The global factoring market size is likely to attain over USD 5,587.4 billion by the year 2028. Besides, it is likely to project a CAGR of nearly 7.5% during the forecast years 2021-2028. Factoring market is driven by increasing demand of factoring services amongst the SMEs, for smartphones features in vehicles and automated driving technologies while ensuring the passenger's safety, promotion and initiatives taken by government and factoring organizations. The adoption of factoring services acts as a driver as the demand for working capital and cash flows is increasing.
The present and future factoring market progress is summarized to conclude the attractiveness of the entire market. Also, prime factors that influence the factoring market opportunities during the forecast year are factors such as the adoption of blockchain technology and increasing demand for financing is the key factor driving the market growth for factoring market.
Also, the domestic factoring and rising adoption rate of Fintech solutions arem another factor driving the market growth. However, data security and data privacy is 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.
The report also emphasizes several distinctiveness of the global factoring industry by valuing the market from value chain breakdown. Moreover, the report encompasses numerous qualitative features of the factoring industry which comprises market restraints, drivers, as well as key industry opportunities. Furthermore, the report offers an inclusive evaluation of the company profiling along with the market rivalry of local and global vendors.
The factoring market has tough competition among the new emerging and pre-established market vendors. Besides, the factoringindustry vendors are trying to capture the prospective markets to grab a competitive advantage over the remaining industry vendors. To capture the market, market players are forming agreements, acquiring other companies & startups, mergers & acquisitions, partnerships & collaboration, and escalating their business existence.
In terms of the type, the market is categorized into domestic factoring and international factoring. The international factoring is predicted to achieve the largest growth during the forecast years 2021-2028. On the other hand, the domestic factoring services seized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years. The growth of the domestic segment is largely ascribed to the upsurge in demand from factoring industry.
The Europe 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 presence of key manufacturer in this area by companies in countries such as France, Germany, Italy and UK to compete against other regional players. However, the Asia Pacific and South America region is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the large number of growing ecenomies.
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, 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. In addition, 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.
Segment Overview of Global Factoring Market
Type Overview, 2021-2028 (USD Million)
- Domestic Factoring
- International Factoring
Regional Overview, 2021-2028 (USD Million)
- North America
- Asia Pacific
- Middle East and Africa (MEA)
- South America