Report: TMS market will grow to $30 billion by 2025

Original Post Source

Dive Brief:

  • A new Transparency Market Research (TMR) report found Transportation Management System (TMS) revenue may expand at a compound annual growth rate of 13.6% to $30.04 billion by 2025, DC Velocity reports.
  • Driving this expansion are frequent upgrades to existing TMS platforms; an increase in customized solutions, and efforts by smaller vendors to advance present market share. 
  • Future growth, however, is likely predicated by upgrades to systems employing mobile computing platforms, as most current TMS solutions were installed in advance of the eruption in popularity of smartphones and tablets.

Dive Insight:

The thread connecting the trends driving current TMS expansion is a need for individualization, or a specific model to aid the business in question. Because TMS software typically aims to reduce costs through a vareity of services — like better route planning and load optimization, improved transparency, or greater flexibility for delivery changes — a single method is unlikely to dominate the market.

For example, a small supplier expecting growth may seek to manage that by optimizing routes and loads, but may not require Big Data capabilities or desire greater transparency. A larger supplier, too, may benefit from such technology but would likely apt to adopt more encompassing systems to meet its greater needs. 

Either case highlights the salesman’s challenge in the industry: buyers often desire a specific solution for their problems, and vendors must adapt their systems to such needs, at least rhetorically. That’s why many TMS providers also offer a consulting or implementation service, to better match needs with software solutions. Or, why application program interfaces integrating various systems are becoming increasingly common.

That’s also why terms like visibility, Big Data and sustainability can catch on in the diverse industry — vendors must idealize solutions to make them applicable, yet customizable, to all. These supply chain trends will ensure continued growth and adoption in the technology space.

Recommended Reading:

Follow on Twitter

Filed Under: Logistics Technology
Top image credit: Pixabay

Leave a Reply

Your email address will not be published. Required fields are marked *