Factoring Services Market to be Worth $7,005.90 Billion by 2030 - Grand View Research, Inc.

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Aug 16, 2022, 09:30 ET

SAN FRANCISCO, Aug. 16, 2022 /PRNewswire/ -- The global factoring services market size is expected to reach USD 7,005.90 billion by 2030, registering a CAGR of 8.8% from 2022 to 2030, according to a new report published by Grand View Research, Inc. The market growth can be attributed to the increasing open trade accounts and cross-border businesses. The expansion of the manufacturing industry in Asian countries and the growing need among start-ups and SMEs for an alternate source of finance are further driving the market growth.

Key Industry Insights & Findings from the report:

The international segment is expected to register a considerable CAGR of 9.4% over the forecast period owing to the rapid growth of trade among emerging economies such as China, India, and Thailand
The non-recourse segment is expected to witness considerable growth over the forecast period. Non-recourse service providers perform thorough credit evaluations and offer credit protection against bad debts
The bank segment accounted for the largest market share in 2021. A factoring process is entirely regulated by banks and the absence of a middleman helps to lower the costs involved
The healthcare segment is anticipated to grow at a considerable CAGR of 10.5% over the forecast period. Healthcare firms provide advanced payments for third-party payers and offer support to cover the lease cost of equipment
Asia Pacific is expected to register the highest CAGR of 11.1% owing to infrastructural and industrial growth in the region. Additionally, the demand for factoring services is higher among SMEs in India and China

Read 120-page market research report, "Factoring Services Market Size, Share & Trends Analysis Report By Category (Domestic, International), By Type (Recourse, Non-recourse), By Financial Institution, By End Use, By Region, And Segment Forecasts, 2022 - 2030", published by Grand View Research.

Factoring Services Market Growth & Trends

Technologies such as blockchain are widely implemented in the financing process to reduce operational costs and enhance security. For instance, Tallysticks, an international trade solution firm, uses blockchain technology to offer advanced data security and complete transparency throughout the factoring process. The firm offers an easy automated invoice financing process with a strong credit reporting system.

Factoring services can be customized based on various requirements of the clients to fit their unique business needs. Unlike bank loans, these services are based on the current value of the sales ledger rather than historic management information. Moreover, they do not result in an increased liability as they are a transaction of sale and not a loan. As a result, they are becoming a popular choice among businesses.

Meanwhile, factors such as archaic regulations, foreign currency restrictions, and stamp duties are likely to hamper the market growth. However, the increasing focus of regulators on data management and extensive adoption of real-time payments networks are expected to help reduce complexities in trade finance. The increased demand for drafting proper laws to govern financial transactions, such as the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Secured Transactions, is also expected to boost market growth over the coming years.

Factoring Services Market Segmentation

Grand View Research has segmented the global factoring services market based on category, type, financial institution, end use, and region.

Factoring Services Market - Category Outlook (Revenue, USD Billion, 2017 - 2030)

Domestic
International

Factoring Services Market - Type Outlook (Revenue, USD Billion, 2017 - 2030)

Recourse
Non-Recourse

Factoring Services Market - Financial Institution Outlook (Revenue, USD Billion, 2017 - 2030)

Banks
Non-Banking Financial Institutions

Factoring Services Market - End-Use Outlook (Revenue, USD Billion, 2017 - 2030)

Manufacturing
Transport & Logistics
Information Technology
Healthcare
Construction
Others

Factoring Services Market - Regional Outlook (Revenue, USD Million, 2017 - 2030)

North America

U.S.
Canada

Europe

Germany
U.K.
France
Italy

Asia Pacific

Japan
China
India
Singapore

Latin America

Brazil
Mexico
Chile

Middle East & Africa

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 Group
Kuke Finance
Mizuho Financial Group, Inc.

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About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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