LONDON--(EON: Enhanced Online News)--According to the latest market study released by Technavio, the global transport management system (TMS) market is expected to grow at a CAGR of close to 7% during the forecast period.
“The global maintenance services market was valued at USD 233 million in 2016 and is forecast to reach USD 240 million by 2021. Various companies are looking to reduce the burden of TMS maintenance services by outsourcing these services to third party companies who specialize in providing these solutions”
This research report titled ‘Global Transport Management System Market 2017-2021’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
One of the key drivers of this market is the high return on investment (ROI) and improved process efficiency obtained by implementing TMS solutions. Companies that have enlisted TMS solutions have constantly reported a higher ROI with lower freight costs, faster order-to-delivery cycle times, reduced compliance fines, lower inventory management costs, the ability to select better carrier rates, and less time spent on maintaining customs paperwork.
Other important drivers for this market are rebalancing of trade toward east, increase in international trade, and requirements for multimodal TMS. With these drivers pushing for market growth, the global TMS market is forecast to be valued at USD 1,982 million by 2021, showcasing a CAGR of almost 7%.
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Based on solutions and services, the report categorizes the global TMS market into the following segments:
- Cloud solutions
- Maintenance solutions
- Professional services
- On-premises solutions
The cloud services segment of TMS occupies the majority share of the global TMS market with a share of over 60% (2016 figures). The cost-effectiveness and flexibility provided by cloud TMS services are the main drivers pushing the growth of this segment. With the market environment for software as a service (SaaS)-based TMS solutions continuing to bloom, the adoption of this service is becoming more prevalent. The increasing demand has set off an intense competition among vendors, leading to the introduction of advanced and reliable on-demand software.
“Cloud TMS solutions also include managed transportation services. This arrangement would give firms the centralized view of the transportation function and provide a base from which continuous enhancements can be initiated. Some of the important benefits provided by the use of TMS managed services are improvement in service levels such as on-time delivery by more than 30%, an increase in transportation asset utilization by around 10%, and an increase in transportation capacity by 30%,” says Amit Sharma, one of the lead analysts at Technavio for enterprise application research.
“The global maintenance services market was valued at USD 233 million in 2016 and is forecast to reach USD 240 million by 2021. Various companies are looking to reduce the burden of TMS maintenance services by outsourcing these services to third party companies who specialize in providing these solutions,” says Amit.
Since there are many companies in this market space, the services are priced competitively. These private, third-party companies have trained crew who thoroughly understand the business, thus saving training and procurement costs to the companies availing the maintenance solutions.
Many big and small companies do not have in-house experts to troubleshoot their front-line technical support. Professional services firms employ trained experts who provide technical support to such companies and keep their operations running smoothly without any glitches. They also provide services to help the companies recover from unanticipated front-line problems. The analysts at Technavio forecast this market segment to be valued at USD 205 million by the end of the market forecast period.
On-premises TMS solutions are a consolidated form of standalone applications wrapped in a package that supports almost the entire transportation management business. This market segment is forecast to be valued at USD 152 million by 2021. This TMS segment is struggling to keep up as they still employ the traditional legacy architectural design, which makes the solution expensive and creates transport management implications.
Seeing the decreasing demand for the on-premise solutions, new vendors created cloud-based TMS solutions based on the SaaS model to cut down implementation costs, reduce upfront fees, and lower the overall support effort required by customers. Therefore, the global TMS market by on-premises software solutions is forecast to grow at a very slow rate during the forecast period.
The top vendors highlighted by Technavio’s research analysts in this report are:
- JDA Software
- Manhattan Associates
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
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