PUBLISHER: The Business Research Company | PRODUCT CODE: 1409566
PUBLISHER: The Business Research Company | PRODUCT CODE: 1409566
Letter Of Credit Confirmation Global Market Report 2024
“Letter Of Credit Confirmation Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on letter of credit confirmation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Where is the largest and fastest growing market for letter of credit confirmation? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The letter of credit confirmation market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Scope
Markets Covered:
- 1) By L/C Type: Sight L/Cs; Usance L/Cs
- 2) By End User: Small Enterprises; Medium-Sized Enterprises; Large Enterprises
- Companies Mentioned: Bank of America Corporation; Citigroup Inc.; DBS Bank Ltd.; JPMorgan Chase & Co.; Mizuho Bank Ltd.
- Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
- Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
- Delivery format: PDF, Word and Excel Data Dashboard.
Executive Summary
A letter of credit confirmation is a payment guarantee provided to an exporter by a second bank, in addition to the original letter of credit issued by the first bank. The confirmation serves to reduce the risk of default for the seller and is commonly utilized to mitigate risks in international trade transactions.
The main types of letters of credit confirmation include sight L/Cs and usance L/Cs. Sight L/Cs validate the payment for goods or services upon the presentation of required documents and are used by enterprises of various sizes, including small, medium-sized, and large enterprises.
The letter of credit confirmation market research report is one of a series of new reports from The Business Research Company that provides a letter of credit confirmation market statistics including the letter of credit confirmation industry global market size regional shares competitors with letter of credit confirmation market share the detailed letter of credit confirmation market segments market trends and opportunities and any further data you may need to thrive in the letter of credit confirmation industry. This letter of credit confirmation market research report delivers a complete perspective of everything you need with an in-depth analysis of the current and future scenario of the industry.
The letter of credit confirmation market size has grown steadily in recent years. It will grow from $4.2 billion in 2023 to $4.4 billion in 2024 at a compound annual growth rate (CAGR) of 4.9%. The growth observed in the historical period can be attributed to several factors, including the complexity of international transactions, concerns related to the creditworthiness of parties involved, adherence to regulatory compliance, exposure to currency exchange risks, considerations of political and economic stability in different regions, and the expansion of global supply chains.
The letter of credit confirmation market size is expected to see steady growth in the next few years. It will grow to $5.33 billion in 2028 at a compound annual growth rate (CAGR) of 4.9%. The anticipated growth in the forecast period can be attributed to factors such as changes in the regulatory landscape, shifts in trade policies, the emergence of alternative financing solutions, initiatives to enhance supply chain resilience, and the impact of global events and economic shocks. Key trends expected in the forecast period include the ongoing digital transformation, the adoption of blockchain technology, increased utilization of alternative trade finance solutions, the incorporation of automation and artificial intelligence, collaborative efforts between banks and fintech companies, and a trend towards the customization of confirmation services.
The letter of credit confirmation market is set to experience growth, driven by the increasing volume of global trade activities. Global trade involves the exchange of goods, services, and items between entities or countries for profit. In trade activities, a confirmed letter of credit serves as a crucial trade finance tool, offering protection to exporters and importers by ensuring payment guarantees. Notably, the United Nations Conference on Trade and Development reported a 25% increase in global trade value, reaching $28.5 trillion in 2021. Additionally, the World Trade Organization anticipates a 3.5% increase in global merchandise trade volumes in 2022. This surge in global trade activities is contributing to the growing demand for letter of credit confirmations.
The expanding realm of e-commerce is anticipated to drive the growth of the letter of credit confirmation market. E-commerce, involving online buying and selling, relies on letter of credit confirmation for secure international trade transactions. This financial tool provides a structured framework, enhances trust, mitigates risks, and ensures smooth transactions. As reported by the United States Census Bureau in August 2023, e-commerce sales in the second quarter of 2023 increased by 7.5%, constituting 15.4% of all sales. This upsurge in e-commerce activities is a key driver for the letter of credit confirmation market.
Leading companies in the letter of credit confirmation market are incorporating innovative technological solutions, such as blockchain-enabled letter of credit transactions, to maintain their market positions. Blockchain technology streamlines and secures international trade transactions by providing a collaborative and secure platform. An example is Citi India's adoption of blockchain-enabled letter of credit transactions on Contour, reducing processing time from five to ten days to just three hours.
Major players in the letter of credit confirmation market are strategically focusing on investments to fortify their market positions. For example, in December 2021, Natixis Corporate and Investment Banking, a US-based capital market company, made a $100 million investment in a letter of credit facility for Eolian. This financial commitment aims to offer support for renewable energy projects, fostering financing deals with a positive climate impact. The investment facilitates collaborative initiatives between Eolian and its partners, working towards securing substantial financing to advance their ambitious growth strategy for the renewable energy platform. Eolian, based in the US, operates in the field of energy storage projects.
In July 2022, Mizuho Bank Ltd., a prominent US-based provider of various financial services, encompassing custody, investment, and corporate banking solutions, undertook the acquisition of Capstone Partners for an undisclosed sum. Through this strategic acquisition, Mizuho is set to pool resources, enhancing capital-raising and distribution capabilities. This move also opens avenues for delivering innovative fundraising and advisory services. The acquisition is poised to empower Mizuho in augmenting its portfolio in lending, acquisition financing, and capital market businesses. Capstone Partners, a leading full-service middle market investment bank in the US, is specifically focused on fundraising and advisory services.
Major companies operating in the letter of credit confirmation market report are Bank of America Corporation, Citigroup Inc., DBS Bank Ltd., JPMorgan Chase & Co., Mizuho Bank Ltd., MUFG Bank Ltd., Scotiabank, Standard Chartered PLC., Sumitomo Mitsui Banking Corporation, The PNC Financial Services Group Inc., CapitalOne Corporation, CoBank, HSBC Holdings plc., ICICI Bank Group, State Bank of India. Group, Wells Fargo & Company, Barclays Bank PLC, BNP Paribas SA, Credit Agricole SA, Deutsche Bank AG, Industrial and Commercial Bank of China Limited, National Australia Bank Limited, Royal Bank of Canada, Societe Generale SA, The Bank of Tokyo-Mitsubishi UFJ Ltd., The Toronto-Dominion Bank, nion Bank of Switzerland Aktiengesellschaft AG, UniCredit S.p.A., Westpac Banking Corporation, China Construction Bank Corporation .
Asia-Pacific was the largest region in the letter of credit confirmation market in 2023. The regions covered in the letter of credit confirmation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the letter of credit confirmation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The letter of credit confirmation market includes revenues earned by entities by providing a guarantee of payment (e.g., confirming bank will have to pay the exporter). The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Table of Contents
1. Executive Summary
2. Letter Of Credit Confirmation Market Characteristics
3. Letter Of Credit Confirmation Market Trends And Strategies
4. Letter Of Credit Confirmation Market - Macro Economic Scenario
- 4.1. Impact Of High Inflation On the Market
- 4.2. Ukraine-Russia War Impact On the Market
- 4.3. COVID-19 Impact On the Market
5. Global Letter Of Credit Confirmation Market Size and Growth
- 5.1. Global Letter Of Credit Confirmation Market Drivers and Restraints
- 5.1.1. Drivers Of The Market
- 5.1.2. Restraints Of The Market
- 5.2. Global Letter Of Credit Confirmation Historic Market Size and Growth, 2018 - 2023, Value ($ Billion)
- 5.3. Global Letter Of Credit Confirmation Forecast Market Size and Growth, 2023 - 2028, 2033F, Value ($ Billion)
6. Letter Of Credit Confirmation Market Segmentation
- 6.1. Global Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- Sight L/Cs
- Usance L/Cs
- 6.2. Global Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- Small Enterprises
- Medium-Sized Enterprises
- Large Enterprises
7. Letter Of Credit Confirmation Market Regional And Country Analysis
- 7.1. Global Letter Of Credit Confirmation Market, Split By Region, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 7.2. Global Letter Of Credit Confirmation Market, Split By Country, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8. Asia-Pacific Letter Of Credit Confirmation Market
- 8.1. Asia-Pacific Letter Of Credit Confirmation Market Overview
- Region Information, Impact Of COVID-19, Market Information, Background Information, Government Initiatives, Regulations, Regulatory Bodies, Major Associations, Taxes Levied, Corporate Tax Structure, Investments, Major Companies
- 8.2. Asia-Pacific Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 8.3. Asia-Pacific Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
9. China Letter Of Credit Confirmation Market
- 9.1. China Letter Of Credit Confirmation Market Overview
- 9.2. China Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion
- 9.3. China Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion
10. India Letter Of Credit Confirmation Market
- 10.1. India Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 10.2. India Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
11. Japan Letter Of Credit Confirmation Market
- 11.1. Japan Letter Of Credit Confirmation Market Overview
- 11.2. Japan Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 11.3. Japan Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
12. Australia Letter Of Credit Confirmation Market
- 12.1. Australia Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 12.2. Australia Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
13. Indonesia Letter Of Credit Confirmation Market
- 13.1. Indonesia Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 13.2. Indonesia Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
14. South Korea Letter Of Credit Confirmation Market
- 14.1. South Korea Letter Of Credit Confirmation Market Overview
- 14.2. South Korea Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 14.3. South Korea Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
