Global Trade Management Market

[145 Pages Report] The overall global trade management market is expected to grow from USD 589.6 Million in 2016 to USD 1,034.2 Million by 2022, at a CAGR of 9.9% from 2017 to 2022. Global trade management solutions offer advantage to organizations to, manage trade efficiently across various regions. Global trade management solutions are being used across several industry verticals such as transportation and logistics, government and public, healthcare and life sciences, aerospace and defense, manufacturing, consumer goods and retail, energy and utilities, others. The base year considered for the study is 2016, and the forecast has been provided for the period between 2017 and 2022.

Market Dynamics

Drivers

• Increasing complexities in managing global trade
• Government regulations and compliances
• Increasing investment in global logistics infrastructures

Restraints

• Organizations resistant to change legacy systems or adopt new technologies

Opportunities

• Advanced features to link with existing corporate systems
• SaaS Model for global trade management

Challenges

• Lack of Capabilities to Manage GTM Systems

Increasing complexities in managing global trade

In the recent times, the global trade management market has witnessed a steady growth in the overall trade between different countries worldwide due to increased globalization and advanced technologies aiding the cross-border sales. Globalization and growth of online retailing have subsequently increased cross-border sales. This has further increased the complexities of managing the overall process of global trade, such as tracking shipments, communicating between large network of customers and suppliers, and operating on tight margins due to the fluctuating global economic conditions. Furthermore, complexities such as different time zones, modes of transport, multiple languages, and currencies are a few other challenges faced by organizations in the global trade. Thus, organizations have been inclined to adopt efficient solutions and services, such as GTM systems that enable effective management of complex trade processes. GTM solutions and services facilitate businesses by simplifying the trade processes, such as collaborating with supply chain partners, providing data on efficient transportation options, and updated country-specific regulatory compliances.

The following are the major objectives of the study.

• To define, describe, and forecast the global trade management market on the basis of segments which include component, deployment type, organization size, and vertical
• To describe and forecast the global market, in terms of value, by region– North America, Europe, Asia Pacific (APAC), Middle East and Africa, and Latin America
• To provide detailed information regarding major factors influencing the global market growth (drivers, restraints, opportunities, and challenges)
• To strategically profiles key players and comprehensively analyzes their core competencies, along with detailing competitive landscape for market leaders
• To analyze strategic approaches such as product launches, mergers and acquisitions, contracts, agreements, and partnerships in the global trade management market

The research methodology used to estimate and forecast the global market begins with the collection and analysis of data on key vendor product offerings and business strategies from secondary sources, such as World Bank, International Trade Administration, press releases, investor presentations of companies, white papers, technology journals, certified publications, Hoovers, Bloomberg BusinessWeek, and Factiva, articles from recognized authors, directories, and databases. The vendor offerings have also been taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the total market size of the global trade management market from the revenue of the key market software tool providers and service providers. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of the primary participants is depicted in the figure below:

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The global trade management ecosystem comprises the service and solution providers such as Amber Road, Inc. (US), Aptean (US), Descartes (Canada), SAP SE (Germany), Integration Point, Inc. (US), Oracle (US), Precision Software (US), QuestaWeb, Inc. (US), Livingston International (Canada), MIQ Logistics (US), Thomson Reuters (US), and MIC Customs Solutions (Austria). These Global Trade Management Software Vendors are rated and listed by us on the basis of product quality, reliability, and their business strategy. Please visit 360Quadrants to see the vendor listing of Global Trade Management Software.

Major Market Developments in Trade Management Market

• In February 2017, Aptean acquired irms|360 Enterprise Solutions, which is division of Upp Technology. This acquisition would enable Aptean to extend its competences in the cloud supply chain technology.
• In January 2017, Descartes partnered with IATA. This partnership would empower small to mid-sized freight forwarders with the capability of electronic Air Waybill (eAWB), which facilitates electronic communication among air carriers, Ground Handling Agents (GHAs), and freight forwarders.
• In January 2017, Thomson Reuters launched ONESOURCE Global Trade Classifier.

Key Target Audience for Trade Management Market

• Enterprise users
• Trade organizations
• Government agencies
• Industrial users
• Freight forwarders
• Global trade management vendors

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Scope of the Report

The research report segments the global trade management market into following submarkets:

By Component

• Solutions
  • Trade function
    • Import/export management
    • Vendor management
    • Others
  • Trade compliance
    • Duty management
    • Risk and quality management
  • Supply chain visibility
  • Trade finance
    • Insurance management
    • Invoice management
    • Others
• Services
  • Consulting
  • Implementation
  • Support and maintenance

By Deployment Type

• On-premises
• Cloud-based

By Organization Size

• SMEs
• Large enterprises

By Vertical

• Transportation and logistics
• Government and public
• Healthcare and life sciences
• Aerospace and defense
• Manufacturing
• Consumer goods and retail
• Energy and utilities
• Others

By Region

• North America
• Europe
• APAC
• Rest of the World (RoW)

Critical questions which the report answers

• What are new solutions which the global trade management companies are exploring?
• Which are the key players in the market and how intense is the competition?

