Route Optimization Software Market Expected to Reach USD 13.4 Billion by 2030

NEW YORK - Nov. 14, 2024 - PRLog -- The global route optimization software market is forecast to expand from USD 5,773.8 million in 2024 to USD 13,359.1 million by 2030, achieving a CAGR of 15.0%. Key growth drivers include rapid population growth, rising logistics demands, complex infrastructure, and technological progress. This software enhances efficiency by utilizing mapping engines, optimization algorithms, constraint management, and integration capabilities, addressing transportation issues like congestion, which are exacerbated by urbanization. With over half of the global population now living in cities, the strain on transport systems is increasing.

Advances in AI and machine learning (ML) are enhancing the software's functionality, allowing for real-time route adjustments, precise travel predictions, and better vehicle management. Google's Cloud Fleet Routing API exemplifies these improvements by delivering scalable routing solutions compatible with Google's ecosystem.

The rise in online shopping, with 2.3 billion users globally in 2022, emphasizes the need for efficient logistics. Route optimization software addresses the complexities of modern supply chains, helping businesses cut costs, optimize fuel use, and improve resource utilization.

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Key Insights:

• Deployment Trends: On-premises solutions, with a 65% market share in 2024, are popular among large enterprises for enhanced control, customization, and security. Cloud-based deployment, however, is expanding at 15.5% CAGR due to its affordability and easy upgrade options.
• Logistics Breakdown: Outbound logistics dominates with a 60% share in 2024, fueled by the e-commerce boom and demand for instant deliveries. Inbound logistics is also rising, with a projected CAGR of 15.3% through 2030, driven by global trade and technological advancements.
• Delivery Demand: On-demand food and grocery delivery are expected to be leading categories in 2024, propelled by population growth and a preference for quick deliveries. With the world population predicted to reach 8.5 billion by 2030, on-demand solutions are set to increase.
• Regional Insights: North America leads with a 45% revenue share in 2024, supported by advanced infrastructure and major tech players. APAC is set to expand rapidly, with a CAGR of 15.7%, driven by population growth, infrastructure investments, and a booming e-commerce sector. China and India's burgeoning e-commerce markets are expected to be key drivers.
• Market Trends: Cloud-based solutions are favored for lower costs and easier integration, while on-premises options appeal for their control. Global e-commerce users are expected to rise to 4.5 billion by 2028, which will further boost logistics needs. The growing demand for instant delivery also calls for sophisticated logistics and software solutions.