Global Commercial Lending Market Estimated to Surpass $27,406.6 Billion and Grow at 14.4% CAGR in the 2021 to 2028 Timeframe | Exclusive Report [190-Pages] by Research Dive
Commercial lending market is expected to grow immensely by 2028 due to lowest interest rates. The SMEs sub-segment is projected to be highly beneficial. Market in the Asia-Pacific region is predicted to witness better growth opportunities by 2028.
NEW YORK, July 29, 2022 /PRNewswire/ -- Research Dive has added a new report to its offering titled, "Commercial Lending Market by Type (Secured and Unsecured), Organization Size (SMEs and Large Enterprises), Providers (Bank and NBFC), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028".
According to the report, the global commercial lending market is estimated to register a revenue of $27,406.6 billion by 2028, growing at a healthy CAGR of 14.4% during the forecast period 2021-2028.
Dynamics of the Commercial Lending Market
Drivers: Commercial lending has the lowest interest rates and enable business owners to gain crucial funding and benefit from lower administration costs. In addition, commercial lending payment plans can be extended for several years, thus allowing organizations to invest in other aspects of their businesses like employee training, overhead management, and sales. These factors are expected to drive the growth of the global commercial lending market during the analysis timeframe.
Opportunities: Technological advancements like machine learning, blockchain, artificial intelligence, etc. and initiation of online commercial loans is booming rapidly. Moreover, these emerging technologies make the commercial loan processes faster and more efficient. These factors are predicted to offer abundant growth opportunities for the global commercial lending market during the forecast period.
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Restraints: Increasing amount of non-performing assets (NPA) is the major factor projected to hinder the growth of the global commercial lending market.
Covid-19 Impact on the Commercial Lending Market
The outbreak of the Covid-19 pandemic has had a positive impact on the global commercial lending market due to a sudden spike in industrial and commercial loans since several enterprises went out of business amid the pandemic. In addition, the engagement of SMEs in commercial loan lending has also boosted the market growth during the unprecedented times. Moreover, banks witnessed a surge in the demand for commercial loans since most businesses required additional financing. These factors bolstered the market growth during the pandemic stress.
Segments of the Commercial Lending Market
The report has segmented the commercial lending market into multiple segments based on type, organization size, providers, and regional analysis.
- By type, the unsecured sub-segment is anticipated to hold a dominant market share and garner a revenue of $15,647.8 billion during the 2021-2028 timeframe due to the growing preference for unsecured loans by businesses to help them expand their operations. Moreover, unsecured loans offer lower interest rates and easy access to credit. Additionally, unsecured loans are highly suitable for small-scale businesses that lack resources to secure secured loans and other traditional loan types. These factors are estimated to propel the sub-segment's growth by 2028.
- By organization size, the SMEs sub-segment is expected to have the fastest growth rate of 16.9% CAGR during the analysis years. The number of SMEs has grown significantly in the recent years and the easy access to unsecured loans and those offered by banks are boosting several startup and medium-scale enterprises. Moreover, the rising governmental initiatives for easy commercial lending and unsecured loans to SMEs is also beneficial for startup ventures. These factors are predicted to uplift the sub-segment's growth by 2028.
- By providers, the NBFC sub-segment of the global commercial lending market is projected to gather a revenue of $14,263.8 billion by 2028. NBFCs are smaller and nimbler as compared to banks and this serves as a huge advantage for them in case of providing quicker and loans to businesses. Moreover, NBFCs are high in demand by SMEs for working capital and other short-term business needs. These factors are anticipated to augment the sub-segment's growth during the analysis period.
- By region, the commercial lending market in the Asia-Pacific region is estimated to witness better growth opportunities and surpass $7,081.9 billion by 2028 due to the growing number of SMEs in this region. Moreover, increasing technological advancements like blockchain, artificial intelligence, machine learning, etc. in this region is also expected to enhance the market development in the Asia-Pacific region during the forecast period.
Key Commercial Lending Market Players
Some key commercial lending market players are
- Merchant Capital
- American Express Company
- Fundbox
- Credit Suisse
- Funding Circle
- Goldman Sachs
- Kabbage
- Fundation Group LLC
- LoanBuilder
- OnDeck among others.
These key players are undertaking various strategies such as product development and enhancement, merger and acquisition, partnerships and collaborations to sustain the market growth. – Inquire here to get access to the Key Players Development Strategic Report
For example, in March 2022, Axis Bank, the third-largest private sector lender in India, announced its acquisition of Citibank India, a leading financial services company, in an attempt to overhaul the latter's business by leaving retail banking operations in almost 13 countries that lack the necessary scale for competition. The acquisition includes Citibank's wealth management, retail banking, credit cards, consumer loan businesses, and much more.
The report also summarizes many important facets including financial performance of the key market players, SWOT analysis, product portfolio, and the latest strategic developments.
More about Commercial Lending Market:
- Product Launches and Strategic Partnerships by Market Players such as Kabbage, Funding Circle, and Others to Foster the Growth of the Global Commercial Lending Market
- Commercial Lending: The Backbone of Emerging Startups
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About Research Dive
Research Dive is a market research firm based in Pune, India. Maintaining the integrity and authenticity of the services, the firm provides the services that are solely based on its exclusive data model, compelled by the 360-degree research methodology, which guarantees comprehensive and accurate analysis. With an unprecedented access to several paid data resources, team of expert researchers, and strict work ethic, the firm offers insights that are extremely precise and reliable. Scrutinizing relevant news releases, government publications, decades of trade data, and technical & white papers, Research dive deliver the required services to its clients well within the required timeframe. Its expertise is focused on examining niche markets, targeting its major driving factors, and spotting threatening hindrances. Complementarily, it also has a seamless collaboration with the major industry aficionado that further offers its research an edge.
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