The trade finance software market is expected to grow from US$ 1,573.8 million in 2021 to US$ 2,920.4 million by 2027. The Trade finance software market is expected to grow at a CAGR of 10.3% during the forecast period of 2020 to 2027.
The increasing focus of enterprises toward digitization and rising adoption of cloud-based solution deployment are some of the key driving factors for global trade finance software market. However, high security concerns and cost of integration with other existing platforms may hinder the growth of the market in some applications. Despite some limitations, the increasing awareness and demand in emerging economies and integration of advanced technologies with trade finance software are the major factors that are anticipated to drive the future growth of trade finance software market.
However, since the outbreak of the COVID-19 virus in December 2019, the disease has spread worldwide to nearly 180 + countries with the World Health Organization (WHO) declaring it a public health emergency. The global impact of the 2019 coronavirus disease (COVID-19) is already beginning to be felt and will significantly impact the 2020 and 2021 market for trade finance software. As, COVID-19 outbreak has had effects on many aspects, such as halt in trade activities, travel bans, supply chain disruption, slowdown in production activities, labor scarcity, increasing panic among the population and uncertainty about the future.
The market for trade finance software is segmented into component, deployment, enterprise size, end-use, and geography. Based on component, the market is segmented into solution and services. In 2020, the solution segment held the largest share of global trade finance software market. Based on deployment, the market is segmented into cloud and on-premise. In 2020, the cloud segment held the largest share of global trade finance software market. Based on enterprise size, the trade finance software market is divided into SMEs and large enterprises. SMEs segment is expected to be the fastest growing segment over the forecast period. On the basis of end-use, the market is segmented into banks, traders, and others. The banks segment contributed a substantial share in 2020. Geographically, the market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America (SAM).
Lucrative Regions in Trade finance software Market
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- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Trade finance software Market Insights
Rising Adoption of Cloud-Based Solution Deployment
Technological innovations are bound to perform a vital role in accelerating the recovery process with the restructuring of front-end to back-end processes, facilitating trade finance institutions to cater low cost, customized, value-added software and solutions that meet the needs of geographically varied customer segments. The development of cloud computing has enabled banks to develop strong trade finance architecture in order to maximize profitability. Within trade finance and other business transaction banking services, the financial institutes are seeking to gain the benefits from lower-cost private cloud solutions. These cloud solutions provide dedicated tools with strong security controls while freeing both customers and banks from expensive IT investments. Cloud computing provides an approach to strengthen capacity or add competencies on the existing platform without investing in new infrastructure, licensing new software, or training new personnel.
Component -Based Market Insights
The trade finance software market is categorized on the basis of components as solutions and services. The solutions segment drives the trade finance software in the current scenario and is expected to continue its dominance until 2027. On the other hand, the services segment is anticipated to be the fastest-growing segment during the forecast period of the trade finance software market. The growth of the services segment is attributable to the continuous rise in the number of service providers as well as the services segment accounts for the recurring revenue generation stream. Moreover, various solution providers also offer services, which is another catalyzer for the services segment growth.
Deployment -Based Market Insights
The trade finance software market by deployment has been segmented into cloud and on-premise. The companies that are planning to make significant investments in trade finance software might opt for modern platforms by rapidly adopting cloud-based solutions. Numerous enterprises in various regions are adopting cloud-based trade finance software due to reliability and low cost. Thus, the trade finance software market is led by cloud segment with highest share and is expected to dominate in the forecast period.
Trade finance software Market, by Deployment - 2021 and 2027
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- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Enterprise Size -Based Market Insights
The trade finance software market is bifurcated on the basis of enterprise size as large enterprises and small and medium enterprises (SME). In the current scenario, the large enterprise segment dominates the trade finance software market and is foreseen to continue its dominance throughout the forecast period. However, the stupendously growing number of SMEs worldwide and the demand for trade finance solutions among SMEs are anticipated to drive the trade finance software market.
End-Uses -Based Market Insights
The trade finance software market has been analyzed on the basis of various end-uses. The end-use segment in the trade finance software market include banks, traders, and others. The others segment is further breakdown into insurers & export credit agencies. The number of banks is consistently rising worldwide, enabling the trade finance software market players to innovate and develop user-friendly software, generating substantial demand for their solutions. This factor is driving the trade finance software market.
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Trade Finance Software Market: Strategic Insights
Market Size Value in US$ 1,573.8 Million in 2021 Market Size Value by US$ 2,920.4 Million by 2027 Growth rate CAGR of 10.3% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Trade Finance Software Market: Strategic Insights
| Market Size Value in | US$ 1,573.8 Million in 2021 |
| Market Size Value by | US$ 2,920.4 Million by 2027 |
| Growth rate | CAGR of 10.3% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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Players operating in the Trade finance software market focus on strategies, such as market initiatives, acquisitions, and product launches, to maintain their positions in the trade finance software market. A few developments by key players of the trade finance software market are:
In September 2020, Actifio and Persistent Systems allianced together, to help enterprises with data stack modernization and acceleration of digital transformation initiatives.
