Shipping Software Market Size, Share, and Industry Analysis, By Component (Software and Services), By Deployment (On-premise and Cloud), By Application (Retail & E-Commerce, 3PL/Contract Logistics, Courier & Postal Services, and Freight/Cargo Forwarding), and Regional Forecast, 2025-2032

Shipping software is designed to streamline and automate the shipping process for businesses. These solutions help manage various aspects of shipping, from order processing and label printing to tracking and delivery management. Shipping software is widely used by e-commerce companies, retailers, manufacturers, and logistics providers to improve efficiency, reduce costs, and enhance customer satisfaction. This software can be integrated with e-commerce platforms and marketplaces to import orders automatically. Also, it handles multiple orders at once, which improves the efficiency of the system. This software is essential for businesses that handle large volumes of shipments, as it helps automate and optimize the shipping process. By integrating with various carriers, e-commerce platforms, and business systems, shipping software improves efficiency, reduces costs, and enhances the overall customer experience. For instance,

• In March 2024, Pitney Bowes launched new tracking and returns competencies and enlargement of its regional delivery services to the Midwest region in the U.S.

In addition, the COVID-19 outbreak forced many businesses to adopt online sales, which fueled the demand for shipping software. Further, real-time tracking gained popularity among customers to solve courier delay problems faced by courier companies.

Impact of Generative AI on the Shipping Software Market

The integration of generative AI into shipping software is transforming how companies manage their shipping operations, leading to increased efficiency, cost savings, and improved customer experiences. Generative AI can analyze real-time data, such as traffic conditions, weather patterns, and delivery schedules, to dynamically optimize delivery routes. This leads to reduced transit times, lower fuel consumption, and improved delivery reliability. Also, generative AI can analyze historical shipping data and market trends to forecast demand accurately. This helps businesses plan their shipping operations better, ensuring that resources are allocated efficiently. By predicting demand fluctuations, AI can optimize inventory levels, reducing the risk of stockouts or overstock situations. Generative AI can automatically generate shipping documents, such as invoices, packing lists, and customs declarations, ensuring accuracy and compliance with international regulations. AI can stay updated with changing regulations and ensure that all shipping documentation meets the necessary legal requirements. Therefore, these factors boost the market growth.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by the Key Players
• Impact of Generative AI on the Global Shipping Software Market
• Consolidated SWOT Analysis of Key Players

Analysis by Application

On the basis of application, the market is classified into retail & e-commerce, 3PL/contract logistics, courier & postal services, and freight/cargo forwarding.

Retail & e-commerce dominated the market, with the highest market share. The adoption of shipping software in the retail and eCommerce sectors has been transformative, driven by the need to streamline operations, improve customer satisfaction, and remain competitive in an increasingly digital marketplace. The surge in online shopping has heightened the need for efficient shipping solutions to handle large volumes of orders. Modern consumers expect fast, reliable, and transparent shipping processes, including real-time tracking and quick delivery times. Automating shipping processes reduces manual labor, minimizes errors, and speeds up order fulfillment. Retailers and eCommerce businesses are leveraging shipping software to access multiple carriers, allowing them to choose the most cost-effective and reliable shipping options.

Regional Analysis

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The global shipping software market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. In 2023, North America accounted for the highest market share. The adoption of shipping software in North America has been robust, driven by the rapid growth of eCommerce, heightened customer expectations, and the need for operational efficiency among retailers and logistics providers. The benefits, such as improved operational efficiency, scalability, and customer satisfaction, make shipping software an essential tool for businesses. As technology continues to evolve, the capabilities and adoption of shipping software will likely expand, further transforming the logistics and delivery landscape in North America. For instance,

• In June 2024, Pitney Bowes announced the opening of its new facility of 45,000 square feet in St. Louis, U.S. This new operating center is expected to help the company meet operational excellence and superior service delivery.

These factors are expected to drive the market growth in the region.

The distribution of the global Shipping Software market by region of origin is as follows:

• North America – 38%
• South America – 5%
• Europe – 26%
• Middle East & Africa – 11%
• Asia Pacific – 20%

Key Players Covered

The key players in this market include AfterShip, Manhattan Associates, ShipStation, Oracle Corporation, SAP SE, Pitney Bowes, Metapack, EASYPOST, Stamps.com Inc., and Descartes System Group.

Key Industry Developments

• In June 2024, Descartes Systems Group acquired BoxTop Technologies Limited, the U.K.-based provider of shipment management solutions. Through this acquisition, the company aims to help clients gain visibility into shipments across various ways of transportation.
• In March 2022, E2open Parent Holdings, Inc. acquired Logistyx Technologies, a provider of e-commerce and parcel shipping software. Through this acquisition, E2open Parent Holdings aims to expand its global footmark for multi-carrier e-commerce shipment management.