Supply Chain Finance Market was valued at USD 35.3 Billion in 2021 and is expected to reach USD 98.5 Billion by 2029, exhibiting a CAGR of 13.69 % during the forecast period (2022-2029) Supply chain finance (SCF) is a large and growing industry. Recent analyses of trade financing have expanded the definition to include supply chain finance, which includes all funding opportunities along a supply chain. Despite this, the product is still viewed from a limited perspective, where its primary characteristic is that it is consumer-driven. In this scenario, the buyer asks their finance provider to set up a receivable discounting line so that their suppliers can use it to discount the invoices they sent to the buyer.
Supply Chain Finance Market Overview and Dynamics:Globalization and offshore production, the expansion of the supply chain has resulted in a decrease in capital availability for many businesses. Additionally, the pressure that businesses are under to improve cash flow has raised pressure on their foreign suppliers. Large customers specifically put pressure on suppliers by imposing longer payment terms or higher working capital requirements. The situation has been made worse by the widespread tendency of open account from letters of credit. As a result, there is a requirement for global supply chain financing (GSCF). There is a substantial market opportunity for GSCFs. There are 1.3 trillion dollars’ worth of receivables management services sold globally. Additional US$100 billion and $340 billion are added via payables discounting and asset-based financing, respectively. Only a tiny portion of businesses presently use supply chain finance strategies, but more than half have plans or are looking at ways to make these strategies better. In actuality, the supply chain finance market reached US$1,311 billion in 2020, up 35% in size from 2019. While customers are giving their suppliers longer payment periods, the suppliers frequently have less access to short-term financing and, as a result, a higher cost of capital. This cost-shifting to suppliers creates a supply base that is more financially unstable and at risk. GSCF funding, GSCF technology, and GSCF visibility were identified as the three main areas of improvement that businesses should focus on. Supply Chain Finance Market Growth: Only 10% of the total global market, according to market experts, has been satisfied with supply chain finance, indicating a sizable prospective market for expansion. In the upcoming years, the market is anticipated to continue to grow rapidly at a rate of roughly 20–30% annually, and at a rate of 10% yearly in 2020. Currently, the US and Western Europe are where supply chain financing initiatives are growing the fastest. The markets with the greatest promise in the upcoming years are thought to be in Asia, particularly in China and India. The following factors are responsible for the supply chain financing industry's rapid growth: • The influence of globalisation on corporate finances and supply chain risk has intensified. • The chief financial officers' and treasurers' primary priorities now include working capital management. • Suppliers have a lot of interest in providing liquidity and enabling cheaper financing costs. To know about the Research Methodology :- Request Free Sample Report
Trending Factors of Supply Chain Finance Market:The MMR report covers all the trends and technologies playing a major role in the growth of the supply chain finance market over the forecast period. Optimizing Regulation and Compliance Issues: The new era demands for a reverse operational cycle, whereas the previous few years saw a trend of firms introducing automation solutions before assessing the compliance demands. Global invoicing and tax compliance are escalating in complexity and fragmentation as a result of the ongoing change in governmental mandates and rules across geographical boundaries. By end of year 2022, businesses will have undergone a revolution in their business strategies, placing compliance resolutions at the top of their automation priorities. Innovations for Enhanced Risk Management: As organisations battled in the early stages with supply-chain interruptions, the pandemic exposed the dangers of international supply chains. Businesses will put this into practise in the upcoming year and aim to develop a comprehensive ecosystem with better risk-management and risk-mitigation solutions. The asset that will be required to deliver prompt notifications when there are interruptions and changes gaining pace around the world is an "Always-On, Always-Ready" solution. It will give organisations a wider perspective to continuously monitor, connect with new supplier tiers, and increase supply base visibility. Additionally, developing technologies like machine learning and AI would aid in determining credit risk as well as in real-time threat and fraud detection. Recognize Shifting Client Needs: New client habits, requirements, and demands across industries have emerged during the past two years. Businesses must take the time to understand the changing needs of the customers given the close networks of suppliers and purchasers. Lockdowns at Covid and the ensuing economic breakdowns, interruptions, and anomalies have been a major driver of the shift in supply chain behaviour, and supply chain financing is necessary to ensure that these new capacities can be built. Healthy Interaction between Human Capabilities and Advanced Technologies: A workforce intervention with skills like critical thinking, logical implementation, and customer relations are a prerequisite for the success of the business, even though technology is automating every step of payment exchange and history, documentation, data analysis, etc. Only when machines and people cooperate, enhancing one another's capabilities, do performance increases reach their highest levels. Increasing The Supplier Pool: A large heterogeneous network with alternative suppliers, stakeholders, and facilitators will be created by the faster digitization and collaboration. A significant transition toward a "multiple-choice quotient" with more reach and various participants demonstrating higher values, improved financing, and better working capital will occur in 2022.
