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Global Letter of Credit Confirmation Market to reach USD 4.98 billion by the end of 2029.

Global Letter of Credit Confirmation Market Size study & Forecast, by L/C Type (Sight L/C and Usance L/C) and End User (Small-sized Businesses, Medium-sized Businesses, and Large Enterprises) and Regional Analysis, 2022-2029

Product Code: BFBFSI-27959850
Publish Date: 13-05-2023
Page: 200

Global Letter of Credit Confirmation Market is valued at approximately USD 4.02 billion in 2021 and is anticipated to grow with a healthy growth rate of more than 2.72 % over the forecast period 2022-2029. A letter of credit is a document that protects both buyers and sellers during an international transaction. It serves as proof for the execution of payments and transactions for traded goods and services. Furthermore, confirming banks, which are typically based in the country where the exporters reside, provide a letter of credit confirmation service. The confirming bank provides confirmation on the letter of credit, assuming that the terms and conditions for existing trade are met by the issuing banks. The rising expansion of global trade, increased risk of non-payment, and growing demand for customized trade finance solutions are key factors driving the market growth.

The rising expansion of global trade is contributing towards the growth of the Global Letter of Credit Confirmation Market. For instance- as per Organization for Economic Co-operation and Development (OECD) estimates – as of the 2nd quarter of 2022, in G 20 countries Exports and imports increased by 2.1% and 2.6%, respectively, as compared to 4.8% and 6.2% in the previous quarter. Additionally, in Q2nd 2022, in North America, exports increased by 10.2% in the United States and by 11.0% in Canada. Moreover, in the European Union (EU 27), merchandise exports recorded an increase of 0.3%, and imports grew by 3.0%. Also, the rising emergence of blockchain and distributed ledger technology (DLT) and the growing number of free trade agreements worldwide would create a lucrative growth prospectus for the market over the forecast period. However, the risk associated with fraud and cyber-attacks hinders the market growth throughout the forecast period of 2022-2029.

The key regions considered for the Global Letter of Credit Confirmation Market study includes Asia Pacific, North America, Europe, Latin America, and Rest of the World. North America dominated the market in terms of revenue, owing to the presence of leading banking and financial institutions as well as the penetration of distributed ledger technology (DLT) and blockchain solutions in the region. Whereas Asia Pacific is expected to grow with the highest CAGR during the forecast period, owing to factors such as the rising number of the free trade agreement between countries as well as increasing growth of cross border e-commerce industry in the region would offer lucrative growth opportunities for the market over the forecast period.

Major market player included in this report are:
Bank of America Corporation
Citigroup, Inc.
DBS Bank Ltd.
JPMorgan Chase & Co.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Standard Chartered
Sumitomo Mitsui Banking Corporation
The PNC Financial Services Group, Inc.

Recent Developments in the Market:
Ø In December 2020, The International Islamic Trade Finance Corporation (ITFC) announced the launch of a new letter of credit (LC) confirmation instrument for smaller businesses to export and mitigate the trading risks faced by them amid the pandemic. This new product is intended for small and medium-sized businesses in Islamic Development Bank (IsDB) member countries.

Global Letter of Credit Confirmation Market Report Scope:
Historical Data 2019-2020-2021
Base Year for Estimation 2021
Forecast period 2022-2029
Report Coverage Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
Segments Covered L/C Type, End User, Region
Regional Scope North America; Europe; Asia Pacific; Latin America; Rest of the World
Customization Scope Free report customization (equivalent up to 8 analyst’s working hours) with purchase. Addition or alteration to country, regional & segment scope*

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values to the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within countries involved in the study.

