Shipping Software Market Size, Share, Growth, and Industry Analysis, By Type (Web-Based, Installed), By Application (Courier, Express and Parcel (CEP), Air & Ocean Forwarding, Contract Logistics, Land, In-House, Others) and Regional Insights and Forecast to 2031

Updated On: 29 April 2024

SHIPPING SOFTWARE MARKET REPORT OVERVIEW

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The global shipping software market size was USD 37 million in 2020 and will touch USD 58 million by 2027, exhibiting a CAGR of 6.5% during the forecast period.

Shipping software refers to a suite of tools and applications designed to help businesses manage their shipping operations more efficiently. This type of software often includes features such as order management, shipment tracking, carrier selection, and label printing. By automating many of these tasks, shipping software can help businesses save time and money, while also improving the overall customer experience. Some shipping software also includes advanced analytics and reporting capabilities, allowing businesses to gain insights into their shipping operations and make data-driven decisions. Overall, shipping software is an essential tool for any business that relies on shipping to deliver products to customers.

The shipping software market is anticipated to witness substantial growth in the coming years. As the e-commerce industry continues to grow rapidly, the demand for efficient shipping solutions is also on the rise. Shipping software plays a crucial role in streamlining the logistics and supply chain operations of businesses, enabling them to deliver products to customers faster and more cost-effectively. One of the key factors driving the growth of the shipping software market is the increasing adoption of cloud-based shipping solutions. Cloud-based shipping software offers several advantages, including scalability, flexibility, and accessibility from anywhere with an internet connection. This makes it an attractive option for businesses of all sizes, from small startups to large enterprises. Another significant driver of market growth is the rising demand for omnichannel shipping solutions. As consumers increasingly expect seamless shopping experiences across multiple channels, businesses are looking for shipping software that can support their omnichannel strategies. This includes the ability to manage orders and shipments across various sales channels, such as online marketplaces, brick-and-mortar stores, and social media platforms. The growing focus on sustainability and eco-friendly shipping practices is also contributing to the expansion of the market.

COVID-19 Impact: Market Growth Hampered By Pandemic Due to Disrupted Supply Chains 

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic has had a significant negative impact on the shipping software market. As global trade slowed down due to lockdowns and restrictions, there was a reduced need for shipping services. This led to a decrease in demand for shipping software, as companies scaled back their operations and cut costs. Additionally, the pandemic disrupted supply chains, leading to delays and disruptions in the shipping process. This further reduced the need for shipping software, as companies struggled to adapt to the changing market conditions. Overall, the COVID-19 pandemic has had a negative impact on the shipping software market, as companies have faced reduced demand and increased challenges in the shipping process.

LATEST TRENDS

"Increasing Adoption of Cloud-Based Shipping Solutions to Drive Market Growth"

The shipping software market has been witnessing several trends that are shaping its growth and development. One of the key trends is the increasing adoption of cloud-based shipping solutions. These solutions offer several benefits, including scalability, flexibility, and cost-effectiveness. As a result, many companies are opting for cloud-based shipping software to streamline their operations and improve efficiency. Another trend in the shipping software market is the growing demand for integrated shipping solutions. These solutions offer a comprehensive set of features, including freight management, order tracking, and inventory management. This trend is being driven by the need for companies to manage their shipping operations more effectively and efficiently. Additionally, there is a rising demand for shipping software that is compatible with mobile devices. As more and more companies rely on mobile devices for their day-to-day operations, the need for shipping software that can be accessed and managed on mobile devices is becoming increasingly important. Finally, the shipping software market is also witnessing an increase in the adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being used to automate and optimize various aspects of the shipping process, including route planning, load optimization, and delivery scheduling.

SHIPPING SOFTWARE MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Web-Based, Installed.

• Web-based: This type of software is accessed through a web browser and does not require installation on a specific device. Users can access the software from any internet-enabled device, making it highly flexible and accessible. Web-based shipping software is often hosted on the provider's servers, which means that users do not need to worry about maintaining or updating the software themselves. It is typically offered as a subscription service, with pricing based on usage or the number of shipments processed.

• Installed: This type of software is installed directly on a user's computer or server. It is not accessed through a web browser and may require a specific operating system or hardware configuration. Installed shipping software is often used by larger organizations or companies that require more customization or integration with other systems. It may also offer more advanced features or functionality compared to web-based software. Installed shipping software is typically purchased as a one-time license, with the option to pay for updates or support.

By Application

Based on application the global market can be categorized into Courier, Express and Parcel (CEP), Air & Ocean Forwarding, Contract Logistics, Land, In-House, Others.

