DUBLIN--(BUSINESS WIRE)--The "Asia Pacific Trade Finance Market, By Offering, By Provider Type, By Application, By End User, Estimation & Forecast, 2017 - 2030" report has been added to ResearchAndMarkets.com's offering.
The Asia Pacific Trade Finance market held a market value of USD 3,444.3 Billion in 2021 and is projected to reach USD 5,771.0 Billion by the year 2030. The market is anticipated to grow at a CAGR of 5.8% from 2022 to 2030.
Trade Finance concerns with both international as well as domestic trade transactions. The market is expected to be driven by the rapid expansion of BFSI sector in Asia Pacific region coupled with the policy reforms for better integration of SMEs in trade financing.
Furthermore, collaboration between government and international institutions for development of digital infrastructure is also estimated to fuel the market growth. Despite the driving factors, heavy use paperwork and documentation in transactions is likely to hinder the market growth.
Policy reforms for better integration of SMEs in trade financing
Cross-border trade digitalization or digitalization and simplification of international trade procedures is expected to help all firms in the Asia-Pacific region, especially the small and medium-sized enterprises (SMEs), which face most amount trade uncertainty.
Furthermore, the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific - a United Nations treaty is developed by over 25 countries at different development stages. This provided a source for accelerating progress. Therefore, policy reforms for better integration of SMEs in trade financing is expected to boost the market growth.
The letter of credit (LOCs) segment is expected to account for the largest market share of more than 35% in 2021 owing to their wide usage in commodity trading. The trade loans segment is anticipated to witness the fastest growth rate of around 6.3% during the projected period owing to their increasing demand by exporters, importers, and domestic traders.
The banks segment is estimated to hold the largest share of over 55% of the market in 2021 owing to the high preference of banks for finance related services, including trade finance.
The domestic trade segment is estimated to cross the mark of USD 1,500 billion by 2025 owing to their growing popularity due to no trade restrictions and less transportation cost.
The traders segment held a market opportunity of more than USD 950 billion during 2022 to 2030 owing to the steadily increasing number of traders as compared to the importers and exporters.
China is expected to grow at the highest CAGR of more than 6.3% during the projected period owing to the growing awareness regarding trade finance. On the other hand, the ASEAN region is estimated to generate over USD 1,000 billion by 2027 owing to the growing expansion of the BFSI sector in these countries. For instance, HSBC Holdings Plc, Citi bank, and SBC are amongst the top local as well as large players in the Indonesian market.
These market players are engaged in mergers & acquisitions, collaborations, and new product launches, among other initiatives, to strengthen their market presence. For instance, in February 2022, the Asian Development Bank partnered with IIFL Home Finance Limited (IIFL) with a USD 68 million loan for improving financial access to affordable green housing for lower-income women borrowers in India.
- Asian Development Bank
- Banco Santander SA
- Bank of America Corp.
- Standard Chartered plc
- BNP Paribas SA
- Citigroup Inc.
- Credit Agricole Group
- Goldman Sachs Group Inc.
- HSBC Holdings Plc
- JPMorgan Chase & Co.
- Mitsubishi Ufj Financial Group Inc.
- Morgan Stanley,
- Royal Bank of Scotland
- Standard Chartered Bank
- Wells Fargo & Co.
Key Topics Covered:
Chapter 1. Research Framework
1.1. Research Objective
1.2. Product Overview
1.3. Market Segmentation
Chapter 2. Research Methodology
2.1. Qualitative Research
2.1.1. Primary & Secondary Sources
2.2. Quantitative Research
2.2.1. Primary & Secondary Sources
2.3. Breakdown of Primary Research Respondents, By Region
2.4. Assumption for the Study
2.5. Market Size Estimation
2.6. Data Triangulation
Chapter 3. Executive Summary: Asia Pacific Trade Finance Market
Chapter 4. Asia Pacific Trade Finance Market Overview
4.1. Industry Value Chain Analysis
4.1.2. Circulation & Distribution
4.1.3. End User
4.2. Industry Outlook
4.2.1. Trade Finance Statistics 2021
4.2.2. Trade Financing Solutions
4.2.3. Trends under Automated Payment Solutions
4.2.4. Top Service providers for Supply Chain/ Trade finance Platforms, By Country
220.127.116.11. Digital Solution
18.104.22.168. Cash management solutions
4.2.5. Start-up players in Supply Chain/Trade/Transaction baking Service, By Country
4.2.6. Country-wise Export Value & Import Value, In USD Billion, 2017-2025
4.3. PESTLE Analysis
4.4. Porter's Five Forces Analysis
4.5. Market Dynamics and Trends
4.5.1. Growth Drivers
4.5.4. Key Trends
4.6. Covid-19 Impact Assessment on Market Growth Trend
4.7. Market Growth and Outlook
4.7.1. Market Revenue Estimates and Forecast (US$ Bn), 2017 - 2030
4.7.2. Pricing Analysis
4.8. Competition Dashboard
4.8.1. Market Concentration Rate
4.8.2. Company Market Share Analysis (Value %), 2020
22.214.171.124. Share per banks per financial products, By Country
4.8.3. Competitor Mapping
Chapter 5. Trade Finance Market Analysis, By Offering
5.1. Key Insights
5.2. Market Size and Forecast, 2017 - 2030 (US$ Bn)
5.2.1. Supply Chain Finance
5.2.2. Letters of Credit (LoCs)
5.2.4. Trade Loans
5.2.5. Other Services
126.96.36.199. Cash Management
188.8.131.52. Foreign Exchange Management
Chapter 6. Trade Finance Market Analysis, By Provider Type
6.1. Key Insights
6.2. Market Size and Forecast, 2017 - 2030 (US$ Bn)
6.2.2. Trade Finance Houses
Chapter 7.? Trade Finance Market Analysis, By Application?
7.1. Key Insights
7.2. Market Size and Forecast, 2017 - 2030 (US$ Bn)
7.2.1. Domestic Trade
7.2.2. International Trade
Chapter 8. Trade Finance Market Analysis, By End User
8.1. Key Insights
8.2. Market Size and Forecast, 2017 - 2030 (US$ Bn)
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