Impact of COVID-19 on the Global Transportation Management Systems (TMS) Market
The global transportation management systems (TMS) market has witnessed a negative impact since the coronavirus outbreak in December 2019. The pandemic has resulted in numerous countries imposing lockdowns and shutting down businesses except for essential services (allowed with minimal workforce). These lockdowns have resulted in considerably reduced travel and transportation in recent months. Transportation is a critical aspect of the travel and tourism industry. Companies operating in the industry need to manage their fleets effectively so that they can offer better services to the end-users. With the growth of the overall travel & tourism industry, specifically in developing countries, the overall competition in the industry is increasing significantly, and to effectively compete in the market, companies are investing in improving their supply chains and logistics channels by deploying comprehensive transportation management systems (TMSs). These travel and tourism companies primarily look for TMS solutions that effectively capture real-time data about the fleet status and carrier contract management, among other applications. Therefore, vendors operating in the market are improving their solutions to cater to the needs of travel and tourism companies. The demand for this software is anticipated to recover in the coming months as several governments prepare to lift the lockdowns in a phased manner. The governments of several countries have granted permission to the majority of the businesses to restart their operations in compliance with the safety guidelines. In the long run, the demand for transportation management systems is anticipated to grow significantly.
Digitization of the transportation industry and growing demand for cloud-based transportation management systems are the factors driving the growth of the global transportation management systems market. Cloud-based transportation management systems provide flexibility, scalability, and a standardized process to manage all transportation activities across the entire organization, which is important for logistics service providers or carriers. They also enable the operators to gain an overall view of transportation activities in real-time, which includes order information for each vehicle and its routing progress. Moreover, the market also seeks opportunities from the growing adoption of IoT and big data. However, data privacy and security concerns are hampering the market growth. Embedded analytics and blockchain are the major technology trends prevalent in the market.