• 出版社/出版日：Mordor Intelligence / 2021年2月20日
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The route optimization software market is expected to witness a growth at a CAGR of 10.9% over the forecast period (2021 – 2026). Several industries, such as food and beverages, retail and e-commerce, logistics, and many more, are increasingly transforming their business processes to provide delivery services, including on-demand food delivery, retail and grocery delivery services, and e-commerce delivery. Such developments act as a significant catalyst for the increase in demand for route optimization software.
– Route optimization enables the companies to optimize route planning, delivery time, and enhance customer experience by maximizing completed order delivery. Automating route optimization by adopting route optimization software integrates real-time data and visibility in route planning, improvises, and enhances their fleet management strategies. It primarily helps in optimizing the vehicle routing and route progress tracking in real-time. It also helps in reducing fuel costs by providing the most optimized route.
– Businesses across the world are increasingly adopting smart transportation strategies to enhance their delivery service. This has led to a substantial rise in the adoption of commercial fleets. According to the Automotive Fleet data, in the United States, sales of vehicles to commercial fleets witnessed an increase of 17% to 69,726 in September 2019, compared to the previous year. Hence, the adoption of route optimization software is expected to rise.
– The e-commerce industry is booming, which has heightened customer expectations and has also substantially increased website traffic. Such trends and factors challenge the fleets to reorganize their fleet management strategies by adopting route optimization technology, which may enable them to deliver new levels of efficiency, agility, and speed.
– For instance, According to a global survey conducted by Verizon, in 2019, among the surveyed fleet managers, more than one-third of fleet managers who do not use route optimization solutions believed that they would expect an increase in productivity implemented the technology. The survey also indicates that over 53% of companies that make use of route optimization software reported actual productivity increases – with most of the respondents reporting positive growth in productivity (53% respondents) and compliance (52% respondents).
– Further, the logistics industry is aiming to become more efficient and sustainable, and it is increasingly facing the challenge of tackling the complex task of efficient route planning. Hence, the logistics companies aim to adopt precise and reliable route optimization software solutions that can be integrated into the existing systems. Moreover, the market is witnessing the emergence of several startups globally, which is expected to expand the market’s reach to varied end-user industries.
– Moreover, Companies across industries providing delivery services face several challenges during the crisis faced due to the ongoing COVID-19 pandemic. Several companies are formulating mitigation strategies to ensure uninterrupted and fast delivery services. For instance, due to the lockdown restrictions, a sudden surge of online grocery shopping was witnessed. This led to a sudden rise in the demand for grocery deliveries, which led to a major challenge for e-commerce and online retail and grocery companies to deliver groceries on time. Hence, route optimization software is expected to grow during the crisis.
Key Market Trends
Growing Focus on Reducing Environmental Impact and Increasing Productivity of Fleet is Expected to the Market Growth
– Nike Inc. mentioned that logistics are also the main contributor to carbon emissions, apart from raw material and manufacturing. Logistics is estimated to contribute over 10% of the total carbon emission by the company. The company has been focusing on reducing 30% CO2 emission through logistics by the end of 2020.
– Spelthorne Borough Council, England, mentioned adopting route optimization software for its kerbside collection services. With this implementation, the department was able to achieve a reduction in CO2 emission by up to 30% and driving time. Also, the company claimed that it increased the fleet’s productivity and was able to reduce its fleet size by over 15% and support future fleet planning.
– DHL, one of the largest courier and logistic companies operating in over 220 countries and territories, mentioned using route optimization software as its last-mile B2C delivery product and orchestrate key last-mile processes. With this implementation, the company achieved a 15% increase in the productivity of delivery agents, reduced operational costs & increase profitability.
North America is Expected to Hold Largest Market Share
– North America is expected to dominate the market as there is a considerably high penetration of vendors offering route optimization software solutions. In 2019, it was estimated that over 35% of the companies that deployed “Asset Management” solutions in the region had installed essential GPS location tracking equipment. More than 44% of such users have customized asset tracking systems, especially for route management and optimization.
– Furthermore, in the case of the United States, there is a significant increase in demand for route optimization solutions, as interoperability regulations (especially for international and joint operations) are evolving. In 2019, NATO’s standardization office via the AST WG announced that it is working to produce asset tracking standardization agreements and a business process model.
– Several regional delivery services companies are also collaborating with route optimization software providers to enhance their delivery planning and optimize their supply chain management. For instance, UPS increased its On-Road Integrated Optimization and Navigation (ORION) platform with Dynamic Optimization, which is expected to automate and analyze individual package delivery routes throughout the day, as traffic conditions, pickup commitments, and delivery orders change.
– For instance, In October 2019, LiteLink Technologies Inc. launched PerfectRoute, a delivery route planning and fleet optimization solution for all types of vehicles designed for last-mile delivery, powered by the 1SHIFT Logistics platform. The route optimization solution is expected to be provided to enterprise customers via LiteLink’s flagship 1SHIFT platform. Such initiatives by various solution providers and delivery service providers are expected to boost route optimization software in the region during the forecast period.
Route Optimization Software Market is despite been moderately fragmented has increasing growth opportunities. The market has been witnessing continuous new entrants offering similar route optimization software solutions. Due to these new entrants, companies are focusing on making product innovations to gain on competitive advantage. Also, the companies are viewing fundraising as a lucrative path to expand their market presence.
– May 2020 – DispatchTrack, a provider of SaaS-based last-mile logistics Route Optimization solution, announced to raise over USD 144 million from Spectrum Equity. With this funding, the company plans to transform the last mile deliveries for more businesses across categories and around the world.
– May 2020 – Dynamic Route Optimization – Route4Me announced to provide its last-mile route optimization platform to support its fight against Covid-19 in The Red Cross of Rome, Italy.
– February 2020: OptimoRoute, the route planner tech startup founded by former Yelp and Google engineers, announced that it had raised a USD 6.5 million funding, to expand its reach and further develop its offerings for a multitude of mobile workforces.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness – Porter’s Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment on the Impact of COVID-19 on the market
4.5 Market Drivers
4.5.1 Increasing Use of Logistics-Specific Solutions
4.5.2 Declining Hardware and Connectivity Costs
4.6 Market Restraints
4.6.1 Handling Structured and Unstructured Data
5 MARKET SEGMENTATION
5.1 By End-user Vertical
5.1.1 On-Demand Food Delivery
5.1.2 Retail and FMCG
5.1.3 Field Services
5.1.4 Ride Hailing & Taxi Services
5.1.5 Other End-user Verticals
5.2 By Size of the Organization
5.2.1 Small and Medium Enterprise
5.2.2 Large Enterprises
5.3 By Deployment Mode
5.4.1 North America
5.4.4 Latin America
5.4.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Trimble, Inc.
6.1.2 Caliper Corporation
6.1.3 Descartes Systems Group Inc
6.1.4 ESRI Global Inc,
6.1.5 Google LLC (Alphabet Inc.)
6.1.6 Llamasoft Inc.
6.1.7 Microlise Group Limited
6.1.8 Omnitracs LLC
6.1.9 Ortec BV
6.1.10 Paragon Software Systems PLC
6.1.11 PTV Planung Transport Verkehr AG
6.1.12 Route4me LLC
6.1.13 Routific Inc.
6.1.14 Verizon Connect Solutions Inc.
6.1.15 WorkWave LLC
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET