Keywords: Transportation Management System
After being affected by the global economic downturn, the transportation management system (TMS) market, like many other enterprise software markets, has bounced back strongly according to a new ARC Advisory Group study. A transportation management system helps companies efficiently, reliably, and cost effectively move freight from origin to destination.
ARC segments the TMS market into two basic solution types: planning & execution and fleet management. Planning & execution is a TMS for freight moves involving a carrier. Fleet management is a TMS for freight moves involving transportation assets owned by the company.
“One significant trend,” according to Steve Banker, Ph.D., Service Director for Supply Chain Management, “is the continued higher growth of the planning & execution segment compared to the fleet management segment. Last year, year over year growth in planning and execution was in double digits.” Dr. Banker is the principal author of ARC’s “Transportation Management Systems Worldwide Outlook: Market Analysis and Forecast through 2016”.
TMS Market Will Grow Despite European Recession
The revenues in North America bounced back strongly following the end of the recession. There continues to be pent up demand and thus ARC is forecasting particularly robust growth next year, with growth gradually declining to historical growth rates.
Revenues in Europe, however, have not bounced back. With Europe forecast to slide into another recession, ARC is actually forecasting TMS revenues to shrink for that region for the next two years. But because North America is the most significant market for TMS, the pent up demand in North America, and growing demand in other regions, particularly Latin America, ARC sees growth continuing in the TMS market despite the situation in Europe.
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