Transportation Management System Market Size

Transportation Management Systems (TMS) Market Analysis

The Transportation Management System Market size is estimated at USD 2.08 billion in 2024, and is expected to reach USD 3.19 billion by 2029, growing at a CAGR of 8.92% during the forecast period (2024-2029).

The growing trend toward utilizing TMS by retailers and logistics companies and increasing backhaul support services for reverse logistics are extensively driving the market's growth.

• One of the most recent trends gaining pace is the integration of advanced technology, including blockchain and artificial intelligence, to improve the capabilities of transportation management systems. Additionally, the adoption of sophisticated transportation management systems is fueled by the growing preference for cloud-based, anti-theft GPS and IoT-enabled systems to ensure transparency and security. The introduction of AI-enabled self-driving trucks and the overall ongoing rollout of 5G networks are expected to significantly affect the transportation sector and create new market opportunities.
• For instance, recently this year, BluWave-ai declared the introduction of version 2.0 of the BluWave-ai EV Fleet Orchestrator with the support of USD 1.7 million in co-funding from FedDev Ontario. This software-as-a-service (SaaS) product supports vehicle fleet operators as they can electrify their operations. These operators involve last-mile delivery, municipal mass transit, corporate vehicle fleets, airport ground support, and various electric vehicle (EV) fleet operations. Moreover, the EV Fleet Orchestrator also lowers the overall cost of operations and carbon footprint for fleet operations with mixed battery electric and fossil fuel vehicles operating from buildings, depots, or regional networks of depot/hubs due to its built-on BluWave-ai's established AI energy optimization platform and leveraging its technology IP portfolio.
• Further, nowadays, retailers are inclining toward omnichannel systems that incorporate brick-and-mortar, online, mobile, catalog, and other sales channels under a single umbrella. That increases freight transportation, and TMS helps increase visibility to all shipments under one user's control. This visibility allows for better business decisions when making transportation decisions.
• However, the shortage of experienced professionals and higher implementation costs with higher maintenance costs are a few factors expected to hinder the market's growth during the forecast period.
• The COVID-19 pandemic has had a severe impact on new sales and installations. The market's expansion was constrained by lockdowns and the limitations on the movement of people and goods implemented to stop the spread of the virus, resulting in changes in consumer behavior and interruptions in the supply chain. Nevertheless, the surge in the overall usage of innovative solutions based on advanced technologies and the increasing significance of various data-driven solutions in transportation and logistics are anticipated to contribute to the market's growth.