Market Size of Global Trade Finance Industry
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 65.69 Billion |
| Market Size (2029) | USD 80.85 Billion |
| CAGR (2024 - 2029) | 4.24 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Trade Finance Market Analysis
The Global Trade Finance Market size is estimated at USD 65.69 billion in 2024, and is expected to reach USD 80.85 billion by 2029, growing at a CAGR of 4.24% during the forecast period (2024-2029).
SMEs' adoption of trade finance in developing countries increased due to the need to ensure smooth trading activities. Factors like increased competition and new trade agreements are supporting the growth of the trade finance market. The surge of trade wars and high-cost implementation also supports the market's development. Since the trade finance industry integrates with blockchain technology, it provides opportunities for the market to expand.
The emerging trend of sustainable finance in the trade finance industry is the growing element of environmental, social, and governance (ESG) principles. Businesses and financial institutions are highly incorporating sustainability in trade finance decisions. The popular sustainable trade finance instruments are green bonds and ESG-linked loans. The integration of sustainable finance practices in the trade finance industry became popular due to the rising awareness about climate and social issues.
The rapid growth of advanced technology and digitalization supports the market's growth. Traditional paper-based processes gave the way to digital solutions. Blockchain technology introduced transparency and security into supply chain finance and trade settlements to reduce fraud and errors. To enhance risk assessment and make more accurate credit decisions for facilitating the financing gap for small and medium-sized enterprises (SMEs), artificial intelligence (AI) technology and data analytics were introduced. Fintech startups raised innovative digital platforms to make them more accessible and affordable.
