Supply chain finance is a collection of tech-based business and financing procedures that reduces costs and boosts efficiency for all parties engaged in a transaction. It functions best in situations when the buyer has a stronger credit rating than the seller and can therefore borrow capital at a lower cost. In addition, it offers short-term loans that helps both buyers and sellers get the most out of their working capital.
Rise in need for safety and security of supply chain activities, surge in adoption of supply chain finance by SMEs in developing countries, and increased competition and new trade agreements are the major factors that drive the growth of the supply chain finance market. Moreover, rise in trade wars, and high implementation cost hampers the growth of the market. Furthermore, integration of blockchain technology in supply chain finance is expected to provide lucrative opportunities for the supply finance expansion during the forecast period.
The supply chain finance market is segmented into offering, provider, application, end user and region. By offering, the market is differentiated into export and import bills, letter of credit, performance bonds, shipping guarantees and others. Depending on provider, it is fragmented into banks, trading finance house and others. The application segment is segregated into domestic and international. By end user, it is segmented into large enterprises and small and medium-sized enterprises. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The supply chain finance market analysis includes top companies operating in the market such as Asian Development Bank, BNP Paribas, Bank of America Corporation, Citigroup, Inc., Eulers Herms (Allianz Trade), HSBC Group, JPMorgan Chase & Co., Mitsubishi UFJ Financial Group, Inc., Royal Bank of Scotland Plc, and Standard Chartered. These players have adopted various strategies to increase their market penetration and strengthen their position in the supply chain finance industry.
Rise in need for safety and security of supply chain activities, surge in adoption of supply chain finance by SMEs in developing countries, and increased competition and new trade agreements are the major factors that drive the growth of the supply chain finance market. Moreover, rise in trade wars, and high implementation cost hampers the growth of the market. Furthermore, integration of blockchain technology in supply chain finance is expected to provide lucrative opportunities for the supply finance expansion during the forecast period.
The supply chain finance market is segmented into offering, provider, application, end user and region. By offering, the market is differentiated into export and import bills, letter of credit, performance bonds, shipping guarantees and others. Depending on provider, it is fragmented into banks, trading finance house and others. The application segment is segregated into domestic and international. By end user, it is segmented into large enterprises and small and medium-sized enterprises. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The supply chain finance market analysis includes top companies operating in the market such as Asian Development Bank, BNP Paribas, Bank of America Corporation, Citigroup, Inc., Eulers Herms (Allianz Trade), HSBC Group, JPMorgan Chase & Co., Mitsubishi UFJ Financial Group, Inc., Royal Bank of Scotland Plc, and Standard Chartered. These players have adopted various strategies to increase their market penetration and strengthen their position in the supply chain finance industry.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global supply chain finance market along with the current trends and future estimations to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global supply chain finance market size are provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global supply chain finance market from 2021 to 2031 is provided to determine the market potential.
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Key Market Segments
By Offering
- Export and Import Bills
- Letter of Credit
- Performance Bonds
- Shipping Guarantees
- Others
By Provider
- Banks
- Trade Finance House
- Others
By Application
- Domestic
- International
By End User
- Large Enterprises
- Small and Medium-sized Enterprises
By Region
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Asian Development Bank
- BNP Paribas
- HSBC Group
- Citigroup, Inc.
- Royal Bank of Scotland plc
- BANK OF AMERICA CORPORATION
- JPMORGAN CHASE & CO.
- Standard Chartered
- Mitsubishi UFJ Financial Group, Inc.
