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Trade Finance Market

Trade Finance Market

Trade Finance Market By Trade Activity (Factoring, Export Credit, Insurance), By Transaction (Domestic Only, International Only), By End User (Importers & Exporters, Banks & Financiers, Insurers & Export Credit Agencies) & By Region - Global Market Insights 2022 to 2032

Trade Finance Market
FACT400MR
  • Jun-2022
  • List of Tables : 84
  • List of Figures : 112
  • 170 Pages
  • Consumer Goods

Trade Finance Market Outlook (2022-2032)

The global trade finance market is valued at around US$ 46.18 billion in 2022 and is projected to evolve at a CAGR of 4.5% to reach a market valuation of US$ 68.62 billion by the end of 2032.

Collectively, the top three countries leading the global trade finance market at present account for 42% market share.

Trade Finance Market Report Attributes

Details

Trade Finance Market Size (2022)

US$ 46.18 Billion

Projected Market Value (2032)

US$ 68.62 Billion

Global Market Growth Rate (2022-2032)

4.5% CAGR

Europe Trade Finance Market Share (2022)

26%

Key Companies Profiled

  • Citigroup Inc.
  • HSBC Holdings plc
  • JPMorgan Chase & Co
  • Commerzbank AG
  • Morgan Stanley
  • Mitsubishi Corporation
  • ANZ Bank
  • NewMarket Latin America Inc.
  • Banco Santander S.A
  • SunTrust Bank Holding Company
  • UniCredit S.p.A
  • Wells Fargo & Company

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Revenue Analysis of Trade Finance (2017-2021) Vs. Market Outlook (2022-2032)

“Growing Preference for Trade Finance to Enhance Working Capital Efficiency in Businesses”

According to Fact.MR, a market research and competitive intelligence provider, the trade finance market is expected to expand at a CAGR of 4.5% from 2022 to 2032.

Trade finance is the financing of international and domestic trade flows, in which, trading intermediaries such as banks and other financial institutions facilitate different transactions between buyers and sellers. Trade finance reduces the risk involved in international and domestic trade finance. Trade finance is one of the factors for the enormous growth of international trade over the years.

The global trade finance products market is anticipated to witness significant revenue growth over the forecast period. Increasing global imports and exports is also a key driver for the international trade finance market.

Digitalization and utilization of new technologies such as Blockchain will improve efficiency and reduce the cost of players in the trade credit market.

Trade finance market forecast by Fact.MR

Which Factor Outlines the Demand for Trade Finance Services?

“Growing Need for Safety & Security of Trading Services”

Increased demand for trade finance significantly impacts financial firms to invest in trade finance approaches that are less likely to spread, can collect and monitor multiple structured and unstructured data sets at the same time, and provide financial stability to importers and exporters in the form of payment risk and supply risk.

Many exporters, in the initial days of global trade, had no idea whether or when importers would pay them for their products. Exporters tried to identify measures to lessen the risk of non-payment from importers over time. Importers, on the other hand, used to be concerned about making advance payments for goods since they had no guarantee that the seller would send the goods.

All of these risks have been addressed by trade finance, which has evolved to expedite payments to exporters while assuring importers that all of the items ordered have been dispatched with commercial letters of credit (LCs).

To improve the entire investor interface experience and stay ahead of their competitors in the trade finance industry over the coming years, trade finance solution providers have increased the number of options available.

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How is Trade Finance Allowing New Companies to Make a Mark?

“Implementation of Technology in Trade Finance Platforms Paving Way for Start-ups”

Technology is important in many businesses, including banking, financial services, and insurance (BFSI). Technological breakthroughs, automation, and a degree of standardization have all been developed in trade financing in recent years. Increasing advancements in data collection technology are driving the demand for AI and automation in banking.

  • In 2022, BNP Paribas and JP Morgan backed FinTech Saphyre with a US$ 18.7 million Series A funding. Saphyre facilitates firms in not only evaluating hazards faster and clearly but also quickening onboarding forms and dispensing with 70%-75% of repetitive post-trade activities.

How are Regional Trade Finance Markets Performing?

“Growing Adoption of Trade Finance by SMEs, Rising Competition, and New Trade Agreements across Regions”

North America accounts for 31% share of the global trade finance market.

High-end technology is becoming increasingly prominent in trade financing in North America. The incorporation of Blockchain technology in trade finance companies is predicted to provide lucrative trade finance industry prospects throughout the forecast period.

Growing usage of personal finance mobile apps, as well as a surge in SMEs adopting trade financing, greater competition, and new trade agreements, are all propelling trade finance market growth in the region.

Multinational corporations in the United States have begun to use digital technologies that promise better supply chain trade finance and accountability, as well as the development of new digital networks to facilitate trade and finance. The market is being driven by the increasing overall value of international trade imports and exports.

Due to the engagement of export credit agencies (ECA) in conducting overseas trade, reinforcing government policies, and enabling trade around the globe, Europe accounts for 26% share of the global trade finance market.

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Which End Use of Trade Finance is Most Rewarding?

“Rising Adoption of Digital Channels and Processes in Trade Finance Banks & Financiers

Based on end user, the market is segmented into importers & exporters, banks & financiers, insurers & export credit agencies, and other service providers. Banks & financiers are expected to account for a significant market share over the coming years.

Commodity finance banks effectively mediate trade transactions, and competitive weights have pushed them to end up being increasingly proficient and offer more successful administrations. Banks & financiers need to speed up digitalization endeavors and enhance their products and working models if they are to grab the chance as competition from nontraditional suppliers intensifies.

Trade finance is dominated by banks & financiers. A supply chain fund program is regularly set up by a corporate buyer with a bank or elective fund supplier to deliver providers early payment on their solicitations.

What is the Competitive Landscape for the Trade Finance Market?

Trade finance providers are engaging in key associations and joint ventures coupled with introducing differentiated items to up their game within the market.

The market is exceedingly competitive, with major banks leading the landscape. Banks are focusing on changing their industry from a paper-based framework to a more efficient digitized model with reliable services.

For instance :

  • Citigroup Inc. allows access to advanced specialized products and availability of finance while concentrating on financial statement efficiency targets through the advancement and a solid reputation in technology-driven strategies.

Key Segments Covered in Trade Finance Industry Research

  • Trade Finance Market by Trade Activity :

    • Factoring
    • Export Credit
    • Insurance
    • Other Activities
  • Trade Finance Market by Transaction :

    • Domestic Only
    • International Only
  • Trade Finance Market by End User :

    • Importers & Exporters
    • Banks & Financiers
    • Insurers & Export Credit Agencies
    • Other Service Providers
  • Trade Finance Market by Region :

    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East & Africa

- FAQs -

The global trade finance market size is currently valued at US$ 46.18 billion.
The U.S., Brazil, Mexico, China, and Germany are the top 5 countries in the market.
North America leads the market with 31% share.
The market is anticipated to rise at 4.5% CAGR through 2032.

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Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

What research methodology is followed by Fact.MR?

Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.

What are the sources of secondary research?

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