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

  • Published : May 2022
  • Report Code : KSI061614719
  • Pages : 93

United States route optimization software market is projected to grow at a CAGR of 12.78% during the forecast period to reach US$2.762 billion by 2027, from US$1.190 billion in 2020. The route optimization package is crucial once the fleet has infinite numbers of shoppers to attend or service drops to form per week. Manual navigation is long and tedious and cannot guarantee of route optimization package. Once driver pay rates and fuel costs are accounted for a straightforward fraction of operational costs per mile, a route optimization package is a key to managing those costs. Route optimization is often the quickest means of accessing multiple stopovers, but the package considers numerous factors, like vehicle restrictions and road dimensions. Route optimization software's AI power with native driver expertise induces the correct balance. The outcomes and dependableness technology for streamlining routes unit of measurement are projected to boost the Canadian route optimization package market.

United States Route Optimization Software Market Advantages

Expanding the number of delivery orders every driver should build during a day will permit them to form extra money. However, additional deliveries mean longer on the road, leading to fatigued and peeved drivers. Optimizing routes could be a technique to boost driver job satisfaction with rising gain. Routing optimization can ensure that drivers take the foremost economical route in aspects of each distance travelled and transit times. This finishes up in reduced service times, sanctioning the expansion of the number of deliveries while maintaining property and safety. Fuel is one of the foremost big-ticket spendings for any field services supplier. A poor route strategy can reduce potency and reduce profit margins. Route optimization packages can measure the only route by considering backtracking, permitting drivers to avoid wasting time, specific delivery time windows, and fuel. This minimizes driver time on the track, fuel usage, and automotive abrasive wear, eventually lowering maintenance prices. Deferring deliveries or providing inaccurate or ambiguous delivery timelines is the easiest way to wreck your client's satisfaction. Drivers should fulfill all delivery deadlines to safeguard the company's gain and standing. It's simple to avoid this; all that's required is an improved route optimization plan that produces a cost-effective path based on road conditions, ties up, multiple stops, specific delivery time windows, and weather updates. It can offer period delivery notifications to your shoppers, eradicating the issue of incorrect ETAs. The advanced options of the route optimization package are expected to drive the country's market growth. Benefits related to cost includes time tracking through GPS, improvement of distances and routes, and delivery while not wasting time besides less fuel consumption; all are predicted to drive the expansion of the route optimization software market.

Growth Driver of United States Route Optimization Software Market

Route optimization technology offers complete routes and planning services, like work order management, economical driving directions, a live map, route navigation, and lag governance. The route optimization software market is anticipated to grow considerably because of redoubled enterprise data and laptop advanced technologies investment for optimized delivery of products and services. The increase in the variety of resolution suppliers for cloud-based platforms, solutions, and services to the provision business can enable fleet organizations to settle on route optimization packages from multiple resolution suppliers at an inexpensive value. New entrants are enjoying a vital role by exploiting market share from leading software suppliers through new business models supported by information analytics, blockchain, and different technologies, that embrace the period situation of hold up. These advanced technological options modify fleet service suppliers to supply optimized routes and arrange the journey beforehand to avoid wasting time and fuel. Startups are providing last-mile delivery and crowd-delivery resolutions to supply the differentiating issue from different leading solution suppliers. Cloud-based route optimizer is dominating the market due to real-time tracking through GPS, reduced GPS, lowering shipping prices, and improved potency; rising net penetration is contributing to the expansion of the market. Sharing-based transport systems enable the development of optimal routes to ensure on-time person pick-up and arrival at the destination. Furthermore, increased traffic delays necessitated route optimization to save much fuel, which is estimated to raise market growth for route optimization software in the United States.

Restraints

The biggest challenges anticipated to discourage the United States route optimization software market area unit are fewer data and low knowledge quality, dynamic business needs, security problems with stored knowledge in software, and lack of technical assistance.

