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Global Trade Finance Industry Report: Regional Analysis; Key Segmentation and Scope; by Type; Industry Opportunities and Challenges; Market Analysis; Market Dynamics: SWOT Analysis, Porter’s Five Forces Analysis, Key Indicators for Demand, Key Indicators for Price; Industry Events and Developments; Competitive Landscape, 2022-2027

Trade Finance Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices


The global Trade Finance market reached a value of about USD 48.7 billion in 2021. The industry is projected to grow at a CAGR of around 3% in the forecast period of 2022-2027 to reach a value of about USD 63.8 billion by 2027.

The global Trade Finance industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The increasing demand for financing services is driving the market's growth. The Asia Pacific is the highest category spender by region, driving the need for the Trade Finance industry.

Industry Definition and Segmentation

Trade finance financing international trade flows by serving as an intermediary between importers and exporters to reduce transaction risks and improve working capital efficiency. It is responsible for actions relating to local and international trade finance. Domestic and international trade funding are covered under trade financing, and insurance, loan issuing, and lending are among the activities covered. The buyer and seller and the trade financier, export credit agencies, and insurers are all involved in the trade finance process. The Trade Finance industry report comprises segments by Type (Supply Chain Finance, Structured Trade Finance, Traditional Trade Finance), Service Provider (Banks, Trade Finance Houses, Others), End-User (Exporters, Importers, Traders, Others), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

The Asia Pacific Regions are Driving the Growth of the Industry

The Asia Pacific holds the largest market share in the industry Due to the growth in several new technologies, the simplification of trade finance procedures, and favourable government processes in Asia-Pacific nations like India, China, Singapore, South Korea, and Japan.

Buyers, sellers, producers, importers, and exporters all utilise commercial finance to make financing easier as it discusses how trade may be conducted using currency, credit, investments, and other assets. As a result, the benefit of the trade finance industry, which is the availability of simple methods for short-term financing, is primarily driving the market's expansion. In addition, the improved inventory management by various firms is further propelling the market. Furthermore, the demand for safety and security in trading operations and a boom in the use of trade financing by SMEs in emerging countries, greater competition, and new trade agreements are all factors boosting the industry's development.

However, factors such as lack of risk assessment capability, regulatory uncertainty, and operational inefficiencies hamper the industry's growth.

Best Procurement Practices

The global Trade Finance industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Trade Finance regions, such as engagement models, contract terms, and buyer and supplier negotiation levers.

Category Management Studies

Traders, buyers, sellers, manufacturers, importers, and exporters all utilise it to make financing and dealing with cash, credit, and investments, among other assets for trade, easier. The main benefit of trade finance is that it makes it simple to acquire short-term financing. Issuing letters of credit, lending, forfaiting, export credit and financing, and factoring are all examples of trade finance activity. The buyer and seller and the trade financier, export credit agencies, and insurers are all involved in the trade finance process. Least-developed country exporters and importers typically pay relatively high fees, increasing their trade expenses. In contrast, merchants in developed nations profit from low-interest rates and fees supplied by international banks.

Developments in Technology, Further Propelling the Trade Finance Market

The market growth is aided by growing digitisation and risk management solutions. Technological advancements, improved strategic formulation, and structure and pricing methods provide a variety of market growth chances. Furthermore, integrating blockchain technology with trade finance is likely to give a profitable trade finance market potential. Other factors, including Multiple communication channels, trading technology, regulatory compliances, and maintaining an individual's wealth accounts, are likely to impact the market positively.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Trade Finance Industry Report

  • Citigroup Inc.
  • Asian Development Bank
  • DBS Bank Ltd
  • JPMorgan Chase & Co. (NYSE: JPM)
  • BNP Paribas

Market Landscape

There are a few major players presently dominating the market. These companies have used various techniques to expand their market share and boost their position in the trade finance sector.

