Factoring Services Market Size, Share, Growth Analysis, By Category(Domestic and International), By Type(Recourse, and Non-Recourse), By Financial Institution(Banks, and Non-Banking Financial Institutions), By End-use(Manufacturing, Transport & Logistics, Information Technology, Healthcare), By Region - Industry Forecast 2025-2032

Europe retained the majority of the market of over 55% in 2022 as a result of an increased emphasis of transport companies on export business factoring and the introduction of start-ups in factoring services from countries such the U.K., Germany, Italy, Romania, and Sweden. The EU has made major investments in manufacturing, engineering, and small and medium-sized enterprise factoring services, which have greatly enhanced market growth. Using cutting-edge technology like Blockchain, which offers greatly improved data security and smart contract capabilities, several service providers in this field aspire to automate the process. It is one of the main factors promoting market expansion in this area.

Asia Pacific is expected to experience considerable growth during the projected period, with a CAGR of 11.5%, owing to the expansion of the manufacturing sector in countries like India and other South & Southeast Asian countries. Their economies are quickly shifting from being primarily agrarian to becoming manufacturing- and export-focused, which is encouraging the growth of factoring services in the region. Several significant emerging economies, such as China, Thailand, India, and the Philippines, are located in the Asia Pacific region, and they are luring investors from developed markets that are saturated and searching for new business opportunities in the region.