Report Overview

Global Trade Finance Market- Industry Trends & Forecast Report 2028

The global trade finance market is estimated to grow at a CAGR of 5.0% during the forecast period. The market is growing at a rapid pace because of rapid globalization and flourishing import and export activities, as well as the increasing adoption of advanced technologies such as blockchain and cryptocurrency, artificial intelligence (AI), the internet of things (IoT), etc. Furthermore, increasing use of electronic systems such as QR codes, OCR, etc., is also expected to present growth prospects to the market over the forecast period.

Trade Finance – A Brief Overview

Trade finance refers to financial instruments that are used by businesses as a tool to facilitate both domestic and international trade transactions. These tools or instruments are offered by either banks or specialized trade finance houses that offer trade finance in the form of a Letter of Credit, bill of lading, guarantees or insurance, etc. Trade finances act as a protection for businesses against the risks associated with international trade, such as currency fluctuations, political unpredictability, etc.

Global Trade Finance Market Forecast and Trends

Growth Drivers

Increasing Adoption of Advanced Technologies

The increasing adoption of advanced technologies, such as blockchain, AI, IoT, machine learning, etc., is emerging as the major driving factor for the growth of the global trade finance market. For instance, blockchain technology is prominently being used in trade finance for recording all transactions with their timestamp and unique cryptographic signature. Furthermore, this technology ensures that only authorized personnel have access to the information. Therefore, the trade finance market is expected to flourish during the forecast period.

Various Benefits of Trade Finance Products

The trade finance products are gaining significant traction owing to the benefits it offers to the businesses against the vulnerabilities of international trade. The tools allow buyers to avoid paying upfront for imports before sales and also provide exporters with security for their sales. This helps in facilitating trust in bilateral trade as the payment becomes the responsibility of the bank. Furthermore, trade finance improves cash flow and increases operational efficiency.

Restraints

Inaccessibility to Trade Finance Services

According to a report by Trade Finance Global, there is a huge gap in demand and supply of trade finance products, especially in Southeast Asian countries. The report revealed that this region generated around 50% of the trade finance products demand in the international trade finance during the period of 2014-2018, and it also amounted to 40% of the global rejections. This acts as a major restraining factor for the growth of the global trade finance market.

Impact of COVID-19 on the Global Trade Finance Market

As opposed to the predictions by government or financial institutions, the trade finance market did not perform well during the COVID-19 pandemic. The crises resulted in a dramatic fall in global trade due to restrictions in countries and demand and supply chains. The International Finance Corporation reports that the decline in trade because of the contraction in the production of goods and export volumes negatively affected the market for trade finance. Although the market is predicted to recover during the forecast period as the production and distribution operations resume, the pace is expected to be slow.

Global Trade Finance Market - By Finance Type

Based on finance types, the global trade finance market is segmented into structured trade finance, supply chain finance, and traditional trade finance. Traditional trade finance accounted for the largest share in the trade finance market since it engages in typical services of issuing letters of credit, contract guarantees, and performance bonds, that may or may not require the involvement of a bank. However, structured trade finance is gaining significant traction as it helps in promoting bi-lateral trading relationships.

Global Trade Finance Market - By End-User

Based on end-users, the global trade finance market is segmented into small & medium enterprises and large enterprises. The large enterprise segment accounts for the largest market share owing to the large volumes of international transactions and trades the multinational conglomerates and companies engage in on daily basis. Trade finances help large enterprises minimize the risks of loss during international instability. However, small and medium enterprises are also gaining significant traction as trade financing instruments help these businesses expand beyond geographical boundaries against securities.

Global Trade Finance Market - Regional Insights

Geographically, the global trade finance market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Among these regions, North America dominates the global trade finance market owing to the favorable government policies and financing resources in developed nations such as the United States. Furthermore, a high concentration of trade finance service providers, such as FrontWell Capital, Scotiabank, etc., that helps the businesses facilitate their transactions also plays a crucial role in propelling the growth of the region. However, the Asia-Pacific region is projected to witness the highest CAGR during the forecast period.

Global Trade Finance Market - Competitive Landscape

The leading players in the global trade finance market are Asian Development Bank, Wells Fargo & Co., Banco Santander SA, Standard Chartered Bank, Bank of America Corp., Royal Bank of Scotland, BNP Paribas SA, Morgan Stanley, Citigroup Inc., Mitsubishi Ufj Financial Group Inc., Crédit Agricole Group, JPMorgan Chase & Co., Euler Hermes, HSBC Holdings PLC, Goldman Sachs Group Inc., and other prominent players.

The market is in the budding stage, and therefore, is highly dominated by certain established banks and financial institutions. The major players in this industry often launch new products or offerings to expand their scope and market presence. They also focus on expanding their business in different countries to gain a competitive edge. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Developments

• In January 2022, Marco Financial, a US-based financial service company, announced its partnership with CARGOES Finance by DP World to bridge global trade finance gap.
• In January 2022, the International Islamic Trade Finance Corporation (ITFC) announced to have signed a USD 15 million facility with Uzbekistan’s Invest Finance Bank to offer trade finance services to its private sector clients.

Scope of the Report

By Finance Type

• Structured Trade Finance
• Supply Chain Finance
• Traditional Trade Finance

By Offering

• Letters Of Credit
• Bill of Lading
• Export Factoring
• Insurance
• Others

By Service Provider

• Banks
• Trade Finance Houses

By End-User

• Small and Medium Enterprises
• Large Enterprises

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Increasing Adoption of Advanced Technologies
         2. Rapid Globalization and Increasing Volume of Import And Export
      2. Market Restraints
         1. Inaccessibility to Trade Finance Services
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
         1. Increasing Number of Small and Medium-Sized Enterprises
         2. Rising Demand for Letter of Credit
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Trade Finance Market Overview
   1. Market Size & Forecast by Value, 2018-2028
   2. Market Size and Forecast, By Segment
      1. By Finance Type
         1. Structured Trade Finance
         2. Supply Chain Finance
         3. Traditional Trade Finance
      2. By Offering
         1. Letters Of Credit
         2. Bill Of Lading
         3. Export Factoring
         4. Insurance
         5. Others
      3. By Service Provider
         1. Banks
         2. Trade Finance Houses
      4. By End-User
         1. Small and Medium Enterprises
         2. Large Enterprises
      5. By Region
         1. North America
         2. Europe
         3. Asia-Pacific
         4. Latin America
         5. Middle East & Africa
6. North America Trade Finance Market Overview
   1. Market Size and Forecast
      1. By Value (USD Million), 2018-2028
   2. Market Share and Forecast
      1. By Finance Type
      2. By Offering
      3. By Service Provider
      4. By End-User
      5. By Country
         1. U.S.
         2. Canada
7. Europe Trade Finance Market Overview
   1. Market Size and Forecast
      1. By Value (USD Million), 2018-2028
   2. Market Share and Forecast
      1. By Finance Type
      2. By Offering
      3. By Service Provider
      4. By End-User
      5. By Country
         1. Germany
         2. U.K.
         3. Russia
         4. France
         5. Italy
         6. Spain
         7. Rest of Europe
8. APAC Trade Finance Market Overview
   1. Market Size and Forecast
      1. By Value (USD Million), 2018-2028
   2. Market Share and Forecast
      1. By Finance Type
      2. By Offering
      3. By Service Provider
      4. By End-User
      5. By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Rest of APAC
9. LATAM Trade Finance Market Overview
   1. Market Size and Forecast
      1. By Value (USD Million), 2018-2028
   2. Market Share and Forecast
      1. By Finance Type
      2. By Offering
      3. By Service Provider
      4. By End-User
      5. By Country
         1. Mexico
         2. Brazil
         3. Rest of LATAM
10. MEA Trade Finance Market Overview
    1. Market Size and Forecast
       1. By Value (USD Million), 2018-2028
    2. Market Share and Forecast
    3. By Finance Type
    4. By Offering
    5. By Service Provider
    6. By End-User
    7. By Country
       1. Saudi Arabia
       2. UAE
       3. South Africa
       4. Rest of MEA
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2021)
    3. Competitive Benchmarking by Operating Parameters
12. Impact of COVID-19 on Trade Finance Market
13. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Asian Development Bank
    2. Wells Fargo & Co.
    3. Banco Santander SA
    4. Standard Chartered Bank
    5. Bank of America Corp.
    6. Royal Bank of Scotland
    7. BNP Paribas SA
    8. Morgan Stanley
    9. Citigroup Inc.
    10. Mitsubishi Ufj Financial Group Inc.
    11. Crédit Agricole Group
    12. JPMorgan Chase & Co
    13. Euler Hermes
    14. HSBC Holdings Plc
    15. Goldman Sachs Group Inc.
    16. Other Prominent Players
14. Key Strategic Recommendations

