Industry Overview of Letter of credit Confirmation Market

Letter of credit confirmation represents a service offered by the confirming banks established in the country where the exporters reside, considering that the terms and conditions (T&C) for existing trade are fulfilled by the issuing banks. It acts as evidence for executing transactions and payments of traded goods and services and consequently provides security to sellers and buyers during international trade. As a result, letter of credit confirmation finds widespread applications among small- and medium-sized businesses and large enterprises across the globe.  

How Big Is the Letter of credit Confirmation Market?

The global letter of credit confirmation market size reached US$ 4.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 5.6 Billion by 2028, exhibiting a growth rate (CAGR) of 4% during 2023-2028.

Global Industry Trends and Drivers:

The escalating number of international trade activities among businesses across countries is primarily driving the letter of credit confirmation market. Besides this, the elevating demand for customized trade finance solutions and regulatory support, owing to the stringent regulations for these services, is further augmenting the market growth. Moreover, the integration of distributed ledger (DLT), blockchain technologies, the internet of things (IoT), artificial intelligence (AI), and cloud computing solutions in the letter of credit confirmation is also catalyzing the global market. Apart from this, these services assist in creating the real-time digitalized contract and offer auto notification alerts over trades and enhanced business efficiency, which is acting as another significant growth-inducing factor. Additionally, the growing popularity of these benefits, as they minimize fraudulent activities, data theft, and financial losses, improve data security, prevent identity thefts and information tempering, and reduce unauthorized access to sensitive data of the users, is also stimulating the market growth. Furthermore, the increasing improvements in the information technology (IT) infrastructure are anticipated to propel the letter of credit confirmation market over the forecasted period. 

What Is Included In Market Segmentation?

The report has been segmented the market into following categories:

Breakup by L/C Type:

• Sight L/C
• Usance L/C

Breakup by End User:

• Small-sized Businesses
• Medium-sized Businesses
• Large Enterprises

Breakup by Region:

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

The report provides a comprehensive analysis of the industry key players listed below:

Citigroup Inc., DBS Bank Ltd., JPMorgan Chase & Co, Mizuho Bank Ltd., Standard Chartered plc, Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The PNC Financial Services Group Inc.