Trade Management Software Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Deployment, By End Use (Transportation, Retail, Manufacturing), And Segment Forecasts, 2018 - 2025

Report Overview

The global trade management software market size to be valued at USD 1.43 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% during the forecast period. Increasing demand for automation of trade management processes and growing need to reduce organizational costs are among the key trends escalating market growth. Globalization in trade is encouraging numerous organizations to expand their business operations across multiple countries. As a result, companies involved in trading are trying to curb compliance penalties, improve process efficiency, and reduce complications associated with imports and exports. Trade management software offers a robust and scalable platform to address these complexities, due to which its adoption has been rising rapidly across various end-use industries over the past few years.

Trade management solutions available in the market provide myriad capabilities including restricted party screening, product classification, trade documentation and licensing, and broker and agreement management. In addition, widespread cloud deployment has enabled solution providers to offer these capabilities on-demand and with pay-as-you-go models. These factors are responsible for the growing adoption of trade management software across the globe.

An important aspect of the market is rising concerns of companies regarding changing regulations, trade agreements, and their effect on the supply chain of organizations. As a result, supply chain visibility and logistics management are considered some of the most significant characteristics of trade management software. Financial management is gaining prominence as a characteristic of the software and is anticipated to garner more attention in later years of the forecast period.

Large organizations have cited cost-saving as the major factor for the adoption of trade management software. In addition, the need to meet compliance requirements, avoid penalties, and stay updated with the changing trade regulations are emerging as significant parameters for buyers to consider. This is especially true in developed economies of Europe and North America, wherein various trade agreements are already in place.

In addition to resistance from organizations to adopt new technologies, a lack of technical expertise is estimated to act as a bottleneck for the growth of the market. However, ongoing trends such as digitization, automation, and software-as-a-service are poised to create significant growth opportunities for the market.

Trade Management Software Market Trends

One of the significant drivers of the market is the increasing need for the efficient supply chain management. The need for supply chain management software is increasing as the cost to ship products globally has increased, delivery timeframes have extended, and lead times have varied. Trade management software supports businesses' transportation and logistics while maximizing resource utilization. Furthermore, by automating manual operations, trade management software is anticipated to assist business growth by reducing costs, time, and labor during the forecast period.

The design challenges of the application to adapt to changing legislation and business conditions is a fundamental hurdle for the market growth of trade management software. Furthermore, developing easy-to-integrate application programming interfaces for each partner using various enterprise software is a challenge for market growth.

Trade management software is in high demand as organizations seek to simplify and optimize their overall international trade processes. However, to be competitive and seize future market opportunities, trade management vendors are required to keep up with the industry's changing needs.

Component Insights

On the basis of components, the market has been segmented into solutions and services. The solutions segment has been further categorized into trade visibility and execution solutions, compliance solutions, and trade financial management solutions. The solutions segment forms the basis of offerings for vendors in the market, due to which it enjoys the dominant position in terms of revenue.

Services offered in the market often form the auxiliary part of the software and can be further divided into consulting and support & maintenance. The services segment is likely to exhibit a CAGR of 10.1% over the forecast period.

Deployment Insights

In 2016, the on-premise segment held the leading share in the global trade management software market. This can be attributed to a large number of organizations using legacy systems to manage their business processes. Concerns regarding data security and integrity are also playing a vital role in the adoption of on-premise solutions.

Cloud deployment comprises of software-as-a-service (SaaS) that allows central management of processes and on-demand subscription model that charges customers based on a number of subscriptions. Cloud deployment provides a high level of operational agility at lower costs, which has been instrumental in its growing adoption among small and medium enterprises. As a result, the segment is projected to progress at an impressive CAGR of 10.7% over the forecast period.

End-use Insights

Transportation and logistics registered the highest adoption of trade management software in 2016. The growth of the segment can be attributed to the soaring need for end-to-end visibility into in-transit shipments along with maintaining a single source of record. The segment is expected to maintain its lead throughout the forecast period. The manufacturing segment closely follows the transportation and logistics segment.

In terms of revenue, retail is anticipated to post the highest CAGR during the forecast period. Shifting focus from sole revenue generation to automated operations, online documentation, pipeline visibility, and customer satisfaction are fueling the adoption of trade management software in the sector.

Regional Insights

In terms of regions, North America led the market in 2016 and is estimated to show the same trend over the forecast period. North America has emerged as an industry leader owing to the presence of a large number of mature wells and large-scale development of unconventional energy resources in the region.

North America was followed by the Asia Pacific, which accounted for around 26.1% of the total market revenue in 2016. Burgeoning trade, mainly in China, Japan, and India, coupled with increasing adoption of cloud-based technologies is providing a tremendous boost to the regional market. Rising concerns regarding automated inventory tracking, filing, and reporting with risk assessment and security programs are augmenting the adoption of trade management software in the region.

Key Companies & Market Share Insights

The market is highly competitive and fairly concentrated with the top five companies accounting for a considerable share in 2016. Key market participants include Amber Road, Inc.; The Descartes Systems Group, Inc.; Livingston International, Inc.; MIQ Logistics, LLC; and Integration Point, Inc.

Other prominent companies present in the industry are Aptean Inc.; MIC Customs Solutions; Precision Software; Oracle Corporation; and QuestaWeb, Inc., among others. Online compliance documentation, trade finance management, and customized consulting services are likely to be the key parameters that companies would consider in order to gain a competitive edge in the market. Additionally, companies also carry out frequent mergers and acquisitions in an attempt to diversify their product portfolios and gain market shares.

Recent Developments

• In June 2022, Descartes Systems Group acquired XPS technologies, which specializes in providing multi-carrier cloud-based parcel shipping solutions to small, medium, and large e-commerce shippers

• In April 2022, Thomson acquired Gestta; the acquisition is expected to enable its customers to automate business capabilities, including people management, workflows, customer service, and secure document archiving, among others

Trade Management Software Market Report Scope

Global Trade Management Software Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global trade management software market report on the basis of component, deployment, end-user, and region:

• Component Outlook (Revenue, USD Million, 2014 - 2025)

  • Software

    • Trade Visibility & Execution Solutions

    • Compliance Solutions

    • Trade Financial Management Solutions

  • Services

    • Consulting

    • Support and Maintenance

• Deployment Scope (Revenue, USD Million, 2014 - 2025)

  • On-premise

  • Cloud

• End-use Scope (Revenue, USD Million, 2014 - 2025)

  • Energy

  • Government

  • Healthcare

  • Manufacturing

  • Retail

  • Transportation & logistics

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

  • Middle East & Africa