The Indian Ocean trade network was primarily dominated by European powers from the 15th century onward, resulting in the decline of local trading systems.

From the 15th century onward, European explorers and merchants began sailing directly into the Indian Ocean, bringing new ships, weapons, and a different way of doing business. They built large ports and used powerful naval vessels, which let them control key trade routes and capture the profits that had once gone to local merchants. Because Europeans could dominate the shipping and set the prices, local traders lost their middleman role and many small ports fell out of use. For example, the Portuguese control of the spice trade in Goa cut off many Arab and African merchants from accessing markets in the same way they had before, which weakened the traditional networks that had linked Africa, Arabia, and India for centuries. Thus, the arrival of European powers reshaped the whole trade system and caused local trading centers to decline.