Global Trade Finance Market 2019-2023
Global Trade Finance Market: About this market
Trade finance represents monetary activities related to commerce and international trade. Technavio’s trade finance market analysis considers sales from trade finance instruments including traditional trade finance, supply chain finance, and structured trade finance. Our analysis also considers the sales of trade finance in APAC, Europe, North America, South America, and MEA. In 2018, the traditional trade finance segment had a significant market share, and this trend is expected to continue over the forecast period. Factors such as the visibility provided by traditional trade finance solutions will play a significant role in the traditional trade finance segment to maintain its market position. Also, our global trade finance market report looks at factors such as the growing number of exports, enhanced cash flow leading to business growth, and emergence of clearing houses. However, impact due to trade war, lack of focus of trade financing for SMEs, and need to adhere to strict regulations and compliance may hamper the growth of the trade finance industry over the forecast period.
Global Trade Finance Market: Overview
Emergence of clearing houses
Clearing houses verifies the financial capabilities of sellers and buyers to smoothen the trade finance operation. It ensures the delivery of desired products in the promised quality and quantity. This prevents complaints and need for arbitration. The demand for clearing houses will lead to the expansion of the global trade finance market at a CAGR of over 4% during the forecast period.
Incorporation of technology with trade finance
The integration of advanced technology such as blockchain technology with trade finance not only enhances the efficiency but also simplifies end-to-end invoice finance transaction. The application of technologies such as artificial intellegence (AI), automates the process of trading documents. Such benefits of technologies such as ML and IoT is expected to have a positive impact on the overall market growth.
For the detailed list of factors that will drive the global trade finance market during the forecast period 2019-2023, click here.
With the presence of several major players, the global trade finance market is fragmented. Technavio’s robust vendor analysis is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading trade finance manufacturers, that include BNP Paribas SA, Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co., and Wells Fargo & Co.
Also, the trade finance market analysis report includes information on upcoming trends and challenges that will influence market growth. This is to help companies strategize and leverage on all forthcoming growth opportunities.
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