COVID-19 Impact on The United States Route optimization Software Market

United States incorporated a strict closure in response to the unfolding of COVID-19, and the economy underneath had to endure the accumulated strain. Several organizations have suffered due to internment and government constraints, making it challenging for businesses to require different methods to alleviate their business enterprise burden. As illness irrupted business restrictions prohibited in-person activities across the country, businesses turned to pandemic-proof eCommerce service offerings for basic survival. Online shoppers couldn't stop shopping from their favourite websites and online stores. As a result of the pandemic, shopper migration to digital channels for searching saw the simplest increase within the variety of firms providing online commerce services. 

According to the Census and 2020 ARTS survey unleash, e-commerce sales exaggerated by $244.2 billion or 43% in 2020, the prior year of the pandemic, rising from $571.2 billion last year to $815.4 billion in the first year of the pandemic. In the face of changes partially caused by the pandemic, retailers are united in finding new ways to take advantage of the convenience economy of online looking and at-home delivery. The advent of Covid-19 had negatively impacted some businesses worldwide except for food delivery and online goods segments; it pushed the sales, thus enhancing the opportunity for the market players to supply reliable delivery services to fulfil the demand by adopting the route optimization software that boosted the market growth in the United States.

Route Optimization Software Market in the United States

According to World Bank, 91% of individuals in the total population of the United States as of 2020 use the internet, which is considered a high rate. As per the world bank 2020 estimates, the United States has 65% of the total population in the age bracket of 15-64 years, which is likely to push the online market in the country. For the same year, the World Bank reported 83% of the total population as urban, which further boosts the growth of the online segment due to knowledge, expertise, and seamless technologies, which is likely to enhance the market growth for the route optimization software market in the country.

According to OECD & U.S. Census Bureau, within the U.S., retail and food services sales between February and April 2020 were down to 7.7% compared to the same period in 2019. Nevertheless, sales for grocery stores and non-store retailers working jointly with e-commerce providers hiked by 16% and 14.8%, respectively. Within the U.S., 21% of adults have reported ordering groceries online or from a neighbourhood store via an app to respond to the Coronavirus pandemic. The share remains almost as high (19%) among only the elderly (65+). According to Unctad.org, The US continued to dominate the general e-commerce market, and online retail sales accounted for $519.6 billion.

The demand for groceries through online mode experienced an upward trend during the pandemic; fear of COVID and avoiding human contact pushed the demand for grocery delivery services online. This also resulted in new opportunities for e-retail and e-commerce companies, which is expected to result in huge demand for route optimization software, as the same increase has been witnessed during the COVID-19 pandemic. However, the lack of I.T. infrastructure is still a big challenge limiting the market expansion in the country.

According to the Automotive Fleet data, within the United States, sales of vehicles to commercial fleets witnessed an increase of 17% to 69,726 in September 2019, compared to the previous year. Hence, the adoption of route optimization software is predicted to rise. Demand for adopting route optimization is expected to boost the market growth in the United States.

Key Market Segments

  • By Component
    • Software
    • Service
  • By Applications
    • Food Delivery
    • Ride Hailing
    • E-Commerce
    • Others

1. INTRODUCTION
1.1. Market Definition
1.2. Market Segmentation

2. RESEARCH METHODOLOGY  
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5.  UNITED STATES ROUTE OPTIMIZATION SOFTWARE MARKET BY COMPONENT
5.1. Introduction
5.2. Software
5.3. Services

6. UNITED STATES ROUTE OPTIMIZATION SOFTWARE MARKET BY APPLICATION
6.1. Introduction
6.2. Food Delivery
6.3. Ride-Hailing Services
6.4. E-Commerce
6.5. Others

7. COMPETITIVE ENVIRONMENT AND ANALYSIS
7.1. Major Players and Strategy Analysis
7.2. Emerging Players and Market Lucrativeness
7.3. Mergers, Acquisitions, Agreements, and Collaborations
7.4. Vendor Competitiveness Matrix

8. COMPANY PROFILES
8.1. Trimble Inc.
8.2. Caliper Corporation
8.3. ORTEC
8.4. Microlise Telematics Pvt. Ltd.
8.5. LLamasoft Inc.
8.6. Esri
8.7. Route4me, Inc.

Trimble Inc.

Caliper Corporation

ORTEC

Microlise Telematics Pvt. Ltd.

LLamasoft Inc.

Esri

Route4Me Inc.