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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We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
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.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Client Type, Vertical, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
Increasing demand for credit information and partnerships & collaborations are the major factors that propel the market.
The credit agency market is anticipated to expand at a CAGR of 4.2% from 2023 to 2031.
The key players holding majority shares in the market are A.M. Best Company, Inc.; DBRS Morning Star; Equifax Inc.; Experian Plc; and Fair Isaac Corp.
Advancements in fintech are anticipated to play a significant role in the market in the coming years.
- A.M. Best Company, Inc.
- DBRS Morning Star
- Equifax Inc
- Experian Plc
- Fair Isaac Corp.
- Fitch Ratings
- Kroll Bond Rating Agency (KBRA)
- Moody's Corporation
- S&P Global Inc.
- Transunion
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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