Factoring Services Market Size Worth $7,005.90 Billion By 2030

April 2022 | Report Format: Electronic (PDF)

Factoring Services Market Growth & Trends

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 startups and SMEs for an alternate source of finance are further driving the market growth.

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.

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Factoring Services Market Report Highlights

  • 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

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 Category Outlook (Revenue, USD Billion, 2017 - 2030)

  • Domestic

  • International

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

  • Recourse

  • Non-Recourse

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

  • Banks

  • Non-Banking Financial Institutions

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

  • Manufacturing

  • Transport & Logistics

  • Information Technology

  • Healthcare

  • Construction

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Chile

  • MEA

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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