Trade Finance Market size is anticipated to cross USD 96.2 billion by the end of 2036, growing at a CAGR of 4.80% during the forecast period i.e., 2024-2036. In the year 2023, the industry size of trade finance was over USD 55 billion. International commerce and globalization have greatly accelerated the market's expansion. Financial solutions that can connect customers and suppliers across borders and time zones are becoming more and more necessary as firms expand globally. This crucial function is provided by trade finance, facilitating more seamless international commercial transactions. International trade in goods and services accounted for 25.0 % of the EU's GDP in 2022.
Moreover, businesses are exposed to a number of risks, such as credit risk, currency risk, and geopolitical risk, in an increasingly complicated world economy. Trade finance provides businesses with risk mitigation solutions, such as credit insurance and hedging tools which allow them to mitigate unexpected financial losses.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
4.80% |
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Base Year Market Size (2023) |
USD 55 Billion |
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Forecast Year Market Size (2036) |
USD 96.2 Billion |
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Regional Scope |
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Industry Outlook (BFSI, Construction, Wholesale/Retail, Manufacturing, Automobile, Shipping & Logistics)
By 2036, construction segment is expected to capture over 30% trade finance market share. The construction sector has emerged as the market leader due to its special characteristics and high financial needs. A complex, cross-border supply chain is often involved in construction projects, which require extensive funding for the purchase of raw materials, heavy machinery, and skilled labor. These projects are also expected to be lengthy and require the availability of trade finance solutions, to ensure that operations continue for extended periods.
Service Provider (Banks, Financial Institutions, Trading Houses)
Based on service provider, the banks segment is poised to dominate the market with a share of 40% through 2036. Banks are widely interconnected and have strong relationships with businesses all over the world, which makes them an indispensable link for international trade transactions. In cross-border transactions, where payment and delivery guarantees are of the utmost importance, this trust is very important.
In addition, the banks offer a wide range of commercial finance products and services including letters of credit, trade loans or documentary collections. Increased use of blockchain and digital transformation of banking processes in the banks could lead to increased scope for this segment over the next eight years. In order to enhance their trade finance solutions, banks are reported to be working with financial technology organizations in order to expand their customer base. In addition, 79 percent of customers said that the availability of banking services was made easier as a result of technological innovation in banking.
Our in-depth analysis of the global market includes the following segments:
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Instrument Type |
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Service Provider |
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Trade Type |
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Enterprises Size |
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Industry Outlook |
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End User |
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North American Market Forecasts
The North America region will hold the largest share of 35% by the end of 2036. Some of the world's largest and most influential financial institutions, including major banks and financial centers such as New York, are present in the region. These institutions have a global presence and broad networks, allowing them to offer large volumes of trade finance services to businesses active in the field of International Trade. The United States is a major importer and exporter of goods and services in the world with export and import products and services worth USD 70 trillion. In addition, North America has a strong and diverse economy that is largely oriented towards international trade.
APAC Market Statistics
The trade finance market in the Asia Pacific region is set to grow substantially during the time period between 2024 -2036. India, China, and Japan considered the fastest escalating economies of the world with major international trade players are situated in the Asia Pacific region. Increased imports and exports have led to an increased demand for trade finance services to facilitate these transactions, as a result of the region's expanding middle class and rising consumption. In addition, the Asia Pacific region is a major business center due to its geographic proximity to some of the world's most important global supply chains and trading partners.
Author Credits: Abhishek Verma, Hetal Singh
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