Supply Chain Finance Market Segment Analysis:In 2021, Domestic Segment Held the Largest Market Share: The domestic segment dominated the supply chain finance market in 2021, accounting for about a quarter of the global market share. It is expected that this market segment will continue to hold the majority of market share throughout the forecast period. However, the fastest CAGR of 14.2% is anticipated for the overseas category during the forecast period. Domestic consumption is increasing in countries like China, and this is changing the global demand, which has previously been more skewed toward advanced economies. By 2025, it is anticipated that emerging markets would consume nearly two-thirds of all manufactured goods, with machinery, building supplies, and automobiles leading the way. According to projections, developing countries would consume more than half of all global goods and services by 2030. Bank Segment Is Estimated to Account Largest Market Share In 2021: With almost 85% of the global supply chain finance market share, the banks sector had the greatest market share in 2021, and it is anticipated that it will continue to hold the top spot during the projected period. A collection of tech-based business and financing procedures called supply chain finance helps all parties to a transaction save money and work more effectively. When the buyer has a better credit rating than the seller and can acquire financing at a lower cost, supply chain finance works best. Nevertheless, the market for trade finance houses is anticipated to register the greatest CAGR of 14% during the forecast period.
Supply Chain Finance Market Regional Analysis:Geographically, APAC region is expected to witness significant growth during the forecast period. With the region on schedule to account for more than 50% of global GDP by 2040, the Asian growth story is still being created. This rise has been fuelled by shifts in global production, with an increase in the amount of goods coming from Asia, being traded within Asia, and going to the major global markets. Despite the benefits offered by SCF, there weren't many businesses in the Asia Pacific region that really used the solution before recently. It is now being accepted more widely by Asian treasury teams and is quickly turning into a crucial working capital instrument for many corporations in the region. Supply Chain Trends in APAC: Asia-Pacific is at the forefront of FSC development, largely because of its export-led economic model and the significant importance that commerce plays in the region's economy. There are two supply chain developments that the region is seeing: • Businesses reviewing their letters of credit (LCs). Until recently, the traditional field of supply chain financing was changing as importers and exporters looked for tailored ways to fund their cross-border business. • The trade finance landscape is changing. One effect of the crisis is a wave of mergers and acquisitions among the financial institutions that would transform the trade finance landscape, even if banks generally remain very engaged in trade finance and are working closely with corporate clients to assist supply chain solutions. The research report covers Supply Chain Finance industry statistics including current Supply Chain Finance Market size, Supply Chain Finance Market Share, and Growth Rates (CAGR) by segments and sub-segments at global, regional, and country levels, with an annual forecast till 2029. The study provides a clear insight into market penetration by different types, applications, and sales channels of Supply Chain Finance with corresponding future potential, validated by real-time industry experts. Further, Supply Chain Finance market share by key metrics such as manufacturing methods/technology and raw material can be included as part of customization. This enables the client to identify the most potential segment from their growth rates along with corresponding drivers and restraints. The research considered 2017, 2018, 2019, and 2020 as historical years, 2021 as the base year, and 2022 as the estimated year, with an outlook period from 2023 to 2029. The report identifies the most profitable products of Supply Chain Finance market, dominant end uses and evolving distribution channel of the Supply Chain Finance Market in each region.
Supply Chain Finance Market Scope: Inquiry Before Buying
Supply Chain Finance Market Report Coverage Details Base Year: 2021 Forecast Period: 2022-2029 Historical Data: 2017 to 2021 Market Size in 2021: US $ 35.3 Bn. Forecast Period 2022 to 2029 CAGR: 13.69% Market Size in 2029: US $ 98.5 Bn. Segments Covered: by Offering • Export and Import Bills • Letter of Credit • Performance Bonds • Shipping Guarantees • Others by Provider • Banks • Trade Finance House • Others by End User • Large Enterprises • Small and Medium-sized Enterprises by Application • Domestic • International by Region • North America • Europe • Asia Pacific • South America • Middle East & Africa
Global Supply Chain Finance Market Key Players are:• IBM • Ripple • Rubix by Deloitte • Accenture • Distributed Ledger Technologies • Oklink • Nasdaq Linq • Oracle • AWS • Citi Bank • ELayaway • HSBC • Ant Financial • JD Financial • Qihoo 360 • Tencent • Baidu • Huawei • Bitspark • SAP • ALIBABA Frequently Asked Questions: 1] What is the growth rate of the Global Supply Chain Finance Market? Ans. The Global Supply Chain Finance Market is growing at a significant rate of 13.69 %. during the forecast period. 2] Which region is expected to dominate the Global Supply Chain Finance Market? Ans. APAC region is expected to dominate the Supply Chain Finance Market during the forecast period. 3] What is the market size of the Global Supply Chain Finance Market by 2029? Ans. The market size of the Supply Chain Finance Market by 2029 is expected to reach USD 98.5 Bn. 4] Which are the top key players of the Global Supply Chain Finance Market? Ans. The major key players of the Global Supply Chain Finance Market are IBM, Ripple, Rubix, by Deloitte. Accenture, Distributed Ledger Technologies and Others 5] What factors are driving the growth of the Global Supply Chain Finance Market in 2021? Ans. Increase in competition in supply chain finance business and new agreements pertaining to supply chain finance domain.
1. Global Supply Chain Finance Market Size: Research Methodology 2. Global Supply Chain Finance Market Size: Executive Summary 2.1. Market Overview and Definitions 2.1.1. Introduction to Global Supply Chain Finance Market Size 2.2. Summary 2.2.1. Key Findings 2.2.2. Recommendations for Investors 2.2.3. Recommendations for Market Leaders 2.2.4. Recommendations for New Market Entry 3. Global Supply Chain Finance Market Size: Competitive Analysis 3.1. MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2. Consolidation in the Market 3.2.1 M&A by region 3.3. Key Developments by Companies 3.4. Market Drivers 3.5. Market Restraints 3.6. Market Opportunities 3.7. Market Challenges 3.8. Market Dynamics 3.9. PORTERS Five Forces Analysis 3.10. PESTLE 3.11. Regulatory Landscape by region • North America • Europe • Asia Pacific • The Middle East and Africa • South America 3.12. COVID-19 Impact 4. Global Supply Chain Finance Market Size Segmentation 4.1. Global Supply Chain Finance Market Size, by Offering (2021-2029) • Export and Import Bills • Letter of Credit • Performance Bonds • Shipping Guarantees • Others 4.2. Global Supply Chain Finance Market Size, by Providers (2021-2029) • Banks • Trade Finance House • Others 4.3. Global Supply Chain Finance Market Size, by End User (2021-2029) • Large Enterprises • Small and Medium-sized Enterprises 4.4. Global Supply Chain Finance Market Size, by Application (2021-2029) • Domestic • International 5. North America Supply Chain Finance Market (2021-2029) 5.1. North America Supply Chain Finance Market Size, by Offering (2021-2029) • Export and Import Bills • Letter of Credit • Performance Bonds • Shipping Guarantees • Others 5.2. North America Supply Chain Finance Market Size, by Providers (2021-2029) • Banks • Trade Finance House • Others 5.3. North America Supply Chain Finance Market Size, by End User (2021-2029) • Large Enterprises • Small and Medium-sized Enterprises 5.4. North America Supply Chain Finance Market Size, by Application (2021-2029) • Domestic • International 5.5. North America Supply Chain Finance Market, by Country (2021-2029) • United States • Canada • Mexico 6. Europe Supply Chain Finance Market (2021-2029) 6.1. Europe Supply Chain Finance Market, by Offering (2021-2029) 6.2. Europe Supply Chain Finance Market, by Providers (2021-2029) 6.3. Europe Supply Chain Finance Market, by End User (2021-2029) 6.4. Europe Supply Chain Finance Market, by Application (2021-2029) 6.5. Europe Supply Chain Finance Market, by Country (2021-2029) • UK • France • Germany • Italy • Spain • Sweden • Austria • Rest of Europe 7. Asia Pacific Supply Chain Finance Market (2021-2029) 7.1. Asia Pacific Supply Chain Finance Market, by Offering (2021-2029) 7.2. Asia Pacific Supply Chain Finance Market, by Providers (2021-2029) 7.3. Asia Pacific Supply Chain Finance Market, by End User (2021-2029) 7.4. Asia Pacific Supply Chain Finance Market, by Application (2021-2029) 7.5. Asia Pacific Supply Chain Finance Market, by Country (2021-2029) • China • India • Japan • South Korea • Australia • ASEAN • Rest of APAC 8. Middle East and Africa Supply Chain Finance Market (2021-2029) 8.1. Middle East and Africa Supply Chain Finance Market, by Offering (2021-2029) 8.2. Middle East and Africa Supply Chain Finance Market, by Providers (2021-2029) 8.3. Middle East and Africa Supply Chain Finance Market, by End User (2021-2029) 8.4. Middle East and Africa Supply Chain Finance Market, by Application (2021-2029) 8.5. Middle East and Africa Supply Chain Finance Market, by Country (2021-2029) • South Africa • GCC • Egypt • Nigeria • Rest of ME&A 9. South America Supply Chain Finance Market (2021-2029) 9.1. South America Supply Chain Finance Market, by Offering (2021-2029) 9.2. South America Supply Chain Finance Market, by Providers (2021-2029) 9.3. South America Supply Chain Finance Market, by End User (2021-2029) 9.4. South America Supply Chain Finance Market, by Application (2021-2029) 9.5. South America Supply Chain Finance Market, by Country (2021-2029) • Brazil • Argentina • Rest of South America 10. Company Profile: Key players 10.1. IBM 10.1.1. Company Overview 10.1.2. Financial Overview 10.1.3. Global Presence 10.1.4. Capacity Portfolio 10.1.5. Business Strategy 10.1.6. Recent Developments 10.2. Ripple 10.3. Rubix by Deloitte 10.4. Accenture 10.5. Distributed Ledger Technologies 10.6. Oklink 10.7. Nasdaq Linq 10.8. Oracle 10.9. AWS 10.10. Citi Bank 10.11. ELayaway 10.12. HSBC 10.13. Ant Financial 10.14. JD Financial 10.15. Qihoo 360 10.16. Tencent 10.17. Baidu 10.18. Huawei 10.19. Bitspark 10.20. SAP 10.21. ALIBABA