- Eulers Herms (Allianz Trade)
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: SUPPLY CHAIN FINANCE MARKET, BY OFFERING
CHAPTER 5: SUPPLY CHAIN FINANCE MARKET, BY PROVIDER
CHAPTER 6: SUPPLY CHAIN FINANCE MARKET, BY APPLICATION
CHAPTER 7: SUPPLY CHAIN FINANCE MARKET, BY END USER
CHAPTER 8: SUPPLY CHAIN FINANCE MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the supply chain finance market was valued at $6 billion in 2021, and is estimated to reach $13.4 billion by 2031, growing at a CAGR of 8.8% from 2022 to 2031.The Supply Chain Finance Market is likely to experience a significant growth rate of 8.8% from 2022-2031 owing to increasing market demand from finance sector
Supply chain finance is a collection of tech-based business and financing procedures that reduces costs and boosts efficiency for all parties engaged in a transaction. It functions best in situations when the buyer has a stronger credit rating than the seller and can therefore borrow capital at a lower cost. In addition, it offers short-term loans that helps both buyers and sellers get the most out of their working capital.Key factors driving the growth of the Supply Chain Finance market include Rise in need for safety and security of supply chain activities, surge in adoption of supply chain finance by SMEs in developing countries, and increased competition and new trade agreements. Moreover, rise in trade wars, and high implementation cost hampers the growth of the market. Furthermore, integration of blockchain technology in supply chain finance is expected to provide lucrative opportunities for the supply finance expansion during the forecast period. Further, beyond traditional banking channels, alternative financing options were gaining traction in the supply chain finance market. This included peer-to-peer lending, invoice trading, and other fintech-driven solutions. Furthermore, supply chain finance was being integrated more seamlessly into various business processes. This integration, sometimes referred to as"embedded finance," makes it easier for businesses to access financing options directly within their existing workflows.
The market also offers growth opportunities to the key players in the market. The digital transformation of financial services continues to create opportunities. Developing user-friendly and efficient digital platforms for supply chain finance can attract businesses looking for streamlined processes and real-time insights. As sustainability becomes a central concern for businesses, there's an opportunity to develop supply chain finance solutions that incentivize sustainable practices. Financing options tied to ESG goals can resonate with companies aiming to achieve positive social and environmental impacts. Moreover, with supply chain disruptions becoming more common due to various factors (e.g., geopolitical events, pandemics), there's a growing need for risk management services within supply chain finance. Solutions that help businesses assess and mitigate risks can be highly valuable. In addition, businesses have diverse supply chain structures and financing needs. Providing customizable and innovative solutions that can adapt to different industries and business models can set companies apart in the market. Furthermore, regulatory changes and compliance requirements in international trade can be complex. Developing solutions that help businesses stay compliant with relevant regulations can be a lucrative opportunity. In addition, supply chain finance can be used not only as a financing solution but also as a tool to enhance relationships between buyers and suppliers. Offering early payment options or dynamic discounting can strengthen these relationships and improve collaboration.
The supply chain finance market is segmented into offering, provider, application, end user and region. By offering, the market is differentiated into export and import bills, letter of credit, performance bonds, shipping guarantees and others. Depending on provider, it is fragmented into banks, trading finance house and others. The application segment is segregated into domestic and international. By end user, it is segmented into large enterprises and small and medium-sized enterprises. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, Russia, Portugal and rest of Europe), Asia-Pacific (China, India, Japan, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, South Africa, and rest of LAMEA).
The key players profiled in the study include Asian Development Bank, BNP Paribas, Bank of America Corporation, Citigroup, Inc., Eulers Herms (Allianz Trade), HSBC Group, JPMorgan Chase & Co., Mitsubishi UFJ Financial Group, Inc., Royal Bank of Scotland Plc, and Standard Chartered. The players in the market have been actively engaged in the adoption various strategies such as acquisition, product launch and expansion to remain competitive and gain advantage over the competitors in the market. For instance, in September 2022, the Asian Development Bank (ADB) has boosted its support to ease worsening food shortages in Asia and the Pacific by expanding assistance through its Supply Chain Finance Program to clear bottlenecks in the import of food and agriculture products. This will also help to facilitate trade in food and goods such as fertilizers to promote food production, with the new limits allowing ADB to assume extra exposure in transactions with its partner banks to finance the import of these items.
Key Market Insights
By end user, the large enterprises segment accounted for the highest Supply Chain Finance market share in 2022.By offering, the export and import bills segment accounted for the highest share in Supply Chain Finance market in 2022.
By region, Asia-Pacific generated the highest revenue in 2022.
Companies Mentioned
- Asian Development Bank
- BNP Paribas
- HSBC Group
- Citigroup, Inc.
- Royal Bank of Scotland plc
- BANK OF AMERICA CORPORATION
- JPMORGAN CHASE & CO.
- Standard Chartered
- Mitsubishi UFJ Financial Group, Inc.
- Eulers Herms (Allianz Trade)
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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