In August 2020, ClickSWITCH, declared a combined partnership to deliver mutual customers with a seamless integrated experience.
Trade Finance Software Market – by Component
- Solution
- Services
Trade Finance Software Market – by Deployment
- Cloud
- On-Premise
Trade Finance Software Market – by Enterprise Size
- SMEs
- Large Enterprises
Trade Finance Software Market – by End Use
- Banks
- Traders
- Others
Trade Finance Software Market – by Geography
North America
- US
- Canada
- Mexico
Europe
- France
- Germany
- Russia
- UK
- Italy
- Rest of Europe
Asia Pacific (APAC)
- China
- India
- Japan
- Australia
- South Korea
- Rest of APAC
MEA
- Saudi Arabia
- UAE
- South Africa
- Rest of MEA
SAM
- Brazil
- Argentina
- Rest of SAM
Trade Finance Software Market – Company Profiles
- AWPL
- BT Systems, LLC.
- CGI INC.
- China Systems
- Comarch SA
- Finastra
- IBSFINtech
- ICS FINANCIAL SYSTEMS LTD
- MITech - Make Intuitive Tech SA
- Newgen Software Technologies Ltd.
- Persistent Systems
- Surecomp
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component , Deployment , Enterprise Size , and End-Use
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The enterprises are becoming more selective in utilizing trade finance tools due to comparatively high chargers of trade finance instruments and time delays and complexity associated with their dependence on paper documents. Therefore, large enterprises are shifting their emphasis from meeting their financing requirements to guaranteeing the better performance of the entire supply chain. As a result, enterprises are looking for new financial products that are capable of addressing their supply chain finance and payment requirements in an open account set-up, and span across the organization and its buyers and suppliers. This, in turn, is producing a clear opportunity for banks and traders who are willing to continue playing a substantial role in the trade finance ecosystem. Moreover, enterprises increasingly depend on electronic channels for interacting with their banks and other financial institutes. Those enterprises are anticipating electronic channels to become more sophisticated, not only offering basic transaction services, but also channels that offer them with access to enhanced reporting, forecasting as well as simulation services for trade finance, even more so combined with diverse transaction banking products, such as foreign exchange, payments, cash management, and liquidity management. Today, banks are focusing on meeting the increased expectations of online channel sophistication through their proprietary solutions. However, the bank's independent platforms, portals, and host-to-host connections, delivered by various software vendors, are gaining importance. These solutions are increasing the ease of usage and visibility for enterprise clients while driving competition among banks. Thus, the demand for trade finance software is growing across the globe due to the technological innovation in the form of digitization of products and solutions, regulatory changes, switches in enterprise behavior and expectations, and growing market competition. This, in turn, is driving the growth of the trade finance software market in the present scenario.
The large enterprise segment led the market in 2019 with highest share and is expected to continue its dominance during the forecast period. The large enterprises over the years have been dominating the trade finance software market. With large enterprises gaining maturity in cross-border trade and becoming more familiar with their trading partners and the countries they are situated in; the requirement of risk hedging is decreasing. Large enterprises are becoming more selective in utilizing trade finance tools due to the comparatively high chargers of trade finance instruments and the time delays and complexity associated to their dependence on paper documents.
The trade finance software market players are expected to experience substantial growth in respective businesses pertaining to rise in number of SMEs across industries worldwide. The industries are witnessing a significant rise in number of SMEs and emerging companies including manufacturing, transportation and logistics, IT & telecommunication, and BFSI. Also, the developing countries are experiencing a rise in number of SMEs in recent years, which are inclined toward adopting software-based automated solutions. Trade finance is not all about lending. Its main role is also to handle trade risk. Due to this fact, SMEs are mainly in need of trade finance as they are not capable of buffering the risk through their small capital. Banks appear to be in the best position to offer this risk mitigation and generate a safer trade development environment. Thus, as SMEs are increasingly emphasizing automated solutions to enhance business operations of respective businesses, the demand for trade finance software is on the rise. The awareness related to trade finance software benefits is strongly growing among the companies in emerging regions. These factors are offering lucrative business opportunities for trade finance software market players. Countries such as India, South Korea, Singapore, and Malaysia are expected to lead the trade finance software market's growth path during the forecast period. Factors including the growing number of software companies offering trade finance software, increasing demand for a cloud-based solution, and rising number of service providers are expected to catalyze the trade finance software market's growth during the forecast period.
The List of Companies - Trade Finance Software Market
- CGI INC.
- AWPL
- Comarch SA
- IBSFINtech
- ICS FINANCIAL SYSTEMS LTD
- MITech - Make Intuitive Tech SA
- Newgen Software Technologies Ltd.
- Persistent Systems
- Surecomp
- BT Systems, LLC.
- Finastra
- China Systems
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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