Transportation Management System Market worth $33.3 billion

Transportation Management System Market worth $33.3 billion by Dr Kenny Odugbemi

According to a research report “Transportation Management System Market by Offering (Solutions, Services), Transportation Mode (Roadways, Railways, Airways, Maritime), End User, Solutions (Consulting Transportation management system market is projected to grow from USD 13.5 billion in 2023 to USD 33.3 billion by 2028, at a CAGR of 19.7% during the forecast period.

The demand for transportation management system solutions is anticipated to rise due to the growing need for management systems across the verticals for cost reduction and improving operational efficiency.

By offering, the solutions segment holds the largest market size during the forecast period.

Based on solutions, the TMS market is segmented into planning and execution; order management; audit, payment, and claims; analytics and reporting; and routing and tracking. These solutions assist end users in addressing transportation needs for their businesses at reduced costs while improving operational performance.

The rise of digitization and the use of cloud computing in recent years have increased the demand for TMS solutions across the globe. The emergence of domestic and international eCommerce has further boosted the growth of the solutions segment.

The adoption of TMS solutions and services in the marine sector is driven by the fact that more than 80% of global trade is conducted by sea, making it the most significant mode of international freight transportation. International maritime transport costs tend to be between two to three times as high as the customs duties of importing countries. Still, maritime transport is the cheapest way of transporting many goods. The price of container shipping depends on the route and the current economic situation. Hence, TMS helps route optimization to avoid unnecessary international charges and tariffs, saving shipping costs and time.

Nigeria has the highest growth rate in the Transportation Management System market

Nigeria’s development is expected to experience significant growth, primarily in automating transportation and supply chains. Most of the countries in the Africa continent are shifting their focus to improving safety, operational efficiency, and passenger comfort by reducing travel time congestion. Nigeria is witnessing high growth due to increasing global competition, the growing penetration of smart devices and connected machines, and the rising investments in smart cities. High economic growth in developing countries increased the number of connected solutions that consist of sensors and RFID tags, resulting in a sudden outburst of vast amounts of data. TMS is a prominent feature in the region’s growing transportation and logistics sector. Hence,

Africa is the current hotspot of the TMS market and attracts several companies.