Analyst study: global TMS revenues to nearly double to $31 billion by 2025

According to a recent study by ABI Research, a tech market advisory firm, worldwide transportation management system (TMS) revenues are expected to nearly double from $16 billion in 2020 to reach over $31 billion in 2025. This represents a compound annual growth rate (CAGR) of 14.1% for the study period.

Proven ROI is the primary argument for TMS adoption, ABI Research stated. Synergistic technologies such as predictive analytics, automation, real-time tracking, machine learning, AI, and blockchain will continue to evolve for greater flexibility, improved customer support, and enhanced forecasting capabilities, ABI added.

Partnerships with TMS suppliers are growing, like Werner Enterprises with Mastery Logistics Systems and Dana Inc. with Transplace, ABI Research also noted.

“There is growing usage of open APIs and Software Development Kits (SDKs) to create customized solutions for different sized companies, verticals, and geographies as well as partners and co-opetition,” explains Susan Beardslee, Principal Analyst, Freight Transportation & Logistics. “Adoption triggers include capacity constraints, which are growing ever tighter (including driver shortages back to 2018 levels) and pushing up costs toward the double-digits. Beyond that, consumers and businesses continue to push for more granularity in answering, “where’s my stuff?” with an ETE, real-time response.” 

A growing list of cloud-based software vendors is offering Artificial Intelligence (AI) and advanced analytics capabilities, ABI added. These solutions can reliably interpret data from many complex indicators and execute more insightful and connected strategies.