BFSI

Global Supply Chain Finance Market

Q: Advantages of supply chain finance for buyers and suppliers?

Below is the list of advantages: Suppliers: Optimizing working capital, Access lower-cost funding, Improve cash forecasting accuracy for suppliers. Buyers: Maintain optimal working capital, Improve supply chain health Strengthen supplier relationships.

September 7, 2021
ID: SR/BFSI-07
Format:Pdf
Pages:220

Global Supply Chain Finance Market: By Offerings (Receivables Finance, Payables Finance, Document Business), Organization Size (Large Enterprises, Small & Medium-Sized Enterprises), By Provider (Banks, Credit Union, Others), End-User Industry (Manufacturing, Consumer Goods, Power & Energy, Chemicals, Construction, Transportation & Logistics, and others) and Region (North America, Europe, Asia-Pacific, South America, and the Middle East & Africa) - Forecast till 2027.

Description

Supply Chain Finance Market Overview

The global supply chain finance market size was valued at USD 660 211 million in 2018 and projected to reach USD 2 926,758 million by 2027, growing at a CAGR of 18.24% during the forecast period, 2021-2027. SMEs’ increased adoption of supply chain finance to improve their cash flows is the key factor driving the future market growth. Supply chain finance works for various sectors, including automotive, electronics, manufacturing, retail, etc. Moreover, increasing globalization and the complexity of the supply chain in the automotive and manufacturing industries are the major factors making the market growth across the globe.

What is Supply chain finance?

Supply chain finance belongs to a set of technology-based approaches that aim to lower financing costs and improve organization efficiency for buyers and sellers linked in a sales transaction. SCF solutions work by automating transactions and tracking invoice approval and settlement process from initiation to completion of transactions. Moreover, it is evaluated that supply chain finance solutions have seen rapid expansion over the last few years and are expected to expand as suppliers seek more excellent cash flow management. SCF provides short-term credit that optimizes working capital for both the buyers and suppliers.

Growth Drivers

Increasing the adoption of supply chain finance SMEs to maintain their optimal working capital will increase the market growth.

The extensive adoption of supply chain finance solutions in multiple companies such as automotive, electronics, manufacturing, and retail are key factors driving the market growth. Supply chain finance provides various benefits to buyers and sellers, including optimizing working capital, access lower-cost funding, and improve cash forecasting accuracy for suppliers. In contrast, for buyers, SCF helps in maintaining optimal working capital, improve supply chain health, and strengthen supplier relationships. These are the various features driving the market growth across the globe.

Furthermore, various companies in fintech sectors need to manage their large volume, and the velocity of data will boost the market demand during the forecast period. With the increased adoption of supply chain finance in developing countries of Asia Pacific such as China and India, growing GDP and rapid adoption of Artificial Intelligence and Machine learning in supply chain finance is expected to boost the market growth in the region.

The rising adoption of advanced technology over traditional supplier financing systems in business are the major factors increasing the demand for supply chain financing solutions across the globe. Moreover, Banks and other financial firms are adopting these systems that allowing them exposure to new clients. Many automobile manufacturers use supply chain financing as a lower-cost solution to corporate funding to increase their market share.

Covid-19 impact

The impact on the supply chain finance business was severe in 2020 across the globe. Many producers report decreased activities in the other regions. The reasons for less action vary in the different countries due to Lockdown in many countries, less funding, employment cuts, buyers have reduced their spending, and granting permits to tender slowed down or postponed.

Moreover, the outbreak of COVID-19 and its subsequent entry into the Asia Pacific has led to operations in many sectors in the region. Additionally, manufacturing and various other industries are estimated to witness the most significant declines in growth and outputs due to the Lockdown called by the government for a brief period. Furthermore, Companies have seen lower demand for new office spaces, shops, and others, resulting in decreased revenue.

Post Covid-19 impact

Although there will be significant growth in the SMEs due to increased government investments and loan availability, the industries are recovering due to the easing of the norms by the government with preventive measures such as social distancing and relief funds.

Offerings Segmental Analysis

Based on the Offerings, the Global Supply chain finance Market is segregated into Receivables Finance, Payables Finance, Document Business.

Organization size Segmental Analysis

Based on Organization Size, the Global Supply chain finance Market is classified into Large Enterprises, Small & Medium-Sized enterprises.

Provider Type Segmental Analysis

Based on Provider Type, the Global Supply chain finance Market is classified into Banks, Credit Union, and Others.

End-User Industry Segmental Analysis

Based on End-User Industry Global Supply chain finance Market is divided into Manufacturing, Consumer Goods, Power & Energy, Chemicals, Construction, Transportation & Logistics, and others.

Region Segmental Analysis

Based on Region, Global Supply chain finance Market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. The Asia-Pacific is expected to have a significant market, led by India, China, and various Asian countries. This growth is managed by the increasing adoption of supply chain finance to improve GDP and the surge in adoption of modern technology such as Artificial intelligence and Machine learning in supply chain finance.

Competitors Analysis

The global supply chain finance market is volatile, with many international and regional players in the market. BNP PARIBAS S.A., Citibank, Orbian Corp, Mitsubishi UFJ Financial Group, DBS Bank, Banco Bilbao Vizcaya Argentina, The Bank of Nova Scotia, Santander Bank, UniCredit, The standard bank of South Africa ltd. are the key players in the Global Supply chain finance market.

Key Stakeholders

Market research and consulting firms
Industry associations
Global Supply chain finance technology manufacturing firm
Research organizations and consulting companies
Organizations, associations, and alliances related to microarray analysis
Regulatory bodies
Suppliers
Retailers

Scope of the Report

Report Attribute	Details
Market Size Value in 2018	USD 660, 211 million dollars
Revenue forecast in 2027	USD 2, 926,758 million dollars
Growth Rate	CAGR of 18.24% during the forecast period, 2021-2027
Historical data	2017-2019
Forecast period	2021 – 2027
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	BNP PARIBAS S.A., Citibank, Orbian Corp, Mitsubishi UFJ Financial Group, DBS Bank, Banco Bilbao Vizcaya Argentina, S.A., The Bank of Nova Scotia, Santander Bank, UniCredit SPA, The standard bank of South Africa

Market Modelling

By Offerings

Receivables Finance
Payables Finance
Document Business

By Organization size

Large Enterprises
Small & Medium-Sized enterprises

By Provider Type

Banks
Credit Unions
Others

By End-User Industry

By Region

North America
Europe
Asia Pacific
South America

Middle East & Africa

Table Of Contents

Methodology

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Frequently Asked Questions (FAQ):

How big is the supply chain finance market?

The global supply chain finance market size was estimated at USD 660 211 million in 2018 and is expected to reach USD 2 926,758 million in 2027 at a CAGR of 18.24%.

What has been the impact of COVID-19 on the global supply chain finance market?

Industry experts believe that COVID-19 could affect the end-use industries globally. The manufacturers have faced halted production due to lockdown restrictions due to the non-availability of workforces, supply chain disruptions, country-wide lockdowns, temporary closures of facilities, and decrease spending from buyers.

What are the factors driving the supply chain finance market?

Key factors driving the supply chain finance market growth include the rapid adoption of supply chain finance in various industries in the rising economies of Asia Pacific, Europe, and North America is anticipated to drive the market growth.

Who are the key players in the supply chain finance market?

Advantages of supply chain finance for buyers and suppliers?

Below is the list of advantages:

Suppliers:

Optimizing working capital,

Access lower-cost funding,

Improve cash forecasting accuracy for suppliers.

Buyers:

Maintain optimal working capital,

Improve supply chain health

Strengthen supplier relationships.

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