• Courier, Express, and Parcel (CEP): This refers to small packages and envelopes that are typically shipped via courier services like FedEx, UPS, or DHL. These services are known for their speed and reliability in delivering small items quickly and efficiently.

• Air & Ocean Forwarding: This refers to the transportation of goods via air or sea freight. Air and ocean forwarding companies specialize in moving large volumes of goods across international borders, often using specialized containers and shipping methods.

• Contract Logistics: This involves the outsourcing of logistics operations to third-party providers. These providers may handle warehousing, transportation, and distribution services on behalf of their clients, often under long-term contracts.

• Land: This refers to the transportation of goods over land, including trucking and rail services. Land transportation is often used for domestic shipments or for moving goods between countries that share a land border.

• In-House: This refers to logistics operations that are managed and operated by the company itself, rather than being outsourced to a third-party provider. In-house logistics operations can include warehousing, transportation, and distribution services.

• Others: This category may include other types of shipping and logistics services that are not covered by the other categories. This could include specialized services like temperature-controlled shipping, hazardous materials handling, or last-mile delivery services.

DRIVING FACTORS

"Increasing Demand for E-Commerce to Boost the Market Growth"

The rise of e-commerce has led to an increase in the demand for shipping software. With more people shopping online, there is a need for efficient and reliable shipping solutions to ensure that products are delivered to customers in a timely manner. This has led to the development of advanced shipping software that can handle complex logistics and provide real-time tracking of shipments. The shipping software market is also driven by advancements in technology. New technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) are being integrated into shipping software to improve efficiency and reduce costs. For example, AI-powered algorithms can optimize shipping routes to reduce delivery times, while IoT sensors can monitor the condition of goods during transit. Another factor driving the shipping software market is the increasing focus on sustainability. As consumers become more environmentally conscious, companies are looking for ways to reduce their carbon footprint. Shipping software can help companies optimize their shipping routes to reduce fuel consumption and emissions, as well as track the environmental impact of their shipments.

"Rising Demand for Visibility and Transparency to Expand the Market"

The shipping software market growth is driven by the increasing demand for visibility and transparency in the supply chain. Customers want to know where their shipments are at all times, and companies need to be able to provide this information in order to meet customer expectations. Shipping software can provide real-time tracking of shipments and provide customers with updates on the status of their orders, helping to improve customer satisfaction and loyalty. The globalization of the economy has also contributed to the growth of the shipping software market. As companies expand their operations internationally, they need shipping software that can handle the complexities of international shipping, such as customs regulations and currency conversions. This has led to the development of shipping software that can provide real-time tracking of shipments across borders and streamline the customs clearance process.

RESTRAINING FACTORS

"Lack of Interoperability to Impede Market Growth"

One of the main restraints facing the shipping software market is the lack of interoperability among different software systems. Many shipping companies use a variety of software solutions for different aspects of their operations, such as tracking, inventory management, and billing. However, these systems often do not communicate with each other, leading to inefficiencies and increased costs. This lack of interoperability can also make it difficult for companies to adopt new technologies and stay competitive in the market. Another major restraint facing the market is the high cost of implementation and maintenance. Shipping software solutions can be expensive to implement, especially for smaller companies with limited budgets. Additionally, the ongoing maintenance costs can also be significant, particularly for companies that need to upgrade their software regularly to keep up with changing industry standards and regulations.

SHIPPING SOFTWARE MARKET REGIONAL INSIGHTS

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"North America to Dominate in the Market due to Presence of a Large Consumer Base"

The market is segmented into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the global Shipping software market share. The region particularly the U.S., was a major market for shipping software. The region's large e-commerce sector and complex supply chain networks made it a prime market for shipping software providers. Companies in North America were increasingly investing in shipping software to improve their shipping processes, reduce costs, and enhance customer satisfaction. Additionally, the region's strong economy and technological advancements also contributed to the growth of the shipping software market in this region.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The Shipping software market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in Shipping software, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Pitney Bowes (U.S.)
• Metapack (U.K.)
• Temando (Australia)
• Stamps.com (U.S.)
• WiseTech Global (Australia)
• ProShip (U.S.)
• Logistyx Technologies (U.S.)

INDUSTRIAL DEVELOPMENT

August 2020: An Internet-based transport management system was unveiled by The Descartes Systems Group, Inc. in August 2020 (e-TMS). In addition to transport order management, multi-modal carrier assignment, multi-modal rating engines, rate shopping, load bidding, and integrated invoicing accounting features, E-TMS provides 3PLs and hosted transport management.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.