In 2022, the market for factoring reached a size of US$ 3626.4 billion. market will grow at a compound annual growth rate (CAGR) of 6.36% from 2023 to 2028, reaching US$ 5179.18 billion.
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"The Global Factoring Market 2018-2028 (USD Billion)")
Blockchain technology usage is increasing exponentially and being adopted as a mainstream payment mode. It is being used in various sectors including stock-market, factoring work, and patent awards. The growth in the banking, financial services and insurance industry is one factor that is creating a positive impact on the market growth. The increasing requirement for another source of financing that is micro, small and medium enterprises (MSME) is accelerating the market growth. Factoring enables the business to mitigate credit risks and obtain working capital loans it also provides the benefit of supply chain financing that is factoring, and this is boosting the market growth over the forecast period.
The global factoring market size is predicted to reach over USD 5,587.4 billion by 2028. This can be ascribed to the growing awareness pertaining to the advancement of financial technology, such as promotion and initiatives undertaken by governments and factoring organizations, cryptocurrency, increasing utilization of the digital platforms, and an increase in cross-border activities. Besides, the implementation of crypto-solution has improved the accurate transactions and secured the critical information of both parties, thus preventing financial fraud.
However, increasing data breach and data privacy mishandling are hampering the market growth. Furthermore, the increase in the adoption of machine learning, NLP, and artificial intelligence is likely to provide lucrative development opportunities for the factoring market in the forthcoming years.
Factoring Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2028 |
| Study Period | 2018-2028 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2028 | US$ 5179.18 billion |
| Growth Rate | CAGR of 6.36 % during 2018-2028 |
| Segment Covered | Type, RegionsServices, End-User Industry Type, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Advanon AG, Aldermore Bank Plc, BNP Paribas Cardif, Deutsche Leasing AG, Eurobank Ergasias SA, HSBC Holdings Plc, Mizuho Financial Group Inc., Riviera Finance of Texas Inc., Societe Generale SA, The Southern Banc Co. Inc., Hitachi Capital (UK) PLC, Barclays Bank PLC, China Construction Bank Corporation, ICBC China, and Kuke Finance |
Key Segments of the Global Factoring Market
Product Overview, (USD Million)
- Domestic Factoring
- International Factoring
Regional Overview, (USD Million)
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Asia Pacific
- China
- Japan
- India
- Singapore
- Middle East and Africa
- South America
- Brazil
- Mexico
- Chile
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global Factoring market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global Factoring market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the Factoring industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on Product. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global Factoring market. The report will benefit Every stakeholder involved in the Factoring market.
- Managers within the Factoring industry looking to publish recent and forecasted statistics about the global Factoring market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global Factoring market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Frequently Asked Questions (FAQ) :
The market value of factoring market in 2028 was US$ 5179.18 billion.
To get latest version of factoring market report can be obtained on demand from the website
The base year for the report is 2023 in factoring market .
The Factoring market enables enhanced liquidity, improved inventory management, and the growing need for source of financing for MSMEs, and these factors are anticipated to boost the growth of the market. Besides, the growing awareness of the advancement of financial technology including money transfer and payments, budgeting and financial planning, borrowing, saving and investment, and insurance drives the adoption of the Factoring market. The adoption of the automated solution has increased the financial sector and enhanced the security and planning solution.
Factoring helps the business to mitigate credit risks and obtain working capital loans. The increased awareness of supply chain financing that is Factoring , is contributing to the market growth. Banks are using technology to come up with unique solutions of reducing the overall cost of the process. Furthermore, several fintech businesses are investing in finance models to make Factoring easy, transparent, and digital. Furthermore, the advent of blockchain technology and cryptocurrency in Factoring services is acting as another growth factor.
The growing demand for sources of financing among SMEs is expected to offer immense growth opportunities for the market players. However, the lack of a stringent regulatory framework is expected to hinder the growth of the market. The market is consolidated as several major market players currently hold the major market share. However, the market is expected to become fragmented in the forthcoming years as several new market players are emerging from developing countries such as India, Japan, China, and other countries.
Product Segment
Based on the Product segment, the market is bifurcated into domestic and international Factoring . In 2020, the international segment accumulated the maximum market share and it is likely to continue its dominance throughout the forecast years. However, the domestic segment is projected to attain major growth throughout the forecast years owing to the increasing need to provide improved inventory management.
The European region is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the secured short-term financing product committed to the development of the economy and employment in Europe. However, the Asia-Pacific is likely to gather noteworthy growth through the forecast years 2021-2028. The growth of the Factoring market in this region is mostly ascribed to the growing development of the regions’ economies and significant growth of trade operations. Factoring by companies in countries such as India, Japan, and China to compete against other regional players.
.png "Europe Factoring Market 2021-2028 (USD Million)")
The major players of the global Factoring Market are Advanon AG, Aldermore Bank Plc, BNP Paribas Cardif, Deutsche Leasing AG, Eurobank Ergasias SA, HSBC Holdings Plc, Mizuho Financial Group Inc., Riviera Finance of Texas Inc., Societe Generale SA, and The Southern Banc Co. Inc., Hitachi Capital (UK) PLC, Barclays Bank PLC, China Construction Bank Corporation, ICBC China, and Kuke Finance.. Renowned companies are offering new and modern Factoring software solutions. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic services and solutions and to remain competitive in the global market.