USD 49.21 billion
Remittance Market Size, Share, Growth Analysis, By Type(Inward and Outward), By Mode of Transfer(Digital and Traditional), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG40D2019 |
Region:
Global |
Published Date: February, 2024
Pages:
207
|Tables:
59
|Figures:
77
Remittance Market Insights
Global Remittance Market size was valued at USD 49.21 billion in 2021 and is poised to grow from USD 54.67 billion in 2022 to USD 114.14 billion by 2030, at a CAGR of 11.09% during the forecast period (2023-2030).
As indicated by the endless networks of middlemen, shady fees, and laborious documentation, sending money internationally has always been time-consuming and expensive. Fortunately, improvements in the sector over the previous several years mean that people and even small-to-medium-sized organisations may now gain from quicker, less expensive, and more useful overseas fund transfer services. In another instance, Trusty, an open banking payments provider, teamed up with Conotoxia, a multi-currency corporation with headquarters in Poland, in August 2022 to offer consumers a secure, quick, and safe way to send money worldwide via their bank accounts. The goal of the agreement was to give both present and potential clients more choice when sending money to North America. The expansion of the industry is anticipated to be accelerated by such activities. The fact that family members who get remittances believe they would be better off leaving their home country and migrating to a developed country where they could make more money than staying put is a significant drawback of remittances because it may stimulate increased labour migration. The majority of the population is made up of ignorant or those who are beyond the labour market's range.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Outward
Fastest Growth
Outward
Growth Rate
11.09% CAGR
Global Remittance Market 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)
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Remittance Market Segmental Analysis
Global Remittance Market is segmented on the basis of mode of transfer, type, channel and region. By mode of transfer, the market is segmented into digital and traditional. By type, market is segmented into inward and outward. By channel, the market is segmented into banks, money transfer operators, online platforms. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Mode of Transfer
With a share of more than 75.0% in 2022, the traditional (non-digital) segment had the biggest revenue. Cheques and ATMs are two common ways to transfer money in the traditional way. The consumer's sense of confidence and safety while sending money through an offline channel is the primary element influencing the segment's growth. In addition, traditional means were the only ones available for sending money abroad before the recent development of digital channels, which accounts for the segment's highest share.
Over the forecast period, it is expected that the digital category would increase significantly. The digital remittance industry's dynamics are being quickly changed by the expanding innovations in the digital sphere. Digitization aids in enhancing productivity, convenience, transparency, access, and lowering transfer costs. The segment's expansion is also anticipated to be fueled by changing consumer needs for international money transfers. Digital money transfer services are becoming more and more popular among consumers in low- and middle-income nations. Demand for digital remittance services is also being driven by rising income levels and rapid urbanization.
Analysis by Type
In 2022, the outward remittance sector dominated the market and accounted for more than 54.0% of total revenue. A corporation must contend with competition worldwide in order to compete on such a large scale because most enterprises are a part of the global economy. An overseas remittance facilitates global commerce and seizes commercial opportunities that might not have been available otherwise. An organization can buy goods and services from a foreign company much more easily because money can be safely sent to partners anywhere in the world.
Over the forecast period, the inward remittance segment is expected to rise significantly. Foreign remittances protect emerging nations from economic setbacks. This is achieved by increasing the consumption and spending power of a firm or a family, as well as increasing access to better housing, food, lifestyle, stock, and health care.
Global Remittance Market Size By Type 2022(%)
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Remittance Market Regional Insights
In 2022, North America had a revenue share of more than 24.0% and led the remittance business. The market's dominance can be ascribed to the presence of some well-known competitors, like Bank of America Corporation and Citigroup, Inc. Additionally, to take use of their capabilities, fintech businesses in North American nations are actively collaborating with well-known players.
Over the course of the projected period, Asia Pacific is anticipated to increase at the fastest rate. The fact that the primary recipients of remittances, including China, the Philippines, and India, reside in the Asia Pacific region is responsible for the growth. Additionally, a number of important players from around the globe are vying for the attention of the developing local sector.
