Supply Chain Finance Market

Supply Chain Finance Market Size and Share:

The global supply chain finance market size was valued at USD 7.53 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 15.22 Billion by 2033, exhibiting a CAGR of 8.08% from 2025-2033. Asia Pacific currently dominates the market, holding a market share of 42.2% in 2024. The Asia Pacific region's growth is driven by technological advancements, strong governmental support, and increasing foreign investment in key industries. These elements collaboratively foster a conducive environment for the expansion of the industry, significantly increasing the supply chain finance market share in this region.

Companies are adopting supply chain finance solutions to manage cash flows effectively. These solutions enable suppliers to access early payments and buyers to extend payment terms, improving liquidity across the supply chain. This focus is becoming more pronounced due to economic uncertainties and the increasing need for businesses to maintain financial stability. Besides this, the integration of technologies like artificial intelligence (AI), blockchain, and big data analytics is revolutionizing supply chain finance. These advancements enhance process efficiency, transparency, and risk management. Digital platforms are enabling broader accessibility, making supply chain finance solutions available to businesses of varying sizes. Additionally, regulatory bodies and governments are consistently encouraging supply chain finance to strengthen economic ecosystems. Policies aimed at improving access to financing for small and medium-sized enterprises (SMEs), along with collaborative public-private initiatives, are contributing to the supply chain finance industry growth.

The United States is a crucial segment in the market, driven by adoption of advanced technologies for enhancing efficiency and reducing manual processes. Tools like AI, blockchain, and automation are enabling seamless operations, improving accuracy, and optimizing financial workflows. These innovations support scalability, adapt to evolving market needs, and empower financial institutions to provide more effective solutions to businesses. The focus on digitization is fostering faster adoption of supply chain finance solutions across industries. In 2024, Finastra and Tesselate launched Tegula Trade Finance as a Service, a digital platform designed to speed up trade finance digitization for US banks. The service, integrating Finastra’s financial software and Tesselate’s consultancy, offers banks a scalable solution for automating trade finance processes. It aims to enhance efficiency, reduce manual workload, and expand banks' capabilities using AI, blockchain, and automation technologies.

Supply Chain Finance Market Trends:

Digitalization and Technological Advancements

The supply chain finance landscape is evolving rapidly, driven by digitalization and ongoing technological progress. By 2023, reports indicated that 65% of global companies had integrated generative AI into at least one function. Meanwhile, blockchain technology and smart contracts are revolutionizing supply chain finance by delivering enhanced transparency, security, and trust. Blockchain enables immutable record-keeping, ensuring the integrity of transactions and reducing fraud risks. Additionally, the integration of data analytics and artificial intelligence (AI) into supply chain finance sector is offering a favorable market outlook. Along with this, the increasing reliance of companies on predictive analytics to identify potential risks and opportunities is allowing them to make informed decisions. This data-driven approach enhances risk management and supports better financial planning.

Globalization and Complex Supply Chains

A continuous rise of international trade in many countries and the rising need to manage financial intricacies of cross-border transactions, including currency exchange, customs compliance, and payment settlement, are driving the supply chain finance demand, especially for specialized expertise and services offered by supply chain finance providers. Additionally, several companies are diversifying their supplier base, sourcing components and materials from various regions to mitigate risks and optimize costs. This diversity increases the complexity of supply chains and necessitates tailored financing solutions that can accommodate different supplier requirements. Along with this, the rising geopolitical uncertainties, natural disasters, and market fluctuations are offering a favorable supply chain finance market outlook. Supply chain finance solutions help businesses manage these risks by offering tools like insurance, performance bonds, and risk assessment services. As goods trade decreased in value terms on a balance-of-payments basis, the global trade-to-GDP ratio increased significantly, from 20 percent in 1995 to 31 percent in 2022 before dropping back to 29 percent in 2023, according to data from the World Trade Organisation.

Supplier-Centric Financing and Sustainable Practices

The rising shift towards supplier-centric financing and sustainable practices is strengthening the supply chain finance market growth. SMEs make up 65–70% of suppliers worldwide, however they frequently experience financing bottlenecks. According to figures from the International Finance Corporation, the SME finance gap is currently USD 5.7 Trillion; when informal businesses are taken into account, the figure jumps to USD 8 Trillion. This approach prioritizes the well-being of suppliers and aligns with environmentally and socially responsible business practices. Supplier-centric financing focuses on extending financial support and flexibility to suppliers, particularly smaller businesses. It encourages the inclusion of these suppliers in the supply chain, fostering diversity and economic growth. Along with this, the increasing consciousness among businesses about ethical sourcing practices is creating a positive outlook for the market. Furthermore, the growing need for supply chain resilience is influencing the market positively. Supplier-centric financing encourages suppliers to build resilience by providing access to financing options that help them weather disruptions and ensure business continuity.

