IMARC Group’s latest report, titled “Route Optimization Software Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” finds that the global route optimization software market size reached US$ 6.7 Billion in 2021. Route optimization software allows the user to manage and plan delivery routes with the help of working algorithms. It also enables companies to optimize delivery time and enhance customer experience by maximizing completed order delivery. The software includes route navigation, work order management, efficient driving directions, live maps, and delay management. Nowadays, developers and players offer these solutions to mitigate fast and uninterrupted delivery services. Consequently, route optimization software finds applications across a wide range of end-use industries, including retail and FMCG, taxi services, on-demand food delivery, and ride-hailing services.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Route Optimization Software Market Trends:
The market is primarily driven by the rapid expansion of businesses that use cloud-based platforms, solutions, and other services in the logistics industry. Besides this, the route optimization software is an efficient, cost-effective, error-prone, and time-intensive solution that provides an enhanced user experience compared to manual route planning, which is fueling the market growth. In addition, the significant growth of the food and beverage (F&B) industry and the surging adoption of online cab bookings, especially in developing regions, are significantly impacting the market growth. Nowadays, rapid digitization across various industries coupled with the rising smartphone penetration is enabling small and medium-sized enterprises (SMEs) to reply on route optimization software. Furthermore, key players are investing in research and development (R&D) activities to introduce new route optimization software that minimizes fuel costs and saves time. Moreover, the integration of digital technology, historical traffic data, weather conditions, and scenario modeling also helps identify the fastest and most economical route, thus propelling the market growth further. Looking forward, the market value is expected to reach US$ 17.7 Billion by 2027, exhibiting a CAGR of 17.3% during the forecast period (2022-2027).
- Based on the solution, the market has been segmented into software and services.
- On the basis of the deployment type, the market has been classified into cloud-based and on-premises.
- The market has been categorized based on the organization size into small and medium-sized, and large enterprises.
- On the basis of the vertical, the market has been segregated into on-demand food delivery, taxi, homecare and field services, retail and FMCG, and others.
- Region-wise, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.
- The competitive landscape of the market has been examined, with some of the key players being Caliper Corporation, Environmental Systems Research Institute Inc., Geoconcept SAS, Microlise Telematics Private Limited, Omnitracs LLC (Solera Holdings Inc.), Ortec B.V., Paragon (Aptean), PTV Planung Transport Verkehr AG (Porsche SE), Route4me Inc, Routific Solutions Inc, Verizon Communications Inc., and Workwave LLC (IFS AB).
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