The Italy route optimization software market is estimated to grow at a CAGR of 9.78% to reach US$31.343 million in 2028 from US$16.312 million in 2021.
This market's growth is attributable to the e-commerce sector's strong expansion, which is marked by a steady rise in the number of daily orders for goods and services placed by online consumers. As a result, more and more cutting-edge technologies are being adopted to simplify logistics as a whole. The use of route optimization solutions and services is growing due to the availability of favourable infrastructure for the deployment of these solutions and the ongoing development of wireless communication technologies.
According to International Trade Administration, even though the Italian digital economy lags other major European nations, e-commerce is expected to keep growing due to transactions between businesses and consumers as well as between businesses and businesses. E-commerce in Italy reached expected sales of €64.01 billion in 2021, up 33% from 2020.
Growth Drivers of the Italy route optimization software market
The market for route optimization software in Italy is anticipated to grow throughout the forecast period because of the country's increasing number of tech start-ups, which are expected to enhance the nation's total technology portfolio. However, it is predicted that the nation's political unrest would have an influence on enterprises and government regulations, which is further forecast to operate as a restraint on the overall market for route optimization. Furthermore, market indicators for government programs are promising.
Growing startups in Italy
The expansion of the route optimization market in Italy during the projection is anticipated to be fuelled by the country's growing startup ecosystem, government cartography initiatives, and e-commerce adoption. For instance, in April 2022, there were more than 12,000 start-ups in Italy, according to the Cledara. Additionally, 70,000 people were employed and over 1.4 billion euros in income was generated.
Key players are focusing on collaborations and product innovation, further fuelling the market. In May 2020, for example, the Red Cross of Rome, Italy teamed with Route4Me to offer their last-mile route optimization tool in support of their battle against COVID-19. Route4Me is the world's first and most popular Dynamic Route OptimizationTM platform. More than 6,000 requests for food assistance for the Municipality of Rome have now been received by the Italian Red Cross, Rome branch.
Software and services provided by key players in Italy.
A firm named Optivo was created to assist logistics companies with their everyday operations. The firm utilizes advanced technologies to provide the fleet with the most cost-effective and efficient routes possible. In Optivo, 1.500+ deliveries are scheduled every day, 120.000+ km is managed, and 1.250+ CO2 kg is saved every day. Its location, accessibility to sea routes with modernized ports, top-tier educational institutions, access to the Italian market, and status as a highly developed industrialized country with a sizable manufacturer of goods like machinery, vehicles, and pharmaceuticals all contribute to Italy's thriving startup ecosystem.
Additionally, for delivery firms, Routetitan provides software for route optimization. It assists companies in keeping up with customer demands for increased visibility and ever-faster delivery. The ideal routes for consumers are determined by Routetitan in a matter of seconds depending on variables such as time frames, breaks, speeds, stop prioritization, and more.
The Italy route optimization software market for the food delivery segment is set to witness growth.
To improve food delivery services and decrease delivery times, fuel consumption, and vehicle wear and tear, good route planning is essential. Order fulfilment procedures can be made more efficient, and data analysis can be utilized to identify problem areas and increase operational performance. Moreover, rising consumer preference for quick food delivery services and consumer expenditure on food services is anticipated to be influenced by shifting food consumption patterns and the growing impact of Italian cuisines on eating habits.
Further, food delivery has evolved beyond takeout, driven by platform-to-consumer businesses like DoorDash and Uber Eats, adding billions of dollars in potential revenue collection. Faster and less expensive delivery has been made possible by the network effects of additional delivery riders and route optimization technologies. Many of the food delivery businesses have seen a flywheel effect as a result, and they are now trying to surpass the competitors on profit margins to gain market share in Italy. For instance, Helbiz restaurant expands its footprint in Italy by agreeing to open a second site in Turin in the Piedmontese capital in January 2023.
Key Developments
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2021 | US$16.312 million |
| Market Size Value in 2028 | US$31.343 million |
| Growth Rate | CAGR of 9.78% from 2021 to 2028 |
| Base Year | 2021 |
| Forecast Period | 2023 – 2028 |
| Forecast Unit (Value) | USD Million |
| Segments Covered | Product, Application, and Province |
| Companies Covered | Trimble Inc, Omnitracs, Microlise Telematics Pvt Ltd, Route4Me Inc. |
| Customization Scope | Free report customization with purchase |
Segmentation: