North America Route Optimization Software Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Component (Software, Services), By Application (Food Delivery, Ride Hailing Services, E-Commerce, Others), And By Country (United States, Canada, Mexico, Others) - Forecasts From 2022 To 2027

North America Route Optimization Software Market is projected to grow at a CAGR of 12.64% during the forecast period to reach US$3.004 billion by 2027, from US$1.306 billion in 2020.

Route optimization techniques are used in route selection to determine the best possible route schedule more comprehensively than human schedulers. Route optimization technology utilizes methodologies and other techniques, such as artificial intelligence and machine learning to discover the appropriate routes. This may not be a difficult task, but rigorous route optimization software is highly complex. To verify accurate and complete information, it must be able to connect with a variety of enterprise software solutions effectively. It must allow users to customize their routing variables and interactively tweak routes without sacrificing efficiency. It must make operational routes seamless. Moreover, it must do all of this quickly and efficiently. Routing optimization software reduces fleet functioning costs while improving customer support and delivery performance. Last-mile delivery route optimization tool allows organizers to determine the most efficient route while limiting order processing time with shorter production horizons, such as same-day and next-day delivery.

Benefits of using Route Optimization Software in North America

Software for route optimization will invest much less time in planning – the routes generated will far outperform manual process-formed routes. Optimization determines the optimum routes in terms of value for money, assets, and duration for a flexible workforce. All other key aspects, such as order and driver constraints and the various process flows of a specific industry, are also considered. The goal is to maximize effectiveness and fulfil as many orders while using limited resources. This allows businesses to save time & expense while increasing their revenue. The company is expected to increase profits by 10-30% simply by completing more orders, improving employee productivity and quality, and reducing operational costs with route optimization software.

North America Route Optimization Software Market Driving Forces

The continued growth of route optimization strategies in shred mobility, digital mobility, and car-sharing also aided market growth. The increasing urban traffic problems have reduced taxis' transportation efficiency. Cab drivers are unable to anticipate unexpected traffic conditions. The route optimization software considers a variety of variables, such as time of day, location, and distance, to provide real-time updates on impending traffic scenarios to optimize their travel routes. Cloud and on-premise service models dominate the route optimization software industry. The cloud market is projected to expand rapidly due to the lack of funding and low maintenance costs. Cloud servers offer businesses flexible deployment options without sacrificing functionality. As a result, it is extensively used in small and large businesses.

Challenges

The primary factor restricting market growth is the high capital investment required for on-premise implementation. Weights, addresses, and volumes are all difficult to collect and clean. Addresses are frequently filled in a manual process, have numerous errors, or are inadequate, making geocoding tricky and distance estimations inaccurate. Weights and quantities of goods and packages to be transferred are still frequently declared and, when available, not evaluated. This is a crucial factor expected to stymie the market growth in the region.

COVID-19 Impact on North America Route Optimization Software Market

North America has been impacted by the COVID-19 pandemic. Regrettably, the situation differs from one country to the next across the continent, from Canada to the United States and Central America. The conditions in the United States and Canada, the continent's two most prominent and dominant economies, are not much better. Every business has taken a hit. Larger corporations with vast financial resources are attempting to resolve their difficulties. However, medium and small-scale factories are threatened. According to U.S. Retail Trade Corporation, the retail e-commerce sale accounted for US$209.5 billion in 2020. The increased spending on online groceries, online food delivery, and cab booking services were boosted during the disease outbreak, contributing to the development and advancement of innovative technologies for achieving timely deliveries and customer satisfaction for retaining customers. The business in the region adopted the software for optimizing the route to pre-design the routes for delivery and make it easy for the driver to fulfill the multistop trails. This, in turn, drives the growth of route optimization software in North America over the forecasted period. 

Regional Analysis of North America Route Optimization Software Market

The United States is expected to hold the major share in the region’s route optimization software market owing to its rising economic power, increased number of internet users, rising trends in online shopping, and shoppers' demand for ease of access and home deliveries. The United States population is 331,501,080. E-commerce sales for U.S. retailers totalled $578.5 billion in 2019, a 14.3 % increase from a modified $506.1 billion in 2018. Total sales increased by 3.0% in 2019 to $5,411.0 billion, up from $5,253.0 billion in 2018. With earnings of $599 billion in 2021, the United States is expected to be the second-largest market for eCommerce. The trends of consumers toward online shopping are expected to play a major role in driving the region's market of route optimization software.

Furthermore, the region has seen sales of 22 001 152 units of the vehicle in the year 2021, as per OICA, which is also expected to drive the growth of the route optimization software market in the region. According to the U.S. Department of Transportation, taxi/shared cab services accounted for US$64 million in the year 2019. The demand for an innovative solution to give fast and quick delivery or same-day delivery is expected to drive the growth of the route optimization software market over the forecasted period in the region.

Key Market Segments

• By Component
  • Software
  • Service
• By Applications
  • Food Delivery
  • Ride-Hailing
  • E-Commerce
  • Others
• By Countries
  • United States
  • Canada
  • Mexico