The report also caters detailed information about the crucial aspects such as driving factors & challenges which will define the future growth of the market. Additionally, it also incorporates potential opportunities in micro markets for stakeholders to invest along with the detailed analysis of competitive landscape and product offerings of key players. The detailed segments and sub-segment of the market are explained below:

By L/C Type
Sight L/C
Usance L/C
By End User
Small-sized Businesses
Medium-sized Businesses
Large Enterprises

By Region:
North America
Asia Pacific
South Korea
Latin America
Rest of the World

Chapter 1. Executive Summary
1.1. Market Snapshot
1.2. Global & Segmental Market Estimates & Forecasts, 2019-2029 (USD Billion)
1.2.1. Letter of Credit Confirmation Market, by Region, 2019-2029 (USD Billion)
1.2.2. Letter of Credit Confirmation Market, by L/C Type, 2019-2029 (USD Billion)
1.2.3. Letter of Credit Confirmation Market, by End User, 2019-2029 (USD Billion)
1.3. Key Trends
1.4. Estimation Methodology
1.5. Research Assumption
Chapter 2. Global Letter of Credit Confirmation Market Definition and Scope
2.1. Objective of the Study
2.2. Market Definition & Scope
2.2.1. Scope of the Study
2.2.2. Industry Evolution
2.3. Years Considered for the Study
2.4. Currency Conversion Rates
Chapter 3. Global Letter of Credit Confirmation Market Dynamics
3.1. Letter of Credit Confirmation Market Impact Analysis (2019-2029)
3.1.1. Market Drivers Rising expansion of global trade Increased risk of non-payment Growing demand for customized trade finance solutions
3.1.2. Market Challenges Risk associated with fraud and cyber-attacks.
3.1.3. Market Opportunities Rising emergence of blockchain and distributed ledger technology (DLT) Growing number of free trade agreements worldwide
Chapter 4. Global Letter of Credit Confirmation Market Industry Analysis
4.1. Porter’s 5 Force Model
4.1.1. Bargaining Power of Suppliers
4.1.2. Bargaining Power of Buyers
4.1.3. Threat of New Entrants
4.1.4. Threat of Substitutes
4.1.5. Competitive Rivalry
4.2. Futuristic Approach to Porter’s 5 Force Model (2019-2029)
4.3. PEST Analysis
4.3.1. Political
4.3.2. Economical
4.3.3. Social
4.3.4. Technological
4.4. Top investment opportunity
4.5. Top winning strategies
4.6. Industry Experts Prospective
4.7. Analyst Recommendation & Conclusion
Chapter 5. Risk Assessment: COVID-19 Impact
5.1. Assessment of the overall impact of COVID-19 on the industry
5.2. Pre COVID-19 and post COVID-19 Market scenario
Chapter 6. Global Letter of Credit Confirmation Market, by L/C Type
6.1. Market Snapshot
6.2. Global Letter of Credit Confirmation Market by L/C Type, Performance – Potential Analysis
6.3. Global Letter of Credit Confirmation Market Estimates & Forecasts by L/C Type 2019-2029 (USD Billion)
6.4. Letter of Credit Confirmation Market, Sub Segment Analysis
6.4.1. Sight L/Cs
6.4.2. Usance L/Cs
Chapter 7. Global Letter of Credit Confirmation Market, by End User
7.1. Market Snapshot
7.2. Global Letter of Credit Confirmation Market by End User, Performance – Potential Analysis
7.3. Global Letter of Credit Confirmation Market Estimates & Forecasts by End User 2019-2029 (USD Billion)
7.4. Letter of Credit Confirmation Market, Sub Segment Analysis
7.4.1. Small enterprises
7.4.2. Medium-sized enterprises
7.4.3. Large enterprises
Chapter 8. Global Letter of Credit Confirmation Market, Regional Analysis
8.1. Letter of Credit Confirmation Market, Regional Market Snapshot
8.2. North America Letter of Credit Confirmation Market
8.2.1. U.S. Letter of Credit Confirmation Market L/C Type breakdown estimates & forecasts, 2019-2029 End User breakdown estimates & forecasts, 2019-2029
8.2.2. Canada Letter of Credit Confirmation Market
8.3. Europe Letter of Credit Confirmation Market Snapshot
8.3.1. U.K. Letter of Credit Confirmation Market
8.3.2. Germany Letter of Credit Confirmation Market
8.3.3. France Letter of Credit Confirmation Market
8.3.4. Spain Letter of Credit Confirmation Market
8.3.5. Italy Letter of Credit Confirmation Market
8.3.6. Rest of Europe Letter of Credit Confirmation Market
8.4. Asia-Pacific Letter of Credit Confirmation Market Snapshot
8.4.1. China Letter of Credit Confirmation Market
8.4.2. India Letter of Credit Confirmation Market
8.4.3. Japan Letter of Credit Confirmation Market
8.4.4. Australia Letter of Credit Confirmation Market
8.4.5. South Korea Letter of Credit Confirmation Market
8.4.6. Rest of Asia Pacific Letter of Credit Confirmation Market
8.5. Latin America Letter of Credit Confirmation Market Snapshot
8.5.1. Brazil Letter of Credit Confirmation Market
8.5.2. Mexico Letter of Credit Confirmation Market
8.5.3. Rest of Latin America Letter of Credit Confirmation Market
8.6. Rest of The World Letter of Credit Confirmation Market

