COVID Drives Tech Investment - TMS
Revenues to Nearly Double to $31B by 2025
March 5, 2021
The expanding supply chain complexity
underscores the need for synergistic technologies from AI to real-time tracking
ROI is the primary argument for Transportation Management System (TMS) adoption.
Synergistic technologies like 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. TMS solutions enable greater visibility, efficiency, reliability,
and flexibility of freight movement across modes, cargo types, and geographies.
According to ABI Research, a global tech market advisory firm, worldwide TMS
revenues are expected to nearly double from US$16 billion in 2020 to reach over
US$31 billion in 2025. Leading providers include Blue Yonder, SAP, and Oracle.
Partnerships with TMS suppliers are growing, like Werner Enterprises with
Mastery Logistics Systems and Dana Inc. with Transplace.
"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."
expanding complexity of the supply chain has called into question the
effectiveness of traditional solutions. Supply chain leaders across all
verticals need to adopt a more advanced and inclusive approach to forecasting
and adapting to a continually changing environment. A growing list of
cloud-based software vendors is offering Artificial Intelligence (AI) and
advanced analytics capabilities. These solutions can reliably interpret data
from many complex indicators and execute more insightful and connected
These findings are from ABI Research's Intelligent Supply Chain market data
report. This report is part of the company's Freight Transportation & Logistics
research service, which includes research, data, and ABI Insights. Market Data
spreadsheets are composed of deep data, market share analysis, and highly
segmented, service-specific forecasts to provide detailed insight where