The global Factoring Services Market size is expected to reach USD 5,973.9 billion by 2028, registering a CAGR of 8.4%, from 2021 to 2028, according to a new study by Grand View Research, Inc. The growth can be attributed to the increasing number of open trade accounts, the expansion of businesses in the Asian market, mainly led by China, the rise in cross-border factoring, and the rapid development of factoring services across the European Union. Moreover, the increasing need for an alternative source of financing for Small and Medium Enterprises (SMEs) has also been driving the market growth. Additionally, the implementation of blockchain technology in factoring solutions is likely to help improve the overall supply chain by reducing operational costs for businesses.
Several factors are likely to impede the demand for
factoring in emerging markets, including archaic regulations hindering the
growth of receivables purchase programs, such as the continued use of stamp
duty tax, laws limiting the rights of assignment, and foreign currency
restrictions. However, the development of receivables registries is increasing
to safeguard from fraud/scam or factoring rules that can guard the industry
against unfair regulations. However, the increasing focus of regulators on data
management and extensive adoption of real-time payments networks are
expected to help in reducing complexities in trade finance. The increased
demand for drafting proper laws to govern factoring transactions, such as the
United Nations Commission on International Trade Law (UNCITRAL) Model Law on
Secured Transactions, is also expected to boost the market in the coming years.
Furthermore, the rising implementation of digital
platforms in trade financing and increasing cross-border trade activities are
expected to drive market growth during the forecast period. However, the
COVID-19 pandemic has resulted in travel bans, quarantines, lockdowns, flight
cancellations, and increased panic among people, adversely affecting industries
and sectors globally. However, the factoring market is expected to rebound
gradually in the short as well as the long term.
Related Press Release@ Factoring Services Market Report
Factoring Services Market Report
Highlights
- In terms of category, the international segment is expected to
register the highest CAGR over the forecast period. This can be attributed
to the increasing demand for factoring services from developing nations
that focus on increasing their international trade through exports and
imports
- In terms of type, the non-recourse segment is anticipated to
register the highest CAGR of 8.7% over the forecast period. Advantages
such as full credit cover offered by the financing company are driving the
demand for non-recourse factoring amongst SMEs across the world
- In terms of financial institution, the non-banking financial
institution segment is anticipated to register the fastest CAGR from 2021
to 2028. The growth of fintech companies and non-banking financial startups,
owing to lenient ease of government regulations in some developing
countries, is the prime factor propelling the growth of the segment
- In terms of end use, the healthcare segment is anticipated to
register the highest CAGR over the forecast period. Insurance-related
complications and delays in medical bill payment of medical companies or
professionals due to bureaucracy in the payment process are likely to
accelerate the demand for factoring services in the segment over the
forecast period
- In terms of region, Asia Pacific is anticipated to emerge as the
fastest-growing regional market owing to the rapid growth of economies
vis-à-vis infrastructural and industrial growth in the region. The region
comprises two of the world’s most populated countries, China and India,
where the demand for factoring services is higher among SMEs. Moreover,
China is the key exporter of electronic components, chemical materials,
and many other industrial products
List of Key Players in the Factoring Services Market
·
Barclays Bank PLC
·
BNP Paribas
·
China Construction Bank Corporation
·
Deutsche Factoring Bank
·
Eurobank
·
Hitachi Capital (UK) PLC
·
HSBC Group
·
ICBC China
·
Kuke Finance
·
Mizuho Financial Group, Inc.
About Us:
Grand View Research, Inc. is a U.S. based market research
and consulting company, registered in the State of California and headquartered
in San Francisco. The company provides syndicated research reports, customized
research reports, and consulting services. To help clients make informed
business decisions, the company offers market intelligence studies ensuring
relevant and fact-based research across a range of industries including
technology, chemicals, materials, healthcare and energy.
Contact:
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Grand View Research, Inc
Phone: 1-415- 349-0058
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Email: sales@grandviewresearch.com
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