Route Optimization Software Market - Forecast(2022 - 2027)

Report Code: ITR 0118 Report Format: PDF + Excel

Route Optimization Software Market Overview

The Global Route Optimization Software Market is estimated to reach $12.6 billion by 2027, growing at a CAGR of 14.2% from 2022 to 2027. Route optimization software plans, schedules and calculates the most efficient vehicle route by saving time and money along with efficiency. Route optimization software is very important when there are multiple stops to make, several client meetings and product deliveries. This software helps in avoiding traffic congestion as it utilizes scenario testing and historical data through which it can predict which route is slowest or busiest. The growing implementation of multiple software in fleet management applications including Field Service Management Software, fleet management software, dispatch software and Trucking Software which include route optimization solutions is driving the market growth. Owing to the better route planning, efficiency, time saving and other business ease it is widely used by the various end users driving the growth of the market. Increased profitability, reduction in wastage of time, improved efficiency by reduction of fuel wastage through better route optimization and surge in growth of transportation and service dispatchers are some of the factors responsible for projecting to propel the significant growth of the market.

Route Optimization Software Market Report Coverage

The report: Route Optimization Software Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the route optimization software market. 

By Component: Software, Services
By Deployment: Cloud, On Premises
By Organization Size: SME, Large Organizations
By Application: Retail and FMCG, Ride Hailing and Taxi, Field Services, Healthcare and Pharmaceutical, Food Delivery, Logistics and Others
By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina and others), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, SK, Australia and Others), and RoW (Middle east and Africa)

Key Takeaways

  • The cost related benefits, real-time tracking through GPS, optimization of distances, delivery without wastage of time along with less fuel consumption are driving the growth of Route Optimization Software Market.
  • Clod-based deployment is dominating the market owing to benefits of real-time tracking through GPS, reduced shipping costs and improved efficiency along with rising internet penetration are fueling the growth of the market.
  • APAC is expected to dominate the global Route Optimization Software Market in the forecast period 2022-2027 owing to the demand for optimized software for better business opportunities, growing vendors and growth in small and medium enterprises.

Route Optimization Software Market, By Organization Size, 2021 (%)

Route Optimization Software Market

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Route Optimization Software Market Segment Analysis - By Deployment

By Deployment the market is segmented into cloud-based deployment and on-premises deployment and hybrid deployment. Cloud-based deployment is witnessing a significant growth in the market at 18.9% through 2027 owing to the reduced shipping costs and improved efficiency. Through the cloud-based deployment distributors have one tool for road planning and another for GPS mobile tracking and third to track idle time, routing and others all connected in a cloud through high-speed internet which makes the delivery of goods and services more efficiently and on time. Cloud-based deployment helps to provide exact data in real time. Furthermore, cloud-based solutions requires less capital expenditure thereby fueling the growth of the market.

Route Optimization Software Market Segment Analysis - By Organization Size

By Organization size Route Optimization Software Market is segmented into Small & Medium enterprises and Large Enterprises. Large Enterprises are dominating the market at 62.3% share in 2021 owing to the surge in adoption of route optimization software tools due to the availability of more resources (software) and planning methods as compared to the small and medium enterprises. One of the end users like logistics service providers has maximized their transportation performances and profitability through route optimization planning and software. The large enterprises are becoming more aware methods that concern taking shipments from one point to another. Large enterprises are using the route optimization software in a more planned manner to fulfill the demands of the customers in a fastest and cost-effective manner. These factors are driving the growth of the market.

Route Optimization Software Market Segment Analysis - By Geography

Global Real Estate Software Market is dominated by APAC region with a market share 36.4% in 2021. APAC is expected to dominate the market owing to the growth in e-commerce, rise in internet penetration, rise in logistics service providers and others. In countries like India, China, Indonesia, Malaysia and other APAC region countries there is growth in internet use and e-commerce services which are giving rise to most of the end user segments who are using route optimization software for better business performance and meet the customers demand. In the country like India, the retail services, logistics service providers are largely contributing towards the counties GDP. Owing to which these sectors are using route optimizing planning methods and software to improve their performance and business. Furthermore, the increase in use of e-commerce has also contributed towards the growth of route optimization software as in most of the developing countries e-commerce is used widely for business purposes. According to the United Nations Industrial Development the global e-commerce use has increased. In 2014 it was 7.40% and in 2020 it grew to 14.60%. These factors are boosting the growth of the market.

Route Optimization Software Market Drivers

Rise in internet penetration globally

There is rise in internet penetration globally have influenced the use of route optimization software, cloud based deployment, on-premises deployment and others widely. Owing to the fast internet various enterprises can use route optimization software which helps them choose correct route efficiently. Real-time delivery of goods and services are all possible owing to the fast internet. According to Data Reportal, internet user worldwide is 4.95 billion among which China has the biggest number of internet users with just over a billion in 2021. The overall number is set to rise to 5.5 billion by 2021 with Asia accounting for over 40% of this number. Owing to these rising internet users there is rise in route optimization software across the globe.

