Market Research Report
Global Trade Finance Market Size, Status and Forecast 2021-2027
|Global Trade Finance Market Size, Status and Forecast 2021-2027|
Published: November 12, 2021
Content info: 126 Pages
Delivery time: 2-3 business days
Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller of goods and services as well as a buyer. Various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade.
While a seller (or exporter) can require the purchaser (an importer) to prepay for goods shipped, the purchaser (importer) may wish to reduce risk by requiring the seller to document the goods that have been shipped. Banks may assist by providing various forms of support. For example, the importer's bank may provide a letter of credit to the exporter (or the exporter's bank) providing for payment upon presentation of certain documents, such as a bill of lading. The exporter's bank may make a loan (by advancing funds) to the exporter on the basis of the export contract.
Other forms of trade finance can include documentary collection, trade credit insurance, finetrading, factoring or forfaiting. Some forms are specifically designed to supplement traditional financing.
Secure trade finance depends on verifiable and secure tracking of physical risks and events in the chain between exporter and importer. The advent of new information and communication technologies allows the development of risk mitigation models which have developed into advance finance models. This allows very low risk of advance payment given to the Exporter, while preserving the Importer's normal payment credit terms and without burdening the importer's balance sheet. As trade transactions become more flexible and increase in volume, demand for these technologies has grown.
Global key players of trade finance include BNP Paribasm, Bank of China, etc. Global top 3 companies hold a share over 10%. Europe is the largest market, with a share about 40%, followed by Asia Pacific and North America with the share about 30% and 20%. In terms of product, letters of credit is the largest segment, with a share over 40%. And in terms of application, the largest application is energy industry, with a share about 30%.
Market Analysis and Insights: Global Trade Finance Market
The global Trade Finance market size is projected to reach US$ 11200390 million by 2027, from US$ 8653700 million in 2020, at a CAGR of 3.3% during 2021-2027.
With industry-standard accuracy in analysis and high data integrity, the report makes a brilliant attempt to unveil key opportunities available in the global Trade Finance market to help players in achieving a strong market position. Buyers of the report can access verified and reliable market forecasts, including those for the overall size of the global Trade Finance market in terms of revenue.
On the whole, the report proves to be an effective tool that players can use to gain a competitive edge over their competitors and ensure lasting success in the global Trade Finance market. All of the findings, data, and information provided in the report are validated and revalidated with the help of trustworthy sources. The analysts who have authored the report took a unique and industry-best research and analysis approach for an in-depth study of the global Trade Finance market.
Global Trade Finance Scope and Market Size
Trade Finance market is segmented by company, region (country), by Type, and by Application. Players, stakeholders, and other participants in the global Trade Finance market will be able to gain the upper hand as they use the report as a powerful resource. The segmental analysis focuses on revenue and forecast by Type and by Application in terms of revenue and forecast for the period 2016-2027.
Segment by Type
Segment by Application