Austin, Oct. 11, 2024 (GLOBE NEWSWIRE) -- The Route Optimization Software Market was valued at USD 7.01 Billion in 2023 and is projected to reach USD 23.50 Billion by 2032, growing at a compound annual growth rate (CAGR) of 14.41% from 2024 to 2032.
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Demand and Incentives Boost Route Optimization Software Growth
The rising demand for efficiency and cost savings in logistics fuels the route optimization software market. Some 77.77 percent of users of this kind of software plan routes daily and a ten-driver's average monthly subscription comes at $684.62. Real-time optimization, accounting for traffic weather and road conditions, ensures the shortest delivery times and reduced costs in operations. Innovations like NVIDIA's cuOpt enable AT&T to optimize routes for over 30,000 technicians that come to the solution 100 times faster with real-time dispatch updates. Meanwhile, the number one reason that users cite as a driving benefit from Truck Stops is being able to plan multiple routes for different tasks: 80.7% of users cited that as their main driver of benefit.
Government incentives are the main growth promoters in the market as ITSs are promoted to enhance the mitigation of urban congestion and emissions. In addition, rigorous policies or initiatives, such as California's Continuous Testing Program, would lead to higher adaptation of route optimization solutions. The sectors of Consumer & Field Services and Supply Chain & Logistics would hold 65.37% of usage. A combination of route optimization software with other solutions such as IoT and self-driving technologies would improve efficiency and security and has good growth prospects within the market.
E-Commerce Growth Drives Demand for Advanced Route Optimization Solutions
The USD 5.8 trillion in retail sales in 2023 is estimated by an emerging global e-commerce market that requires major route optimization solutions. As e-commerce is scaled up, logistics and last-mile delivery companies all the more seek route optimization software to enhance operational efficiency. Optimized routes ensure timely deliveries and operate at lower operational costs by better fuel efficiency, vehicle utilization, and fastened services. With the sheer growth in the online shopping industry, delivery service competition is intensified and route optimization becomes a critical factor for customer satisfaction. Such growth will provide massive opportunities for software companies as companies look at advanced solutions to operate with minimal complexity while meeting the ever-growing demands of consumers. Route optimization increasingly amalgamated into new technologies like AI and IoT, is likely to fuel further demand in this market through resultant advancements.
Route Optimization Software Market Report Scope:
| Report Attributes | Details |
| Market Size in 2023 | US$ 7.01 Billion |
| Market Size by 2032 | US$ 23.50 Billion |
| CAGR | CAGR of 14.41 % From 2024 to 2032 |
| Key Segments | • By Solution (Software, Services (Consulting, Map Integration & Software Deployment, Support & Maintenance)) • By Deployment (On premise, Cloud) • BY Enterprise Size (Large Enterprises, Small & Medium Size) • By Industry Vertical (Retail & FMCG, On-Demand Food & Grocery Delivery, Ride Hailing & Taxi Services, Homecare & Field Services, Logistics & Transportation, Others) • By Functionality (Out Bound, In Bound) |
| Major Companies | Verizon Connect, Omnitracs, Trimble Inc., Paragon Software Systems, ORTEC, Descartes Systems Group, MercuryGate, Samsara, WorkWave, Route4Me, PTV Group, Geotab, Routific, Informatica Oracle Corporation, Manhattan Associates, SAP SE, LogiNext, Llamasoft, OptimoRoute and other players. |
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Fuel Efficiency and Cost Reduction: The Impact of Route Optimization in Supply Chain Management
Companies focus more on optimizing routes to cut down on fuel usage, labor costs, and also the wear and tear of vehicles. One of the biggest challenges is fuel price volatility; it is directly related to transportation operational costs. Route optimization software meets this by helping organizations plan fuel-efficient routes with considerations of real-time traffic, weather, and road restrictions. This lack of unnecessary mileage has cut the expense of fuel significantly, thereby supporting sustainability plans. For example, recently, the company launched the ORTEC Manufacturing Solution Suite to drive successful client business process changes product family specifically designed to meet the unique operational challenges of the manufacturing and logistics industries, thereby optimizing supply chain efficiency and cost savings.
SMBs Lead Route Optimization Software Adoption, Outpacing Large Enterprises
With more small-to-medium-sized businesses as customers, SMBs invest 4.3 times the amount the big ones spend, which in turn constitutes 72.25% of the whole number of users. Small businesses (1-50 employees) account for 52.14% while medium companies with 51-200 employees reach 18.68%. Such a trend speaks to how more and more SMBs are beginning to understand the importance of route optimization in efficiency and savings. For example, large enterprises with a 16.80% user share may already have developed systems in place and would not take to adoption easily. The SMB segment is, however, relatively well-positioned for steady growth going forward, driven by a growing demand for efficient solutions for logistics.
North America Leads the Route Optimization Market in 2023, While Asia Pacific is Poised for Rapid Growth through 2032
In 2023, North America dominated the Route Optimization Software Market with a significant share of 29.15%. Its dominance is well seen in terms of logistics infrastructure and superior technological setup. Early adoption of route optimization solutions within various sectors such as e-commerce, manufacturing, and retail has also led North America to its dominant position in the market.
On the other hand, Asia Pacific is expected to grow at the fastest pace in the forecast period of 2024 to 2032 with a compound annual growth rate (CAGR) of 16.4%. This is due to the high growth rate of the e-commerce sector along with heavy investments in logistic infrastructures in both China and India, thereby increasing the demand for route optimization solutions. Apart from that, the rising digital transformation and increasing need for real-time tracking of shipment in time along with better logistical management are some of the most driving factors for growth in this region
Key Developments in Route Optimization Software
- August 2024: Verizon Connect Strengthens Its Fleet Management Solutions with Vehicle Emissions Management Technologies. The new technologies will be designed with onboard equipment that fleet operators need to work effectively in the management of emissions, thereby sustaining environmental compliance as well as reducing time lost to downtime.
- August 2024 - Körber Supply Chain Software: The direct result of the partnership between Körber AG and KKR, a leading global end-to-end supply chain software, completed its acquisition deal with MercuryGate International Inc., widely recognized as one of the leaders in the provision of transportation management systems.
- April 2024-April 2023: Trimble Inc. completed its acquisition of Transporeon, a leading provider of cloud-based transportation management services, last April of the preceding year. The acquisition has allowed Trimble to obtain new customers through its expanded range of innovative products and services.
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BENEFITS:
1. No. Of Pages: 350 Pages Report
2. Regions/Countries:
- North America (3 Countries)
- Europe (~15 Countries)
- Asia Pacific (~10 Countries)
- Latin America (~5 Countries)
- Middle East & Africa (~5 Countries) (Include Israel)
3. ME Sheet: Market Estimation in Excel Format
4. Company Analysis:
- Major 16 companies covered in final report.
- Additional 5 companies will be covered as per client demand complimentary.
5. Statistical Insights and Trends Reporting:
- Vehicle Production and Sales Volumes, 2020-2032, by Region
- Emission Standards Compliance, by Region
- Vehicle Technology Adoption, by Region
- Consumer Preferences, by Region
6. Buying Options
- Single User License: USD 3350
- Enterprise User License: USD 5350
- Excel Data Sheet: USD 2350
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