Surge in adoption of route optimization software owing to several benefits

The adoption of route optimization software has enabled not only in the reduction of cost but also fulfilled the constraints and eliminated the penalties due to delay. The installation of route optimization software has led to reduce in overall distribution costs, total time fuel consumption. Furthermore, the enterprises installing route optimization software could handle more customer requests without investing much in vehicle. Owing to the surge in adoption of this software the split orders and external transports can be eliminated. Real-time tracking of the vehicles is also possible through the GPS tracking by using this software. This kind of software can offer routes that are up to 35 percent shorter than what manual planning provides which significantly reduces fuel costs. These factors are driving the growth of the market. 

Route Optimization Software Market Challenges

Multi-route issues, potential security issues:

Some of the route optimization software available that does not require payment is generally deployed by small and medium enterprises and small vendors. This software provides only route facilities from one place to another and not all the places that are multi-route facilities. These route planners are not always secure to use as they are based on open-source code. Furthermore, these route planners do not have ease of installation. These route planners are offering very less functionality hindering growth of the market.

Route Optimization Software Market Landscape

 Launches, acquisitions, and R&D activities are key strategies adopted by players in the Route Optimization Software Market are given in this report Route Optimization Software Market is dominated by major companies such as

  1. Evreka
  2. Onfleet Software Company
  3. Best Mile Sarl Software Company
  4. Arundo Analytics, Inc
  5. Paragon Software
  6. ALK Technologies
  7. PTV Planung Transport Verkehr AG
  8. Fleet Up, Inc.
  9. Routeware, Inc
  10. Omnitracs

Recent Developments

  • In January 2022, Rubicon Acquired CIVIX, a Routing Software and Solutions Company. The acquisition expands and enhances the routing capabilities of Rubicon’s flagship software products for municipal and private fleets
  • In January 2022, Deutsche Post DHL Group has announced the divestment of Greenplan GmbH, a DHL owned route planning solution provider, to current management team through a management buyout (MBO).

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1. Route Optimization Software Market- Market Overview
    1.1 Definitions and Scope
2. Route Optimization Software Market- Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends by end users
    2.3 Key trends segmented by geography
3. Route Optimization Software Market–Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product Benchmarking
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 10 companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis
4. Route Optimization Software Market– Industry Market Entry Scenario Premium Premium (Premium)
    4.1 Regulatory Framework Overview
    4.2 New Business and Ease of Doing business index
    4.3 Case studies of successful ventures
    4.4 Customer Analysis – Top 10 companies
5. Route Optimization Software Market – Startup Company Scenario (Premium)
    5.1 Investment Analysis
    5.2 Venture Capital Funding Scenario
6. Route Optimization Software Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Route Optimization Software Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle
    7.4 Suppliers and Distributors
9. Route Optimization Software Market- By Component
    9.1 Software
    9.2 Services
        9.2.1 Deployment & Integration
        9.2.2 Support & Maintenance
        9.2.3 Training & Consulting
10. Route Optimization Software Market- By Deployment Model
    10.1 Cloud
    10.2 On Premise
11. Route Optimization Software Market- By Organization Size
    11.1 SME
    11.2 Large Enterprises
13. Route Optimization Software Market- By Application
    13.1 Retail and FMCG
    13.2 Healthcare and Pharmaceutical
    13.3 Ride Hailing and Taxi Services
    13.4 Field Services
    13.5 Food Delivery
    13.6 Logistics
    13.7 Others
15. Route Optimization Software Market - By Geography (Market Size -$Million/Billion)
    15.1 North America
        15.1.1 U.S
        15.1.2 Canada
        15.1.3 Mexico
    15.2 Europe
        15.2.1 U.K
        15.2.2 Germany
        15.2.3 Italy
        15.2.4 France
        15.2.5 Spain
        15.2.6 Others
    15.3 APAC
        15.3.1 China
        15.3.2 Japan
        15.3.3 South Korea
        15.3.4 India
        15.3.5 Australia
        15.3.6 Others
    15.4 South America
        15.4.1 Brazil
        15.4.2 Argentina
        15.4.3 Others
    15.5 RoW
        15.5.1 Middle East
        15.5.2 Africa
16. Route Optimization Software Market- Entropy
17. Route Optimization Software Market- Industry Competition Landscape (Premium)
    17.1 Global Market Share
    17.2 Market Share by Region
    17.3 Market Share by Type
    17.4 Market Share by End Users
18. Route Optimization Software Market- Key Company List by Country Premium Premium (Premium)
19. Route Optimization Software Market Company Analysis
 19.1 Company 1
 19.2 Company 2
 19.3 Company 3
 19.4 Company 4
 19.5 Company 5
 19.6 Company 6
 19.7 Company 7
 19.8 Company 8
 19.9 Company 9
 19.10 Company 10