Trade Finance Market Size To Grow At A CAGR In The Forecast Period

The ‘Global Trade Finance Market Report and Forecast 2022-2027’ by Expert Market Research gives an extensive outlook of the global trade finance market, assessing the market on the basis of its segments like type, service provider, end-users, and major regions.

The key highlights of the report include:

Market Overview (2017-2027)

• Forecast CAGR (2022-2027): 4.3%

Report AttributeDetails
Historical Period2017-2021
Forecast Period2022-2027
Base Year2020
Growth Rate CAGR4.3%
Major PlayersCitigroup Inc., Asian Development Bank, DBS Bank Ltd, JPMorgan Chase & Co., BNP Paribas, HSBC Holdings PLC, Euler Hermes, and Standard Chartered Bank, among others.

The demand for the trade finance market is likely to fuel as it has become a significant tool for various corporations to enhance their efficiency and boost revenue. With the surging global imports and exports, the market for trade finance is expected to grow further. Trade finance ensures fewer delays in payments as well as in shipments permitting both exporters and importers to run their companies and manage their cash flows more effectively and efficiently.

Trade finance permits companies to improve their revenue and business with trade. A company may fall behind on expenses and drop a significant supplier or consumer without trade financing which would likely result in long-term difficulties for the corporation. Trade financing reduces this the risk of financial hardship, due to which the demand for the trade finance market is rising.

Growing technological advancements in various industries like banking, financial services, and insurance (BFSI), along with the surging developments in data collection technology is expected to propel the demand for automation and AI in banking. This would further bolster the market growth for trade finance.

Trade Finance Industry Definition and Major Segments

Trade finance refers to the financial products as well as instruments that are used by corporations to assist in international commerce and trade. It makes international trade easier and possible for exporters and importers to effectively manage their trading and business.

Based on type, the market is segmented into:

• Supply Chain Finance
• Structured Trade Finance
• Traditional Trade Finance

By service provider, the market is classified into:

• Banks
• Trade Finance Houses
• Others

By end-users, the market is segmented into:

• Exporters
• Importers
• Traders
• Others

Based on region, the market is divided into:

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

Trade Finance Market Trends

The global trade finance market is expected to register significant growth on account of growing digitalisation along with the surging adoption of innovative technologies by various companies like blockchain. The high demand for trade finance encourages companies to invest in trade finance methods that are less likely to spread. This offers financial stability to exporters and importers in the form of payment risk and supply risk, increasing the growth of the market for trade finance.

Geographically, the North American region is holding the market growth of trade finance during the forecast period on account of the increasing adoption of high-end technology in the region. The inclusion of Blockchain technology into trade finance corporations is expected to fuel the growth of the trade finance market . This technology benefits stakeholders by lowering friction from operational and logistical inefficiencies around the trade finance value chain.

The surging utilisation of personal finance mobile apps, spur in SMEs adopting trade financing, latest trade agreements, and greater competition are all likely to drive the market growth of trade finance in North America. In the United States, multinational corporations have increased the usage of digital technologies which is likely to result in improved supply chain for trade finance. This is further supported by the advancements of innovative digital networks to simplify finance and trade.

Key Market Players

The major players in the global trade finance market report are:

  • Citigroup Inc
  • Asian Development Bank
  • DBS Bank Ltd
  • JPMorgan Chase & Co
  • BNP Paribas
  • HSBC Holdings PLC
  • Euler Hermes
  • Standard Chartered Bank
  • Others

The report covers the market shares, capacities, plant turnarounds, expansions, investments, and mergers and acquisitions, among other latest developments of these market players. The report studies the latest updates in the market, along with their impact across the market. It also analysis the market demand, together with its price and demand indicators. The report also tracks the market on the bases of SWOT and Porter’s Five Forces Models.