Key Initiatives by Companies

  • BNP Paribas and JP Morgan invested USD 18.7 million in emerging FinTech Saphyre in March 2022. According to Saphyre, it allows companies to analyse risk more quickly, speed up onboarding procedures, and reduce 70-75 percent of duplicate or unproductive post-trade activity.
  • March 2022: Russian businesses rush to create bank accounts in China during the Ukraine conflict. Western governments are cutting Russia's economy from the global financial system, forcing multinational corporations to suspend sales, sever relationships, and sell tens of billions of dollars in assets. China expressed its opposition to the sanctions, claiming that they are ineffectual and that regular commercial and trade relations with Russia will continue.

1    Preface
2    Report Coverage – Key Segmentation and Scope
3    Report Description

    3.1    Market Definition and Outlook
    3.2    Properties and Applications
    3.3    Market Analysis
    3.4    Key Players
4    Key Assumptions
5    Executive Summary

    5.1    Overview
    5.2    Key Drivers
    5.3    Key Developments
    5.4    Competitive Structure
    5.5    Key Industrial Trends
6    Snapshot
    6.1    Global
    6.2    Regional
7    Industry Opportunities and Challenges
8    Global Trade Finance Market Analysis

    8.1    Key Industry Highlights
    8.2    Global Trade Finance Historical Market (2017-2021) 
    8.3    Global Trade Finance Market Forecast (2022-2027)
    8.4    Global Trade Finance Market by Type
        8.4.1    Supply Chain Finance
            8.4.1.1    Market Share
            8.4.1.2    Historical Trend (2017-2021)
            8.4.1.3    Forecast Trend (2022-2027)
        8.4.2    Structured Trade Finance
            8.4.2.1    Market Share
            8.4.2.2    Historical Trend (2017-2021)
            8.4.2.3    Forecast Trend (2022-2027)
        8.4.3    Traditional Trade Finance
            8.4.3.1    Market Share
            8.4.3.2    Historical Trend (2017-2021)
            8.4.3.3    Forecast Trend (2022-2027)
    8.5    Global Trade Finance Market by Service Provider
        8.5.1    Banks
            8.5.1.1    Market Share
            8.5.1.2    Historical Trend (2017-2021)
            8.5.1.3    Forecast Trend (2022-2027)
        8.5.2    Trade Finance Houses
            8.5.2.1    Market Share
            8.5.2.2    Historical Trend (2017-2021)
            8.5.2.3    Forecast Trend (2022-2027)
        8.5.3    Others
    8.6    Global Trade Finance Market by End User
        8.6.1    Exporters
            8.6.1.1    Market Share
            8.6.1.2    Historical Trend (2017-2021)
            8.6.1.3    Forecast Trend (2022-2027)
        8.6.2    Importers
            8.6.2.1    Market Share
            8.6.2.2    Historical Trend (2017-2021)
            8.6.2.3    Forecast Trend (2022-2027)
        8.6.3    Traders
            8.6.3.1    Market Share
            8.6.3.2    Historical Trend (2017-2021)
            8.6.3.3    Forecast Trend (2022-2027)
        8.6.4    Others
    8.7    Global Trade Finance Market by Region
        8.7.1    Market Share
            8.7.1.1    North America
            8.7.1.2    Europe
            8.7.1.3    Asia Pacific
            8.7.1.4    Latin America
            8.7.1.5    Middle East and Africa
9    Regional Analysis
    9.1    North America
        9.1.1    Historical Trend (2017-2021)
        9.1.2    Forecast Trend (2022-2027)
        9.1.3    Breakup by Country
            9.1.3.1    United States of America 
            9.1.3.2    Canada
    9.2    Europe
        9.2.1    Historical Trend (2017-2021)
        9.2.2    Forecast Trend (2022-2027)
        9.2.3    Breakup by Country
            9.2.3.1    United Kingdom
            9.2.3.2    Germany
            9.2.3.3    France
            9.2.3.4    Italy
            9.2.3.5    Others
    9.3    Asia Pacific
        9.3.1    Historical Trend (2017-2021)
        9.3.2    Forecast Trend (2022-2027)
        9.3.3    Breakup by Country
            9.3.3.1    China
            9.3.3.2    Japan
            9.3.3.3    India
            9.3.3.4    ASEAN
            9.3.3.5    Others
    9.4    Latin America
        9.4.1    Historical Trend (2017-2021)
        9.4.2    Forecast Trend (2022-2027)
        9.4.3    Breakup by Country
            9.4.3.1    Brazil
            9.4.3.2    Argentina
            9.4.3.3    Mexico
            9.4.3.4    Others
    9.5    Middle East and Africa
        9.5.1    Historical Trend (2017-2021)
        9.5.2    Forecast Trend (2022-2027)
        9.5.3    Breakup by Country
            9.5.3.1    Saudi Arabia
            9.5.3.2    United Arab Emirates
            9.5.3.3    Nigeria
            9.5.3.4    South Africa
            9.5.3.5    Others
10    Market Dynamics
    10.1    SWOT Analysis
        10.1.1    Strengths
        10.1.2    Weaknesses
        10.1.3    Opportunities
        10.1.4    Threats
    10.2    Porter’s Five Forces Analysis
        10.2.1    Supplier’s Power
        10.2.2    Buyers Power
        10.2.3    Threat of New Entrants
        10.2.4    Degree of Rivalry
        10.2.5    Threat of Substitutes
    10.3    Key Indicators for Demand
    10.4    Key Indicators for Price
11    Competitive Landscape
    11.1    Market Structure
    11.2    Company Profiles
        11.2.1    Citigroup Inc.
            11.2.1.1    Company Overview
            11.2.1.2    Financial Analysis
        11.2.2    Asian Development Bank
            11.2.2.1    Company Overview
            11.2.2.2    Financial Analysis
        11.2.3    DBS Bank Ltd
            11.2.3.1    Company Overview
            11.2.3.2    Financial Analysis
        11.2.4    JPMorgan Chase & Co.
            11.2.4.1    Company Overview
            11.2.4.2    Financial Analysis
        11.2.5    BNP Paribas
            11.2.5.1    Company Overview
            11.2.5.2    Financial Analysis
        11.2.6    HSBC Holdings PLC
            11.2.6.1    Company Overview
            11.2.6.2    Financial Analysis
        11.2.7    Euler Hermes
            11.2.7.1    Company Overview
            11.2.7.2    Financial Analysis
        11.2.8    Standard Chartered Bank
            11.2.8.1    Company Overview
            11.2.8.2    Financial Analysis
        11.2.9    Others
12    Industry Events and Developments

