International trade is a crucial component of the global economy, with businesses constantly seeking ways to enhance efficiency, reduce costs, and ensure compliance with complex regulations. Global trade management software has emerged as a powerful solution to streamline and automate trade operations, making it easier for importers and exporters to collaborate with trade partners effectively. This software encompasses various modules, including trade compliance, import management, export management, customs management, and more, with additional modules focused on logistics, transportation, and supply chain management.
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Trade Compliance: Ensuring Legal Adherence
Trade compliance plays a pivotal role in the global trade management software market. It involves a company’s observance of the laws and regulations governing its international business operations. Failure to comply with these regulations can lead to severe consequences, as many organizations may be unaware of changes made by the government. Trade compliance solutions enable businesses to streamline their operations, accurately adhere to changing regulations, and avoid potential pitfalls.
Global Trade Growth: Challenges and Opportunities
The volume of international trade continues to grow due to globalization. Transportation and logistics companies, in particular, face challenges related to streamlining business processes and managing the operational costs associated with expanding trade operations. Despite challenges like Brexit and the trade war between the US and China in 2017 and 2018, substantial trade operations occurred worldwide.
Factors Driving the Global Trade Management Software Market
Several key factors positively impact the global trade management software market:
- Sourcing from Low-Cost Labor Markets: Increased sourcing from countries with cheap labor, such as China and India, drives trade activities and the demand for global trade management software.
- Cross-Border Security Standards: The rising demand for global trade management software is fueled by the need to meet increasingly stringent cross-border security standards.
- Free Trade Agreement Compliance: The growing number of free trade agreements among countries necessitates automation through trade management software.
Regional Dynamics
The global trade management software market is divided into North America, Europe, APAC (Asia-Pacific), and RoW (Rest of the World). North America, with a significant contribution from the US, leads in revenue generation. APAC, especially in countries like China, Japan, South Korea, India, and Australia, is witnessing significant growth, making it one of the fastest-growing markets.
Deployment Options
Global trade management software can be deployed in two ways: cloud-based and on-premise. Many end-users prefer on-premise deployment due to security concerns and a desire for customized solutions. However, cloud-based deployment is expected to grow considerably in the forecast period, offering cost savings and enhanced visibility into business processes.
Offering Categories
The global trade management software market is segmented into two offering categories: subscription and services. Subscriptions include revenue generated from software subscriptions, while services cover professional services such as implementation, deployment, maintenance, support, consulting, and training.
Challenges in Adoption
One of the major challenges in the adoption of global trade management software is the reluctance of some companies to integrate these solutions with their existing software and systems. Many end-users prefer plug-and-play solutions to simplify the integration process.
Key Players
The global trade management software market is dominated by major companies, including Oracle, SAP, Infor, E2open, and Integration Point. Other prominent vendors include Avolin, Bamboo Rose, AEB, Descartes Systems Group, QAD Precision, and QuestaWeb. It is expected that major ERP vendors will enter the market, leading to consolidation. For example, E2open’s acquisition of Amber Road in 2019 exemplifies this trend.
Market Growth Projection
According to Report Ocean Research, the global trade management software market is expected to grow at a CAGR of nearly 12% during the forecast period from 2019 to 2025. This report aims to provide comprehensive insights into the market’s segments, deployment options, offerings, modes of trade, solutions, and regions.