Revenue Forecast

The revenue estimate for the base year 2023 is $1.50 billion, with a CAGR of 10.6% for the study period from 2023 to 2030.

The Impact of the Top 3 Strategic Imperatives on the TMS Industry

Transformative Megatrends

• Why: Sustainability is an influential megatrend because it affects customers and institutions that demand stricter compliance with environmental regulations. This prioritization promotes the adoption of sustainable practices within the logistic sector, including TMS vendors.
• Frost Perspective: The preference for and adoption of greener and more transparent practices (by consumers and vendors perspective) will prompt businesses and governments to demand compliant TMS solutions that will create a greener impact through route optimization and fuel consumption and carbon emission reduction. The industry will continue to think of sustainability not as a differentiator but as a functionality that TMS vendors must offer.

Geopolitical Chaos

• Why: Globalization and geopolitical conflicts are disrupting global supply chains and trade policies worldwide, resulting in fuel price fluctuation, delays in transit routes, and border closures. Nonetheless, the uncertainty that the Russo-Ukrainian War and the Red Sea conflict are bringing can be reduced by TMS system that reroute loads, plan efficiency, and monitor deliveries.
• Frost Perspective: Geopolitical turmoil will continue to reshape the TMS landscape. Constant instability could boost the demand for TMS solutions that provide visibility, flexibility, and risk mitigation capabilities. Volatile geopolitical environments will boost investments in alternative transportation routes and technologies, fostering innovation and evolution in the TMS space.

Disruptive Technologies

• Why: By offering unprecedented levels of efficiency, technology innovations are disrupting the way TMS can work within supply chains, offering key optimizing solutions, such as real-time data analytics, predictive analytics, and automation. As IoT and AI algorithms keep evolving, TMS vendors should leverage such innovation to offer customized services, adaptable to evolving demands.
• Frost Perspective: IoT will accelerate the connection of supply chains and simplify seamless integration and data sharing. By enhancing smarter logistics, the industry will witness a paradigm shift toward more agile, scalable, flexible, and intelligent TMS systems, unlocking new doors for innovation and growth.

Scope of Analysis

• This analysis showcases the drivers and restraints, important trends and growth opportunities in the global transportation management system (TMS) industry.
• The objective of the research was to find an accurate market size for 2023, and to forecast industry growth for the next 6 years.
• The analytics covers leading participants and their revenue shares and analyzes the differences between business models in terms of deployment approach and transportation mode capabilities, depending on whether they are new age or legacy companies.
• Segmentation is qualitatively evaluated by region, industry vertical, and transportation mode. In terms of a quantitative evaluation, the analysis considers regional market perspectives..

Segmentation by Region

NALA

• Geopolitical chaos: Medium. Alliance of the United States with Taiwan will defend it from China’s allegations.

• Level of legal compliance demanded for supply chain businesses: Medium
• Climate conditions: Cargo traffic is being affected by the droughts of the Mississippi River in the United States and the Panama Canal, which is being reduced by 40%, compared to 2022, based on a 2024 April article in The New York Times titled “Panama Canal Drought Slows Cargo Traffic”.
• TMS usage percentage: High. In the United States, there is a major concentration of TMS vendors, with main extension plans for LATAM.
• Stage of product life cycle: Growth
• Needs and preferences: Integration has already been taken care of by several collaborations in the U.S. between TMS and CRM vendors, innovations such as AI, machine learning, and robotics, are key aspects of the US demand.

EMEA

• Geopolitical chaos: High. The Russo-Ukrainian war, and the Gaza conflict in the Middle East.
• Level of legal compliance demanded for supply chain businesses: High
• Climate conditions: Drought has also impacted EMEA. For instance, the Rhine River, Europe’s most important commercial waterway is one of many canals that have been affected by this climate event
• TMS usage percentage: Medium. The market offer of EMEA is second in the podium after NALA. But in terms of TMS acquisition, there’s still a long way to go until TMS is a reality for every supply chain.
• Stage of product life cycle: Growth
• Needs and preferences: TMS implementation is not as advanced as in the NALA region, primarily because of companies’ resistance to change. This is why demonstrations of ROI are a hot topic in EMEA.

APAC

• Geopolitical chaos: High. Red Sea conquered by Houthi pirates, and tense relations between China and Taiwan will continue to have an impact.
• Level of legal compliance demanded for supply chain businesses: Medium
• Climate conditions: Below-average annual precipitation caused a drought in the Yangtze River in China, which connects Shanghai to the East Chinese Sea, affecting hydropower reservoirs, resulting in power shortages and therefore, slowdown in production.
• TMS usage percentage: Low. APAC is still in the early stages. A survey by Hence Technology estimates that 45% of logistic companies in APAC are still manually monitoring and tracking operations.
• Stage of product life cycle: Introduction
• Needs and preferences: Integration is still not a TMS aspect in this region. Therefore, the demand for a software solution that can integrate various parties in the supply chain is high.

Competitive Environment

Competitors by Region

NALA

• Manhattan Associates
• Mercury Gate
• Trimble (Kuebix)
• Revenova
• Shipwell
• Pando
• IBM Corporation
• Oracle
• Princeton TMX
• Uber Freight
• e2open
• Blue Yonder
• Descartes
• TMC (C.H. Robinson)
• 3Gtms
• Blue Rock Logistics
• Apprise (Aptean)
• GlobalTranz
• CTSI Global

EMEA

• SAP
• InMotion Global (Ascend TMS)
• Alpega Group
• LIS Software Solutions
• Soloplan GmbH*
• Ecovium
• Generix
• SINARI
• AKANEA
• Mandata
• AndSoft

APAC

• oTMS
• Shipsy
• WiseTech Global
• Blue Star
• VTradEx TMS
• Cargobase