Route Optimization Software Market Statistics: 2030
The global route optimization software market size was valued at $4,325.40 million in 2020, and is projected to reach $16,252.04 million by 2030, growing at a CAGR of 14.2% from 2021 to 2030.
With surge in adoption of online cab bookings in several developing and developed regions, the market for route optimization software is expected to witness significant growth in future. Sharing-based cab services demand efficient route planning for on-time passenger pick-up and arrival at the destination point. In addition, increase in road traffic compelled efficient route optimization to save fuel consumption, which, in turn, is expected to fuel the market growth.
Furthermore, need for operational competency in route optimization and focus on cloud deployment models are the major driving factors in the market. However, lack of IT infrastructure in the developing countries such as Egypt, Nigeria, and Chile is hampering growth of the market. On the contrary, growth in Internet of Things (IoT) and rise in adoption of web-based services & advanced communication technologies provide immense growth opportunities for route optimization software market.
Route optimization software provides end-to-end route planning and optimization solutions, including route navigation, work order management, efficient driving directions, live map, and delay management. The global route optimization software market is expected to witness significant growth, owing to surge in information and computer technology (ICT) expenditure by enterprises for optimized product and service deliveries in various developed and developing countries, in Asia-Pacific & LAMEA. The reports highlights trends in several industry vertical, including on-demand food delivery, taxi, homecare & field services, retail & fast moving consumer goods (FMCG), and others that includes solid waste collection, vehicles, and airlines industries.
The report focuses on growth prospects, restraints, and trends of the route optimization software market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the market.
The route optimization software market is segmented on the basis of solution, deployment type, enterprise size, industry vertical, and region. On the basis of solution, the market is bifurcated into software and services. Depending on deployment type, it is divided into on-premise and cloud. According to enterprise size, it is categorized into the large enterprises and small & medium-sized enterprises. As per the industry vertical, it is classified into retail & FMCG, on-demand food delivery, taxi, homecare & field services, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On-premise segment acquired the major share of route optimization software market. Installed route optimization software is stored on the company servers. The buyer purchases a license and after the procurement, the software is owned by the buyer company. Initial cost and maintenance charges are higher for this setup; however, the software is managed internally by the company with the help of location analytics.
North America accounted for the major share of route optimization software market. Vendors in this market have developed innovative location analytics route optimization software solutions to cater various operational and development demands among several industries such as taxi service providers, food chain, FMCG, and others. Asia-Pacific is expected to exhibit significant growth during the forecast period. Industry participants have realized the importance of effective management of connected devices in the supply chain network and optimized route planning of goods in transit. High demand for route optimization software solutions and growth in the online transportation industry, including enterprises such as ANI Technologies Pvt. Ltd., Uber India Technology, Kiwitaxi, and others, are expected to drive the market growth in this region.
The report analyzes the profiles of key players operating in the market such as FLS- Fastleansmart, Geoconcept, MiTSystems, Optimoroute, Inc., ORTEC, Paragon Software Systems, PLC., Prism Visual Software, Inc., Route4Me, Inc., ROUTIFIC, and Wise Systems, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the route optimization software market.
Top impacting factors
Need for Operational Competency in Route Management
Efficient route management requires optimized operation management system, which can perform all processes without error. Few activities that are crucial in route optimization include vehicle and driver tracking, delivery planning, two-way communication, driver safety & time management, and customer-relationship management with on-time delivery. In recent years, several industry participants such as Paragon Software Systems, PLC., Prism Visual Software, Inc., Route4Me, Inc., ROUTIFIC, and Wise Systems, Inc. offer optimized route management solutions to various small, medium, and large enterprises.
Surge in Demand for Online Cab Booking
The market for route optimization software is expected to witness significant growth in the coming years with surge in adoption of online cab bookings in several developing and developed countries. Moreover, sharing-based cab services demand efficient route planning for on-time passenger pick-up and arrival at the destination point. In addition, increase in level of road traffic compelled efficient route optimization to save fuel consumption, which, in turn, is expected to fuel the market growth.
Growth in Internet of Things (IoT)
Over the past few years, IoT is a key trend in the digital market. Rise in adoption of web-based services and advanced communication technology provide immense growth opportunities for route optimization software market. Major technologies used in the market include telematics, global positioning system tracking system, and machine 2 machine communication. In addition, increase in internet penetration and growth in smart devices adoption fuel route optimization software market growth.
COVID-19 Impact Analysis
The COVID-19 outbreak impacted the life & businesses of all the individuals across the globe. Companies providing delivery services face several challenges during the ongoing COVID-19 pandemic. Increased online grocery shopping, due to the lockdown restrictions. This led to a sudden rise in demand for grocery deliveries, which led to a major challenge for e-commerce and online retail & grocery companies to deliver groceries on time. These factors, as a result promoted the route optimization software industry during the pandemic situation,
Key Benefits for Stakeholders
- The study provides in-depth analysis of the global route optimization software market share along with current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global route optimization software market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the route optimization software market forecast.
- An extensive analysis of the key segments of the industry helps to understand the global route optimization software market trends.
- The quantitative analysis of the global route optimization software market size from 2021 to 2030 is provided to determine the market potential.
Route Optimization Software Market Report Highlights
| Aspects | Details |
 By Solution |
|
 By Deployment Mode |
|
 By Enterprise Size |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | ortec, Paragon Software Systems, PLC., wise systems, inc., OptimoRoute Inc., Routific, GeoConcept SA, MiTSystems, FLS-FASTLEANSMART, Route4Me, Inc., Prism Visual Software, Inc. |
Analyst Review
The cloud deployment mode in the route optimization software market has higher potential for growth in future. At present, large enterprises are primary revenue contributor, owing to growth in adoption of optimized route allocation software for vehicle management and efficient rescheduling of logistic channels. However, with low cost cloud deployment model, small and medium enterprises are anticipated to provide growth opportunities for route optimization software in future.
The market is consolidated by the presence of middle-sized route optimization software solution providers, who account for a significant share in the market. The market is expected to be highly competitive for the key players with high growth rate and low supply–demand gap. The growth in adoption of route optimization software solutions is anticipated to fuel market growth for several industry vertical in technology-centric regions, including North America, Europe, and Asia-Pacific. In addition, growth in adoption of connected devices and surge in demand for cost-effective cloud deployment are expected to accelerate the growth. Some of the key players profiled in report include FLS- Fastleansmart, Geoconcept, MiTSystems, Optimoroute, Inc., ORTEC, Paragon Software Systems, PLC., Prism Visual Software, Inc., Route4Me, Inc., ROUTIFIC, and Wise Systems, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Companies are increasing using route optimization to improve route planning, delivery time, and enhance customer experience by increasing completed order delivery. This, as a result becoming one of the major trends in the market.
The software segment dominated the route optimization software market during the forecast period. This is attributed to the software offered by key vendors include various features such as multi-drop routing, live tracking, and workload balancing.
Region wise, North America dominated the global route optimization software market in 2021, and is expected to maintain this trend throughout the forecast period.
The global route optimization software market was valued at $4.32 billion in 2021, and is projected to reach $16.25 billion by 2030, growing at a CAGR of 14.2% from 2021 to 2030.
Geoconcept, Route4Me, Inc., and Wise Systems, Inc. are the top companies to hold the market share in route optimization software market.
Loading Table Of Content...
