Financial Guarantee Market Is Projected to Gain $71.93 Billion by 2030, at a Compound Annual Growth Rate (CAGR) of 9.6%: Allied Market Research

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The global financial guarantee market is experiencing significant growth due to several factors, including the rise of financial risk in business transactions, quick document processing by banks, and an increase in the adoption of financial guarantees by SMEs.

Wilmington, Delaware, Nov. 21, 2023 (GLOBE NEWSWIRE) — Allied Market Research has recently released a report entitled, Financial Guarantee Market by Product Type (Documentary Letter of Credit, Bank Guarantees, Receivables Financing, Standby Letter of Credit (SBLC), and Others), by Enterprise Size (Large Enterprises, and Small Medium-sized Enterprises), and by End User (Importers and Exporters): Global Opportunity Analysis and Industry Forecast, 2021–2030.” According to the report, the global financial guarantee industry is estimated to gain $71.93 billion by 2030, having witnessed a value of $28.70 billion in 2020, exhibiting a notable CAGR of 9.6% from 2021 to 2030.  

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Report Coverage & Details:  

Report Coverage   Details  
Forecast Period   2021­–2030 
Base Year   2021  
Market Size in 2030  $71.93 billion 
Market Size in 2020  $28.70 billion 
CAGR   9.6% 
No. of Pages in Report   280 
Segments Covered   Product Type, Enterprise Size, End User and Region. 
 Drivers   Rise in Import and Export Activities in Developing Countries 
Opportunities   Increasing Adoption of Financial Guarantees by SMEs  
Restraints   Strict Assessment by the Banks Before Providing Financial Guarantee   

Prime Determinants of Market Growth:        
The global financial guarantee market is experiencing significant growth due to several factors, including the rise of financial risk in business transactions, quick document processing by banks, and an increase in the adoption of financial guarantees by SMEs. On the other hand, banks’ stringent criteria for providing financial guarantee and collateral requirements may limit the market growth to some extent. Moreover, the rise in import and export activities in economically developing nations, and the increase in the digitalization of banking processes are anticipated to bring remunerative opportunities for the market players in the coming years.  

The documentary letter of credit segment to retain its lion’s share by 2030-  
Based on product type, the documentary letter of credit segment dominates the highest market share in 2020, generating nearly three-fifths of the global financial guarantee market revenue, and is anticipated to retain its lion’s share by 2030. This is because the laws of different countries differ, and it is difficult to get to know each individual separately. On the other hand, the receivables financing segment would cite the highest CAGR of 15.0% from 2021 to 2030. This platform facilitates the acceptance of large, bulk one-time orders, and enables traders to generate larger profits.  

The large enterprises segment to maintain its dominance throughout the forecast period-  
Based on enterprise size, the large enterprises segment accounted for the largest market share in 2020, garnering nearly three-fifths of the global financial guarantee market revenue, and is expected to maintain its dominance throughout the forecast period. This is because it enables the acceptance of large, bulk one-time orders due to the heightened inclination of large organizations for a financial guarantee to make instant payments across borders. Nevertheless, the small-sized enterprises segment would showcase the fastest CAGR of 13.7% from 2021 to 2030. Small banks are unable to obtain loans from banks due to their limited creditworthiness and lack of access to large sums of money. However, they can benefit from a financial guarantee, which enables them to purchase products and pay for them later.  

Asia-Pacific accounted for the largest share of the market in 2030-  
Based on region, Asia-Pacific held the largest market share in 2020, acquiring nearly two-fifths of the global financial guarantee market revenue. This is due to the increasing demand for digitized financial guarantee due to the emergence of innovative technologies such as machine learning automation, optical character recognition, and distributed ledgers. The North America region, on the other hand, would exhibit a CAGR of 5.5% from 2021 to 2030.  

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Industry-Leading Players: –  

  • Citibank   
  • Barclays   
  • Scotia Bank   
  • ICBC   
  • Bank of Montreal   
  • Asian Development Bank   
  • SINOSURE   
  • HSBC   
  • National Bank of Canada   
  • BNP Paribas  

The report offers a detailed examination of these key players in the global financial guarantee market. These players have fostered various strategies such as the launch of new products, geographical expansion, joint ventures, collaborations, agreements, and others to increase their market share and maintain their lead position in different regions. The report is valuable in focusing on operating segments, business performance, product portfolio, and deliberate moves of leading players to embrace the competitive scenario.    

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Key Benefits for Stakeholders 

  • The study provides in-depth analysis of the global financial guarantee market share along with current & future trends to illustrate the imminent investment pockets. 
  • Information about key drivers, restrains, & opportunities and their impact analysis on the global financial guarantee market size are provided in the report. 
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the financial guarantee market forecast. 
  • An extensive analysis of the key segments of the industry helps to understand the global financial guarantee market trends. 
  • The quantitative analysis of the global financial guarantee market share from 2021 to 2030 is provided to determine the market potential. 

Financial Guarantee Market Report Highlights 

Aspects Details

By Product Type 

  • Bank Guarantees 
  • Documentary Letter of Credit 
  • Standby Letter of Credit (SBLC) 
  • Receivables Financing 
  • Others 

By Enterprise Size 

  • Small Enterprises 
  • Medium-sized Enterprises 
  • Large Enterprises 

By End User 

  • Exporters 
  • Importers 

By Region 

  • North America (U.S, Canada, Mexico) 
  • Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe) 
  • Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific) 
  • LAMEA (Brazil, Turkey, Saudi Arabia, South Africa, Rest of LAMEA) 

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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients in making strategic business decisions and achieving sustainable growth in their respective market domains. 

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