Trade Finance Market Analysis

Industry Outlook (BFSI, Construction, Wholesale/Retail, Manufacturing, Automobile, Shipping & Logistics)

By 2037, construction segment is expected to capture over 30% trade finance market share. The construction sector has emerged as the market leader due to its special characteristics and high financial needs. A complex, cross-border supply chain is often involved in construction projects, which require extensive funding for the purchase of raw materials, heavy machinery, and skilled labor. These projects are also expected to be lengthy and require the availability of trade finance solutions, to ensure that operations continue for extended periods.

Service Provider (Banks, Financial Institutions, Trading Houses)

Based on service provider, the banks segment is poised to dominate the market with a share of 40% through 2037. Banks are widely interconnected and have strong relationships with businesses all over the world, which makes them an indispensable link for international trade transactions. In cross-border transactions, where payment and delivery guarantees are of the utmost importance, this trust is very important.

In addition, the banks offer a wide range of commercial finance products and services including letters of credit, trade loans or documentary collections. Increased use of blockchain and digital transformation of banking processes in the banks could lead to increased scope for this segment over the next eight years. In order to enhance their trade finance solutions, banks are reported to be working with financial technology organizations in order to expand their customer base. In addition, 79 percent of customers said that the availability of banking services was made easier as a result of technological innovation in banking.

Our in-depth analysis of the global market includes the following segments: