Global trade management (GTM) is a crucial component of supply chain management. It encompasses a broad range of activities, from regulatory compliance to logistics and transportation. As global trade becomes more complex, companies need to leverage technology and data to streamline their operations and gain a competitive advantage.
In this post, we’ve compiled GTM statistics to provide insights into industry trends, challenges, and opportunities.
Key Global Trade Management Statistics 2023 – MY Choice
- In 2019, global trade reached a total value of $19.48 trillion USD.
- China is the world’s largest exporter with a total value of $2.49 trillion USD in 2019.
- The United States is the world’s second-largest exporter with a total value of $1.65 trillion USD in 2019.
- The World Trade Organization (WTO) reports that the average tariff rate for industrial products globally is 6.6%.
- In 2019, the top five export markets for the United States were Canada, Mexico, China, Japan, and the United Kingdom.
- The value of global trade in services reached $6.03 trillion USD in 2019.
- The top five service export countries in 2019 were the United States, the United Kingdom, Germany, France, and China.
- The WTO reports that trade in commercial services grew by 3.4% in 2019.
- The European Union is the world’s largest trading bloc, accounting for 15.6% of global trade in 2019.
- According to the International Chamber of Commerce, trade finance represents 3% of global trade, or $3 trillion USD annually.
Global Trade Management Stats
Table 1: Global Trade Management Market Statistics
|Year||Market Size (USD billion)||CAGR|
Note: CAGR = Compound Annual Growth Rate
Table 2: Global Trade Management Latest Statistics
|International related party trade as a percentage of total goods trade||42.6%|
|Percentage of global reported landings that were species-specific||21%|
|Percentage of global Lutjanid production reported only to the genus||79%|
|Country with the world’s largest snapper supply||Not specified|
|US destined exports from Brazil, Honduras, and Trinidad and Tobago for 2006-2013 compared to US reported imports from these countries||50% lower|
|Estimated underestimation of snapper imports and exports reported to the FAO for 2006-2013||Up to 40% and 73%, respectively|
|Disaggregated data missing for snapper ‘fillets and other meat’||Yes|
|Fortune 2000 companies relying on research||80%|
|Recovery of trade in goods compared to 2019 last quarter months||1%|
|Degrowth compared to 2019||12%|
|Decline in merchandise trade and trade in commercial services due to COVID-19 pandemic||8% and 21%, respectively|
|Decline in services in the second quarter of 2020 compared to goods||30% vs. 23%|
Table 3: Largest Trading States according to the World Trade Organization
|Rank||State||International Trade of Goods|
|2||United States||$3,683.1 billion|
|5||United Kingdom||$1,339.1 billion|
|8||South Korea||$1,027.1 billion|
|9||Hong Kong SAR, China||$991.3 billion|
|17||Taiwan, China||$526.6 billion|
|18||Russian Federation||$471.4 billion|
|20||United Arab Emirates||$429.2 billion|
What is Global Trade Management?
Global trade management (GTM) refers to the process of streamlining and automating the entire supply chain for global trade, including compliance with regulations and laws, logistics, and financial management. GTM helps companies to improve their visibility into their supply chain, enhance compliance with regulations, reduce risks, and increase efficiency. Here are 100 Global Trade Management statistics that highlight the importance of GTM for businesses:
The Global Trade Management Market
- The global GTM market size was valued at USD 24.43 billion in 2020 and is expected to reach USD 51.77 billion by 2028, growing at a CAGR of 9.8% from 2021 to 2028.
- The Asia Pacific region is expected to have the highest CAGR in the GTM market during the forecast period, owing to the increasing demand for end-to-end visibility and transparency across the supply chain.
- The cloud-based GTM solutions segment is expected to dominate the market during the forecast period, owing to the increasing adoption of cloud-based technologies and the need for real-time visibility into the supply chain.
The Importance of Global Trade Management
- Nearly 80% of the global trade is conducted through international supply chains, making it critical for companies to have a strong GTM system in place to manage their global operations effectively.
- With the increasing complexity of global trade regulations and the need for transparency in supply chains, GTM has become a critical part of a company’s overall supply chain strategy.
- GTM can help companies to reduce supply chain risks, such as delays in transportation, damaged goods, or non-compliance with regulations, which can result in lost revenue and damage to the company’s reputation.
Global Trade Compliance
- Compliance with global trade regulations is a critical part of GTM, with companies facing significant fines and penalties for non-compliance.
- The top three challenges faced by companies in maintaining global trade compliance are keeping up with changing regulations (40%), lack of internal resources (38%), and difficulty in tracking changes (36%).
- The average cost of non-compliance with global trade regulations for companies is estimated to be $16.7 million per year.
- Companies that invest in GTM solutions to manage compliance with global trade regulations can see a reduction in compliance-related costs of up to 50%.
Global Trade Logistics
- Global trade logistics refers to the management of the physical movement of goods across international borders.
- The top three challenges faced by companies in managing global trade logistics are long lead times (47%), complexity of trade regulations (44%), and lack of visibility into the supply chain (39%).
- Nearly 40% of companies are still using manual processes to manage their global trade logistics, which can result in errors, delays, and increased costs.
- By implementing GTM solutions, companies can improve their logistics operations by up to 25% and reduce transportation costs by up to 20%.
Supply Chain Visibility
- Supply chain visibility is a critical part of GTM, providing companies with real-time insights into their supply chain operations and enabling them to identify and address issues before they become significant problems.
- The top three benefits of supply chain visibility for companies are improved delivery performance (45%), increased efficiency (42%), and reduced inventory costs (41%).
- Over 60% of companies have limited visibility into their global supply chains, making it difficult for them to manage risks and ensure compliance with regulations.
Benefits of Global Trade Management Systems
Global trade management systems offer numerous benefits to businesses engaged in international trade. Here are some of the advantages of implementing GTM solutions:
With GTM systems, businesses can ensure compliance with import and export regulations, including trade restrictions and embargoes. This reduces the risk of penalties and fines, and helps businesses avoid legal and reputational issues.
GTM solutions provide real-time visibility into the entire supply chain, enabling businesses to track the movement of goods and identify potential issues early on. This allows businesses to quickly respond to disruptions and minimize their impact.
By automating and streamlining trade-related processes, GTM systems can help businesses save time and reduce operational costs. This includes tasks such as document management, trade compliance checks, and shipment tracking.
Improved Customer Satisfaction
With increased visibility and efficiency, businesses can improve their delivery times and provide better customer service. This can help them gain a competitive advantage in the global marketplace.