Market Study On Freight Management Systems: Driving Efficiency and Streamlining Logistics Operations
Research Nester, is thrilled to reveal the insights of the expanding Freight Management Systems (FMS) market, anticipated to grow at 10.69% CAGR from 2022 to 2031. This sector is witnessing progress, fueled by the demand for improved operational effectiveness, cost reduction, and instant visibility, in the worldwide logistics industry.
In today’s world, where the global economy is growing rapidly and supply chains are becoming more intricate it has become increasingly important for businesses in sectors to prioritize efficient freight management. To overcome these challenges, the market for Freight Management Systems provides software solutions that effectively streamline logistics operations enhance visibility of freight and enable a seamless end, to end view of the supply chain.
The Freight Management Systems market is expected to witness growth in the coming years mainly driven by the rise in global trade and the adoption of advanced technologies like AI and IoT. Additionally, there is a growing demand for effective and affordable solutions, for optimizing freight operations. In 2021, global trade hit a record surpassing USD 28.5 trillion. This represents an increase of nearly 13% compared to the pre pandemic level of 2019 and an impressive growth of almost 25% from 2020. The expansion of trade and the trend towards globalization have played a significant role in the substantial rise in the movement of goods, across borders. To aid companies in navigating this landscape FMS offers a range of tools that enable efficient management of transportation networks, optimization of routes and ensuring prompt delivery of goods.
Furthermore, the rising requirement for transportation and logistics coordination along with the growing necessity for better insight, into supply chains are anticipated to fuel the expansion of the Freight Management Systems Market. According to a report released in 2021, around 41% of supply chain executives have shown interest in investing in real time visibility for their supply chain. Moreover, it is projected that by 2026, over 76% of companies specializing in supply chain management software will integrate analytics, artificial intelligence and data science into their solutions. More and more companies are turning to automation to cut down on expenses and improve the effectiveness of their supply chain processes. By implementing FMS companies gain an insight into their supply chain operations allowing them to make smarter choices regarding sourcing materials and optimizing their transportation and logistics network.
In 2022, road freight transportation took the lead in the global freight management system industry market share. This was primarily driven by the growing demand for reliable delivery of goods the surging popularity of e commerce and the requirement, for effective transportation of merchandise. By 2050, it is anticipated that the transportation of freight on roads will reach 39 trillion tonne kilometers, which is a significant rise, from the 6.300 trillion tonne kilometers recorded in 2010. In addition, road transportation offers the benefit of reaching locations and the capability to carry a wide range of goods including both hazardous materials and temperature sensitive products. That’s why many e-commerce and logistics companies prefer using road freight as their mode of transportation.
The transportation industry is expected to capture high share of the North American freight management systems market owing to the various government initiatives aimed at developing the infrastructure sector. As of 2022 the transportation industry in the United States is valued at USD 1.35 trillion, and over 4.28 million businesses are operating in transportation and warehousing. Moreover, the government has introduced programs like the Fixing Americas Surface Transportation (FAST) Act, which has allocated funds for infrastructural undertakings and the advancement of improved freight management systems. Consequently, this has led to an increased need for systems, in the market of North America.
Key players, in the Freight Management Systems sector consist of MCLEOD SOFTWARE, Freightview, Freight Management Systems Inc., Linbis, Inc., Logisuite Corporation, DreamOrbit Softech Private Limited, THE DESCARTES SYSTEMS GROUP INC, Oracle, Werner Enterprises, MercuryGate, Blue Yonder Group, Inc., Manhattan Associates, E2open, LLC, TMC C.H. Robinson Worldwide, Inc.), SAP SE, and others.