Trade Finance Global Market Report 2024

Description

Trade finance encompasses techniques and instruments designed to facilitate trade transactions while safeguarding both buyers and suppliers from associated risks in international trade. Its objective is to enhance the efficiency of business transactions by addressing risks such as payment delays, quality discrepancies, and non-delivery of goods.

The primary types of trade finance include supply chain finance, structured trade finance, and traditional trade finance. Supply chain finance involves financial arrangements aimed at optimizing cash flow throughout the supply chain. It allows buyers to extend payment terms to suppliers while offering early payment options, thus fostering stronger relationships and efficiency within the supply chain. These services are typically provided by various entities including banks, financial institutions, and trading houses. Supply chain finance caters to diverse applications in both domestic and international settings and serves various industries such as banking and financial services, construction, wholesale or retail, manufacturing, automobiles, shipping and logistics, among others.

The trade finance market research report is one of a series of new reports from The Business Research Company that provides trade finance market statistics, including trade finance industry global market size, regional shares, competitors with trade finance market share, detailed trade finance market segments, market trends and opportunities, and any further data you may need to thrive in the trade finance industry. This trade finance market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The trade finance market size has grown strongly in recent years. It will grow from $46.84 billion in 2023 to $49.48 billion in 2024 at a compound annual growth rate (CAGR) of 5.6%. The growth observed during the historic period can be attributed to globalization, increased global trade, regulatory adjustments, economic instability, and changes in supply chain dynamics.

The trade finance market size is expected to see strong growth in the next few years. It will grow to $62.64 billion in 2028 at a compound annual growth rate (CAGR) of 6.1%. The anticipated growth in the forecast period can be attributed to the adoption of structuring and pricing tools, expansion of emerging markets, increasing focus on sustainable trade and ESG (environmental, social, and governance) factors, geopolitical shifts and changes in trade policies, as well as efforts to enhance supply chain resilience and risk management. Major trends expected during this period include the integration of blockchain technology, ongoing digital transformation initiatives, advancements in artificial intelligence (AI) and machine learning (ML), technological innovations, and the development of cross-border payment solutions.

The escalating need for security and safety in financial operations is poised to drive the expansion of the trade finance sector. Security measures in financial transactions aim to protect against unauthorized access, fraud, and theft. The growing need for safety in trading activities stems from heightened financial interconnectedness, necessitating robust measures to safeguard traders and transactions against evolving risks and threats. Trade finance plays a crucial role in providing secure payment mechanisms, ensuring prompt and reliable settlement of trade transactions, and offering access to trade credit and financing options. Notably, in February 2024, the Federal Trade Commission reported that consumers incurred over $10 billion in fraud losses in 2023, marking a 14% increase from 2022, underscoring the urgency for enhanced security measures in financial activities.

Key players in the trade finance sector are actively pursuing innovation, particularly through the introduction of digital trade finance solutions, to gain a competitive advantage. Digital trade finance solutions leverage emerging technologies such as blockchain, artificial intelligence (AI), optical character recognition (OCR), and digital signatures to enhance operational efficiency, reduce transaction costs, and address industry challenges. For example, in September 2023, HSBC introduced HSBC TradePay, a digital trade finance solution aimed at providing businesses with a faster, simpler, and fully digital approach to paying suppliers, improving working capital positions, and strengthening relationships with trading partners. This innovative solution simplifies the loan drawdown process, facilitates supplier payments, and grants businesses greater control over their trade payables.

In February 2024, Xalts, a Singapore-based financial infrastructure platform for institutions, completed the acquisition of Contour Network for an undisclosed sum. This strategic move aims to combine Xalts' expertise in digital finance solutions with Contour's extensive network linking global banks and enterprises. Through this acquisition, Xalts intends to leverage Contour's industry-standard processes and connectors to streamline communication and transactions between enterprises and financial institutions across the network. Contour Network, based in Singapore, offers trade finance solutions through its decentralized platform, making it a valuable addition to Xalts' portfolio of offerings.

