Europe Route Optimization Software Market - Forecasts from 2023 to 2028

The Europe route optimization software market is projected to grow at a CAGR of 11.67% over the forecast period, increasing from US$483.156 million in 2021 to US$1,046.027 million by 2028.

This growth can be attributed to the rise in information and computer technology (ICT) spending by businesses to provide more efficient products and services.

Furthermore, the surge in the use of online taxi bookings in major nations will aid the regional route optimization software market expansion during the forecast period. Effective route planning is necessary for sharing-based taxi services to ensure that passengers are picked up and delivered to their destinations on time. In addition, a rise in traffic on the roads necessitated effective route optimization to reduce fuel consumption, which is anticipated to support market development. For instance, ORTEC provides a ‘Routing and Dispatch’ solution that combines capacity planning, route scheduling, resource allocation, dispatch, and execution into a single SaaS (Software as a Service) solution. The customer can combine planning optimization with real-time execution and dispatch with their feature-rich feature set. They have a variety of options for decision support, allowing them to guarantee timely and accurate service in major industries including retail, manufacturing, international transport, bulk and liquid, e-commerce, parcel, and distribution.

Rise in Internet penetration

The widespread use of cloud-based & on-premise deployment, route optimization software, and other related technologies has been impacted by the increase in internet penetration. For instance, as per the World Bank, the percentage of internet users increased from 87% in 2021 to 89% in 2022.  Moreover, the expansion of SaaS infrastructure offers this industry a substantial potential opportunity. SaaS software offers many advantages for fleet management. Furthermore, in the upcoming years, the Internet of Things will grow faster.

Web-based services are the next evolution of the Internet of Things. Route optimization is one such web-based service that will bring about change during the projected period. Cloud-based solutions' low cost will open up more growth prospects. Route optimization is a vital cloud solution. Therefore, in the upcoming years, low-cost financing will make route optimization simpler. Future potential will also be increased by the rising demand for online vehicle services and taxi services.

Moreover, the use of route optimization software has made it possible to reduce costs while also meeting requirements and doing away with penalties for delays. Fuel consumption over the entire time and overall distribution costs have decreased as a result of the installation of route optimization software. Businesses that use route optimization software can also handle a higher volume of customer requests without having to make significant vehicle investments.

The software's rapid uptake has made it possible to do away with split orders and external transports. By utilizing this software for GPS tracking, real-time vehicle tracking is also feasible. This type of software can provide routes that are up to 35% shorter than those generated by manual planning, which results in substantial fuel savings, further propelling regional market expansion.

UK in Europe is predicted to hold the largest market share for the market

The market is driven by growing e-commerce needs, tackling urban traffic congestion, and a dedication to sustainability. Moreover, adoption is further propelled by technical developments, cost-cutting requirements, and compliance demands.

Route optimization software is growing in demand as e-commerce companies look for cost-effective logistics solutions to handle increasing delivery volumes and satisfy customers' demands for shorter delivery times. For instance, internet sales as a percentage of retail sales increased from 25.6% in September 2023 to 26.3% in October 2023.  

Furthermore, Descartes provides the most extensive selection of routing and scheduling software, logistics management, mobile resource management, and telematics solutions available on the market, all of which can help reduce costs, stay compliant, and make greater use of current fleet and resources. Solutions for real-time integrated route optimization, mobile apps, transportation, and compliance management have been created by Descartes Systems in collaboration with top global retailers, manufacturers, distributors, and logistics service providers. 

Market Key Developments

• In May 2020, Mio, an owned brand of MiTAC Digital Technology Corporation, announced the debut of its new Mio Cyclo Discover series, which includes the Mio Cyclo Discover and Mio Cyclo Discover Plus equipped with Europe's local route planning services, RouteYou and Komoot, as well as Mio's unique NeverMiss route planning tool and its proprietary Turn-by-Turn route planning tool.
• In January 2020, UPS announced that Dynamic Optimisation, which recalculates individual package delivery routes throughout the day as traffic conditions, pickup obligations, and delivery orders change, has been added to its award-winning On-Road Integrated Optimisation and Navigation (ORION) technology.

Segmentation:

By Component

• Software
• Service

By Application

• Food Delivery
• Ride-Hailing
• E-Commerce
• Others

By Country

• United Kingdom
• Germany
• France
• Italy
• Others