Chapter 9. Competitive Intelligence
9.1. Top Market Strategies
9.2. Company Profiles
9.2.1. Bank of America Corporation Key Information Overview Financial (Subject to Data Availability) Product Summary Recent Developments
9.2.2. Citigroup, Inc.
9.2.3. DBS Bank Ltd.
9.2.4. JPMorgan Chase & Co.
9.2.5. Mizuho Bank, Ltd.
9.2.6. MUFG Bank, Ltd.
9.2.7. Scotiabank
9.2.8. Standard Chartered
9.2.9. Sumitomo Mitsui Banking Corporation
9.2.10. The PNC Financial Services Group, Inc.
Chapter 10. Research Process
10.1. Research Process
10.1.1. Data Mining
10.1.2. Analysis
10.1.3. Market Estimation
10.1.4. Validation
10.1.5. Publishing
10.2. Research Attributes
10.3. Research Assumption

At Bizwit Research and Consultancy, we employ a thorough and iterative research methodology with the goal of minimizing discrepancies, ensuring the provision of highly accurate estimates and predictions over the forecast period. Our approach involves a combination of bottom-up and top-down strategies to effectively segment and estimate quantitative aspects of the market, utilizing our proprietary data & AI tools. Our Proprietary Tools allow us for the creation of customized models specific to the research objectives. This enables us to develop tailored statistical models and forecasting algorithms to estimate market trends, future growth, or consumer behavior. The customization enhances the accuracy and relevance of the research findings.
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Data Collection:
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To ensure the accuracy and reliability of our findings, we extensively leverage data science techniques, which help us minimize discrepancies and uncertainties in our analysis. We employ Data Science to clean and preprocess the data, ensuring its quality and reliability. This involves handling missing data, removing outliers, standardizing variables, and transforming data into suitable formats for analysis. The application of data science techniques enhances our accuracy, efficiency, and depth of analysis, enabling us to stay competitive in dynamic market environments.
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To estimate and validate the market size, we employ both top-down and bottom-up approaches. The preference is given to a bottom-up approach, where key regional markets are analyzed as separate entities. This data is then integrated to obtain global estimates. This approach is crucial as it provides a deep understanding of the industry and helps minimize errors.
In our forecasting process, we consider various parameters such as economic tools, technological analysis, industry experience, and domain expertise. By taking all these factors into account, we strive to produce accurate and reliable market forecasts. When forecasting, we take into consideration several parameters, which include:
Market driving trends and favorable economic conditions
Restraints and challenges that are expected to be encountered during the forecast period.
Anticipated opportunities for growth and development
Technological advancements and projected developments in the market
Consumer spending trends and dynamics
Shifts in consumer preferences and behaviors.
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To assess the market impact of these parameters, we assign weights to each one and utilize weighted average analysis. This process allows us to quantify their influence on the market and derive an expected growth rate for the forecasted period. By considering these various factors and applying a weighted analysis approach, we strive to provide accurate and reliable market forecasts.
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