Supply Chain Finance Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global supply chain finance market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on provider, offering, application, and end user.

Analysis by Provider:

• Banks
• Trade Finance House
• Others

The supply chain finance industry report stated that banks comprised the largest portion, making up 88.6% in 2024. Banks provide a variety of funding choices, such as working capital loans, invoice financing, and letters of credit. Moreover, they utilize their vast networks, financial knowledge, and access to funding to offer companies customized financing options. They also provide risk management services, assisting businesses in handling financial risks linked to their supply chains. Trade finance institutions focus on offering financial services that are specifically designed for international trade operations. They offer trade financing solutions such as import and export financing, export credit insurance, and guarantees for trade credit. In addition to this, they stand out in enhancing cross-border trade by reducing payment and execution risks. Businesses involved in global supply chains extensively utilize them, as they possess significant knowledge in managing intricate international trade laws and dealings.

Analysis by Offering:

• Letter of Credit
• Export and Import Bills
• Performance Bonds
• Shipping Guarantees
• Others

Export and import bills stand as the largest component in 2024, holding 40.6% of the market share. Export and import bills accounted for the largest market share attributed to their role in providing crucial short-term financing to businesses engaged in international trade. Export and import bills involve banks and trade finance houses that facilitate this financing based on the businesses' export and import transactions. Export bill financing allows exporters to receive immediate cash for their invoices, thereby enhancing their liquidity and enabling them to reinvest in operations and growth more quickly. Conversely, import bill financing helps importers manage their payment obligations, ensuring timely payments to suppliers without straining their cash flows. This financial mechanism supports the stability of global trade operations by aligning payment and supply cycles, reducing the risk of transaction disputes, and fostering stronger relationships between international trading partners. Additionally, this form of financing is crucial for maintaining continuous supply chain operations, particularly for SMEs, which may not have extensive financial reserves. It ensures that businesses can continue their trade activities, adding to the overall growth and economic stability.

Analysis by Application:

• Domestic
• International

Domestic leads the market with 60.0% of market share in 2024. Domestic leads the market, primarily driven by the rising requirement for enhanced cash flow management among local businesses. This trend is enhanced by the adoption of advanced technological solutions that facilitate efficient invoice processing and faster reconciliation processes, thus speeding up transaction times significantly. The integration of digital platforms allows companies to manage their receivables and payables more effectively, minimizing delays and reducing the cost of capital. Additionally, regulatory changes encouraging transparent financial practices have compelled companies to adopt more reliable and efficient financing solutions domestically. This shift towards better financial governance and the growing awareness of alternative financing options available for short-term liquidity needs further propel the dominance of the domestic application in the market. Moreover, partnerships between financial institutions and technology providers are making these solutions more accessible to small and medium enterprises, broadening the market base and driving growth in this segment.

Analysis by End User:

• Large Enterprises
• Small and Medium-sized Enterprises

In 2024, large enterprises accounted for the largest market share of 63.0%. Large enterprises accounted for the largest market share as they usually have more financial resources and stability compared to smaller businesses. This allows them to effectively participate in supply chain finance programs and take advantage of early payment discounts or other incentives. Additionally, they have a diverse supplier base, including domestic and international suppliers. This diversity offers more opportunities for supply chain finance initiatives to optimize cash flows. Along with this, large enterprises often have easier access to capital markets and can secure funding at favorable rates. This access enables them to support their supply chain finance initiatives and provide financing options to suppliers. Furthermore, many large enterprises have well-established and efficient procurement and payment processes. This efficiency makes it easier to implement supply chain finance solutions and manage transactions effectively.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, the Asia-Pacific region held the largest market share, accounting 42.2%. According to the report, Asia Pacific accounted for the largest market share since the region hosts a diverse array of industries, ranging from electronics and textiles to automotive and pharmaceuticals. This diversity is creating complex supply chain ecosystems that require sophisticated financing solutions. Along with this, the Asia Pacific region is home to a vast pool of investors and financial institutions. This availability of capital is supporting the development and expansion of supply chain finance programs. Furthermore, the widespread adoption of advanced technologies, such as real-time data processing platforms, is contributing to the market growth. These innovations facilitate faster and more efficient loan processing, expanding access to financing for a broad range of suppliers. In 2024, AEON Bank, a subsidiary of AEON Financial Service, launched a new supply chain finance service called "Invoice Finance" in Japan. This service provides financing to suppliers by leveraging real-time transaction data between AEON Group companies and their suppliers. The system is built on the iQuattro® platform by NTT DATA Corporation, enabling fast and efficient loan processing without collateral.

