The global transportation management system (TMS) Market comprises of a few companies in spite of the fact that this market shows promising growth opportunities for budding players. Some of the companies within the TMS Market are: Manhattan Association, SAP SE, Descartes Systems Group, Oracle Corporation, and JDA Software Group.
Players within the market are concentrating on upgrading their existing transportation management product portfolio, says Transparency Market Research (TMR) in its latest report. Companies within the market are playing a close attention to consumer preference and helping them with customized solutions, thereby gaining a competitive edge above others.
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According to TMR, the global transportation management system market will be worth US$30.04 bn by the end of 2025. This market is anticipated to exhibit a 13.6% CAGR During the period from 2017 to 2025. On the basis of geography, it is anticipated that North America will lead. The dominance of this region is attributed to the growing demand for cloud-based transportation management system. In terms of end use application, the transportation and logistics segment is leading. This segment accounted for 67.5% of the total market in 2016.
Growing Awareness Regarding Cost Effectiveness of Adopting TMS to Drive Growth
According to the lead author of this report, “the demand for advanced technologies is growing in every sector and therefore manufacturers within the transportation management system are also striving hard to incorporate advanced technologies in order to come up with innovative solutions.” As majority of transportation management system solutions which are present today had being deployed before the penetration of smartphones, it has become extremely important for updating the supply chain applications.
This maybe a difficult task but companies are realizing its long-term benefits and cost effectiveness. This in turn is expected to boost the growth of the global transportation management system market. The growing intermodal transportation is also behind the rising demand for TMS Solutions. The rising popularity of software-as-a-service based transportation management system solutions is expected to be a trend which will help the market to grow.
Shipping Industry Yet to Realize Full Potential of Adopting TMS
However, there are a few factors which are expected to challenge the growth of this market. One of the key factors affecting the market’s growth is the lack of awareness among end-users. The high cost of deployment is another key challenge which the global transportation management system market faces.
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A large section within the shipping industry remains unaware about the benefits of adopting transportation management system solutions and are yet to upgrade their TMS capabilities. Moreover, deploying TMS Solutions which make use of evolving technologies, creates a need of regular upgrading of older versions of software. All these factors are expected to restrict the growth of this market from reaching its fullest potential.