It’s Full Speed Ahead for the Global TMS Market

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The global transportation management systems (TMS) market is in the middle of a growth spurt that isn’t expected to end anytime soon. In fact, the market is on track to exceed $43 billion globally by 2034—up from a current $15 billion, according to a recent report from Precedence Research. The market is posting a compound annual growth rate (CAGR) of just over 11% right now.

In North America, the TMS market was valued at $5.4 billion in 2024 and anticipated to expand by about 11.5% (CAGR) annually over the next 10 years. This comprises the largest revenue share of the global market, but Precedence says the Asia-Pacific region is on track to post the highest CAGR between now and 2034.

“The [North American] region is experiencing a strong emphasis on sustainability, with TMS solutions increasingly integrating eco-friendly features to reduce carbon footprints,” the research firm points out, noting that adoption of cloud-based TMS systems is growing, and it presents benefits like scalability and remote access.

“Moreover, there is a notable focus on enhancing last-mile delivery capabilities to meet the demands of the booming e-commerce sector,” the company continues. “Overall, North America’s TMS market is evolving to meet the changing logistics landscape and sustainability.”

A Central Hub for All Transportation-Related Activities

The increasingly complex nature of the transportation market is driving more companies, carriers and logistics providers to adopt TMS systems that act as a central hub for all transportation-related activities. By automating everything from carrier selection to route planning to shipment tracking (and all points in between), TMS frees up valuable time and resources, allowing organizations to focus on their core business objectives.

The benefits of using a TMS don’t end there. These systems also provide visibility into the end-to-end transportation process. This not only facilitates better communication and collaboration between shippers and carriers, but it also leads to stronger partnerships and improved service levels.

Precedence says several other trends and growth drivers are shaping the TMS market and setting it up for a double-digit CAGR over the next 10 years. Some of the key drivers include:

Globalized supply chains. This has heightened the need for efficient transportation management, as businesses seek to navigate complex international logistics. “The incorporation of artificial intelligence (AI) and machine learning into TMS solutions stands out as a prominent trend,” the company says. “This integration empowers businesses with predictive analytics and data-driven decision-making capabilities, ultimately leading to the optimization of routing and scheduling processes.”

The e-commerce surge. This plus escalating demand for swift and dependable shipping choices have played pivotal roles in driving the widespread adoption of TMS. Also, sustainability concerns have driven the incorporation of eco-friendly transportation options and practices within TMS solutions.

Cloud and SaaS offerings. “TMS providers can capitalize on the growing demand for cloud-based and software-as-a-service (SaaS) solutions, which offer scalability and flexibility,” Precedence says. “Offering user-friendly interfaces and simplified implementation processes can make TMS systems more accessible to a broader range of businesses.”

A focus on sustainability. TMS is also a good sustainability tool particularly when its makers fold eco-friendly, green logistics features into the mix. “[This] can set TMS providers apart in a competitive market,” the company adds. “Collaboration with other stakeholders in the supply chain, such as carriers and shippers, also presents opportunities to create integrated, end-to-end solutions.”

Meeting the Demands of the Amazon Effect

Systems like Revenova TMS can also be easily integrated with other solutions, effectively creating a more holistic transportation management approach. With decades of experience in the transportation and brokerage sectors, Samantha Haynes, Director of Customer Success at Revenova sees this a major “win” for organizations that are seeking higher levels of supply chain visibility in today’s competitive marketplace.

“End customers, carriers and business partners are all asking for those high levels of visibility and transparency,” Haynes points out. “Credit the ‘Amazon Effect’ with creating this level of expectation on both the B2C and the B2B side of things.” Put simply, procurement professionals want to be able to see where that full truckload of material worth hundreds of thousands of dollars is, similar to how they can see where a single Amazon order is at any point in the supply chain.

“We’ve all come to expect very high levels of visibility into everything we order. A robust, cloud-based TMSdelivers on that promise not only for your own company, but also for its customers and other stakeholders,” says Haynes.

TMS also helps automate tasks that used to be handed manually, which substantially reduces the amount of human labor needed to manage the transportation process. When they’re not weighed down by spreadsheets and paper—and the manual errors that go with the territory—team members are freed up to work on more strategic projects.

“In the unbelievably fast-paced brokerage world, having these efficiencies and leveraging the various pieces of automation within the TMS really reduces the need for manual work,” says Haynes. “No matter how small or large your company is, TMS is table stakes and a complete necessity.”

To learn more about Revenova TMS, Request a Demo. Follow Revenova on LinkedIn, YouTube, and X for the latest updates and news about Revenova TMS, the original CRM-powered Transportation Management System.

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