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Factoring Market: By Product Type, By Category Type,By Financial Institution, By End Users and Geography
Factoring Market: By Product Type, By Category Type,By Financial Institution, By End Users and Geography
Factoring market size was valued at US$ 4,170.3 billion in 2023 and is poised to grow at a growth rate of 7.0% from 2024 to 2030. In the past years invoice factoring became a crucial financial support to increase the liquidity in a business which has offered a way to address short-term cash flow requirements by selling invoices to third parties like banks or independent finance providers at a discounted price of 1 to 5%. This practice enabled businesses to finance operations through receivables but also shortens the average collection time, leading to higher liquidity when need of urgent cash. Rising demand for alternative financing sources, particularly among the micro, small, and medium enterprises (MSMEs), is driving the market growth.
Improved inventory management and the expansion of factoring services across several industry verticals with diverse financing options are bolstering market performance. Ongoing development in the banking, financial services, and insurance (BFSI) sector coupled with increased activities of supply chain financing further enhance factoring based services. Further, the adoption of advanced technologies such as, blockchain to secure transactions and faster funding is also anticipated to play a critical role. However, the market may face ceraton challenges from the ongoing conflicts, economic slowdown, inflations, currency restrictions, and outdated regulations, which could impact market growth.
Study Period
2024 - 2030Base Year
2023CAGR
7%Largest Market
Asia PacificFastest Growing Market
Asia Pacific
Factoring enables businesses to convert receivables into immediate working capital, reducing dependency on traditional loans and improving liquidity which is the traditional growth driver of the market for factoring. Demand for factoring based services in the global market has been poised with significant growth driven by its ability to enhance cash flow management and mitigate factoring based credit risk for the traders. Integration of advanced technologies such as AI and blockchain in factoring processes is streamlining credit assessments and reducing the time required for invoice verification which is creating lucrative growth opportunities in the market. Increasing trend of outsourcing credit management to factoring companies to allow medium size businesses to focus on core activities, which is also propelling the market's expansion.
Europe remains the dominating market in the global factoring business accounting for around two-third of the global factoring market share. Demand in the region are driven by established commercial banking system, presence of several financial institutes, asset management firms, private equity firms, etc. which efficiently manages receivables financing. Region gets a significant benefit from strong intra-European trade within the European Economic zone especially European Union alongside rising trade with the Eastern Bloc. Further, Europe’s industrial base including manufacturing and automotive sectors, leverage factoring services to manage cash flow and mitigate risks associated with extended payment terms.
Asia-Pacific is emerging as a high growth market offering lucrative opportunities for global market participants. Industrialization, urbanization, in South and Southeast Asia, coupled with the rise of export in the economies like India and ASEAN are significantly boosting demand for factoring services. As transition from agrarian economy to manufacturing powerhouses, the need for efficient working capital management is intensifying driving the market of factoring in these countries. Region's burgeoning industrial base, combined with growing cross-border trade, positions Asia Pacific as a critical growth driver in the global factoring landscape.
Latin America
Europe
Asia Pacific
Middle East
North America
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Report Benchmarks |
Details |
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Report Study Period |
2024 - 2030 |
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Market Size in 2023 |
US$ 4,170.3 billion |
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Market CAGR |
7% |
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By Type |
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By Category Type |
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By Financial |
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By End Users |
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By Region |
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The global factoring market was valued at US$ 4,170.3 billion in 2023 and is poised to grow at a CAGR of 7.0% from 2024-2030.
Expansion of factoring services in the emerging economies like ASEAN, India, Latin America and others. Integration of AI and machine learning for enhanced risk management and to increase the speed of the process and to make the process easier to expand consumer base. These are some of the opportunities in the global market.
Barclays Bank PLC, BNP Paribas, China Construction Bank Corporation, Eurobank, HSBC Group, ICBC China, Société Générale S.A, and others are some of the prominent players in the global market of factoring.
Market Players are launching digital platforms and new solutions for better payment transfers, key players involved in partnerships and collaborations for enhancing their market presence. growing preference for export factoring, increased focus on digital platforms for factoring services are some of the key trends witnessed in the market.