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

• Product matrix which gives a detailed comparison of the product portfolio of each company

Geographic Analysis

• Further breakdown of the North American global trade management market into countries
• Further breakdown of the European market into countries
• Further breakdown of the APAC market into countries
• Further breakdown of the Middle Eastern and African market into countries
• Further breakdown of the Latin American market into countries

Company Information

• Detailed analysis and profiling of additional market players

The global trade management market is expected to grow from USD 645.2 million in 2017 to USD 1,034.2 million by 2022, at a Compound Annual Growth Rate (CAGR) of 9.9%. Several factors such as increasing complexities in global trade, changing government rules and regulations pertaining to foreign trade, increasing transportation costs, and increasing investment in global logisitics infrastructure are responsible for the growth of the global market. Verticals such as transportation and logistics, aerospace and defense, consumer goods and retail, healthcare and life sciences, and manufacturing have contributed largely to the global trade management market.

The global market is segmented by solution, service, deployment type, organization size, vertical, and region. The on-premises deployment model has been the preferred deployment model, However, cloud-based global trade management deployment is likely to gain traction during the forecast period and grow at highest CAGR. Cloud-based deployment model reduces the total cost of ownership by cutting down the cost associated with installing hardware to support global trade management solutions. One of the major advantages of the cloud-based deployment model is that it helps the enterprises to know the real-time condition of the trade process from a remote location. Moreover, cloud-based deployment model offers higher agility than the on-premises deployment model. Enterprises are considering cloud deployment as solution providers offer remote global trade management solutions at competitive pricings.

Trade function solutions are estimated to dominate the global trade management market in 2017, while trade compliance solutions are expected to witness the fastest growth during the forecast period from 2017 to 2022. Growing complexities in managing business import/export functions have driven the growth of trade function solutions in the global trade management solutions market. To avoid heavy penalties and brand damage, enterprises are likely to adopt trade compliance solutions to understand the rules and regulations laid down by the concerned authorities of different countries across the world. Global trade management support and maintenance services are expected to gain traction during the forecast period, considering the need to ensure smooth functionality of the solutions over the long run. Moreover, corporate training and support to upgrade advanced solution functionalities are likely to further contribute to the demand for support and maintenance services.

The Small and Medium Enterprises (SMEs) segment is expected to grow at the highest CAGR in the global trade management market during the forecast period. SMEs have been majorly dependent on manual records, spreadsheets, and traditional solutions to manage their global trade processes. This is majorly due to the lack of awareness and budget constraints. However, increasing awareness and digital transformation has influenced SMEs to adopt automated solutions such as global trade management.

Global trade management solutions and services are being increasingly adopted by verticals, such as transportation and logistics, aerospace and defense, healthcare and life sciences, consumer goods and retail, manufacturing, and energy and utilities, to automate and simplify global trade operations, thus, fueling the growth of the global trade management market across the globe. The transportation and logistics vertical is expected to hold the largest market size during the forecast period. However, aerospace and defense and healthcare and life sciences segments are also expected to represent prospective opportunities during the forecast period for global trade management vendors.

The global trade management market has been segmented by region into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America to provide a region-specific analysis in the report. North America is expected to have the largest market share and is expected to dominate the market from 2017 to 2022, considering the presence of large global trade management vendors in the region. The region is also considered to be one of the most advanced regions with regards to the technology adoption and infrastructure.

Aerospace and Defense, Manufacturing, and Healthcare and Life Sciences industry verticals are expected to drive the growth of global trade management market

Aerospace and Defense

Aerospace and defense industries encounter stringent trade compliances. Operating in the global environment, aerospace and defense industries face complexities owing to the control of International Traffic in Arms Regulations (ITAR) on import/export of defense-related goods and services. GTM solutions and services enable aerospace and defense companies with automated capabilities to manage the import/export by providing automated functions for documentation, licensing, and restricted party screening.

Manufacturing

Manufacturing industries, such as automobiles, computer and electronic product manufacturers, textile mills, and metal manufacturers, operate globally and rely heavily on the global trade for the supply of raw materials and distribution of finished products. Most of the manufacturing plants have been set up in developing countries, such as India, China, and Brazil due to the low labor costs and easy availability of raw materials while these finished products are traded in the mature regions, such as the US, the UK, and Germany. Thus, it is a challenge for the manufacturing industries to track suppliers and shipments while complying with rules and regulations of different countries. GTM solutions offer manufacturing industries with an efficient platform to collaborate with a large number of suppliers across regions, while also providing them with the ability to track and monitor shipments.

Healthcare and Life Sciences

Meeting the compliance requirements is a major challenge faced by the healthcare and life sciences vertical while operating on international trade. Global trading in healthcare and life sciences include pharmaceutical products and medical equipment. Imports/exports of medicinal and pharmaceutical products have witnessed a significant growth in the international trade. Pharmaceutical exporters face certain challenges, such as complex and costly registration, certification procedures, and licensing. GTM solutions tackle the challenges, compliances, and complex processes, to simplify the international trading of healthcare and life sciences products.

Enterprises operating in global trade have been dependent on or are using traditional solutions to manage their trade processes. Moreover, due to the lack of budget, SMEs are highly dependent on manual processes or traditional methods to manage their trade processes. This is one of the factor restraining the growth of global trade management market.

The major vendors that offer global trade management solutions and services across the globe are Amber Road, Inc. (US), Aptean (US), Descartes (Canada), SAP SE (Germany), Integration Point, Inc. (US), Oracle (US), Precision Software (US), QuestaWeb, Inc. (US), Livingston International (Canada), MIQ Logistics (US), Thomson Reuters (US), and MIC Customs Solutions (Austria). These vendors have adopted different types of organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, and mergers and acquisitions to expand their offerings in the global trade management market.

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