Trade Finance Software Market Strategies and Forecast by 2031
The trade finance software market size is projected to reach US$ 4.87 billion by 2031 from US$ 2.14 billion in 2023. The market is expected to register a CAGR of 10.8% in 2023–2031. Rising digitalization and adoption of cloud-based technologies are likely to remain key trade finance software market trends.
Trade Finance Software Market Analysis
The increasing digitization of trade finance processes is a major factor boosting the trade finance software market growth. With increased efficiency and lower costs, electronic documentation and cloud-based trade finance solutions are increasingly replacing traditional paper-based methods, contributing to market growth.
Trade Finance Software Market Overview
The need for transparency and adherence to international trade regulations has driven the adoption of software solutions with real-time monitoring and reporting features. With a focus on providing cutting-edge solutions that meet the changing needs of international trade, the trade finance software market is poised for further expansion as the global trade landscape continues to change and businesses seek more secure and efficient trade finance operations.
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Trade Finance Software Market: Strategic Insights
CAGR (2023 - 2031)10.8%- Market Size 2023
US$ 2.14 Billion - Market Size 2031
US$ 4.87 Billion
Market Dynamics
- Digitalization of trade finance
- Need for risk management and compliance
- Integration of advanced technologies with trade finance software
Key Players
- CGI Inc
- Comarch SA
- IBSFINtech
- ICS FINANCIAL SYSTEMS LTD
- MITech - Make Intuitive Tech SA
- Newgen Software Technologies Ltd.
- Finastra
- Persistent Systems Ltd
- Surecomp
- BT Systems, LLC.
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
- Solution and Services
- Cloud and On-Premise
- Large Enterprises and SMEs
- Banks
- Traders
- Others
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Trade Finance Software Market Drivers and Opportunities
Digitalization of trade finance to Favor Market
As companies from a variety of industries realize they need cutting-edge solutions to expedite and improve their international trade operations, the market is expanding significantly. This market includes software programs made to improve and automate trade finance procedures, such as supply chain financing, compliance management, invoice factoring, and credit management. Organizations have turned to trade finance software to reduce manual and time-consuming tasks, improve accuracy, and minimize risks associated with international trade as a result of the growing complexity and volume of trade transactions, which further leads to trade finance software adoption by market players. For example, in November 2023, Finastra, a global provider of financial software applications and marketplaces, announced that CQUR Bank, an international corporate bank, had partnered with Finastra to deliver on its technology strategy. With the implementation of Finastra’s market-leading solutions, Trade Innovation and Corporate Channels, CQUR Bank offers its corporate clients a new online banking portal for a seamless user experience, introduced new digital workflows, and provides host-to-host integration solutions.
Need for risk management and compliance
The growing need for improved risk management and compliance is another factor propelling the growth of the trade finance software market. Trade finance software offers sophisticated tools, such as fraud detection, anti-money laundering (AML) checks, and compliance with trade laws and sanctions, for tracking and reducing risks related to international trade. The need for these software solutions keeps growing as companies and financial institutions try to manage the challenges of international trade while maintaining legal and regulatory compliance.
Trade Finance Software Market Report Segmentation Analysis
Key segments that contributed to the derivation of the trade finance software market analysis are component, deployment, enterprise size, and end-use.
- Based on the component, the market is segmented into solution and services. The solution segment held a larger market share in 2023.
- By deployment, the market is segmented into cloud and on-premise. The cloud segment held a larger market share in 2023.
- By enterprise size, the market is segmented into large enterprises and SMEs. The SMEs segment is expected to grow with the highest CAGR.
- By end-use, the market is segmented into banks, traders, and others. The banks segment held a larger market share in 2023.
Trade Finance Software Market Share Analysis by Geography
The geographic scope of the trade finance software market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
In terms of revenue, North America accounted for the largest trade finance software market share in 2023. North America is an early adopter of technological solutions which leads to its soaring market share. The adoption of cloud-based technologies by SMEs leads to market growth. Soaring digitalization in the banks further demands trade finance software, which drives North America trade finance market share.
Trade Finance Software Market Report Scope
Report Attribute | Details |
---|---|
Market size in 2023 | US$ 2.14 Billion |
Market Size by 2031 | US$ 4.87 Billion |
Global CAGR (2023 - 2031) | 10.8% |
Historical Data | 2021-2022 |
Forecast period | 2024-2031 |
Segments Covered | By Component
|
Regions and Countries Covered | North America
|
Market leaders and key company profiles |
|
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Trade Finance Software Market News and Recent Developments
The Trade Finance Software Marketis evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
- In September 2022, Newgen Software, a leading global provider of digital transformation products, launched the world’s first low-code Trade Finance platform at the customer meet in Mumbai. Trade finance is a complex process as it involves a lot of paperwork, multiple stakeholders, and compliance requirements. Newgen’s comprehensive, configurable, and future-ready trade finance platform helps banks go paperless and streamline their end-to-end trade processes while ensuring compliance with domestic and international regulations. (Source: CXOtoday, Press Release, 2022)
- In February 2024, Finastra, a global provider of financial software applications and marketplaces, and Tesselate, a global digital transformation consultancy and integrator, announced the launch of an end-to-end pre-packaged service for faster and easier trade finance digitalization. Tegula Trade Finance as a Service, powered by Finastra Trade Innovation and Corporate Channels, enables US banks to automate manual processes and adapt to new demands with a quicker time to market and value. Via Finastra’s FusionFabric.cloud, banks can also seamlessly integrate fintech applications that use the latest technologies such as artificial intelligence, blockchain, and automation tools. (Source: Finastra, Press Release, 2024)
Trade Finance Software Market Report Coverage and Deliverables
The “Trade Finance Software Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The global trade finance software market was estimated to be US$ 2.14 billion in 2023 and is expected to grow at a CAGR of 10.8% during the forecast period 2023 - 2031.
Rising digitalization and adoption of cloud-based technologies are the major factors that propel the global trade finance software market.
Integration of advanced technologies with trade finance software is anticipated to play a significant role in the global trade finance software market in the coming years.
The key players holding majority shares in the global trade finance software market are CGI Inc, Comarch SA, IBSFINtech, ICS FINANCIAL SYSTEMS LTD, and Finastra.
The global trade finance software market is expected to reach US$ 4.87 billion by 2031.
The incremental growth expected to be recorded for the global trade finance software market during the forecast period is US$ 2.73 billion.
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 and advised several client 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 organization 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 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/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.
- 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.
- 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.
- 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.
- 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.