Supply Chain Finance Global Market Report 2024

The supply chain finance market size has grown strongly in recent years. It will grow from $6.23 billion in 2023 to $6.85 billion in 2024 at a compound annual growth rate (CAGR) of 9.9%. The growth observed in the historic period can be attributed to various factors, including the effects of globalization on business operations, changes in regulatory frameworks impacting financial strategies, the need for risk mitigation strategies in business practices, increasing trends of collaboration among businesses, heightened market competition driving innovation, and the focus on optimizing working capital within organizations. These elements collectively contributed to the growth and evolution observed in the relevant sectors during that period.

The supply chain finance market size is expected to see strong growth in the next few years. It will grow to $9.68 billion in 2028 at a compound annual growth rate (CAGR) of 9.0%. The anticipated growth in the forecast period is expected due to a shift towards sustainable finance practices, anticipated economic recovery, advancements in data analytics improving financial decision-making, adaptation to evolving regulatory landscapes, and the formation of strategic partnerships in the financial sector.

Investment initiatives directed at small and medium-sized enterprises (SMEs) are fueling the advancement of the supply chain finance market. These financial mechanisms allow SMEs access to substantial credit based on their trade volumes, easing working capital constraints. Notably, collaborations such as the European Investment Bank's $19.39 billion fund with Intesa Sanpaolo aim to bolster Italian SMEs, benefiting over 50,000 SMEs and numerous larger corporates, fostering supply chain robustness and financial stability.

The surging adoption of innovative FinTech solutions is expected to be a pivotal factor driving the proliferation of the supply chain finance market in the coming years. FinTech solutions, characterized by technology-driven financial products and services, play a critical role in optimizing financial transactions within supply chains, enhancing overall efficiency, transparency, and flexibility. The International Trade Administration's insights in November 2023 revealed a burgeoning UK FinTech market, expecting a substantial threefold increase in the number of companies by 2030. This surge in FinTech solutions is anticipated to significantly contribute to the growth of the supply chain finance market, generating substantial economic value and employment opportunities.

In the realm of supply chain finance, technological innovation stands out as a key trend driving market developments. Notably, IBSFINtech, an India-based Treasury Tech company, launched VNDZY in March 2022. This AI-powered SaaS platform serves as a connected ecosystem for corporations, suppliers, and financial institutions, addressing supply chain concerns while facilitating faster payment processing for suppliers. The technology strengthens financial discipline and enhances the efficiency of the entire supply chain ecosystem.

Major players engage in strategic collaborations to fortify and sustain their market positions. These partnerships drive innovation, efficiency, and market expansion, contributing to overall advancements and sustainability in a dynamic business landscape. For instance, in February 2023, Commerzbank AG, a German commercial banking company, collaborated with T-Systems International GmbH, a German IT company, to introduce automated supply-chain financial services. Leveraging IoT sensors, AI, 5G, and blockchain, this collaboration aims to automate orders and payments, streamlining logistics and billing processes, reducing errors, and supporting manufacturers, suppliers, and logistics firms.

In May 2022, Clear, an India-based fintech SaaS company, concluded the acquisition of Xpedize, an India-based supply chain finance platform, for an undisclosed amount. This strategic move positions Clear to enter the SME credit and B2B payments market, leveraging Xpedize's capabilities to provide small and medium-sized enterprises with access to instant working capital and liquidity.

Major companies operating in the supply chain finance market report are JPMorgan Chase & Co., Allianz Trade, Alibaba, Bank of America Corporation, Citigroup Inc., HSBC Holdings Plc., Mitsubishi UFJ Financial Group Inc., BNP Paribas, Oracle Corporation, SAP SE, Deutsche Bank, Royal Bank of Scotland Plc., DBS Bank, Standard Chartered Plc., Asian Development Bank, Finastra, Euler Hermes, Greensill Capital, C2FO, Tradeshift, Taulia, Demica, Vayana Network, Incomlend, PrimeRevenue.

Asia-Pacific was the largest region in the global supply chain finance market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the supply chain finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the supply chain finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Supply chain finance encompasses various offerings such as export and import bills, letters of credit, performance bonds, shipping guarantees, and more. Export bills serve as seller-generated documents detailing exported goods or services, while import bills, presented by the buyer, facilitate payment verification during importing transactions. These documents underpin trade transactions, with export bills (e.g., invoices, shipping documents) evidencing exported goods, and import bills confirming the importer's payment obligation. Major providers of these services include banks, trade finance houses, and other entities catering to both domestic and international trade applications. These offerings are utilized by both large enterprises and small and medium-sized enterprises within the supply chain finance framework.

The supply chain finance market research report is one of a series of new reports that provides supply chain finance market statistics, including supply chain finance industry global market size, regional shares, competitors with a supply chain finance market share, detailed supply chain finance market segments, market trends and opportunities, and any further data you may need to thrive in the supply chain finance industry. This supply chain finance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The supply chain finance market includes revenues earned by entities by providing various supply chain finance services such as real-time data and analytics, minimizing fraud risks, managing disputes, digitizing invoice collections, automating mechanical processes, generating risk-free returns, invoice discounting, and collateral-free solution management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.