Route Optimization Software Market Expected to Reach $16.3 Billion by 2030

According to a new report published by Allied Market Research, titled, “Route Optimization Software Market size was valued at $4,325.40 million in 2020, and is estimated to reach $16.3 Billion by 2030, growing at a CAGR of 14.2% from 2021 to 2030.

Companies use route optimization to improve route planning, delivery time, and enhance customer experience by increasing completed order delivery. Automating route optimization by adopting route optimization software location analytics which integrates real-time data and visibility in route planning, which improves and enhances fleet management strategies. It primarily helps in optimizing the vehicle routing and route progress tracking in real time. In addition, it helps in reducing fuel cost by providing the most optimized route.

Businesses across the globe use smart transportation strategies to enhance their delivery services. This has led to a substantial rise in the adoption of commercial fleets. According to the Automotive Fleet data, in the U.S., in September 2019, vehicles  sales to commercial fleets witnessed an increase of 17% -up to 69,726 compared to the previous year. Hence, the adoption of route optimization software is expected to rise. Furthermore, Dalsey, Hillblom and Lynn (DHL), one of the largest courier and logistic companies operating in over 220 countries and territories, reported using route optimization software as its last-mile B2C delivery product and orchestrate key last-mile processes. The company achieved a 15% increase in the productivity of delivery agents, reduced operational costs & increase profitability with this implementation. Moreover, according to a global survey conducted by Verizon, in 2019, among the surveyed fleet managers, more than one-third fleet managers who do not use route optimization solutions believed that they would expect an increase in productivity if  technology is implemented. The survey  indicates that over 53% of companies that use route optimization software reported actual productivity increase with most of the respondents reporting positive growth in productivity (53% respondents) and compliance (52% respondents).

On the basis of solution, the software segment dominated the route optimization software industry during the forecast period. This is attributed to the software offered by key vendors include various features such as multi-drop routing, live tracking, location analytics, and workload balancing. Presently, route optimization solution providers have promoted the adoption of solutions across various regions including North America, Europe, Asia-Pacific, Middle East, and Latin America, which, in turn, is expected to fuel the market growth.    

Region wise, North America dominated the global route optimization software industry in 2021, and is expected to maintain this trend throughout the forecast period, owing to vendors who have developed innovative route optimization software solutions to cater various operational and developmental demands among several industries, including  taxi service providers, food chain, and FMCG.

Key Findings of the Study

• Depending on solution, the software segment led the route optimization software market in terms of revenue in 2020.
• By deployment mode, the on-premise segment accounted for the highest route optimization software market share in 2020.
• According to enterprise size, the large enterprises accounted for the highest share in optimization software market analysis.
• As per the industry vertical, the retail & FMCG segment accounted for the highest growth in the route optimization software market in 2020.
• Region wise, North America generated the highest revenue in route optimization software market forecast.