TMS market showing strong post-recession rebound, says ARC Advisory Group

Looking at the North America TMS market, ARC said that revenues has bounced back strongly since the end of the recession, with pent-up demand leading to robust growth next year, which will then be declining to historical growth rates.

By ·

New research from Dedham, Mass.-based ARC Advisory Group indicates that the transportation management system (TMS)  market has “bounced back strongly.”

ARC defines the functionality of TMS systems as helping companies efficiently, reliably, and cost-effectively moving freight from origin to destination. And the firm classifies TMS into two primary application areas: planning & execution, which is a TMS designed for freight moves involving a carrier, and fleet management, which is for freight moves involving transportation assets owned by a company.

Looking at the North America TMS market, ARC said that revenues has bounced back strongly since the end of the recession, with pent-up demand leading to robust growth next year, which will then be declining to historical growth rates. But in Europe, the forecast is less optimistic due to its high potential to return to a recession. ARC expects European TMS revenues to decline for the next two years. ARC also noted that the TMS market is seeing growing demand in Latin America, too.

In an interview with LM, Steve Banker, Ph.D., ARC Service Director for Supply Chain Management explained that the biggest drivers for TMS are the aforementioned pent up demand from the recession and TMS providing a better ROI for new verticals.

“Planning & execution [TMS] outpaces fleet management because fleet is a much more mature market,” he said.  “Maturity probably reflects the fact that if you own trucks and you want to improve productivity, this is one of the best things you can do.  But in P&E it I want to reduce freight spend I have two big choices, outsource or buy TMS.”

While he could not disclose a specific figure for projected TMS growth rates in North America, Banker did say that overall growth is in the double-digit ranges, but the fleet market is not growing at double-digit rates.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
New Supply Chain Technology Best Practices
New breakthrough developments, such as drones and driverless vehicles, seem to be everywhere.
Download Today!
From the October 2017 Logistics Management Magazine Issue
A leading distributor of professional salon products in the U.S. forms unique partnerships with its key LTLs to lower transport costs, reduce its carbon footprint and improve service to its 565 store locations.
Q4 2017 Rail/Intermodal Roundtable: Improvements apparent; work remains
LM Viewpoint: Collaboration, Now more than ever
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
The State of the Rail/Intermodal Markets
In this webinar our panel will discuss the new service challenges facing rail/intermodal providers and offer practical advice for how shippers can keep efficiency high and costs down.
Register Today!
EDITORS' PICKS
SalonCentric: One Beautiful Network
A leading distributor of professional salon products in the U.S. forms unique partnerships with its...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...