May 3, 2019
    As transport, communications and energy networks become inextricably linked, policy makers are recognising the implications for our built environment – and the growing electric vehicle market will have a major impact on the world’s infrastructure, says Rolton Group’s Chris Evans
    Read More
  • Harmonisation of Europe's ITS deployment still unbalanced
    January 31, 2012
    Dean Herenda, Chairman of the EasyWay project, talks about the progress made and the progress still to be made in harmonising ITS deployment across the European Union. "The deployment and use of ITS in road transport across Europe was and still is unbalanced" Although Europe can be proud of being home to some of the world's most advanced ITS solutions, the relative disparities between Member States of the European Union (EU) in terms of the extent and technological sophistication of deployments actually sta
    Read More

Highlighted Content