Global Working Capital Management Market 2015-2019
Market overview of the working capital management market
Technavios research analyst predicts the global working capital management market to grow steadily at a CAGR of 20% during the forecast period. The improvement in inventory management is the primary growth driver for this market. Many companies are trying to focus on achieving optimal inventory levels. They are setting up robust systems that can track and control inventory systems. This will enable the company to maintain accurate inventory counts and track the inventory performance. A faster inventory outflow leads to a faster cash generation, which increases the working capital for the company.
The current trend of online receivable financing is expected to boost the market growth during the forecast period. This trend has led to the opening of competitive auctions, which is helping companies to meet their day-to-day working capital needs through online receivable financing platform.
Industry segmentation and analysis of the working capital management market
Retail and consumer industry
Energy, utilities, and mining industry
Industrial manufacturing industry
Engineering and construction industry
The retail and consumer industry dominated the market accounting for 28% of the overall share during 2014. The decreasing dependence of industries on retailers will give them access to customers who have a higher buying power. Retailers are expected to offer a number of demand discount and rebates during the forecast period to attract customers. This will subsequently increase the payment terms and improve the working capital performance of the industry.
Geographical segmentation and analysis of the working capital management market
US and Canada
Asia accounted for 36% of the market share during 2014 and is expected to grow at a CAGR of 23% during the forecast period. The cash opportunity from the working capital in this region is high when compared to other regions due to the high net working capital in Asian industries. Industries are trying to avoid errors and boost efficiency by shifting their focus to the ERP technology sophistication, which will increase productivity and the overall cash generation.
Competitive landscape and key vendors
Many businesses are focusing on the firms receipt and disbursement of cash to manage the optimum level of working capital. Therefore, businesses that have a strong working capital management are framing strategies such that they can hedge against the macroeconomic scenario and bring in huge capital to their businesses.
The leading vendors in the market are -
Bank of America Merrill Lynch
HSBC Global Asset Management
JP Morgan Asset Management
The other prominent vendors in the market include Deutsche Bank, UniCredit, and SEB.
Key questions answered in the report include
What will the market size and the growth rate be in 2019
What are the key factors driving the global working capital management market
What are the key market trends impacting the growth of the global working capital management market
What are the challenges to market growth
Who are the key vendors in this market space
What are the market opportunities and threats faced by the vendors in the global working capital management market
Trending factors influencing the market shares of the Asia, US and Canada, Europe, Americas, Middle East, Australia, and Africa
What are the key outcomes of the five forces analysis of the working capital management market
Technavio also offers customization on reports based on specific client requirement.
Technavio Announces the Publication of its Research Report Global Working Capital Management 2015-2019
Technavio recognizes the following companies as the key players in the Global Working Capital Management: Citibank, Bank of America Merrill Lynch, BNY Mellon, Standard Chartered, HSBC Global Asset Management, Raiffeisen Bank and JP Morgan Asset Management
Other Prominent Vendors in the market are: Deutsche Bank, UniCredit, and SEB.
Commenting on the report, an analyst from Technavios team said: The current trend of online receivable financing has attracted a lot of key market players, and competitors as well as customers, to have open competitive auctions and that are mostly bid by a global network of accredited institutional buyers. Traditional financing is considered to be more costly. So therefore, there are many industries that have shifted their focus to the online receivable financing platform, which is helping the companies to fulfill their working capital needs on a day-to-day basis.
According to the report, one of the key drivers of working capital management is the improved inventory management. Inventory is considered to be one of the important items in a companys balance sheet. Companies focus on a balancing act where sufficient inventory is carried held to meet the demands without affecting the cash flow.
Further, the report states that with globalization coming into the scenario, there has been a lot of change in the demand and supply of financial products. There was a time when bank financing was considered to be the cheapest way of funding. So over the decade, banks have changed their strategies where they have shifted the focus to boost the liquidity by increasing the interest rate, thereby increasing and adding fees and cutting down the credit limits.
Citibank, Bank of America Merrill Lynch, BNY Mellon, Standard Chartered, HSBC Global Asset Management, Raiffeisen Bank, JP Morgan Asset Management, Deutsche Bank, UniCredit, SEB.