Transportation Management System (TMS) Market Playbook, Growth Opportunities & Trends

Transportation Management System Market Size and Regional Production Analysis

The transportation management system market is projected to reach USD 56.62 billion by 2034, growing from USD 21.36 billion in 2025, at a CAGR of 11.44% during the forecast period from 2025 to 2034. The growing use of advanced analytical tools in the logistics sector coupled with the increasing demand for efficient transportation solutions has contributed positively to the overall industrial expansion.

Unlock Infinite Advantages: Subscribe to Annual Membership

Additionally, partnerships among railway department and private vendors for transporting cargo as well as the rapid adoption of TMS tools for automating several tasks in supply chain operations is further adding to the market growth. The integration of AI and IoT in transport management solutions is expected to create numerous growth opportunities for the market players in the future.

Introduction

The transportation management system market is a prominent segment of the advanced software industry. This industry deals in manufacturing and distribution of TMS to different end-users around the world. There are several types of solutions developed in this sector comprising of operational planning, fright & order management, payment & claims management, monitoring & tracking, reporting & analytics and some others. These solutions are deployed in various modes including on-premises and cloud. It is designed for managing numerous modes of transportation consisting of roadways, railways, waterways and airways. The end-users of these solutions consist of retail and e-commerce, manufacturing, logistics, government organizations and some others. This market is expected to grow significantly with the rise of the logistics sector across the globe.

Highlights of the Transportation Management System Market

• North America generated highest revenue of the transportation management system market.
• Asia Pacific is expected to grow with a significant CAGR during the forecast period.
• By deployment, the on-premise segment held the largest share of the market.
• By deployment, the cloud-based segment is expected to grow with the highest CAGR during the forecast period.
• By mode of transportation, the roadways segment led the industry.
• By mode of transportation, the railways segment is expected to rise with the highest CAGR during the forecast period.

Key Metrics and Overview

What are the Trends of Transportation Management System Market in 2025?

The major trends in this market consists of partnerships, rapid adoption of autonomous trucks and integration of automated solutions in the logistics sector.

Partnerships

Several TMS providers are partnering with logistics companies for enhancing supply chain management. For instance, in March 2025, Grasshopper Labs partnered with FreightSnap. This partnership is done for integrating advanced freight dimensioning technology of FreightSnap with end-to-end logistics management platform of Grasshopper. (Source: GlobeNewswire)

Rapid Adoption of Autonomous Trucks

Numerous e-commerce brands and manufacturing companies have started deploying autonomous trucks in their day-to-day operations with an aim to reduce dependency on drivers.

Integration of Automated Solutions in the Logistics Sector

The logistics companies have started integrating automated solutions to enhance the supply chain operations.

Deployment Insights

How Did the On-premise Degment Led the Transportation Management System Market in 2025?

The on-premise segment dominated the market. The deployment of on-premise TMS in modern warehouses to enhance the working efficiency has boosted the market expansion. Additionally, the rising demand for on-premise transportation management solution by governmental sector is expected to drive the growth of the transportation management system market.

The cloud-based segment is expected to rise with the highest CAGR during the forecast period. The integration of cloud-based TMS in the logistics sector for enhancing supply chain operations has driven the industrial expansion. Moreover, rapid investment by market players for developing advanced cloud-based transportation management solutions for numerous end-users is expected to propel the growth of the transportation management system market.

Mode of Transportation Insights

What Made Roadways to be the Most Dominant Segment of Transportation Management System Market in 2025?

The roadways segment led this industry. The rising investment by government of several countries such as India, China, the U.S., Germany and some others for developing the road infrastructure has driven the market growth. Additionally, the flexibility offered by road transportation related to loading and unloading goods anywhere has increased the demand for efficient management solutions, thereby driving the growth of the transportation management system market.