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Key Questions Answered in the Report

The global Trade Finance market size was valued at USD 48.7 billion in 2021.

In the forecast period of 2022-2027, the market is projected to grow at a CAGR of 3%.

The significant demand for maintaining an individual's wealth is one of the essential drivers of the Trade Finance market growth.

Citigroup Inc., Asian Development Bank, DBS Bank Ltd, JPMorgan Chase & Co., and BNP Paribas are some of the prominent players in the market.

The Asia Pacific region of the Trade Finance industry holds a significant share in the market.

Analyst Review

The global Trade Finance market attained a value of USD 48.7 billion in 2021, driven by the benefit of the trade finance industry, which is the availability of simple methods for short-term financing. Aided by Technological advancements and improved strategic formulation, as well as the use of structure pricing methods and the integration of blockchain technology, the market is expected to witness further growth in the forecast period of 2022-2027, growing at a CAGR of 3%. The market is projected to reach 63.8 billion by 2027. Some of the leading players in the industry are Citigroup Inc., Asian Development Bank, DBS Bank Ltd, JPMorgan Chase & Co., and BNP Paribas.

Procurement Resources' detailed research approach explores deep into the industry, encompassing the macro and micro aspects of the industry. Its team of experts uses a combination of cutting-edge analytical tools and their expertise, thus, delivering its customers with market insights that are accurate and actionable and help them remain ahead of their competition.

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