Major companies operating in the trade finance market are JPMorgan Chase & Co., China Construction Bank, Bank of America Corporation, Citigroup Inc., BNP Paribas S.A., HSBC Holdings plc, Mitsubishi UFJ Financial Inc., Credit Agricole Group, Union Bank of Switzerland, Deutsche Bank AG, Unicredit SpA, Societe Generale SA, Standard Chartered plc, Asian Development Bank, Internationale Nederlanden Groep, Development Bank of Singapore Limited, Nordea Group Abp, Euler Hermes Group, The Royal Bank of Scotland Group plc, The Bank of Nova Scotia, TD Bank, Cooperatieve Rabobank U.A., Commerzbank AG, Rand Merchant Bank, Arab Bank

North America was the largest region in the trade finance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the trade finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the trade finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The trade finance market includes revenues earned by entities by providing services, such as trade documentation, risk mitigation solutions, factoring and invoice discounting, and export credit agency (ECA) financing. 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.

Including: 1) By Type: Supply Chain Finance; Structured Trade Finance; Traditional Trade Finance
2) By Service Provider: Banks; Financial Institutions; Trading Houses
3) By Application: Domestic; International
4) By Industry: Banking, financial services, and Insurance (BFSI); Construction; Wholesale Or Retail; Manufacturing; Automobile; Shipping and Logistics
Covering: JPMorgan Chase & Co; China Construction Bank; Bank of America Corporation; Citigroup Inc.; BNP Paribas S.A

Product Code: r17454

1. Executive Summary

2. Trade Finance Market Characteristics

3. Trade Finance Market Trends And Strategies

4. Trade Finance 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 Trade Finance Market Size and Growth

5.1. Global Trade Finance Market Drivers and Restraints
- 5.1.1. Drivers Of The Market
- 5.1.2. Restraints Of The Market
5.2. Global Trade Finance Historic Market Size and Growth, 2018 - 2023, Value ($ Billion)
5.3. Global Trade Finance Forecast Market Size and Growth, 2023 - 2028, 2033F, Value ($ Billion)

6. Trade Finance Market Segmentation

6.1. Global Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
Supply Chain Finance
Structured Trade Finance
Traditional Trade Finance
6.2. Global Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
Banks
Financial Institutions
Trading Houses
Other Services
6.3. Global Trade Finance Market, Segmentation By Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
Domestic
International
6.4. Global Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
Banking, financial services, and Insurance (BFSI)
Construction
Wholesale Or Retail
Manufacturing
Automobile
Shipping and Logistics
Other Industries

7. Trade Finance Market Regional And Country Analysis

7.1. Global Trade Finance Market, Split By Region, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
7.2. Global Trade Finance Market, Split By Country, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

8. Asia-Pacific Trade Finance Market

8.1. Asia-Pacific Trade Finance 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 Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8.3. Asia-Pacific Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8.4. Asia-Pacific Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

9. China Trade Finance Market

9.1. China Trade Finance Market Overview
9.2. China Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion
9.3. China Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion
9.4. China Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion

10. India Trade Finance Market

10.1. India Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
10.2. India Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
10.3. India Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

11. Japan Trade Finance Market

11.1. Japan Trade Finance Market Overview
11.2. Japan Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
11.3. Japan Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
11.4. Japan Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

12. Australia Trade Finance Market

12.1. Australia Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
12.2. Australia Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
12.3. Australia Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

13. Indonesia Trade Finance Market

13.1. Indonesia Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
13.2. Indonesia Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
13.3. Indonesia Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

14. South Korea Trade Finance Market

14.1. South Korea Trade Finance Market Overview
14.2. South Korea Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
14.3. South Korea Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
14.4. South Korea Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

15. Western Europe Trade Finance Market

15.1. Western Europe Trade Finance Market Overview
15.2. Western Europe Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
15.3. Western Europe Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
15.4. Western Europe Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