Global Remittance Market Size By Geography, 2022-2030
- Largest
- Fastest
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Remittance Market Dynamics
Drivers
Remittance Infrastructure and Partnerships to Boost Sales
- The development of a robust remittance infrastructure is essential for the market's growth. Collaborations between financial institutions, remittance service providers, mobile network operators, and other stakeholders contribute to expanding the reach and accessibility of remittance services. Partnerships with payment networks and technology providers enable seamless cross-border transfers, contributing to market expansion.
- The movement of people across borders, whether for work, education, or other reasons, drives the remittance market. Migration flows and the existence of diaspora communities create a significant demand for remittance services. People working or residing abroad often send money to support their families, contribute to the local economy, or invest in businesses or properties in their home countries.
Restraints
Stringent Regulations to Prevent rapid growth
- The remittance market is subject to stringent regulatory requirements and AML measures to prevent illicit financial activities, including money laundering and terrorism financing. Compliance with these regulations can be complex and costly for remittance service providers, particularly smaller operators who may struggle to meet the necessary regulatory standards. Compliance efforts can also lead to increased transfer costs and delays in processing remittances.
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Remittance Market Competitive Landscape
To obtain a competitive edge in the market, prominent firms are adopting a variety of strategies, including mergers and acquisitions, joint ventures, product developments, and research and development activities. Players in the market are concentrating on utilizing the skills of recently founded fintech firms to provide their clients with the highest level of confidence while sending money.
Top Player’s Company Profiles
- PayPal (United States)
- TransferWise (United Kingdom)
- WorldRemit (United Kingdom)
- Paytm (India)
- Remitly (United States)
- Azimo (United Kingdom)
- Xoom (United States)
- InstaReM (Singapore)
- Wise (United Kingdom)
- Venmo (United States)
- Skrill (United Kingdom)
- OFX (Australia)
- OrbitRemit (New Zealand)
- Transfast (United States)
- CurrencyFair (Ireland)
- Pangea Money Transfer (United States)
- Remit2India (India)
- WorldFirst (United Kingdom)
- Small World Financial Services (United Kingdom)
Recent Developments
- In March 2023, Western Union announced that it had partnered with the Central Bank of Nigeria (CBN) to launch a new mobile money remittance service in Nigeria. The service, called Quickteller, allows users to send money to friends and family in Nigeria using their mobile phones.
- In February 2023, PayPal announced that it had acquired the digital remittance company Xoom for $4.4 billion. The acquisition will give PayPal a major foothold in the global remittance market.
- In January 2023, Wise announced that it had raised $1.7 billion in a Series D funding round. The funding will be used to expand Wise's global reach and develop new products and services.
Remittance Key Market Trends
- Mobile wallets have emerged as a preferred method for receiving remittances. These digital wallets allow users to store, send, and receive money through their mobile devices. Mobile wallets offer added convenience by enabling users to access funds directly, make purchases, and pay bills without the need for a traditional bank account. The integration of mobile wallets with remittance services provides seamless and instant transactions.
Remittance Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analyses, the global remittance market plays a crucial role in facilitating the movement of money across borders, enabling individuals to support their families, invest in businesses, and contribute to the economic development of their home countries. Cost reduction and efficiency improvement are key focuses in the remittance market. High transfer costs have been a longstanding challenge, particularly for smaller remittance amounts. The emergence of fintech companies and digital platforms has led to increased competition, driving down costs and improving the overall efficiency of remittance transactions. The global remittance market continues to evolve with advancements in technology, changing customer preferences, and regulatory developments. The market's growth potential lies in leveraging digital solutions, expanding financial access, reducing costs, and harnessing the economic impact of remittances for sustainable development.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 49.21 billion |
| Market size value in 2031 | USD 114.14 billion |
| Growth Rate | 11.09% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Remittance Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Remittance Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Remittance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Remittance Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Remittance Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Remittance Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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