The transportation management systems (TMS) market is expected to report continued growth in the next five years, fueled by increasing interest among third-party logistics providers, and the growing need for companies to gain visibility into logistics costs. According to a recent report from ARC Advisory Group in Dedham, Mass., the TMS market grew to $989 million in 2005 and will hit $1.3 billion by 2010, fueled increasingly by demand from logistics service providers and third-party logistics providers (3PLs). TMS sales to logistics companies grew 11% in 2005, far outpacing sales growth to manufacturers and retailers.
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