Market size of Letter of Credit Confirmation to grow $4.99 billion by 2027: LCC Updates and Trends
As per the report of Allied Market Research, the market of Letter of Credit Confirmation yielded $4.30 billion in 2019 and is expected to reach the mark of $4.99 billion in 2027. This growth will register the growth at 3.18% each year from 2020 to 2027. Moreover, the report gives detailed data regarding the business performance, market dynamics, analysis and competitive scenario of LCC.
The main reasons for the remarkable market growth of Letter of Credit Confirmation are increasing risks of non-payment, the imposition of strict conditions and terms of global business, and elevating demand for flexible trade services. However, frequent cyber attacks and fraudulent actions affect regular market growth. Nevertheless, the dedicated potential from emerging countries can easily give way to new alternatives in the future.
The top-ranking market players which are analysed by Allied Market Research are Citigroup, DBS Bank, American Corporation, JPMorgan Chase and Company, MUFG Bank, Mizuho Bank Ltd, SC, and The PNC Financial Services Group Inc.
The report from Allied Market Research is unable to trace whether the pandemic has affected the Letter of Credit Confirmation market or not. However, the reports say that many firms have already cancelled contracts and some are willing to do the same in the future due to pandemic outbreak.
A clear segmentation is present in the report regarding the international LCC market. It is based on aspects like region, users and L/C.
Considering the end-user segmentation, mainly the large industries approached for large shares in 2019. This formed the largest shareholder of the global Letter of Credit sector. Smaller business entities approached for smaller shares in the market in 2019. The CAGR for them was 5.6%.
The reports also show that a minute part of L/C made a big contribution in terms of the share in the previous year. It went nearly two-third of the total share globally. Moreover, the L/C shares dominated in the forecast period.
In the next seven years, the L/C share growth can reach the top CAGR at 4.1%. Furthermore, concerning the areas, Asia-Pacific contributed two-fifths of the global share in 2019 making it the highest in terms of the region in the forecast period. However, experts say that LAMEA will have a decent growth with a CAGR of 4.4% till 2027.
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