PUBLISHER: The Business Research Company | PRODUCT CODE: 1668397
PUBLISHER: The Business Research Company | PRODUCT CODE: 1668397
Merchant banking services encompass a suite of financial services offered by merchant banks to businesses and corporations, aiming to support these entities in their financial operations, investment decisions, and strategic planning.
The primary types of merchant banking services include trade financing, business management, portfolio management, credit syndication, initial public offering (IPO) management, and project management. Trade financing involves financial instruments and services that facilitate international trade, covering various risks such as non-payment, political instability, and currency fluctuations. These services are typically provided by both banks and non-banking financial institutions, catering to end users such as businesses and individuals.
The merchant banking services market research report is one of a series of new reports from The Business Research Company that provides merchant banking services market statistics, including merchant banking services industry global market size, regional shares, competitors with a merchant banking services market share, detailed merchant banking services market segments, market trends, and opportunities, and any further data you may need to thrive in the merchant banking services industry. This merchant banking services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The merchant banking services market size has grown rapidly in recent years. It will grow from$54.43 billion in 2024 to $64.05 billion in 2025 at a compound annual growth rate (CAGR) of 17.7%. The growth in the historic period can be attributed to economic growth and capital markets expansion, privatization and industry restructuring, globalization of financial markets, investment banking activities, rise of entrepreneurship and startups
The merchant banking services market size is expected to see rapid growth in the next few years. It will grow to $115.62 billion in 2029 at a compound annual growth rate (CAGR) of 15.9%. The growth in the forecast period can be attributed to increasing mergers and acquisitions (M&A) activity, sustainable finance and ESG investments, adoption of alternative investments, complex financial structuring needs, expansion of emerging markets, digital transformation in financial services. Major trends in the forecast period include customer experience enhancement, sustainable finance, alternative financing solutions, cybersecurity measures, data privacy.
The increase in foreign investment is anticipated to boost the growth of the merchant banking services market in the future. Foreign investment involves the allocation of funds by individuals or organizations from one nation into another, encompassing various forms such as direct investment, portfolio investment, and foreign aid. Merchant banking services assist foreign investors by offering guidance on the local market, identifying potential investment opportunities, and facilitating financing. For example, in July 2024, the Bureau of Economic Analysis (BEA), a US government agency, reported that foreign direct investment in the United States rose to $3.46 trillion in 2023, up from $3.37 trillion in 2022. Thus, the increase in foreign investment is fueling the expansion of the merchant banking services market.
The merchant banking services market is also anticipated to grow with the expansion of international trade and commerce. International trade and commerce involve the exchange of goods, services, and capital across national borders, fostering economic growth and specialization. This global exchange enhances interconnectedness and optimizes resource utilization. For example, in December 2023, the Bureau of Economic Analysis reported an increase in the monthly international trade deficit of the United States, rising from a revised $61.2 billion in September to $64.3 billion in October 2023. This surge was primarily attributed to an increase in imports. The goods deficit expanded to $89.8 billion, while the services surplus experienced a modest increase to $25.5 billion during the same period. Therefore, the expanding landscape of international trade and commerce is contributing to the growth of the merchant banking services market.
A noteworthy trend in the merchant banking services market is the adoption of AI-driven digital banking platforms. Companies within this market are increasingly leveraging AI-driven technologies to stay competitive. In December 2022, Wells Fargo unveiled the Vantage system, utilizing artificial intelligence (AI) and machine learning (ML) to provide a personalized experience for its commercial, corporate, and investment banking clients. The incorporation of ML ensures continuous improvement in personalization and scalability, catering to the diverse financial needs of businesses at various stages of growth.
Major players in the merchant banking services market are focusing on the development of advanced payment solutions to streamline transactions, enhance security, and improve customer convenience. These solutions, characterized by sophisticated methods and technologies, facilitate innovative, efficient, and secure financial transactions. For instance, Deutsche Bank and Fiserv Inc. jointly launched Vert in October 2022. Vert offers a comprehensive suite of payment acceptance, processing, and conventional banking services tailored for small and medium-sized enterprises (SMEs). The integration of these solutions addresses market needs for a unified offering, simplifying access to cutting-edge products for merchants of varying scales.
In March 2023, HSBC Holdings plc acquired Silicon Valley Bank UK Limited for $1.09 billion. This acquisition aimed to strengthen HSBC's commercial banking franchise and expand its capacity to serve innovative and fast-growing businesses, particularly in the technology and life sciences sectors, across the UK and globally. Silicon Valley Bank UK Limited is a financial and merchant banking service provider catering to technology companies, venture capital firms, and private equity firms.
Major companies operating in the merchant banking services market include JPMorgan Chase & Co., Bank of America Corporation, DBS Bank Ltd., Morgan Stanley & Co. LLC, Credit Suisse Group AG, NIBL Ace Capital Limited, Bryant Park Capital, HSBC Bank USA N.A., Royal Bank of Canada Website, The USA Capital Advisors LLC, Deutsche Bank AG, Citigroup Inc., The Goldman Sachs Group Inc., UBS Group AG, Wells Fargo and Co., Barclays plc, BNP Paribas SA, Societe Generale Group, Mizuho Financial Group, Sumitomo Mitsui Financial Group, Nomura Holdings, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Standard Chartered plc, PNC Financial Services, Toronto Dominion Securities Inc., Scotiabank, National Bank of Canada Financial Inc.
North America was the largest region in the merchant banking services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global merchant banking services market report during the forecast period. The regions covered in the merchant banking services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the merchant banking services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The merchant banking services market includes revenues earned by entities by providing merchant bank services such as portfolio services, mergers and acquisitions, initial public offerings (IPOs), and investment banking services. 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.
Merchant Banking Services Global Market Report 2025 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 merchant banking services 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.
Where is the largest and fastest growing market for merchant banking services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The merchant banking services 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.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.