Transportation Management System Market Outlook:
Transportation Management System Market size was valued at USD 16.8 billion in 2025 and is projected to reach USD 48.8 billion by the end of 2035, rising at a CAGR of 11.2% during the forecast period, from 2026 to 2035. In 2026, the industry size of transportation management system is estimated at USD18.7 billion.
The transportation management system market is anticipated to witness an upward trend, primarily attributed to the rapid growth and modernization in the transportation infrastructure, encouraged by massive government expenditure and policy intervention. For example, government investments in the logistics corridors, ports, railways, and overall infrastructure development have been gaining momentum, with the Indian infrastructure and logistics development budget currently being reported at 91.38 billion in fiscal year 2023 alone. Such projects as dedicated freight corridors and multi-modal connectivity zones, which aim to minimize logistics prices and intensify efficient transferring of goods, are enforced by this budget. The share of transportation within GDP in India has increased to 9.3% in FY13 as compared to 6.8% in FY01, and employment in the sector increased to 4.2% in FY10, which means a high demand and resilience of the sector.
The supply of materials and their production growth are closely connected with the analysis of regional and international trade conditions, in which the lines of assembly are becoming more dependent on agile transport systems and digital management systems. Producer Price Index (PPI) transportation-related output data has been steadily increasing, and the Producer Price Index (PPI) of Warehousing Services (General Warehousing and Storage) came in at 175.245 in July 2025 (Index Jun 1993=100), which has shown a marginal change every month in warehousing services prices. The PPI for Transportation Services in July 2025 exhibited both upward and downward trends relative to July 2024: the cost of providing Air transportation services rose by 3.6%, rail by 1.4%, respectively, and the costs of providing Freight and cargo arrangement services rose by 1.1%. Meanwhile, the Consumer Price Index (CPI) on Transportation Services and Goods indicated a stable change of 0.0% in the period between July 2024 and 2025, while transportation contributed 1.0% to the increase of 2.7% per the CPI in all goods and services prices. Reshoring and nearshoring trends, coupled with persistent investments in research, development, and deployment of TMS and related logistics technologies, underpin current expansion in manufacturing and assembly capabilities and further bolster production capacity and support transportation management system market growth.