Key Regional Takeaways:
 

United States Supply Chain Finance Market Analysis

In North America, the market share for the United States was 85% of the total. The growth of e-commerce and increased adoption of digital payment systems are the primary drivers for the supply chain financing (SCF) sector in the US. SCF solutions are indispensable for more than 30 million SMEs operating in the United States to enhance cash flow and reduce working capital cycles, according to data from the US government. The US supply chain is a critical sector for the nation with 44 million workers and 37% of all jobs, according to a paper by Harvard University. More than 50% of U.S. businesses use supply chain financing in one way or another due to the strong banking system in the nation and the integration of fintech technologies. The blockchain technology in SCF has transformed the market through its provision of transparency and the reduction of inefficiencies associated with transactions. In addition, SCF adoption is increased through the funding by the U.S. government on the programs that have been aimed at assisting small enterprises, such as the Small Business Administration (SBA). In addition, the urgency of automating payments and invoice process leads to further developments in SCF platforms for accelerated payables from suppliers as well as efficient relationships with the buyer's supplier.

Europe Supply Chain Finance Market Analysis

European Supply chain finance market primarily grows based on a stronger framework of regulatory along with rising trade borders among different regions in Europe. The region accounted for more than 14 percent of the global goods exports; the largest exporting region in the world according to data by the European Union- SCF solutions are increasingly becoming the tool by which transaction cost and financial process is being brought down. As can be deciphered from the existence of strong institutions, the impact of fintech collaboration in bringing about the wider adoption of SCF solutions seems significant in the regions of Germany, the UK, and France. Funding the SMEs also has been widely enhanced by several initiatives taken forward by the European Union, such as the EIF and its programs to further the funding scope. The increased growth of the sustainability-focused endeavors has also favored the adoption of green SCF programs, providing businesses with matching funding to various ESG goals. Digital transformation and the integration of artificial intelligence into SCF platforms further enhance decision-making and process optimization across Europe.

Asia Pacific Supply Chain Finance Market Analysis

The Asia-Pacific region is witnessing a tremendous growth in the supply chain finance market due to the expansion of SMEs, digitalization, and rapid industrialization. SCF adoption is crucial for managing large supply chains, as China, India, and Japan are significant global manufacturing hubs. China has the strongest fintech infrastructure in the region, with more than half of major businesses using SCF platforms. India, with over 63 million SMEs making a significant economic contribution, has its focus on SME growth driving the adoption of SCF through government programs like Make in India and online payment systems like UPI. Further, transparency and confidence in supply chain operations are enhanced by the region's increasing adoption of blockchain-based SCF systems. Furthermore, according to an industry report, the rise of e-commerce, where retail eCommerce stood at 21% of Asia Pacific's total retail sales as of 2023, from 10.2% in 2019, further increases the demand for SCF solutions to maximize cash flow and liquidity.

Latin America Supply Chain Finance Market Analysis

The needs for enhanced liquidity among SMEs and increasing utilization of fintech platforms are propelling the SCF market in Latin America. SCF solutions are highly necessary for the smooth enhancements of cash flows and reducing financial stress as SMEs constitute more than 50% of the workforce and 90% of all enterprises in the region, as per reports. According to the Development Bank of Latin America and the Caribbean. Countries such as Brazil and Mexico, for instance, lead in SCF adoption due to their successful manufacturing and export sectors. Cross-border trade agreements such as the USMCA have also facilitated the adoption of SCF solutions for the smooth operation of international trade. SCF is also increasingly becoming accessible to smaller firms, especially those in remote areas, with the popularity of digital platforms and mobile banking. Integration with blockchain technology to SCF systems is also on the rise so that the security and transparency of financial transactions may be ensured.

Middle East and Africa Supply Chain Finance Market Analysis

Commerce expansion and development of infrastructure along with the increasing contribution of SMEs to regional economies support the supply chain finance sector in Middle East and Africa. As reported by the media, SMEs account for more than 40% of GDP in the UAE alone, and Saudi Arabia and the United Arab Emirates are at the forefront of SCF adoption through government-backed programs to support SME growth. Sharia-compliant SCF solutions have been introduced to serve a wider clientele as a result of the growth of Islamic finance in the area. The growth of cross-border trade between Asia and Europe also fuels the need for SCF platforms to streamline payment procedures, reduce risks. Moreover, through digital change and the growth of fintech platforms, SCF solutions are made more accessible to underserved markets in Africa and guarantee better management of cash flows for businesses.