List of Figures

Figure 1: Trade Finance Market Segmentation

Figure 2: Trade Finance Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2021

Figure 4: Trade Finance Market Size, By Value (USD Million), 2018-2028

Figure 5: Trade Finance Market Share (%), By Finance Type, By Value, 2018-2028

Figure 6: Trade Finance Market Share (%), By Offering, By Value, 2018-2028

Figure 7: Trade Finance Market Share (%), By Service Provider, By Value, 2018-2028

Figure 8: Trade Finance Market Share (%), By End-User, By Value, 2018-2028

Figure 9: Trade Finance Market Share (%), By Region, By Value, 2018-2028

Figure 10: North America Trade Finance Market Size, By Value (USD Million), 2018-2028

Figure 11: North America Trade Finance Market Share (%), By Finance Type, By Value, 2018-2028

Figure 12: North America Trade Finance Market Share (%), By Offering, By Value, 2018-2028

Figure 13: North America Trade Finance Market Share (%), By Service Provider, By Value, 2018-2028

Figure 14: North America Trade Finance Market Share (%), By End-User, By Value, 2018-2028

Figure 15: North America Trade Finance Market Share (%), By Country, By Value, 2018-2028

Figure 16: Europe Trade Finance Market Size, By Value (USD Million), 2018-2028

Figure 17: Europe Trade Finance Market Share (%), By Finance Type, By Value, 2018-2028

Figure 18: Europe Trade Finance Market Share (%), By Offering, By Value, 2018-2028

Figure 19: Europe Trade Finance Market Share (%), By Service Provider, By Value, 2018-2028

Figure 20: Europe Trade Finance Market Share (%), by End-User, By Value, 2018-2028

Figure 21: Europe Trade Finance Market Share (%), By Country, By Value, 2018-2028

Figure 22: Asia-Pacific Trade Finance Market Size, By Value (USD Million), 2018-2028

Figure 23: Asia-Pacific Trade Finance Market Share (%), By Finance Type, By Value, 2018-2028

Figure 24: Asia-Pacific Trade Finance Market Share (%), By Offering, By Value, 2018-2028

Figure 25: Asia-Pacific Trade Finance Market Share (%), By Service Provider, By Value, 2018-2028

Figure 26: Asia-Pacific Trade Finance Market Share (%), By End-User, By Value, 2018-2028

Figure 27: Asia-Pacific Trade Finance Market Share (%), By Country, By Value, 2018-2028

Figure 28: Latin America Trade Finance Market Size, By Value (USD Million), 2018-2028

Figure 29: Latin America Trade Finance Market Share (%), By Finance Type, By Value, 2018-2028

Figure 30: Latin America Trade Finance Market Share (%), By Offering, By Value, 2018-2028

Figure 31: Latin America Trade Finance Market Share (%), By Service Provider, By Value, 2018-2028

Figure 32: Latin America Trade Finance Market Share (%), By End-User, By Value, 2018-2028

Figure 33: Latin America Trade Finance Market Share (%), By Country, By Value, 2018-2028

Figure 34: Middle East & Africa Trade Finance Market Size, By Value (USD Million), 2018-2028

Figure 35: Middle East & Africa Trade Finance Market Share (%), By Finance Type, By Value, 2018-2028

Figure 36: Middle East & Africa Trade Finance Market Share (%), By Offering, By Value, 2018-2028

Figure 37: Middle East & Africa Trade Finance Market Share (%), By Service Provider, By Value, 2018-2028

Figure 38: Middle East & Africa Trade Finance Market Share (%), By End-User, By Value, 2018-2028

Figure 39: Middle East & Africa Trade Finance Market Share (%), By Region, By Value, 2018-2028

List of Tables

Table 1: Trade Finance Market Size, By Finance Type, By Value, 2018-2028

Table 2: Trade Finance Market Size, By Offering, By Value (USD Million), 2018-2028

