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The structured finance market size is estimated to grow at a CAGR of 11.8% between 2023 and 2028. The market size is forecast to increase by USD 997.68 billion. The growth of the market depends on several factors such as the increasing demand for alternative investment products, the rapid growth of securitization, and the increasing demand for risk management products.
The report offers extensive research analysis on the Structured Finance Market, with a categorization based on End-user including large enterprises, and small and medium enterprises. Type segment including collateralized debt obligation (CBO), asset-backed securities, mortgage-backed securities (MBS). Additionally, the report provides Geographical segmentation, covering APAC, North America, Europe, Middle East and Africa, and South America. Market size, historical data for 2018-2022, and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for alternative investment products is the key factor driving market growth. Traditional investing options with little diversification, risk management, and return potential include equities, bonds, and mutual funds. In order to achieve their financial objectives and diversify their portfolio, investors are looking for different investment possibilities. Investors can obtain these alternative investment solutions through structured finance. When compared to typical investments, these structured financial instruments may offer higher returns and possible benefits from diversification.
In addition, when compared to traditional fixed-income investments, structured finance products such as ABS and CDOs may offer greater rates. Generally, these investments provide access to industries not easily accessible through public markets and have varying risk-return profiles. Thus, the increasing demand for alternative investment products will fuel the growth of the market during the forecast period.
Increased demand for ESG-linked structured finance products is the primary trend shaping market growth. The global structured finance market is experiencing an increased demand for environmental, social, and governance (ESG)-linked products. Investors and regulators are becoming more conscious of and concerned about social and environmental issues. In addition, owing to the fact that lenders and borrowers both gain from having their operations in line with ESG principles, this further increases the demand for these products.
Furthermore, the growing emphasis on sustainability, backing from financial regulators and governments, demand from investors, risk management, and performance incentives are the key factors driving the ESG-linked structured financing solutions trend in the market. Thus, the increased demand for ESG-linked structured finance products will fuel the growth of the global structured finance market during the forecast period.
The increasing complexity of structured finance products is a challenge that affects market growth. Investors, regulators, and even financial professionals find it more challenging to properly understand the underlying mechanics and hazards of more complex structured finance instruments. In the market for structured financing, complexity can sometimes obstruct transparency. Structured finance solutions typically become less liquid as they get more complicated
Furthermore, limited understanding, information asymmetry, increased risk, regulatory challenges, lack of transparency, and liquidity challenges are the key factors that are rising complexity in the market. Therefore, the increasing complexity of structured finance products will hamper the growth of the global structured finance market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Structured Finance Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The large enterprises segment is estimated to witness significant growth during the forecast period. By combining different financial responsibilities or assets, such as bonds, mortgages, and loans, structured finance creates personalized financial products that are subsequently sold as securities to investors. Securitizing their assets and shifting the related risks to investors enables businesses to raise capital. Since they are frequently the original creators of the underlying assets that are securitized, large businesses are essential to the structured finance industry.
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The large enterprises segment was the largest segment and was valued at USD 696.08 billion in 2018. The requirement for effective capital management, risk reduction, and access to a variety of funding sources propels the large enterprises segment of the global structured finance market. Furthermore, the large enterprises segment in the global structured finance market represents a significant portion of the activity, with major corporations utilizing structured finance to optimize their capital structure, access funding, and manage risk, which in turn will drive the growth of the large enterprise segment in the global structured finance market during the forecast period.
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APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC's dynamic economic growth and rising capital demand have made the region an appealing market for structured finance. In recent times, there has been a notable surge in infrastructure development and investment in countries such as China, India, and Southeast Asia, necessitating the need for structured financing solutions.
In addition, the demand for structured finance solutions has increased due to the low-interest rate environment in several APAC nations. Instead of sticking with traditional fixed-income investments, investors are turning to structured products in search of greater yields. Thus, strong economic development, increased investment, and regulatory reforms will drive the growth of the regional structured finance market during the forecast period.
The structured finance market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Structured Finance Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.8% |
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Market Growth 2024-2028 |
USD 997.68 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.54 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 41% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Acuity Knowledge Partner, Avendus Wealth Management Pvt Ltd., Axis Bank Ltd., Barclays PLC, CARE Ratings Ltd., Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, ESFC Investment Group, Greenberg Traurig LLP., HSBC Holdings Plc, JPMorgan Chase and Co., Latham and Watkins LLP, Mizuho Financial Group Inc., Morgan Stanley, S and P Global Inc., SPARK CAPITAL ADVISORS India PVT LTD., The Goldman Sachs Group Inc., Trade Finance Global, and UBS Group AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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