As per a new report published by a market research and competitive intelligence provider, the global transportation management system market is anticipated to reach a valuation of around US$ 6.9 Bn by 2021.
Under the likely scenario, the market is set register a CAGR of around 10.7% over the projection period of 2021 to 2031. North America remains the growth engine for transportation management system revenue owing to its expanding supply chain activities.
The notion that large enterprises form the backbone of most economies does not hold true in the present world. Apart from creating new employments, the role of small and medium enterprises (SMEs) in direct value-added exports and total value-added exports has also been expanding across several countries.
With their growing stature, SMEs have started to embrace technology to streamline their business processes in order to stand competitive amid their large-scale counterparts.
An ESOMAR-certified market research and consulting firm observes that transportation management systems have been one of the solutions that have has gained the attention of SMEs in the recent past.
Key Takeaways from Market Study
· North America and Europe together accounted for over 60% of global transportation management system revenue in 2020.
· The market in both, South Asia and Middle East and Africa, are expected to witness a CAGR of 11% during the forecast period.
· Transportation management services are expected to increase by 80 BPS during 2021 – 2031.
· On-premise-based transportation management systems account for a larger share; however, cloud deployment is being preferred over the former and is projected to witness higher growth.
· Manufacturing vertical is highly likely to remain the core revenue stream for transportation management systems, followed by transportation and logistics.
· Top five providers of transportation management systems accounted for 17% market share in 2020.
“Demand for subscription-based transportation management systems is surging as clients need a solution-cum-service bundle. It also makes easier determination of the total cost of ownership of the system during its lifecycle.” says a Senior Research Analyst.
Case studies of business success on implementation of transportation management systems can be pivotal for the transportation management system providers towards gaining tier-2 clientele. Tier-2 companies that include small and medium businesses intend to scale up their operations. However, they are conscious on investing in newer technologies.
Transportation management system providers can win their confidence in discussing success stories about the companies who have availed their services.