NEW
YORK, June 14, 2024 /PRNewswire/ -- The
global trade finance market size is estimated to grow by
USD 16.64 billion from
2024-2028, according to Technavio. The market is estimated to grow
at a CAGR of 5.38% during the forecast period. Growing
number of exports is driving market growth, with a trend towards
incorporation of advanced technology with trade finance solutions.
However, impact due to protectionist policies and trade war poses a
challenge. Key market players include Australia and New Zealand Banking Group Ltd.,
Banco Santander SA, Bank of America Corp., Barclays PLC, BNP
Paribas SA, Citigroup Inc., Credit Agricole SA, Deutsche Bank AG,
HSBC Holdings Plc, JPMorgan Chase and Co., Mitsubishi UFJ Financial
Group Inc., Morgan Stanley, NatWest Group plc, Standard Chartered
PLC, Societe Generale SA, The Bank of New York Mellon Corp., The
Goldman Sachs Group Inc., UBS Group AG, UniCredit SpA, and Wells
Fargo and Co..
![Technavio has announced its latest market research report titled Global trade finance market 2024-2028 Technavio has announced its latest market research report titled Global trade finance market 2024-2028](https://mma.prnewswire.com/media/2437971/TECHNAVIO_Infographic.jpg)
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Trade Finance Market
Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
5.38%
|
Market growth
2024-2028
|
USD 16644.5
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
4.81
|
Regional
analysis
|
North America, Europe,
APAC, Middle East and Africa, and
South America
|
Performing market
contribution
|
APAC at 37%
|
Key
countries
|
US, China, Japan, UK,
and South Korea
|
Key companies
profiled
|
Australia and New
Zealand Banking Group Ltd.,
Banco Santander SA, Bank of America Corp.,
Barclays PLC, BNP Paribas SA, Citigroup Inc.,
Credit Agricole SA, Deutsche Bank AG, HSBC
Holdings Plc, JPMorgan Chase and Co.,
Mitsubishi UFJ Financial Group Inc., Morgan
Stanley, NatWest Group plc, Standard Chartered
PLC, Societe Generale SA, The Bank of New York
Mellon Corp., The Goldman Sachs Group Inc.,
UBS Group AG, UniCredit SpA, and Wells Fargo
and Co.
|
Market Driver
Technology plays a significant role in the BFSI sector,
particularly in trade financing. Innovations like the bank payment
obligation (BPO) have streamlined processes, reduced risk, and
optimized working capital. AI and ML are now being integrated to
provide predictive analytics and automate document processing.
Blockchain enhances efficiency and security by enabling direct
digital transfers and smart contracts.
Citigroup's AI-based compliance platform and the use of
blockchain in trade finance are expected to boost market
growth.
The Trade Finance market is currently experiencing significant
growth, with technologies like Artificial Intelligence and
Blockchain playing key roles. These innovations are streamlining
processes, increasing efficiency, and reducing risks. For instance,
digitization of documents through Blockchain technology is making
transactions faster and more secure.
Additionally, the use of predictive analytics in Trade Finance
is enabling better risk assessment and management. Furthermore, the
implementation of Commerce and Electronic Invoicing is making it
easier for businesses to get paid on time. Overall, these trends
are transforming the Trade Finance industry, making it more
accessible, efficient, and secure for all involved
parties.
Research report provides comprehensive data on
impact of trend. For more details- Download a Sample
Report
Market Challenges
- The trade finance market can be significantly impacted by trade
wars between countries. In 2018, the US imposed tariffs on various
imports from the EU, Canada,
China, and Mexico, leading to retaliatory actions from
these countries. This resulted in increased duties on agricultural
products and motorcycles from the US, affecting international
trade. In 2023, the US initiated an investigation against
China's trade policies,
potentially leading to a larger trade war.
- These conflicts can negatively impact the trading relationship
between countries and decrease international trade, which may
affect the trade finance market during the forecast period.
- In the complex and dynamic world of Trade Finance, several
challenges persist. These include regulatory requirements, such as
Know Your Customer (KYC) and Anti-Money Laundering (AML)
compliance.
- Technology plays a crucial role, with the need for secure and
efficient systems to manage transactions and mitigate risks.
Another challenge is the increasing use of digital currencies and
blockchain technology, which require new approaches to financing
and risk management. Additionally, trade finance faces competition
from other financial instruments, making it essential to offer
competitive pricing and services. Lastly, the global economic
environment and geopolitical risks can significantly impact trade
finance activities.
For more insights on driver and
challenges - Request a sample report!
Segment Overview
- Type
- 1.1 Traditional trade finance
- 1.2 Supply chain finance
- 1.3 Structured trade finance
- End-user
- 2.1 Importers and exporters
- 2.2 Banks and financiers
- 2.3 Insurers and export credit agencies
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 Middle East and
Africa
- 3.5 South America
1.1 Traditional trade finance- Trade finance is a
vital component of international business, facilitating the
exchange of goods and services between buyers and sellers. It
involves the provision of short-term credit by banks to buyers for
making purchases or financing exports. This process streamlines
transactions, reduces risk, and enhances cash flow for businesses.
Trade finance instruments include letters of credit, bills of
exchange, and factoring. These tools ensure timely payments and
mitigate the risk of non-payment, thereby fostering trust and
stability in global trade.
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2017-2021) - Download a Sample Report
Research Analysis
The Trade Finance market is a critical segment of international
trade, facilitating financial solutions for businesses involved in
cross-border transactions. With the increasing complexity of global
trade and the need for efficient time zone management, trade
finance has evolved to incorporate technological advancements.
Digital platforms and application processes have streamlined trade
finance, reducing the reliance on traditional paper-based
processes.
Trade agreements and trade wars continue to shape the global
trade landscape, necessitating innovative technologies such as
blockchain-based solutions for secure and transparent trade
transactions. Sustainable finance and advanced technology are
driving digitalization in trade finance processes, enabling supply
chain finance and automated trade settlements.
AI and machine learning are also being integrated into trade
finance processes to enhance efficiency and risk management.
Overall, the Trade Finance market is undergoing significant digital
transformation, offering numerous opportunities for financial
institutions to stay competitive.
Market Research Overview
The Trade Finance Market encompasses various financial
instruments and services that facilitate international and domestic
trade transactions. These instruments include letters of credit,
documentary collections, forfaiting, factoring, and trade loans.
The market aims to mitigate risks associated with trade, provide
liquidity, and ensure the smooth flow of goods and services between
buyers and sellers.
Technologies such as blockchain and artificial intelligence are
increasingly being adopted to enhance transparency, efficiency, and
security in trade finance processes. Regulations like the Basel III
Accord and Know Your Customer (KYC) norms play a crucial role in
shaping the market landscape. The market is expected to grow
significantly due to the increasing globalization, digitalization,
and trade volumes.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Type
-
- Traditional Trade Finance
- Supply Chain Finance
- Structured Trade Finance
- End-user
-
- Importers And Exporters
- Banks And Financiers
- Insurers And Export Credit Agencies
- Geography
-
- North America
- Europe
- APAC
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
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Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio