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Trade Finance Market Trends

Report ID: GMI7022
Published Date: Oct 2023
Report Format: PDF

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Trade Finance Market Trends

Sustainable finance is an emerging trend in the trade finance industry, reflecting a growing commitment to Environmental, Social, and Governance (ESG) principles. Businesses and financial institutions are increasingly incorporating sustainability criteria into trade finance decisions. This includes supporting eco-friendly supply chains, responsible sourcing, and reducing the carbon footprint. Sustainable trade finance instruments, such as green bonds and ESG-linked loans, are gaining traction. As the global awareness of climate & social issues rises, the integration of sustainable finance practices into trade finance is being perceived as a responsible & forward-thinking approach, fostering market growth.

The expanding supply chain finance solutions are an emerging trend in the trade finance industry, driven by the business need to enhance cash flow management. These solutions offer a mechanism for companies to optimize the working capital by extending payment terms to suppliers while ensuring timely payments.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market valuation of trade finance was worth USD 9.3 trillion in 2022 and is estimated to witness over 3% CAGR between 2023 and 2032, driven by surge in investments in innovative technologies by multiple organizations worldwide.

The exporters end-user segment held over 40% of the trade finance market share in 2022 and will experience growth through 2032, due to rapid globalization and the increase in trade activities.

Asia Pacific garnered more than 35% share of the trade finance market in 2022 and will experience growth through 2032, due to the robust economic expansion and burgeoning trade activities, mainly in China and India.

Asian Development Bank, Citigroup Inc., Bank of America Corporation, BNP Paribas S.A., Euler Hermes Group, HSBC Holdings PLC, and JP Morgan Chase & Co. are some of the prominent trade finance firms.