Transportation management system or TMS is a set of supply chain management that concerns management activities related to transportation. It combines enterprise resource planning systems and warehouse or distribution modules. Significant rise in international trade and trade blocks are contributing to the increasing demand for transportation, which is mainly related to services and solutions. Time constrains, growing demand, and secured transportation have become the major concern for the transportation sector. In order to meet these demands, the transportation management market is coming up with advanced technologies and management tools. These factors are creating strong impression on the industry, in terms of revenue channels and current market trends.
Segmentation in Global TMS Market
Global transportation management market is segmented into different types of services, solutions, industrial verticals, and demand across different geographic regions. The service segment is sub-segmented into managed services, professional services, freight services, and such other services. Solutions made available by the industry include fleet management systems, transportation management systems, and connectivity solutions. Industrial verticals with maximum deployment of these solutions include railways, airways, roadways, and waterways. On the basis of geographic regions, the market is divided into Latin America, North America, Middle East and Africa, and Asia Pacific.
Market Drivers and Forecasting
Transportation management plays the major role of connection all the systems and sub-systems that are required for smooth transportation operations. The range of activities that the systems and solutions that the TMS industry takes care of is driving the demand in the global market. Growing demand for organization of transport services, increasing adoption of new transportation routes, and technological advancements in the market are creating growth prospects in this industry. Along with developed regions like North America and Europe, emerging markets of Latin America and Asia Pacific are also contributing to the rising demand in the industry.
According to the market research reports, transportation management market is expected to grow at a projected CAGR of 12.3% from 2014 to 2019. During the next five years, the market is expected to maintain this healthy growth rate and reach $14.85 billion by 2019. In 2014, the market is estimated to be worth $8.31 billion. Management services for roadways, airways, and waterways become crucial when there is rising demand for efficient movement of the useful goods. Industrial development in emerging markets like Asia Pacific, Latin America, and Middle East and Africa are creating strong growth prospects for the industry in these regions. This is a vital sign for the potential investors.