Route Optimization Software Market - Forecast(2023 - 2028)
Route Optimization Software Market Overview
The 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.
- 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 (%)
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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
- Onfleet Software Company
- Best Mile Sarl Software Company
- Arundo Analytics, Inc
- Paragon Software
- ALK Technologies
- PTV Planung Transport Verkehr AG
- Fleet Up, Inc.
- Routeware, Inc
- 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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