Europe remains the prominent market for factoring, with strong demand from the manufacturing, transport, and logistics sectors. Established financial institutions and favorable regulations made factoring based services a widely accepted financial practice in the region. Germany, the U.K., and France lead the market, benefiting from their large industrial bases and export-oriented economies. Europe accounts for around two-thirds of the global market share.
| 1. Executive Summary |
| 2. Global Factoring Market Introduction |
| 2.1. Global Factoring Market - Taxonomy |
| 2.2. Global Factoring Market - Definitions |
| 2.2.1. Category |
| 2.2.2. Type |
| 2.2.3. Financial Institution |
| 2.2.4. End-user |
| 2.2.5. Region |
| 3. Global Factoring Market Dynamics |
| 3.1. Drivers |
| 3.2. Restraints |
| 3.3. Opportunities/Unmet Needs of the Market |
| 3.4. Trends |
| 3.5. Key Developments |
| 4. Global Factoring Market By Category, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 4.1. Domestic |
| 4.1.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 4.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 4.1.3. Market Opportunity Analysis |
| 4.2. International |
| 4.2.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 4.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 4.2.3. Market Opportunity Analysis |
| 5. Global Factoring Market By Type, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 5.1. Recourse |
| 5 1 1 Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 5.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 5.1.3. Market Opportunity Analysis |
| 5.2. Non-Recourse |
| 5.2.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 5.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 5.2.3. Market Opportunity Analysis |
| 6. Global Factoring Market By Financial Institution, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 6.1. Banks |
| 6.1.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 6.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 6.1.3. Market Opportunity Analysis |
| 6.2. Non-Banking Financial Institutions |
| 6.2.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 6.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 6.2.3. Market Opportunity Analysis |
| 7. Global Factoring Market By End-user, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 7.1. Manufacturing |
| 7.1.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 7.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.1.3. Market Opportunity Analysis |
| 7.2. Transport & Logistics |
| 7.2.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 7.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.2.3. Market Opportunity Analysis |
| 7.3. Information Technology |
| 7.3.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 7.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.3.3. Market Opportunity Analysis |
| 7.4. Healthcare |
| 7.4.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 7.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.4.3. Market Opportunity Analysis |
| 7.5. Construction |
| 7.5.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 7.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.5.3. Market Opportunity Analysis |
| 7.6. Others |
| 7.6.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 7.6.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 7.6.3. Market Opportunity Analysis |
| 8. Global Factoring Market By Region, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 8.1. North America |
| 8.1.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 8.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.1.3. Market Opportunity Analysis |
| 8.2. Europe |
| 8.2.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 8.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.2.3. Market Opportunity Analysis |
| 8.3. Asia Pacific |
| 8.3.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 8.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.3.3. Market Opportunity Analysis |
| 8.4. Latin America |
| 8.4.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 8.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.4.3. Market Opportunity Analysis |
| 8.5. MEA |
| 8.5.1. Market Analysis, 2019-2023 and Forecast, 2024-2030, (Sales Value USD Billion) |
| 8.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) |
| 8.5.3. Market Opportunity Analysis |
| 8.6. Global Factoring Market - Opportunity Analysis Index, By Type, Category, Financial Institution, End-user, and Region, 2024-2030 |
| 9. North America Factoring Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 9.1. Category Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 9.1.1. Domestic |
| 9.1.2. International |
| 9.2. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 9.2.1. Recourse |
| 9.2.2. Non-Recourse |
| 9.3. Financial Institution Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 9.3.1. Banks |
| 9.3.2. Non-Banking Financial Institutions |
| 9.4. End-user Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 9.4.1. Manufacturing |
| 9.4.2. Transport & Logistics |
| 9.4.3. Information Technology |
| 9.4.4. Healthcare |