16. UK Trade Finance Market

16.1. UK Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
16.2. UK Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
16.3. UK Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

17. Germany Trade Finance Market

17.1. Germany Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
17.2. Germany Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
17.3. Germany Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

18. France Trade Finance Market

18.1. France Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
18.2. France Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
18.3. France Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

19. Italy Trade Finance Market

19.1. Italy Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
19.2. Italy Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
19.3. Italy Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

20. Spain Trade Finance Market

20.1. Spain Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
20.2. Spain Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
20.3. Spain Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

21. Eastern Europe Trade Finance Market

21.1. Eastern Europe Trade Finance Market Overview
21.2. Eastern Europe Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
21.3. Eastern Europe Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
21.4. Eastern Europe Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

22. Russia Trade Finance Market

22.1. Russia Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
22.2. Russia Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
22.3. Russia Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

23. North America Trade Finance Market

23.1. North America Trade Finance Market Overview
23.2. North America Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
23.3. North America Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
23.4. North America Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

24. USA Trade Finance Market

24.1. USA Trade Finance Market Overview
24.2. USA Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
24.3. USA Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
24.4. USA Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

25. Canada Trade Finance Market

25.1. Canada Trade Finance Market Overview
25.2. Canada Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
25.3. Canada Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
25.4. Canada Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

26. South America Trade Finance Market

26.1. South America Trade Finance Market Overview
26.2. South America Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
26.3. South America Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
26.4. South America Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

27. Brazil Trade Finance Market

27.1. Brazil Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
27.2. Brazil Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
27.3. Brazil Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

28. Middle East Trade Finance Market

28.1. Middle East Trade Finance Market Overview
28.2. Middle East Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
28.3. Middle East Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
28.4. Middle East Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

29. Africa Trade Finance Market

29.1. Africa Trade Finance Market Overview
29.2. Africa Trade Finance Market, Segmentation By Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
29.3. Africa Trade Finance Market, Segmentation By Service Provider, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
29.4. Africa Trade Finance Market, Segmentation By Industry, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion

30. Trade Finance Market Competitive Landscape And Company Profiles

30.1. Trade Finance Market Competitive Landscape
30.2. Trade Finance Market Company Profiles
- 30.2.1. JPMorgan Chase & Co.
  - 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. China Construction Bank
  - 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. Bank of America Corporation
  - 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. Citigroup Inc.
  - 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. BNP Paribas S.A.
  - 30.2.5.1. Overview
  - 30.2.5.2. Products and Services
  - 30.2.5.3. Strategy
  - 30.2.5.4. Financial Performance

31. Trade Finance Market Other Major And Innovative Companies

31.1. HSBC Holdings plc
31.2. Mitsubishi UFJ Financial Inc.
31.3. Credit Agricole Group
31.4. Union Bank of Switzerland
31.5. Deutsche Bank AG
31.6. Unicredit SpA
31.7. Societe Generale SA
31.8. Standard Chartered plc
31.9. Asian Development Bank
31.10. Internationale Nederlanden Groep
31.11. Development Bank of Singapore Limited
31.12. Nordea Group Abp
31.13. Euler Hermes Group
31.14. The Royal Bank of Scotland Group plc
31.15. The Bank of Nova Scotia

32. Global Trade Finance Market Competitive Benchmarking

33. Global Trade Finance Market Competitive Dashboard

34. Key Mergers And Acquisitions In The Trade Finance Market

35. Trade Finance Market Future Outlook and Potential Analysis

35.1 Trade Finance Market In 2028 - Countries Offering Most New Opportunities
35.2 Trade Finance Market In 2028 - Segments Offering Most New Opportunities
35.3 Trade Finance Market In 2028 - Growth Strategies
- 35.3.1 Market Trend Based Strategies
- 35.3.2 Competitor Strategies

36. Appendix

36.1. Abbreviations
36.2. Currencies
36.3. Historic And Forecast Inflation Rates
36.4. Research Inquiries
36.5. The Business Research Company
36.6. Copyright And Disclaimer