Micro, small and medium enterprises (MSME) are one of the key economic segments that drives the growth of the GDP by boosting the manufacturing and exports of the economy. The adoption of improved risk management practices by the financial institutions is one of the key drivers for the growth of this market. Technavio’s research analyst predicts the MSME financing market to grow at a rate of 19% during the forecast period.
The increasing focus of MSME banks toward emerging markets is also expected to drive the growth of the global MSME financing market during the forecast period. Countries in the East and South Asian region, such as Bangladesh, Indonesia, and the Philippines have huge MSME segments which remain untapped and can result in a boost in the revenue for the banking and financial sector.
Segmentation by end user and analysis of the MSME financing market
- Heavy manufacturing
- General manufacturing
The retail segment within the MSME financing market is expected to reach USD 180 billion by the end of 2019. The changing government policies is predicted to help retailers focus more on the development of e-commerce platforms and to develop an efficient online service for consumers. Added to that, the growing interest of stakeholders such as governments, regulators and the banking community will lead the growth of the market. For instance, many developing nations, including India, have opened 100% FDI towards the retail industry to boost employment and the GDP of the country.
Geographical segmentation and analysis of the global MSME financing market
- East Asia
- South Asia
- Latin America
- Central and Eastern Europe
- Sub-Saharan Africa
The report predicts the East Asian region to reach USD 302 billion by the end of 2019. Rapid technological progress and the adoption of credit bureaus compliant with the principles of regulatory authorities are the key growth drivers in this region. Governments in this region are increasingly recognizing the importance and significant contribution made by the MSME sector toward the GDP of their countries, and are, hence, encouraging the growth of the MSME financial market.
Competitive landscape and key vendors
The global MSME financing market is highly competitive with an established presence by banks in advanced markets such as the US and Europe. However, emerging markets such as China, India, Bangladesh, Thailand, and Nigeria provide ample opportunities for vendors to capture the market shares.
The top three vendors in the market are:
- Wells Fargo
- Standard Chartered
- Other prominent vendors in the market include Access Bank, Eastern Bank, IFIC Bank, Bank Muscat, and Emirates NBD Bank.
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 MSME financing market?
- What are the key Market trends?impacting the growth of the global MSME financing 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 MSME financing market?
- Trending factors influencing the market shares of the East and South Asia, MENA, Central and Eastern Europe, Latin America, and sub-Saharan Africa?
- What are the key outcomes of the five forces analysis of the big data spending in the MSME financing market?
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
Key market highlights
PART 05: Market landscape
Market size and forecast
Five forces analysis
PART 06: Market segmentation by end-user
Global MSME financing market segmentation by end-user
Global MSME financing market in retail industry
Global MSME financing market in heavy manufacturing industry
Global MSME financing in general manufacturing industry
Global MSME financing in hospitality industry
Global MSME financing in service industry
Global MSME financing in other industry
PART 07: Geographical Segmentation
Global MSME financing market by geographical segmentation
MSME financing market in East Asia
MSME financing market in South Asia
MSME financing market in Latin America
MSME financing market in Central and Eastern Europe
MSME financing market in MENA
MSME financing market in Sub-Saharan Africa
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
Market share analysis
Other prominent vendors
PART 14: Key vendor analysis
PART 15: Appendix
List of abbreviations
PART 16: About the Author
List of Exhibits
Exhibit 01: Product offerings
Exhibit 02: Global MSME financing market segmentation by end-user industry
Exhibit 03: Global MSME financing market 2014-2019 ($ billions)
Exhibit 04: Five forces analysis
Exhibit 05: Global MSME financing market segmentation by end-user
Exhibit 06: Global MSME financing market in the retail industry 2014-2019 ($ billions)
Exhibit 07: Global MSME financing market in the heavy manufacturing industry 2014-2019 ($ billions)
Exhibit 08: Global MSME financing market in the general manufacturing industry 2014-2019 ($ billions)
Exhibit 09: Global MSME financing market in the hospitality industry 2014-2019 ($ billions)
Exhibit 10: Global MSME Financing market in the service industry 2014-2019 ($ billions)
Exhibit 11: Global MSME financing market in the other industry 2014-2019 ($ billions)
Exhibit 12: Global MSME financing market 2014
Exhibit 13: MSME financing market in East Asia 2014-2019 ($ billions)
Exhibit 14: MSME financing market in South Asia 2014-2019 ($ billions)
Exhibit 15: MSME financing market in Latin America 2014-2019 ($ billions)
Exhibit 16: MSME financing market in Central and Eastern Europe 2014-2019 ($ billions)
Exhibit 17: MSME financing market in MENA 2014-2015 ($ billions)
Exhibit 18: MSME financing market in Sub-Saharan Africa 2014-2019 ($ billions)
Exhibit 19: Impact of drivers
Exhibit 20: Impact of drivers and challenges
Exhibit 21: Access Bank: Business segmentation 2014 by revenue
Exhibit 22: Access Bank: Geographical segmentation by revenue 2013
Exhibit 23: ICICI Bank: Business segmentation 2015 by revenue
Exhibit 24: ICICI Bank: Geographical segmentation by revenue 2015
Exhibit 25: Standard Chartered: Business segmentation 2014 by revenue
Exhibit 26: Standard Chartered: Geographical segmentation by revenue 2014
Exhibit 27: Wells Fargo: Business segmentation 2014 by revenue
Exhibit 28: Wells Fargo: Business segmentation by revenue 2013 and 2014 ($ billions)
The author of the report recognizes the following companies as the key players in the Global Micro, Small and Medium Enterprise Financing Market: ICICI, Wells Fargo and Standard Chartered
Other Prominent Vendors in the market are: Access Bank, Eastern Bank, IFIC Bank, Bank Muscat, and Emirates NBD Bank.
Commenting on the report, an analyst from the research team said: “Many private banks have greater incentives to incur the switching costs needed to pursue a new business in the SME market. Large private firms have been one of the key driving trends for innovation, which has increased the global growth for the MSME segment in emerging countries that are either unserved or underserved.”
According to the report, the proliferation of the private sector banking industry across emerging markets may emerge as a potential driver in the market. Private sector banks are equipped with better infrastructure and are driven by the profit motive to disburse loans, which give them a distinct advantage over public sector banks. MSMEs are offering their financial products more internationally, managing more sophisticated supply chains, and sales channels, thereby increasing the complexity of their value chains.
Further, the report states that MSMEs are unable to display good business practices stemming from knowledge constraints on marketing, pricing, distribution networks, and procurement. In addition, financial constraints and business illiteracy hampers the growth of the market.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.