The global supply chain finance market revenue was around US$ 7.1 billion in 2023 and is estimated to reach US$ 15.1 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.8% during the forecast period from 2024 to 2032.

Suppliers who partake in supply chain finance can predict to get paid in advance for their invoices. It reduces the possibility of a disruption in the supply chain and makes it possible for customers and suppliers to maximize their working capital. Also, the term "supply chain trade finance" is often utilized to refer to a larger variety of supplier financing alternatives, like dynamic discounting, in which the consumer finances the program by letting suppliers get an early amount on invoices in exchange for a discount.

Factors Influencing Market Growth

- The rise in demand for the security and safety of supplying activities and the surge in the adoption of supply chain finance by SMEs in developing countries is propelling the growth of the market.

- The augmented competition and the new agreements about supply chain finance are boosting the growth of the supply chain finance market.

- The rise in trade wars and the high implementation cost are hindering the growth of the supply chain finance market.

- The integration of blockchain in online supply chain finance practices is anticipated to create lucrative opportunities for the market to grow in the future.

Impact of COVID-19

The impact of the COVID-19 pandemic had a negative influence on the global supply chain finance industry. This was attributed to the rise in social distancing and remote working, which built a challenge for supply chain finance in financial firms to grab data from a multitude of sources and locations. All these factors have augmented the possibilities of risk in the shape of the unregistered channel to transmit misreported trades.

Also, organizations were increasingly choosing supply chain finance for safety over their supply chain functions. This, in turn, drove the growth of the supply chain finance market during the pandemic.

Regional Analysis

In 2023, Asia-Pacific dominated the global supply chain finance market in terms of revenue. This was attributed to the that fact the governments in these countries have begun to invest in supply chain finance systems because of the augmented security circumstances from financial institutions for trading activities.

Also, supply chain finance is getting substantial traction in the Asia-Pacific region because of the surge in several cases of market fraud and abuse along with the rising complicatedness of regulatory compliance needs in financial institutions and banks.

Leading Companies

The leading prominent companies profiled in the global supply chain finance market are: -

- Asian Development Bank
- BNP Paribas
- Bank of America Corporation
- Citigroup, Inc.
- Eulers Herms (Allianz Trade)
- HSBC Group
- JPMorgan Chase & Co.
- Mitsubishi UFJ Financial Group, Inc.
- Royal Bank of Scotland Plc
- Standard Chartered.
- Other prominent key players

Segmentation Outline

The global supply chain finance market segmentation focuses on Offering, Provider, Application, End User, and Region.

Segmentation based on Offering

- Export and Import Bills
- Letter of Credit
- Performance Bonds
- Shipping Guarantees
- Others

Segmentation based on Provider

- Banks
- Trade Finance House
- Others

Segmentation based on Application

- Domestic
- International

Segmentation based on End User

- Large Enterprises
- Small and Medium-sized Enterprises

Segmentation based on Region

- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa