According to the latest Global Report 2027, the global trade finance market size is expected to reach US$ 10987510 million by 2027, from US$ 7616520 million in 2020, at a CAGR of 5.4% during 2021-2027.
The expanding global imports & exports are the considerable factors which can be seen as a reason behind spreading trade finance market size during the forecast period.
This report revolves around highlighting various factors about the trade finance industry ranging from its market size, future estimates, development opportunities, key markets, and leading players. The agenda of the study is to demonstrate the development of Trade Finance in North America, Europe, China, Japan, Southeast Asia, India, and Central & South America.
Apart from this, digitization also plays a vital role in accelerating the growth of the industry and its market size. In current times, almost all trade finance-related procedures rely on a large volume of physical paper documentation. These document-related costs ultimately lead to a burden on overall trade finance costs. Trade finance services being offered by banks are required to be compliant, supple, economic, and must provide value to their clients to get success. By adopting digitization, banks are transforming & automating financial and transactional data exchange through pilot projects in smart contracts.
Additionally, depending on the type, the supply chain finance sector is expected to experience improved growth.
As Covid-19 affected the corporate liquidity, the Supply Chain Finance (SCF) schemes were on the rise. However, there were doubts about disclosing regulations of such systems, as well as the initiatives of corporate purchasers and SCF providers.
Based on the area, LAMEA and North America together represented their higher revenues.
With regards to revenue, the LAMEA area influenced the trade finance sector in 2018 and is expected to hold its command during the forecast period, because of the increased oil production, and the large volume of exports, and agency financial services. Moreover, the US exports and agency financing boosts export possibilities by participating in large-scale project planning initiatives and creating a feasible framework that adds to provincial economic development.
In the year 2019, APAC possessed the largest trade finance market share, and the area is expected to facilitate market sellers with a few development opportunities over the forecast period. Increasing legal financing to improve trade finance for accelerated exports would leave a significant impact on the development of the trade finance market share in the area. China is among APAC’s critical trade finance markets. In this area, demand growth would be higher than business development in other areas. Saudi Arabia's trade finance represents about 24% of the goods trade flow.
Europe is estimated to increase at an accelerated rate in the forecast period due to the involvement of export credit agencies (ECA) performing international trade, boosting legal policies, and providing trade globally.
Apart from this, nation-wise and the area-wise market size is also included in this trade finance report for the period 2015-2026. Plus, it also includes market size, and forecast by its type, and by incorporation sectors in terms of revenue for the period 2015-2026.
The significant merchants include BNP Paribas, Bank of China, Citigroup Inc, China Exim Bank, ICBC, JPMorgan Chase & Co, Mizuho Financial Group, Standard Chartered, MUFG, Sumitomo Mitsui Banking Corporation, Credit Agricole, Commerzbank, HSBC, Riyad Bank, Saudi British Bank, ANZ, EBRD, Japan Exim Bank, Banque Saudi Fransi, Afreximbank, AlAhli Bank, Export-Import Bank of India; the Value of top ten producers accounts around 14% of the total value in 2019.
Trade Finance Market Segment by Type:
- Letters of Credit
- Guarantees
- Supply Chain Finance
- Factoring
- Documentary Collection
- Other.
Trade Finance Market Segment by Application:
- Finance
- Energy
- Power Generation
- Transport
- Renewables
- Metals & Non-Metallic Minerals
- Other.
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