The railways segment is expected to grow with the fastest CAGR during the forecast period. The integration of advanced solutions for managing railway cargo has boosted the market expansion. Moreover, partnerships among railway operators and TMS providers for deploying advanced solutions in freight transportation is expected to propel the growth of the transportation management system market.

Geographical Insights

Why North America Dominated the Transportation Management System Market in 2025?

North America held the highest share of the transportation management system market. The growing adoption of roadway transportation for delivering goods in several countries such as Canada and the U.S. has boosted the market expansion. Also, numerous government initiatives aimed at adopting green logistics coupled with rapid growth in cross border trade activities is playing a vital role in shaping the industrial landscape. Moreover, the presence of several market players such as Manhattan Associates, Trimble Transportation Enterprise Solutions, Descartes System Group and some others is expected to drive the growth of the transportation management market in this region.

• In March 2025, Descartes Systems Group acquired 3GTMS. This acquisition is done at a hefty price of US$ 115 million with an aim to develop advanced transportation management solutions (TMS). (Source: DC Velocity)

Asia Pacific is expected to rise with a significant CAGR during the forecast period. The rising development of the e-commerce sector in various countries such as India, China, South Korea, Japan, Singapore and some others has boosted the market growth. Additionally, the availability of well-established railway network along with rapid deployment of advanced TMS in the government sector and healthcare industry has contributed to the overall industrial expansion. Moreover, the presence of numerous TMS providers such as Jiuye Supply Chain Management Co, BlackBuck, Tookan and some others is expected to accelerate the growth of the transportation management market in this region.

• According to the International Trade Administration, the Singapore e-commerce industry is expected to reach around US$ 10 billion by 2026. (Source: Trade)

Competitive Landscape

The transportation management system market is a fragmented industry with the presence of several dominating players. Some of the prominent companies in this industry consists of IBM Corporation; JDA Software Group, Inc.; Oracle Corporation; SAP SE; The Descartes System Group Inc.; BluJay Solutions Ltd.; Cargobase; Cerasis Inc.; GoComet; Infor Inc.; Manhattan Associates, Trimble and some others. These companies are constantly engaged in developing TMS and adopting numerous strategies such as collaborations, acquisitions, joint ventures, launches, partnerships and some others to maintain their dominance in this industry.

• In September 2024, Trimble launched Trimble TMS Order Module. Trimble TMS Order Module is a cloud-based transportation management tool designed for enhancing operational efficiency in logistics sector. (Source: Trimble)

• According to the annual report of Trimble, North America generated around 56% of the company’s revenue in 2024 followed by Europe (29%), APAC (10%) and RoW (5%). (Source: Trimble)

Industry Leader Announcement

• In February 2025, Javier Selgas, the CEO of Freight Technologies made an announcement stating that,” Fleet Rocket was conceived after purposeful conversations with our customers to address the growing demand for advanced tools to navigate and succeed in the rapidly evolving landscape of nearshoring and cross-border freight, our new TMS combines powerful features, seamless integrations and fast implementation to create real value for our clients through reduced costs and risks, improved decision-making and operational efficiency, and elevated overall supply chain management performance.”

Recent Developments

• In June 2025, cargo.one launched a new transportation management system. This management platform is designed for enhancing air freight booking services. (Source: Payload Asia)
• In May 2025, American Global Logistics (AGL) launched Terraportation. Terraportation is an advanced transportation management system designed for enhancing the experience of importers. (Source: Supply & Demand Chain Executive)
• In April 2025, HopSkipDrive launched RouteWise AI software. This AI-enabled software is designed for enhancing school transportation. (Source: Business Wire)

Transportation Management System Market Segments

By Solution

• Operational Planning
• Fright & Order Management
• Payment & Claims management
• Monitoring & Tracking
• Reporting & Analytics
• Others

By Deployment

• On-premise
• Cloud

By Mode of Transportation

• Roadways
• Railways
• Waterways
• Airways

By End-Use

• Retail & E-commerce
• Manufacturing
• Logistics
• Government Organizations
• Others

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa