Credit Agency Market Growth, Demand, and Forecast | 2031

The credit agency market is anticipated to expand at a CAGR of 4.2% from 2023 to 2031. Increasing demand for credit information and advancements in fintech is expected to boost the market.

 

Credit Agency Market Analysis 

The credit agency market plays a crucial role in the economy by evaluating and assigning credit ratings to entities issuing debt instruments, such as companies, governments, and municipalities, to measure their ability to meet their debt obligations. Credit analysis, a fundamental aspect of the credit agency market, involves evaluating the riskiness of debt instruments and identifying the appropriate level of default risk associated with investing in a particular entity's debt.

Credit Agency Market Overview

• The credit agency market is a vital component of the economy, encompassing the evaluation and assignment of credit ratings to entities issuing debt instruments, such as companies, governments, and municipalities, to assess their ability to meet debt obligations.
• This market includes various types of debt instruments, such as money market instruments, corporate bonds, US Treasury securities, agency securities, and sovereign debt. Both formal and informal credit markets characterize it, with formal credit markets being regulated by the government in developed economies such as the US.
• The credit market plays a crucial role in providing liquidity and funding for projects or programs, and its conditions significantly impact the borrowing levels of individual households and investors.

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Credit Agency Market: Strategic Insights

Market Size Value in	NA
Market Size Value by	NA
Growth rate	CAGR of 4.2% from 2023 to 2031
Forecast Period	2023-2031
Base Year	2023

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Credit Agency Market Drivers and Opportunities

Increasing Demand for Credit Information to Drive the Credit Agency Market

• The transition from the subscription approach to the issuer-pays model by major credit rating agencies such as Moody's, Fitch, and Standard & Poor's in the early 1970s was driven by several factors, including increased investor demand for credit ratings.
• The widespread use of information-sharing technologies such as fax machines and photocopiers allowed investors to share agencies' reports freely and undermined demand for subscriptions.
• The demand for credit information is essential for assessing the creditworthiness of entities issuing debt instruments, which in turn influences investment decisions and the allocation of capital in the credit market.

Credit Agency Market Report Segmentation Analysis

• Based on client type, the market is segmented into individual and commercial.
• The commercial segment is expected to hold a substantial credit agency market share in 2023. The commercial segment refers to the evaluation and assessment of creditworthiness for entities within the commercial sector, such as businesses and corporations, seeking to issue debt instruments.
• This segment encompasses various types of commercial credit, including secured and unsecured commercial credit.

Credit Agency Market Share Analysis by Geography

The scope of the market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant credit agency market share. The market in North America is a dynamic and highly competitive industry, with a strong focus on providing credit information and assessments to a wide range of clients. The industry's focus on providing comprehensive credit information to both individual and commercial clients reflects the critical role of the market in facilitating informed decision-making and access to credit for a wide range of entities in North America.

Credit Agency Market Report Scope

The "Credit Agency Market Analysis" was carried out based on client type, vertical, and geography. In terms of client type, the market is segmented into individual and commercial. Based on vertical, the market is segmented into government and public sector, healthcare, financial services, media and technology, automotive, telecom and utilities, retail and e-commerce, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Credit Agency Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the credit agency market. The Credit Agency Marketforecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. A few recent key market developments are listed below: 

• In November 2023, Open banking innovator Plaid announced a new initiative to enable lenders to leverage consumer-permission cash flow data on prospective borrowers. The new entity will serve as a consumer reporting agency that will build solutions that deliver ready-made credit risk insights using this information.

[Source: Plaid Inc., Company Website]

• In January 2023, GE and KUKE, Poland’s Export Credit Agency (ECA), announced a strategic export finance cooperation agreement worth €1 billion to help GE’s global energy customers decarbonize the energy sector and increase electrification globally. Through the joint agreement, GE in Poland will work with KUKE to secure debt insurance on agreed transactions. This will help facilitate significant capital investment and enable a mix of renewable and gas power projects globally through Polish exports and the supply chain.

[Source: General Electric, Company Website]

Credit Agency Market Report Coverage & Deliverables

The market report “Credit Agency Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
• Detailed company profiles.