Competitive Landscape:

Supply chain finance companies are offering working capital loans, invoice factoring, and other financial products that help organizations manage cash flow and meet their operational needs. Additionally, they are increasingly using data analytics to assess the financial health and performance of businesses within the supply chain. This analysis helps in identifying opportunities for improving cash flow and reducing financial risks. Moreover, leading companies are focusing strategic expansion into emerging markets, supported by considerable investments. This approach is aimed at providing vital financial services, including collateral-free financing to underserved sectors. In 2024, Credlix, a leading supply chain financing platform, announced its expansion into Mexico, supported by a $50 million investment from Moglix. This move aims to provide collateral-free financing solutions to SME exporters in Mexico, addressing challenges like limited financing and buyer default risks. Credlix's expansion enhances trade between the US and developing markets, supporting growth and diversification in sectors such as automotive, textiles, and electronics.

The report provides a comprehensive analysis of the competitive landscape in the supply chain finance market with detailed profiles of all major companies, including:

• Asian Development Bank
• Bank of America Corporation
• BNP Paribas
• DBS Bank India Limited
• HSBC
• JPMorgan Chase & Co.
• Mitsubishi UFJ Financial Group Inc.
• Orbian Corporation
• Royal Bank of Scotland plc (NatWest Group plc)

Latest News and Developments:

• January 2025: The Reserve Bank of India (RBI) has given KredX, a supply chain finance platform, permission to develop a Trade Receivables Discounting System (TReDS) platform. With this permission, KredX is authorised to auction trade receivables, facilitating easy financing for MSMEs. By granting access to effective, regulated financial solutions, the action is anticipated to improve liquidity and foster small business expansion.
• January 2025: NEC Thailand collaborated with AIRA Factoring to launch a Digital Supply Chain financing platform, aiming to support SMEs in Thailand. The platform will leverage NEC’s digital capabilities and "TASConnect" to enhance supply chain finance programs, improve cash flow, and increase credit disbursement. This collaboration aligns with Thailand’s 4.0 strategy, focusing on innovation and sustainable economic growth.
• November 2024: Non-banking financial companies (NBFCs) have been instructed by the Reserve Bank of India (RBI) to submit comprehensive information about the financing of their supply chains. The RBI is taking this action as part of its efforts to monitor risks in the financial ecosystem and improve transparency. Understanding the scope and makeup of their supply chain finance activities is one of the main goals in order to improve financial stability and regulatory monitoring.
• September 2024: Veefin acquired the digital lending platform EpikIndifi for Rs 125 crore, marking its third acquisition of the year. This move supports Veefin's strategy to expand from a digital supply chain finance provider to an end-to-end working capital finance platform. The acquisition adds new revenue streams through digital retail lending and accelerates Veefin's growth by expanding its clientele and employee base.
• August 2024: IFC and Citi launched a $500 million sustainable supply chain finance facility in Mexico, as part of a broader $2 billion initiative focused on emerging markets. This project, under IFC's Global Supply Chain Finance Program, aims to support SMEs by addressing financing gaps and enhancing sustainability. The initiative builds on IFC's efforts to strengthen credit infrastructure and expand financing access in Mexico.
• March 2024: Muthoot FinCorp partnered with Veefin Solutions to launch its supply chain finance (SCF) operations in India. The integration will use Veefin’s end-to-end SCF stack to provide comprehensive solutions, including onboarding suppliers and underwriting loans. This collaboration aims to enhance MSME access to customized credit solutions.
• February 2024: Crédit Agricole CIB launched its Optim Receivables and Supply Chain Finance platform in Asia-Pacific, powered by Demica’s cloud-based technology. This partnership enables the bank’s clients to access financing for invoices in various currencies and volumes. The platform’s integration with Crédit Agricole CIB's systems was completed in under a year, and the companies plan to expand their collaboration.
• February 2024: TVS Supply Chain Solutions and Rolls-Royce have strengthened their cooperation by extending their contract for an additional five years. Delivering end-to-end logistics and supply chain solutions for Rolls-Royce's operations is the main goal of the deal, which guarantees efficient global supply chains and increased productivity.

Supply Chain Finance Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the supply chain finance market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global supply chain finance market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the supply chain finance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.