Software growth

The transportation management systems (TMS) market grew by almost 7% in 2002, a respectable accomplishment considering the weak economy and reduction in IT budgets.

But although the future remains bright for this market, the road to success has changed and many vendors will have a difficult time getting back on track.

According to Adrian Gonzalez, director of ARC's Logistics Executive Council and author of the study 'Transportation Management Systems Worldwide Outlook', "Long-term success will be defined by four factors: scope of solution (expanding beyond basic transportation functionality), net value (realised benefits minus total cost of ownership), financial stability of the solution provider, and having a global presence."

ARC is forecasting a cumulative annual growth rate (CAGR) of 11.6% over the next five years, from $860 million in 2002 to over $1489 million in 2007.