The Australia route optimization software market is evaluated at US$16.712 million for the year 2020, growing at a CAGR of 7.79% reaching the market size of US$28.259 million by the year 2027.
Route optimization is a technique or method used to find the quickest and most cost-friendly route among several available routes. The optimized route is concluded based upon metrics like the number of stop locations and time taken for each delivery spot between the start and end of the route. The route optimization market for Australia is projected to see robust growth because of the large volumes of online deliveries of food and other goods. Also, drone delivery has occupied a significant space in the Australian supply chain domain, which is further expected to leverage route optimization techniques for the delivery of food and other goods. Additionally, with the growing advancements in agriculture technology, the future growth of the route optimization market in Australia is anticipated to grow in a substantial manner due to the integration of the supply chain with advanced technologies in the agricultural sector. The increasing food deliveries, drone deliveries, and agriculture technology in Australia are projected to boost the market for route optimization during the forecast period.
The COVID-19 impact on the Australian route optimization market has been both negative and positive. The global lockdowns and travel restrictions, led to a decline in the logistics operations in Australia, thereby hampering the growth of the route optimization market. However, the drone delivery system in Australia saw a rapid increase in its demand, thereby expanding the potential for the aerial route optimization market in Australia. With contactless deliveries, the drone delivery system was highly adapted, optimizing the overall market growth of route optimization in Australia.
Increased food delivery, increased drone delivery, and advancements in the agriculture supply chain
The food delivery frequency in Australia has grown rapidly in a substantial manner, owing to the large orders by consumers, which are projected to propel the growth of the Australian route optimization market. Also, the increasing adoption of food delivery apps like UberEATS, Deliveroo, and Menulog is anticipated to push the market growth for route optimization for faster and more cost-effective delivery. For example, as per the September 2021 blog by the Institute for Health Transformation, Deakin University, HungryHungry, an Australian food delivery start-up, in 2020, saw an increase in food deliveries from 10,000 to 50,000 per week. In another instance, as per the April 2021 news release of Uber, UberEATS supports over 30,000 restaurants and provides thousands of jobs for the population as well. Also, the same source stated that Australians have been spending 210% more on food delivery currently as compared to the pre-COVID-19 time. Additionally, the rapid adoption of drone delivery systems in Australia is projected to further fuel the growth of the route optimization market. According to the March 2022 blog of Wing, drone deliveries in the year 2021 were 100,000, and just within the first 2 months of 2022, drone deliveries in Australia completed the 30,000 mark. The blog also stated its busiest week, with delivery every 25 seconds. The exponential growth of drone deliveries in Australia is a prominent factor in driving the market expansion of route optimization in the region. Additionally, the increasing agriculture supply chain advancements in Australia are anticipated to drive the increased future demand for the route optimization market in Australia. The delivery of fresh agricultural supplies domestically or internationally to meet the exploding food demand is projected to propel the overall growth of the Australian route optimization market. For instance, according to the September 2021 article by the University of Western Australia, the university’s Institute of Agriculture collaborated with researchers across the world to develop a roadmap for developing rapid delivery systems to ensure food security. Also, new launches and partnerships among delivery companies and technological players are further anticipated to propel the market growth for route optimization in Australia. For example, in 2021, Qualipac, an Australian fresh produce company, leveraged Optomni’s, an agricultural technology company, OmniOrder supply chain optimization platform for efficient and faster deliveries while managing the supply-demand matching. Increasing food and drone deliveries, agriculture supply chain technologies, and new launches are projected to propel the growth of the route optimization market in Australia.
Freight shortages, rising costs
The route optimization market in Australia is projected to witness major growth owing to increased food and drone deliveries, agricultural supply chain technology advancements, and new launches. However, the global container trade imbalance has harmed Australian businesses, projecting a future decline in the domestic route optimization market. As per the November 2021 release by the Australian Competition and Consumer Commission (ACCC), the COVID-19 pandemic destabilized the container freight supply chain worldwide, negatively affecting importers and exporters with delayed shipments and exploding freight rates. The supply chain disruption is projected to affect the route optimization market in Australia due to the imbalance of supply-demand in the region. With almost every good being transported in freight containers across the world, the retail or domestic consequences of the freight supply chain problem could be massive for the route optimization market in Australia during the forecast period.
| 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 2020 | US$16.712 million |
| Market size value in 2027 | US$28.259 million |
| Growth Rate | CAGR of 7.79% from 2020 to 2027 |
| Base year | 2020 |
| Forecast period | 2022–2027 |
| Forecast Unit (Value) | USD Million |
| Segments covered | Product, Deployment, Enterprise Size, Application, And State |
| Regions covered | Victoria, Western Australia, Queensland, Tasmania, Others |
| Companies covered | Trimble Inc., ORTEC, Microlise Ltd., OMNITRACS, ESRI, Route4Me Inc., Routific, Verizon Connect |
| Customization scope | Free report customization with purchase |
Segmentation