According to the report, the global sustainable supply chain finance market is predicted to be valued at approximately USD 660, 211 million in 2018 and is expected to reach a value of around USD 2, 926,758 million by 2027, at a CAGR of around 18.24 % between 2019 and 2027.
What is Sustainable Supply Chain Finance? A Market Overview
In the case of consumers, sustainable supply chain finance provides an exceptional solution for achieving sustainable sourcing goals, raises the security supply, and enhances the business relations with suppliers through rewarding sustainable behaviors in the supply chain at reasonable costs to the firm. In the case of merchants, sustainable supply chain finance offers easy accessibility to working capital, robust customer relations, and the ability to enhance sustainability value.
Moreover, regional banks can form a partnership with global buyers for offering access to finance at a competitive rate of interest. It also helps in the funding of micro as well as small and medium-sized firms lacking the necessary finance as well as technical skills for enhancing environmental, social management, and operating performance. Apparently, sustainable supply chain management has become a key focus area for giant firms as it assists them in addressing competitive pressures caused due to novel environmental laws, escalating power costs, factory standards, and customer & government demands.
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Top Market Players
Some of the key players in the market include BNP Paribas, DBS Bank Ltd., Citigroup, Inc., First Abu Dhabi Bank, ING Bank N.V., FMO, Standard Chartered, HSBC Group, and TIER Sustainable Supply Chain Finance.
Growing eCommerce activities to drive the market trends
The success of new online retail firms like Alibaba and Amazon, which were funding small firms for the last few years, will take the sustainable supply chain finance industry to the peak during the forecast period.
Furthermore, the rapid expansion of the supply chain finance ecosystem for sustaining the operational efficiency of banks and FinTech players will further steer the market expansion during the forecast timeline. Nonetheless, complications involved in the supply chain activities and automation can pose a threat to the expansion of the sustainable supply chain finance industry during the period from 2019 to 2027.
Large enterprises segment to record the highest CAGR by 2027
The large enterprise segment is poised to register the highest growth rate of 18% during the period from 2019 to 2027. The growth of the segment is attributed to the ability of the giant firms to address the escalating competition in business occurring as a result of environmental laws, high power prices, workplace rules, and customer demands. Today, big firms are incorporating eligibility prerequisites, depending on sustainability, into contractual relations with dealers.
Foot & apparel segment to dominate the end-user landscape over the forecast period
The growth of the segment during the forecast timeline is owing to the ability of sustainability programs to optimize the product as well as processes across the footwear sector.
North America to dominate the overall market surge during the forecast period
The growth of the sustainable supply chain finance industry during the forecast period is due to technological breakthroughs, a robust industrial base, and strict enforcement of laws promoting business growth. Apart from this high demand for sustainable supply chain finance activities will propel the regional market growth during the forecast period.
Source: Facts & Factors
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