You must have heard comments like, “If you wish to make the most out of investing, invest in trading.” It is true to a great extent, but there’s more. Yes, funding in stocks has both downsides and upsides. However, the increasing demand for automation in trade management movements opens new opportunities for boosting the market for trade management software.
The primary factors propelling the trade management market growth include expanding globalization-related international trade activities. Also, companies may now afford to spend between USD 8 and USD 10 million annually on freight to install the new TMS platforms. Wide-ranging potential for businesses to use software will result from this.
What is Trade Management?
Everything a trader does once a deal is opened until the trade is closed is referred to as trade management. Traders can maximize their returns while lowering their risk by controlling their deals. Determining position size, keeping track of the transaction, and executing exits are just a few of the duties involved in trade management.
The Increasing Demand for Trade Management
The world’s rapid industrialization and the increasing digitalization trend are the main factors driving the rise of the trade management market. Traders’ growing use of software solutions to automate and reduce the need for human labor in back-office chores and enhance business operations is another factor supporting market rise. Also, the market is expanding due to rising public and private investments in various logistical infrastructure projects, particularly in developing countries, to control imports and exports. As a result, another factor driving growth is the development of smart solutions that cut down on operational expenses and delivery time.
Furthermore, due to these software solutions’ adaptable process management platforms, people may control the supply chain network operations. Along with extensive research and development (R&D), other factors projected to drive trade management market demand include implementing favorable government policies that promote international trade activities.
Market Segmentation
Services Account for the Largest Share
The services category received the greatest revenue share because of the rising need for software in the service sector. It is critical to have access to trade management services to ensure that trade management solutions are effectively connected with the complex network architecture set up in enterprises.
Small and Medium Enterprises Witnesses Fastest Growth
As the government creates a favorable climate for new firms, the small and medium enterprises segment is anticipated to increase significantly. Growing adoption by small and medium-sized businesses and the enormous potential offered by emerging economies are predicted to define the future of the trade management market.
Transportation and Logistics Sector Holds Significant Growth
Due to the increased shipping of goods and services abroad for trade and profit-sharing purposes and the consequent rise in demand for software to facilitate operations, the transportation and logistics sector is predicted to grow faster. Solutions for the healthcare, consumer products, and government markets are gaining popularity due to increased cross-border transactions in the aerospace and defense industries.
Market’s Leading Region
A faster growth rate is anticipated in Asia Pacific due to changing trade management practices in several industries. As a result of rising investment in several sectors, including healthcare, manufacturing, life sciences, transportation & logistics, and aerospace & military, a flourishing economy is emerging throughout the Asia Pacific.
Furthermore, because the countries of the Asia Pacific are developing countries, exports have increased, raising GDP. Many individuals would thus be able to overcome poverty, and living standards would rise. Major firms involved in various industries are eager to engage in and research new markets and prospects in this region.
The Bottom Line
The emerging trend of digitization and prompt industrialization throughout the globe illustrates the key factors driving the market’s growth. As a matter of fact, the global trade management market was valued at USD 2.06 billion in 2022 and is expected to grow to USD 5.14 billion at a CAGR of 9.6% during the forecast period of 2032.