Transportation Management Systems Market Size & Trends, 2027

Global Transportation Management Systems Market By Deployment (On-premise and Cloud), By End Use (Manufacturing, Logistics, Retail & E-commerce, Government Sector and Others), By Mode of Transportation (Roadways, Railways, Airways and Waterways), By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027

Published Date: January-2022 | Number of Pages: 248 | Format: PDF | Report ID: KBV-16330

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Get in-depth analysis of the COVID-19 impact on the Transportation Management Systems Market

Market Report Description

The Global Transportation Management System Market size is expected to reach $21.08 billion by 2027, rising at a market growth of 17.0% CAGR during the forecast period.

A transportation management system (TMS) refers to a platform that is developed to ease up the transportation process, a sub-segment of the supply chain. In addition, it helps to manage the different aspects of transportation of products such as monitoring, organizing, managing, and handling right from placing the order until the final delivery.

In addition, the rising traction of these systems in different countries would drive the growth of the market. Additionally, the requirement for transportation management systems is constantly rising with the surge in complications of logistics and transportation with the business growth. Generally, TMS allows a streamlined transactional and communication system to enable users to harness the benefits of real-time data, make informed decisions, and plan & strategize for optimal transportation solutions.

By adopting transportation management systems, organizations and businesses aims to streamline the major operational processes and functionalities like precise freight audit, payments, yard management, route planning and optimization, order visibility, load building, carrier management related to procurement and freight shipment.

The majority of the cloud-based transportation management systems are available in the form of software-as-a-service (SaaS). This indicates that users subscribe to the technology on a monthly or yearly basis rather than buying the technology. This proves to be an affordable method and users can always use the most advanced version of the software. Additionally, the growth of the market would be fuelled by technological developments like IoT and cloud-based services.

Transportation Management Systems Market Size - Global Opportunities and Trends Analysis Report 2017-2027

COVID-19 Impact Analysis

The new sales and deployment of TMS systems are halted by the outbreak of the COVID-19 pandemic. Though, there has been a vigorous utilization of already deployed transportation management systems around the globe. In addition, various key manufacturers of these systems have stopped their activities because of the disruptions in the supply of parts. On the other hand, the private as well public entities have undertaken many efforts to bring goods and commodities to the common man, thereby showing the importance of technology in making a better future.

The growth of the TMS market was hampered due to the global pandemic. This is owing to the complete shutdown or running at a reduced capability of manufacturing units. This has created a massive disruption in supply chain and logistics, thereby hampering the growth of the market. Though, the demand for these systems would increase in the healthcare industry in the upcoming years.

Market Growth Factors:

Thriving e-commerce sector

The growing number of consumers is harnessing the potential of online channels and smart devices. In addition, many logistics providers are adopting TMS solutions to enhance the supply chain that can provide on-time delivery to more customers through conventional shipping and offer other delivery-related benefits. Hence, transportation management systems play a crucial role in the growth of e-commerce industry by providing an improved customer experience.

Large-scale adoption of autonomous and connected vehicles

In the last few years, the transportation and logistics industry has witnessed a massive deployment of autonomous and connected vehicles. In addition, the constant technological developments in AI and the rising investments in the development of sensors and vision technologies are boosting the demand for autonomous vehicles to bring transformation in the different aspects of vehicles such as assembly, operation, utilization, and servicing.

Market Restraining Factor:

Need for high investment to deploy TMS solution

The digitalization of transportation operations needs a massive investment that includes the deployment of automation equipment, solutions, and software, which cost a significant amount. In addition, there is a substantial cost attached to replace the current processes. Additionally, factors such as the low adoption rate of these systems because of the complications in the integration of many IoT platforms, various protocols, and numerous APIs.

Deployment Outlook

Based on the Deployment, the Transportation Management Systems Market is bifurcated into On-premise and Cloud. In 2020, the on-premise segment acquired the maximum revenue share of the TMS market. In addition, many large manufacturing and distribution companies are moving to on-premises TMS due to the requirements related to data safety, easy access to the server, and higher control over customization.

Transportation Management Systems Market Share and Industry Analysis Report 2020

End Use Outlook

Based on the End-use, the Transportation Management Systems Market is classified into Retail & E-commerce, Manufacturing, Logistics, Government Organizations, and Others. The manufacturing segment procured the biggest revenue share of the market in 2020. The outsourcing of inventories and raw materials needed for manufacturing activities has been increased due to the growing number of manufacturing plants in developing countries.

Mode of Transportation Outlook

Based on the Mode of transportation, the Transportation Management Systems Market is segregated into Roadways, Railways, Waterways, and Airways. In 2020, the roadways segment acquired the largest revenue share of the market. One of the most prevalent modes of transportation across the world is road freight. In addition, it is less costly in comparison to other modes. Additionally, it is also cost-effective and flexible as it can better manage loading and unloading at any location.

Transportation Management Systems Market Report Coverage
Report Attribute Details
Market size value in 2020 USD 6.3 Billion
Market size forecast in 2027 USD 21.08 billion
Base Year 2020
Historical Period 2017 to 2019
Forecast Period 2021 to 2027
Revenue Growth Rate CAGR of 17.0% from 2021 to 2027
Number of Pages 247
Number of Tables 373
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
Segments covered Deployment, End Use, Mode of Transportation, Region
Country scope US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers
  • Thriving e-commerce sector
  • Large-scale adoption of autonomous and connected vehicles
  • Need for high investment to deploy TMS solution

Regional Outlook

Based on the Region, the Transportation Management Systems Market is analyzed across North America, Europe, APAC, and LAMEA. North America emerged as the leading region of the transportation management market by obtaining the maximum revenue share in 2020. North America is highly popular for the large-scale adoption of roadways as the major mode of transportation for the movement of freight. In the regional market, the Canada is emerging as the rapidly growing country. As consumers preference to purchase goods from e-commerce channels have increased, this industry is constantly evolving to fulfill the demands. Thus, many e-commerce players rapidly adopting TMS solutions for timely and accurate delivery of the products.

Free Valuable Insights: Global Transportation Management Systems Market size to reach USD 21.08 billion by 2027

KBV Cardinal Matrix - Transportation Management Systems Market Competition Analysis

Transportation Management Systems Market - Competitive Landscape and Trends by Forecast 2027

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; IBM Corporation, SAP SE and IBM Corporation are the forerunners in the Transportation Management Systems Market. Companies such as Descartes Systems Group, Manhattan Associates, Inc., C.H. Robinson Worldwide, Inc. are some of the key innovators in the Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Oracle Corporation, SAP SE, Descartes Systems Group, Inc., Manhattan Associates, Inc., E2open Parent Holdings, Inc., C.H. Robinson Worldwide, Inc., MercuryGate International (Summit Partners), Blue Yonder, and Infor, Inc. (Koch Industries).

Recent Strategies Deployed in Transportation Management Systems Market

» Partnerships, Collaborations and Agreements:

  • Oct-2021: Descartes systems group partnered with FreightWaves, a data and content forum. Under this partnership, the companies aimed to integrate Descartes macropoint into FreightWaves SONAR intending to offer Advanced Transportation Capacity Management Solution. In addition, companies would simplify the process of load coverage decision-making as well as make it autonomous while offering crucial data points to logistics professionals to make the process less expensive and reliable.
  • Oct-2021: MercuryGate partnered with Cloudleaf, a logistics and supply chain company. Through this partnership, the companies would allow customers to receive accuracy in insights as well as transparency in shipment planning, tracking, and real-time monitoring.
  • Oct-2021: C.H. Robinson teamed up with SPS, a US-based public corporation. Through this collaboration, the companies aimed to facilitate the shipping process and make it affordable and faster by integrating C.H. Robinson’s Navisphere platform into SPS Commerce Fulfillment’s Carrier Service. The integration offered access to the largest less-than-truckload network across North America and competitive rates to more than 95,000 retail suppliers.
  • Aug-2021: MercuryGate came into a partnership with Redwood Logistics, one of the rapidly developing supply chain and logistics companies based in North America. Under this partnership, MercuryGate would integrate its transportation management system into Redwood’s Rating API to offer immediate rates, better capacity, and 100%tender acceptance with the assistance of RedwoodConnect, a turnkey supply chain integration platform-as-a-service.
  • Aug-2021: Oracle Transportation Management, a solution of Oracle, collaborated with Rooskens Group, a leading logistics provider in Dutchland. Through this collaboration, Oracle aimed to expedite Rooskens Group's expansion and technology modernization.
  • Jul-2021: Descartes system groups entered into a partnership with SAP, a German multinational software corporation. Under this partnership, Descartes MacroPoint would be integrated with SAP Transportation Management by harnessing the potential of SAP integration portfolio and/pr SAP Extension Suite and provides real-time, multi-modal distribution chain visibility to producers, retailers, suppliers, and logistic solutions companies.
  • Jun-2021: Manhattan Associates collaborated with Hy-Vee, a grocery chain. Under this collaboration, Hy-Vee would install the transportation management system of Manhattan in order to drive up the efficiency and visibility of its logistics network and improve its supply chain activities.
  • May-2021: Manhattan Associates entered into a partnership with Loadsmart, a logistics technology platform. Through this partnership, customers of the Manhattan can instantly receive rates and tender loads within their TMS and automate how shippers’ cost and source loads on the spot market and contracted lanes.
  • Apr-2021: IBM partnered with Celonis, a data processing company, and Red hat, a provider of open-source software products. With this partnership, the companies would increase the deployment of the Celonis Execution Management System (EMS) and assist to offer more flexibility and choice in how customers install the technology. The collaboration would expedite the manner in which customers implement intelligence, process mining, and automation to the main enterprise systems functions and processes that boost the business execution.
  • Mar-2021: SAP partnered with Sedna, a collaboration software manufacturer. Following this partnership, companies would enable the shippers to utilize solutions to prioritize tasks related to transportation management tasks with a coordinated email workflow.
  • Jan-2021: C.H. Robinson partnered with SAS, a world-renowned data analytics company. Following this partnership, the companies would integrate the data from retailers and consumer goods providers with logistics and transportation data intending to develop faster, robust, and less-costly shipping techniques.
  • Sep-2020: Manhattan Associates extended its partnership with Logistyx Technologies, a leader in transportation management for parcel shipping. Through this partnership, Logistyx would launch new improvements that would shift its product to the cloud. Following this extended partnership, the companies would allow their customers to upgrade to improved parcel shipping abilities at less cost, offering unlimited access to more than 550 global carriers services that intend to enable rate shopping and shipping execution to Manhattan's customers across the world.
  • Jul-2020: Blue Yonder came into a partnership with Loadsmart, a digital freight technology company. The partnership aimed to integrate the digital freight platform of Loadsmart with Blue Younder intending to enable joint transportation management clients to dramatically decrease costs and enhance efficiency by offering access the Loadsmart’s instantly bookable truckload rates and guaranteed capacity with the help of innovative pricing discovery solutions from Blue Yonder.
  • Jul-2020: Blue Yonder partnered with Uber Freight, an application of Uber Technologies. Through this partnership, the companies aimed to create a tech-forward approach on the Uber Freight platform from real-time pricing to instant capacity, intending to expedite digital transformation in the supply chain. In addition, the new feature would help the companies for better control and anticipation over their operations in the highly competitive market.
  • Jun- 2020: Descartes Systems Group collaborated with Microsoft, an American multinational technology corporation. Following this collaboration, Microsoft services, including Microsoft Azure would offer a base to Descartes solutions to assist logistics and supply chain organizations across the world is becoming more adaptive and responsive to effectively deal with the COVID-19 pandemic.

» Acquisitions and Mergers:

  • Oct-2021: Descartes Systems Group took over GreenMile, one of the leading vendors of cloud-based mobile route execution solutions. Through this acquisition, GreenMile would provide its dedicated team of domain experts in the retail food and beverage supply to Descartes Systems Group. Following this, the company would become capable of expanding its operational footprint and existence in Latin America.
  • Sep-2021: E2open acquired BluJay Solutions, a leader in cloud-based, logistics execution platforms. Through this acquisition, the company strengthened its vision to provide the broadest and data-rich SaaS supply chain platform.
  • May-2021: Descartes Systems Group acquired Portrix Logistics Software, a vendor of multimodal rate management solutions for a logistics services provider. The acquisition aimed to enhance the digital experience of logistics service providers. Through this acquisition, the company would provide differentiated end-to-end products for LSPs that want to digitize their operations with a pre-integrated solution. Moreover, the company’s world-class rate management and online booking tools can also assist customers that intend to improve their operations while saving investments in the prevailing back-office systems.
  • May-2021: C.H. Robinson took over Combinex Holding, a provider of freight transportation services. The acquisition aimed to expand the company's current footprint in Europe, specifically Western Europe.
  • Apr-2021: MercuryGate completed its acquisition of Cheetah Software Systems, a leader in providing Logistics solutions. The acquisition aimed to expand the TMS platform of MercuryGate to deliver the last mile, parcel, and less-than-truckload solution and improved fleet management ability that adjusts automates and communicates movements in real-time
  • Nov-2020: Descartes system groups completed the acquisition of ShipTrack, a provider of cloud-based mobile resource management and shipment tracking solutions. Through this acquisition, the company would ensure its small and large customers can meet the orders and effectively fulfill delivery commitments. Moreover, the company would integrate ShipTrack’s offerings with its sophisticated Mobile, Routing, and Telematics solutions, thereby fulfilling the market demands.

