A transport management system is a portion of planning and execution software that provides a solution that helps businesses in carrying out their freight shipping operations in a more efficient, reliable, and cost effective manner. It’s an integral part of managing resources as well as supply chain management. Businesses use this software to manage their company and monitor its performance. TMS assists companies in optimizing shipment routes with consideration to planning, execution, fleet management, and many more. Many companies use TMS shipping software not only as multi-functional systems, but they can utilize it to act as a managerial system. Freight shipping companies want shipping software that can handle supply chain management for both inbound and outbound, dealing with issues like: planning, tracking, execution, and transportation management Transportation management systems are capable of handling a multitude of supply chain management tasks, such as: route optimization and vehicle load, freight audit, scheme simulation and transport costs, real time freight shipping tracking, and many others. Transportation of goods involves various modes and combining different modes needs to be planned well. Transportation management system is an essential tool in achieving operational freight shipping and logistics management efficiency.


The transportation industry is faced with both opportunities and challenges because of the fast growing economies. Growing demand and therefore increased freight shipping all over the world causes channel congestion as well as added competition between market players. This has lead to increased need for transportation management systems due to requirement for safety standards while transporting, storing, and handling of products. The growing transportation costs due to complicated transportation networks is also driving the need for transportation management system, which in turn drives the overall global TMS market, and increases need of freight auditing. In addition, growing demand for SaaS based TMS is being anticipated to stimulate the global TMS market. Another factor that’s pushing the growth of the global TMS market is the increasing advancements in the transportation management system over conventional ones, as well as increasing collaboration between hardware providers and content suppliers.

On the other hand, lack of awareness on transportation management system capabilities and benefits of comprehensive freight audit among industries who might find it useful is challenging the growth of the TMS market. The old high cost for initial installation of the old style of TMS is prohibiting the market’s growth as well, but cloud-based shipping software is working to change that.


The global TMS market can be segmented into different areas such as feature, transportation mode, application, and type of license. When trying to segment features, the shipping software can be segmented into planning and optimization, execution and visibility, and performance management. Segmentation of application can be things like: capacity management, shipping consolidation, transport sourcing, performance management, network design, and route planning. The transport sourcing can be further segmented into: single sourcing, multiple sourcing, and hybrid sourcing. As for license, the divisions are: premises licensing, on premises hosted licensing and hosted licensing. On the basis of modes, the market can be segmented into: roadways, railways, seaways, and airways.

Regional Outlook

The transportation management system market is divided geographically into seven main regions which include: Latin America, North America, Western Europe, Eastern Europe, Asia-Pacific, Africa, and Middle East. Due to the integration of GPS and route planning systems, it is expected that North America would hold the largest share in the TMS market. The growth of international trade is also expected to bring growth to the global TMS market, and the TMS market is also expected to grow steadily in Europe.

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