The global trade management software market is projected to experience significant growth, with an estimated value of US$ 712.3 million in 2018, and a forecasted increase to US$ 1,607.2 million by 2027, reflecting a compound annual growth rate (CAGR) of 9.6% from 2019 to 2027. This growth is primarily driven by the complexities associated with global trade management, the need for cost efficiency, enhanced real-time visibility in trade processes, and the increasing volume of cross-border trade. However, the market faces challenges, particularly due to the frequent changes in regulatory frameworks that can hinder growth.
Businesses worldwide encounter a variety of trade management issues influenced by numerous factors. These include the geographical locations of sourcing, manufacturing, and shipping of products, as well as the volume of imports and exports. Compliance with security regulations at delivery destinations, the existence of various Free Trade Agreements (FTAs) and Free Trade Zones (FTZs), the number of partners in the supply chain, and the level of internal expertise in trade are also critical considerations. Moreover, the requirements of businesses can evolve over time or vary by location, prompting organizations to seek effective Global Trade Management (GTM) solutions to streamline their international trade operations.
The expansion of global trade and supply chains is accelerating due to the growth of cross-border markets, leading to the establishment of production facilities in diverse locations supported by a worldwide supplier network. This expansion increases the potential for errors during international shipments, necessitating that supply chain management entities ensure compliance with all relevant procedures before engaging in international trade. This requirement underscores the importance of thorough research and ongoing monitoring of global regulations. GTM providers dedicate substantial resources to ensure compliance with international trade laws, including the payment of duties, tariffs, and taxes.
In 2018, North America emerged as the leading region in the global trade management software market, followed by Europe and the Asia Pacific. The Middle East and Africa, along with South America, ranked fourth and fifth in market share, respectively. The growth of the trade management software sector in North America can be attributed to the presence of advanced economies such as the United States and Canada. In 2018, the United States imported goods worth over US$ 2.5 trillion from around the world, with approximately 45% of these imports originating from the Asia Pacific region. Additionally, trade partners from the Asia Pacific contributed about 26% of the total import sales to the U.S., while Europe accounted for around 22% of the imports.
The overall size of the trade management software market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the trade management software market. This research also includes an overview and forecast of the global trade management software market segmented by five major regions: North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Furthermore, primary interviews were conducted with industry participants and experts to validate the data and analysis. Participants typically include industry professionals such as Vice Presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders in the trade management software sector.
Key players in the global trade management software market include Amber Road, Inc., Bamboo Rose LLC, Expeditors International of Washington, Inc., Integration Point, LLC, Livingston International, MIC, Oracle Corp, QAD, Inc., QuestaWeb, SAP SE, among others.