This study intends to unfurl the multiple facets of global trade management software market and thereby examine how the short-term growth of the market will unfold during the stipulated time span.
Trade Management Software Market
Rampant proliferation of technology has transformed the logistics, and trade sectors. Advanced technologies such as artificial intelligence, data analytics, and machine learning have boosted the speed of activities while reducing costs. Predictive analytics support trade professionals in assessing and identifying impact of disruptions in trade and other facets such as tariff increases, regulatory changes, and trade agreements. As per the World Trade Organization (WTO), blockchain technology is likely to positively impact global trade management applications like customs, trade finance, and certification processes among others. That said, technology has changed the entire trading scenario, presenting new pathways of growth for the trade management software market.
Rising Volume of International Trade Calls for Automated Trade Management to Favour Trade Management Software Market Growth
Growing volume of international trade initiated the need for optimization of logistics, and monitoring of shipments. As per World Trade Organization, trading of goods has been witnessing a year-on-year spike since past several years till the beginning of the pandemic. This resulted in the need for automated trade management tools to carry out activities efficiently thereby reducing losses. Trade management software thus witnessed significant demand owing to its functional benefits. Trade management software supports automation and centralization of trading operations as per trade compliance. This software assists customs professionals by streamlining business processes along with data management, thus supporting management of compliance duties. Manual operations result in loss of time, speed of trade and accuracy in customs reporting. However, by using technology, these hurdles can be minimized ultimately resulting in profits for trade management software market.
Trade management software offers free process management, trade agreement qualification, foreign zone trade functionality and nation specific export and import self filing. Moreover, its use in automating operational tasks such as license determination, documentation generation and classification storage has bolstered the growth of the trade management software market. In addition, trade management software includes features that help companies and traders reduce supply chain risks. It also connects exporters and importers with overseas logistics providers, suppliers, and broker apart from maintaining visibility on cross border transactions. With integration of new-age technologies such as artificial intelligence, Internet of Things and machine learning, the connected logistics space has been evolving, thus paving new growth avenues for the trade management software market.
COVID-19 Pandemic Embossed a Pull-Push Effect on Global Trade, in Turn Influencing Trade Management Software Market
During the pandemic, several businesses were disrupted including the international trade. Government authorities in several countries implemented restrictions and bans on international trade and transport to curb the spread of the virus. This translated into interruptions in trade activities and the supply chain. In the first half of 2020, trading of goods witnessed a sharp decline. For instance, according to the United Nations Conference on Trade and Development (UNCTAD) 2021 report, merchandise trade value fell significantly whereas trade in services reduced by around 20%. Developed economies across Europe, and North America witnessed a steep decline in sales of products from several industries including automotive and chemicals. However, during the timeframe, medical products and drugs related to the Sars-CoV-2 virus such as personal protective equipment, ventilators, thermometers, and sanitizers witnessed noteworthy growth in the second half of the year.
For instance, as per WTO, in May 2020, trading of medical products recorded healthy growth of around 18% more than that recorded in 2019. Non-medical products such as laptops, Wi-Fi routers, home office equipment and portable storage devices also witnessed growth during the last quarter of 2020. In addition, owing to the restrictions during the pandemic, digitalization accelerated significantly across all industries irrespective of their value and employee size. This further gave an impetus to e-commerce and global trade in general. For instance, as per the Economic Integration report 2021 of Asian Development Bank, 20% growth of the digital sector is expected to boost the global output by approximately US$4 Tn by the end of 2025. In this backdrop, albeit a major slowdown during the commencement of the pandemic, the trade management software market witnessed notable growth and is poised to maintain the momentum in the following years.
Coexistence with Corporate Systems to Open New Opportunities in Trade Management Software Market
Demand for trade management software is likely to increase exponentially in the forthcoming years. This can be attributed towards rising need for simplification and optimization of trade processes and the ability of the tool to co-exist with the existing systems. Vendors of trade management software maintained vigilance to keep-up with the dynamics of the market and sustain in the competitive scenario. This led to the development of trade management software which can be integrated with various corporate systems such as TMS (Transport Management System) and ERP (Enterprise Resource Planning). This resulted in smooth management of IT teams within organizations, ensuring maximum efficiency. Also, data provided by the software can showcase high transparency apropos to supply chain intricacies and support in making informed decisions. This factor continues to influence the growth of the trade management software market.
Asia Pacific to Showcase High Attractiveness in Trade Management Software Market
Developing nations across Asia Pacific region are expected to showcase high growth potential in the trade management software market. This is mainly owing to increasing trade activities and FDI policies by government authorities to improve FDI inflow in the region. This is expected to further give impetus to international trade relations and activities, thus driving the demand for trade management software. In addition, utilization of free trade agreements has risen dramatically across emerging economies such as China and India. This has resulted in duty free imports along with subsequent trade deficits. The scenario pushed government authorities to adopt anti-abuse procedures to shun the misuse of duty free access. This aspect is expected to support the growth of the trade management software market in Asia Pacific in the forthcoming years.
Trade Management Software Market: Competitive Landscape
A few of the key players in global trade management software market include Oracle Corporation, MIC, SAP SE, QAD Inc., Livingston International, Thomson Reuters, Bamboo Rose LLC, and Shipsy.
Regional Classification of the Global Trade Management Software Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Trade Management Software Market
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