15. Western Europe Letter Of Credit Confirmation Market
- 15.1. Western Europe Letter Of Credit Confirmation Market Overview
- 15.2. Western Europe Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 15.3. Western Europe Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
16. UK Letter Of Credit Confirmation Market
- 16.1. UK Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 16.2. UK Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
17. Germany Letter Of Credit Confirmation Market
- 17.1. Germany Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 17.2. Germany Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
18. France Letter Of Credit Confirmation Market
- 18.1. France Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 18.2. France Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
19. Italy Letter Of Credit Confirmation Market
- 19.1. Italy Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 19.2. Italy Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
20. Spain Letter Of Credit Confirmation Market
- 20.1. Spain Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 20.2. Spain Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
21. Eastern Europe Letter Of Credit Confirmation Market
- 21.1. Eastern Europe Letter Of Credit Confirmation Market Overview
- 21.2. Eastern Europe Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 21.3. Eastern Europe Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
22. Russia Letter Of Credit Confirmation Market
- 22.1. Russia Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 22.2. Russia Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
23. North America Letter Of Credit Confirmation Market
- 23.1. North America Letter Of Credit Confirmation Market Overview
- 23.2. North America Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 23.3. North America Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
24. USA Letter Of Credit Confirmation Market
- 24.1. USA Letter Of Credit Confirmation Market Overview
- 24.2. USA Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 24.3. USA Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
25. Canada Letter Of Credit Confirmation Market
- 25.1. Canada Letter Of Credit Confirmation Market Overview
- 25.2. Canada Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 25.3. Canada Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
26. South America Letter Of Credit Confirmation Market
- 26.1. South America Letter Of Credit Confirmation Market Overview
- 26.2. South America Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 26.3. South America Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
27. Brazil Letter Of Credit Confirmation Market
- 27.1. Brazil Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 27.2. Brazil Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
28. Middle East Letter Of Credit Confirmation Market
- 28.1. Middle East Letter Of Credit Confirmation Market Overview
- 28.2. Middle East Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 28.3. Middle East Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
29. Africa Letter Of Credit Confirmation Market
- 29.1. Africa Letter Of Credit Confirmation Market Overview
- 29.2. Africa Letter Of Credit Confirmation Market, Segmentation By L/C Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- 29.3. Africa Letter Of Credit Confirmation Market, Segmentation By End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
30. Letter Of Credit Confirmation Market Competitive Landscape And Company Profiles
- 30.1. Letter Of Credit Confirmation Market Competitive Landscape
- 30.2. Letter Of Credit Confirmation Market Company Profiles
- 30.2.1. Bank of America Corporation
- 30.2.1.1. Overview
- 30.2.1.2. Products and Services
- 30.2.1.3. Strategy
- 30.2.1.4. Financial Performance
- 30.2.2. Citigroup Inc.
- 30.2.2.1. Overview
- 30.2.2.2. Products and Services
- 30.2.2.3. Strategy
- 30.2.2.4. Financial Performance
- 30.2.3. DBS Bank Ltd.
- 30.2.3.1. Overview
- 30.2.3.2. Products and Services
- 30.2.3.3. Strategy
- 30.2.3.4. Financial Performance
- 30.2.4. JPMorgan Chase & Co.
- 30.2.4.1. Overview
- 30.2.4.2. Products and Services
- 30.2.4.3. Strategy
- 30.2.4.4. Financial Performance
- 30.2.5. Mizuho Bank Ltd.
- 30.2.5.1. Overview
- 30.2.5.2. Products and Services
- 30.2.5.3. Strategy
- 30.2.5.4. Financial Performance
- 30.2.1. Bank of America Corporation
31. Global Letter Of Credit Confirmation Market Competitive Benchmarking
32. Global Letter Of Credit Confirmation Market Competitive Dashboard
33. Key Mergers And Acquisitions In The Letter Of Credit Confirmation Market
34. Letter Of Credit Confirmation Market Future Outlook and Potential Analysis
- 34.1 Letter Of Credit Confirmation Market In 2028 - Countries Offering Most New Opportunities
- 34.2 Letter Of Credit Confirmation Market In 2028 - Segments Offering Most New Opportunities
- 34.3 Letter Of Credit Confirmation Market In 2028 - Growth Strategies
- 34.3.1 Market Trend Based Strategies
- 34.3.2 Competitor Strategies
35. Appendix
- 35.1. Abbreviations
- 35.2. Currencies
- 35.3. Historic And Forecast Inflation Rates
- 35.4. Research Inquiries
- 35.5. The Business Research Company
- 35.6. Copyright And Disclaimer