| 9.4.5. Construction |
| 9.4.6. Others |
| 9.5. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 9.5.1. USA |
| 9.5.2. Canada |
| 10. Europe Factoring Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 10.1. Category Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 10.1.1. Domestic |
| 10.1.2. International |
| 10.2. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 10.2.1. Recourse |
| 10.2.2. Non-Recourse |
| 10.3. Financial Institution Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 10.3.1. Banks |
| 10.3.2. Non-Banking Financial Institutions |
| 10.4. End-user Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 10.4.1. Manufacturing |
| 10.4.2. Transport & Logistics |
| 10.4.3. Information Technology |
| 10.4.4. Healthcare |
| 10.4.5. Construction |
| 10.4.6. Others |
| 10.5. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 10.5.1. Germany |
| 10.5.2. France |
| 10.5.3. Italy |
| 10.5.4. Spain |
| 10.5.5. UK |
| 10.5.6. Rest of Europe |
| 11. Asia Pacific Factoring Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 11.1. Category Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 11.1.1. Domestic |
| 11.1.2. International |
| 11.2. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 11.2.1. Recourse |
| 11.2.2. Non-Recourse |
| 11.3. Financial Institution Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 11.3.1. Banks |
| 11.3.2. Non-Banking Financial Institutions |
| 11.4. End-user Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 11.4.1. Manufacturing |
| 11.4.2. Transport & Logistics |
| 11.4.3. Information Technology |
| 11.4.4. Healthcare |
| 11.4.5. Construction |
| 11.4.6. Others |
| 11.5. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 11.5.1. China |
| 11.5.2. Japan |
| 11.5.3. South Korea |
| 11.5.4. India |
| 11.5.5. Rest of APAC |
| 12. Latin America Factoring Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 12.1. Category Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 12.1.1. Domestic |
| 12.1.2. International |
| 12.2. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 12.2.1. Recourse |
| 12.2.2. Non-Recourse |
| 12.3. Financial Institution Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 12.3.1. Banks |
| 12.3.2. Non-Banking Financial Institutions |
| 12.4. End-user Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 12.4.1. Manufacturing |
| 12.4.2. Transport & Logistics |
| 12.4.3. Information Technology |
| 12.4.4. Healthcare |
| 12.4.5. Construction |
| 12.4.6. Others |
| 12.5. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 12.5.1. Brazil |
| 12.5.2. Mexico |
| 12.5.3. Argentina |
| 12.5.4. Rest of Latin America |
| 13. MEA Factoring Market, 2019-2023 and Forecast 2024-2030 (Sales Value USD Billion) |
| 13.1. Category Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 13.1.1. Domestic |
| 13.1.2. International |
| 13.2. Type Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 13.2.1. Recourse |
| 13.2.2. Non-Recourse |
| 13.3. Financial Institution Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 13.3.1. Banks |
| 13.3.2. Non-Banking Financial Institutions |
| 13.4. End-user Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 13.4.1. Manufacturing |
| 13.4.2. Transport & Logistics |
| 13.4.3. Information Technology |
| 13.4.4. Healthcare |
| 13.4.5. Construction |
| 13.4.6. Others |
| 13.5. Country Analysis, 2019-2023 and Forecast 2024-2030 by Sales Value USD Billion, Y-o-Y Growth (%), and Market Share (%) |
| 13.5.1. GCC Countries |
| 13.5.2. South Africa |
| 13.5.3. Rest of MEA |
| 14. Competition Landscape |
| 14.1. Strategic Dashboard of Top Market Players |
| 14.2. Company Profiles (Introduction, Financial Analysis, By Product Offerings, Key Developments, Strategies, and SWOT Analysis) |
| 14.2.1. altLINE (The Southern Bank Company) |
| 14.2.2. Barclays Bank PLC |
| 14.2.3. BNP Paribas |
| 14.2.4. China Construction Bank Corporation |
| 14.2.5. Deutsche Factoring Bank |
| 14.2.6. Eurobank |
| 14.2.7. Factor Funding Co. |
| 14.2.8. Hitachi Capital (UK) PLC |
| 14.2.9. HSBC Group |
| 14.2.10. ICBC China |
| 14.2.11. Kuke Finance |
| 14.2.12. RTS Financial Service, Inc. |
| 14.2.13. Société Générale S.A. |
| 14.2.14. TCI Business Capital |
| 15. Research Methodology |
| 16. Key Assumptions and Acronyms |
Key Market Players
Author
Sravani is a proficient Business Analyst with an MBA and a background in Computer Science, with seven years of experience in the field of market research. Sravani is adept at creating competitive evaluations, precise market estimations, and market projections, emphasizing the food and beverage and information and communication technology (ICT) industries. Her areas of competence are identifying important players, projecting market trends, and assessing the potential for industry growth. She applies a strong analytical approach to provide precise market estimates and thorough industry analysis, empowering organizations to make data-driven decisions. Sravani's estimating and forecasting abilities are essential for businesses to take advantage of new opportunities and effectively manage dynamic market environments.