The global shipping software market was valued at USD 1.163 billion in 2017. The shipping software is a single integrated platform that helps organization in shipment tracking, planning, coordinating and routing on a real-time basis in the complex supply chain management. Traditionally, supply chains were being managed through manual data entry and phone calls, creating huge amounts of paper data leading to inefficiency.
The global Shipping Software market size is expected to reach close to US $ 16.7 Bn by 2029 with an annualized growth rate of 8.1% through the projected period.
Hence, moving from the traditional systems to more efficient automated shipping software systems was a lucrative solution. Thus, major companies in the shipping industry adopted shipping software driving the growth of the global shipping software market.
Multiple rules and regulation of different organization such as terminals, customs, forwarders, and carriers were making old systems complex to use. On the other side shipping software is capable of handling all of the rules & regulations and accordingly create a shipment have thus surged in demand in the global shipping software market. Further, the explosive growth of the e-commerce industry across the major economies have led to increased volume of shipments making it a difficult to handle with the traditional systems. Hence major players in the shipments and e-commerce have adopted to shipping software driving the growth of the global shipping software market.
Shipping Software Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2032||US $ 16.7 Bn|
|Growth Rate||CAGR of 8.1 % during 2022-2032|
|Segment Covered||by Type, by Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Pitney Bowes, Metapack, Temando, Stamps.com, WiseTech Global, ProShip, Logistyx Technologies, ADSI, Malvern Systems|
Key Segments of the Global Shipping Software Market
Deployment Overview, 2015-2025 (USD Billion)
- Cloud Based
Application Overview, 2015-2025 (USD Billion)
- Air and Ocean forwarding
- Contract Logistics
- Land, In-house/Other
Regional Overview, 2015-2025 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of APAC
- Latin America
- Rest of Latin America
- Middle East and Africa
- Saudi Arabia
- Rest of Middle East and Africa
Frequently Asked Questions (FAQ) :
What is the expected CAGR in terms of revenue for the shipping software market over the forecast period?
Latest trend in the shipping software market is increased demand for integrated shipping software solutions. End users of this product choose vendors that offer converged and integrated software suites as adopting varied software may create integration issues. Integrated software suites and products from the same vendor offers better support for other functions and integration ability. Growing complexity of network infrastructure has made integration a crucial purchasing criterion. Therefore, integrated solutions are more preferable. This has drove vendors to offer software suites with holistic features like ERP, warehouse management, order management, logistics management and accounting. Integrated solutions automates back-end business, front office and in-field courier processes, which is inclusive of accounts receivable, account information, real-time delivery tracking and online customer order entry. Furthermore, vendors are emphasizing on providing SaaS-based software which is compatible with other applications which includes marketing technologies.
Another trend followed in this industry is of using shipping software mobile apps as these apps provides the flexibility to access supplier and customer information on a real-time basis. With help of these apps, companies are able to reduce redundant data entry on physical inventory checks, delivery receipts and retail evaluations. These apps help in tracking inbound and outbound shipments related with carrier accounts and enhance customer services. Additionally, these apps offer real-time information on delivery confirmation as well as package location which reduces labor cost as well as increases customer satisfaction. Access to the sales information within real-time environment surges user efficiency and shorter cycles coupled with greater customer experience.
By, deployment type the global shipping software is segmented into on-premise and cloud-based. The cloud-based deployment was the largest segment accounting to 70% share in 2017. Supply chain 4.0, an industry initiative is projected to boom during the forecast period. One of the aim of the initiatives is to bring digitization, thus shipments will be tracked on real-time through RF ids, sensors and internet of things devices. This coupled with new features of software such as artificial intelligence and big data analytics are expected to leverage on the cloud services as they are more convenient, offer more customization and offers more secure data storage compared to the on premise-based deployment. Hence, this is anticipated to boost the demand for cloud-based software in the global shipping software market.
On the basis of application, the global shipping software is bifurcated in CEP, Contract Logistics, Air and Ocean forwarding and Land, In-house/Other. The land, in house and others was the largest segment valued at USD 624 million in 2017. The booming E-commerce has raised the volume of shipments within the region/ land deliveries exponentially over the last few years. Thus, local hubs and warehouses are now adopting to software to manage supply chain driving the growth of the segment in the global shipping software market. Further, E-commerce companies such as Amazon are setting up in-house systems. For instance, Global Supply Chain by Amazon, the in house system is expected to revolutionize the entire international supply chain to eliminate the time wasted in document handling and freight booking. These type of in-house software are driving the growth of the segment in the global shipping software market during the forecast period.
North America was the largest market in the global shipping software market valued at USD 390 million in 2017. The region grew as lot of developments and up-gradation in shipping software by the software providers has taken place in the region. Further, the booming E-commerce industry in the region led to increased software adoption driving the growth of the region in the global shipping software market.
Players in the global shipping software are Interruptive, Inc., ProShip, Temando Pty Ltd, Agile Network, LLC, Malvern Systems, MetaPack Official, WiseTech Global, Endicia, Pantechnik Systems Ltd., iInterchange Systems, Ordoro, Consignor Group, ProcessWeaver Shipping Solutions, Pitney Bowes Inc., Stamps.com and Softship. The players are projected to focus on launching the latest version of their software to fortify the market position in the global shipping software market.