» Product Launches and Product Expansions:

  • Dec-2021: E2open rolled out Supply Sensing and Global Logistics Orchestration, two latest intelligent applications. Supply sensing helps to detect potential supply shortages, while the Global Logistics Orchestration assists to find out the business impact of delays in shipping on downstream operations and service commitments.
  • Jun-2021: Manhattan Associates unveiled Manhattan Active Transportation Management, a cloud-native transport management system. The new product would decrease the time and effort needed to optimize complicated transportation networks. Moreover, it is a first-of-its-kind self-tuning and self-configuring system with optimization speed with around 80% faster solve times.
  • Jan-2021: Oracle released new logistics capabilities within Oracle Transportation Management (OTM) and Oracle Global Trade Management (GTM). This expansion aimed to allow the customers to decrease costs, make better choices, and enhance customer experience.
  • Oct-2020: SAP unveiled SAP Logistics Business Network. With this launch, the companies aimed to provide a cloud-based network platform developed to smoothly connect back-end systems of SAP customers to their freight collaboration, order fulfillment, and material traceability networks.
  • May-2020: Manhattan Associates launched Manhattan Active Warehouse Management solution, the first cloud-native enterprise-class warehouse management system across the world. The new solution can manage every aspect of the system and software maintenance to enable the company to wholly shift its attention toward its customers. Moreover, the product would not need any upgrade once it is installed.

Scope of the Study

Market Segments Covered in the Report:

By Deployment

  • On-premise
  • Cloud

By End Use

  • Manufacturing
  • Logistics
  • Retail & E-commerce
  • Government Sector
  • Others

By Mode of Transportation

  • Roadways
  • Railways
  • Airways
  • Waterways

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Singapore
    • Malaysia
    • Rest of Asia Pacific
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

  • IBM Corporation
  • Oracle Corporation
  • SAP SE
  • Descartes Systems Group, Inc.
  • Manhattan Associates, Inc.
  • E2open Parent Holdings, Inc.
  • C.H. Robinson Worldwide, Inc.
  • MercuryGate International (Summit Partners)
  • Blue Yonder
  • Infor, Inc. (Koch Industries)

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Related Reports:

North America Transportation Management Systems Market Report 2021-2027

Europe Transportation Management Systems Market Report 2021-2027

Asia Pacific Transportation Management Systems Market Report 2021-2027

LAMEA Transportation Management Systems Market Report 2021-2027


The global transportation management system market size is expected to reach $21.08 billion by 2027.

Large-scale adoption of autonomous and connected vehicles are driving the market in coming years, however, need for high investment to deploy TMS solution limited the growth of the market.

IBM Corporation, Oracle Corporation, SAP SE, Descartes Systems Group, Inc., Manhattan Associates, Inc., E2open Parent Holdings, Inc., C.H. Robinson Worldwide, Inc., MercuryGate International (Summit Partners), Blue Yonder, and Infor, Inc. (Koch Industries).

The expected CAGR of the transportation management system market is 17.0% from 2021 to 2027.

The Retail & E-commerce market is expected to witness highest CAGR of 17.9% during (2021 - 2027). Factor such as massive growth of the retail and e-commerce sectors in nations like India and China is responsible for the growth of this market.

The North America market dominated the Global Transportation Management Systems Market by Region in 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $8.17 billion by 2027, growing at a CAGR of 16.2% during the forecast period.

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