The global trade finance market is anticipated to grow at a CAGR of 7.5% during the forecast period. Trade finance can help reduce the risk associated with global trade by reconciling the divergent needs of an exporter and importer. The rise in the need for safety and security of trading activities, surge in adoption of trade finance by SMEs and MSMEs in developing countries, increased competition, and new trade agreements are the major factors driving the growth of the trade finance market. The key advantage of trade finance is that it facilitates an easy way to arrange short-term finance and can improve efficiency and boost revenue.
Get Free Sample link @ https://www.omrglobal.com/request-sample/trade-finance-market
However, the high cost associated with trade finance may hamper the growth of the market in developing countries due to the lower profit margin and currency hedging cost. This report will further analyze all the primary and secondary factors that are directly or indirectly influencing the growth of the trade finance market during the forecast period.
Impact of COVID-19 Pandemic on the Global Trade Finance Market
The COVID-19 pandemic has had a devastating effect on global economies due to which exporters are facing difficulties accessing trade financing in the market. Due to this reason a 60% increase in rejected applications for trade credit insurance. In addition, the International Chamber of Commerce (ICC) reports a retrenchment of banks from financial sectors deemed “high risk” as well as increases in the price of trade financing for SMEs. However, as the situation got normalized the market had bounced back to its pre-COVID-19 pandemic level.
Full report of Trade Finance Market available @ https://www.omrglobal.com/industry-reports/trade-finance-market
Segmental Outlook
The global trade finance market is segmented based on the type and service providers. Based on the type, the market is sub-segmented into letters of credit, guarantees, supply chain finance, factoring, documentary collection, and others. Among these types, the supply chain finance segment is expected to grow fastest during the forecast period as it provides the advantage of working capital efficiency and cash conversion period to the corporates. It also provides the advantage to the service-providing bank to maintain a long-term partnership with the corporate and do cross-sell of services.
Based on service providers, the market is sub-segmented into banks, trade finance companies, insurance companies, and others. Among these service providers, the banks are the most trusted source for availing trade financing facilities, which is a major factor driving the growth of this segment. However, the trade finance companies are emerging as the fastest-growing segment with their customized offerings as per the varying customer requirements. These segments can further be customized as per the requested research requirements.
Regional Outlooks
The global trade finance market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, and Others), and the Rest of the World (the Middle East & Africa, and Latin America). The market can also be analyzed for a particular region or country level as per the requirement.
Reasons to Buying From us –
1. We cover more than 15 major industries, further segmented into more than 90 sectors.
2. More than 120 countries are for analysis.
3. Over 100+ paid data sources mined for investigation.
4. Our expert research analysts answer all your questions before and after purchasing your report.
For More Customized Data, Request for Report Customization @ https://www.omrglobal.com/report-customization/trade-finance-market
Media Contact:
Contact Person: Mr. Anurag Tiwari
Email: anurag@omrglobal.com
Contact no: +91 780-304-0404
Company Name: Orion Market Research
About Orion Market Research
Orion Market Research (OMR) is a market research and consulting company known for its crisp and concise reports. The company is equipped with an experienced team of analysts and consultants. OMR offers quality syndicated research reports, customized research reports, consulting and other research-based services. The company also offers Digital Marketing services through its subsidiary OMR Digital and Software development and Consulting Services through another subsidiary Encanto Technologies.