Table 3: Trade Finance Market Size, By Service Provider, By Value (USD Million), 2018-2028

Table 4: Trade Finance Market Size, By End-User, By Value (USD Million), 2018-2028

Table 5: Trade Finance Market Size, By Region, By Value (USD Million), 2018-2028

Table 6: North America Trade Finance Market Size, By Finance Type, By Value (USD Million), 2018-2028

Table 7: North America Trade Finance Market Size, By Offering, By Value (USD Million), 2018-2028

Table 8: North America Trade Finance Market Size, By Service Provider, By Value (USD Million), 2018-2028

Table 9: North America Trade Finance Market Size, By End-User, By Value (USD Million), 2018-2028,

Table 10: Europe Trade Finance Market Size, By Finance Type, By Value (USD Million), 2018-2028

Table 11: Europe Trade Finance Market Size, By Offering, By Value (USD Million), 2018-2028

Table 12: Europe Trade Finance Market Size, By Service Provider, By Value (USD Million), 2018-2028

Table 13: Europe Trade Finance Market Size, By End-User, By Value (USD Million), 2018-2028

Table 14: Asia-Pacific Trade Finance Market Size, By Finance Type, By Value (USD Million), 2018-2028

Table 15: Asia-Pacific Trade Finance Market Size, By Offering, By Value (USD Million), 2018-2028

Table 16: Asia-Pacific Trade Finance Market Size, By Service Provider, By Value (USD Million), 2018-2028

Table 17: Asia-Pacific Trade Finance Market Size, By End-User, By Value (USD Million), 2018-2028

Table 18: Latin America Trade Finance Market Size, By Finance Type, By Value (USD Million), 2018-2028

Table 19: Latin America Trade Finance Market Size, By Offering, By Value (USD Million), 2018-2028

Table 20: Latin America Trade Finance Market Size, By Service Provider, By Value (USD Million), 2018-2028

Table 21: Latin America Trade Finance Market Size, By End-User, By Value (USD Million), 2018-2028

Table 22: The Middle-East & Africa Trade Finance Market Size, By Finance Type, By Value (USD Million), 2018-2028

Table 23: The Middle-East & Africa Trade Finance Market Size, By Offering, By Value (USD Million), 2018-2028

Table 24: The Middle-East & Africa Trade Finance Market Size, By Service Provider, By Value (USD Million), 2018-2028

Table 25: The Middle-East & Africa Trade Finance Market Size, By End-User, By Value (USD Million), 2018-2028

Table 26: Asian Development Bank Financial Analysis

Table 27: Asian Development Bank Business Overview

Table 28: Wells Fargo & Co. Financial Analysis

Table 29: Wells Fargo & Co. Business Overview

Table 30: Banco Santander SA Corporation Financial Analysis

Table 31: Banco Santander SA Corporation Business Overview

Table 32: Standard Chartered Bank Financial Analysis

Table 33: Standard Chartered Bank Business Overview

Table 34: Bank of America Corp. Financial Analysis

Table 35: Bank of America Corp. Business Overview

Table 36: Royal Bank of Scotland Financial Analysis

Table 37: Royal Bank of Scotland Business Overview

Table 38: BNP Paribas SA Financial Analysis

Table 39: BNP Paribas SA Business Overview

Table 40: Morgan Stanley Financial Analysis

Table 41: Morgan Stanley Business Overview

Table 42: Citigroup Inc. Financial Analysis

Table 43: Citigroup Inc. Business Overview

Table 44: Mitsubishi Ufj Financial Group Inc. Financial Analysis

Table 45: Mitsubishi Ufj Financial Group Inc. Business Overview

Table 46: Crédit Agricole Group Financial Analysis

Table 47: Crédit Agricole Group Financial Analysis

Table 48: JPMorgan Chase & Co Financial Analysis

Table 49: JPMorgan Chase & Co Business Overview

Table 50: Euler Hermes Financial Analysis

Table 51: Euler Hermes Business Overview

Table 52: HSBC Holdings Plc Financial Analysis

Table 53: HSBC Holdings Plc Business Overview

Table 54: Goldman Sachs Group Inc. Financial Analysis

Table 55: Goldman Sachs Group Inc. Business Overview