The global merchant banking services market revenue was around US$ 42.1 billion in 2022 and is estimated to reach US$ 232.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 18.9% during the forecast period from 2023 to 2032.
Merchant banking services help in keeping communication with the financial institution or banks about the application tracking and process. They also allow their clients to fill out their paperwork and assist them in acquiring the most money from banks. They also follow all legal conditions set forth by banks or other lending organizations.
Factors Influencing Market Growth
- The rise in demand for foreign investments and the high rate of adoption by merchant banking services among HNIs are facilitating the growth of the market.
- The rise in the usage of digital transformation technology is positively influencing the growth of the merchant banking services market.
- The increasing security concerns and the high cost of merchant banking services are hindering the growth of the merchant banking services market.
- The rising innovations in the fintech industry are anticipated to deliver remunerative opportunities for the development of the merchant banking services market during the forecast period.
Impact of COVID-19
The impact of the COVID-19 pandemic outbreak had a positive influence on the growth of the merchant banking services market. The uncertainties of COVID-19 pushed the prices of all asset classes, including bonds, stocks, and commodities, to low levels and resulted in inventions and revealed investors to new investing and trading methods utilizing robo-advisors and algorithms, making direct competition.
Regional Analysis
In 2022, North America dominated the global merchant banking services market in terms of revenue and is anticipated to maintain its position during the forecast period because of the presence of major merchant banking service providers like the Bank of America Corporation; U.S. Capital Advisors LLC; and JPMorgan Chase & Co. across the region are expected to boost the growth of the market.
Also, Asia-Pacific is anticipated to notice substantial growth during the forecast period. This is attributed to the rising income levels, advantageous demographics, and rising regional businesses.
Leading Companies
The leading prominent companies profiled in the global merchant banking services market are: -
- The U.S. Capital Advisors LLC
- JPMORGAN CHASE & CO.
- Bank of America Corporation
- DBS Bank Ltd.
- NIBL Ace Capital Limited
- MORGAN STANLEY HSBC Bank USA
- Citigroup Inc.
- The Goldman Sachs Group, Inc.
- Wells Fargo & Company.
- Other prominent key players
Segmentation Outline
The global merchant banking services market segmentation focuses on End User, Type, Provider, and Region.
Segmentation based on End User
- Businesses
- Individuals
Segmentation based on Type
- Portfolio management
- Business restructuring
- Credit syndication
- Others
Segmentation based on Provider
- Banks
- Non-Banking Institutions
Segmentation based on Region
- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa