Merchant Banking Services Global Market Report 2024

The merchant banking services market has grown rapidly in recent years. It will grow from $46.43 billion in 2023 to $54.65 billion in 2024 at a compound annual growth rate (CAGR) of 17.7%. The growth observed in the historical period can be attributed to factors such as economic growth and the expansion of capital markets, initiatives related to privatization and industry restructuring, the globalization of financial markets, increased engagement in investment banking activities, and the rise of entrepreneurship and startups.

The merchant banking services market is expected to see rapid growth in the next few years. It will grow to $99.07 billion in 2028 at a compound annual growth rate (CAGR) of 16.0%. The anticipated growth in the forecast period can be attributed to various factors, including the increasing activity in mergers and acquisitions (M&A), a focus on sustainable finance and environmental, social, and governance (ESG) investments, the adoption of alternative investments, growing complexities in financial structuring needs, the expansion of emerging markets, and the ongoing digital transformation in financial services. Major trends expected in this forecast period include efforts to enhance customer experience, the promotion of sustainable finance, the exploration of alternative financing solutions, heightened emphasis on cybersecurity measures, and a focus on ensuring data privacy.

The merchant banking services market is poised for growth, driven by the increasing trend of foreign investment. Foreign investment, encompassing direct investment, portfolio investment, and foreign aid, involves the allocation of funds from one country into another. Merchant banking services play a pivotal role in assisting foreign investors by offering advice on local markets, identifying potential investment opportunities, and facilitating financing. For instance, in January 2022, the United Nations Conference on Trade and Development reported a surge in global foreign direct investment (FDI) to $1.65 trillion in 2021, marking a 77% increase from $929 billion in 2020 and surpassing pre-COVID-19 levels. Developed economies, in particular, experienced a substantial rise in FDI, reaching around $777 billion in 2021, three times higher than the levels recorded in 2020. Consequently, the upward trajectory of foreign investment is a key driver propelling the growth of the merchant banking services market.

The merchant banking services market is also anticipated to grow with the expansion of international trade and commerce. International trade and commerce involve the exchange of goods, services, and capital across national borders, fostering economic growth and specialization. This global exchange enhances interconnectedness and optimizes resource utilization. For example, in December 2023, the Bureau of Economic Analysis reported an increase in the monthly international trade deficit of the United States, rising from a revised $61.2 billion in September to $64.3 billion in October 2023. This surge was primarily attributed to an increase in imports. The goods deficit expanded to $89.8 billion, while the services surplus experienced a modest increase to $25.5 billion during the same period. Therefore, the expanding landscape of international trade and commerce is contributing to the growth of the merchant banking services market.

A noteworthy trend in the merchant banking services market is the adoption of AI-driven digital banking platforms. Companies within this market are increasingly leveraging AI-driven technologies to stay competitive. In December 2022, Wells Fargo unveiled the Vantage system, utilizing artificial intelligence (AI) and machine learning (ML) to provide a personalized experience for its commercial, corporate, and investment banking clients. The incorporation of ML ensures continuous improvement in personalization and scalability, catering to the diverse financial needs of businesses at various stages of growth.

Major players in the merchant banking services market are focusing on the development of advanced payment solutions to streamline transactions, enhance security, and improve customer convenience. These solutions, characterized by sophisticated methods and technologies, facilitate innovative, efficient, and secure financial transactions. For instance, Deutsche Bank and Fiserv Inc. jointly launched Vert in October 2022. Vert offers a comprehensive suite of payment acceptance, processing, and conventional banking services tailored for small and medium-sized enterprises (SMEs). The integration of these solutions addresses market needs for a unified offering, simplifying access to cutting-edge products for merchants of varying scales.

In March 2023, HSBC Holdings plc acquired Silicon Valley Bank UK Limited for $1.09 billion. This acquisition aimed to strengthen HSBC's commercial banking franchise and expand its capacity to serve innovative and fast-growing businesses, particularly in the technology and life sciences sectors, across the UK and globally. Silicon Valley Bank UK Limited is a financial and merchant banking service provider catering to technology companies, venture capital firms, and private equity firms.

Major companies operating in the merchant banking services market report are JPMorgan Chase & Co.,Bank of America Corporation,DBS Bank Ltd.,Morgan Stanley & Co. LLC,Credit Suisse Group AG,NIBL Ace Capital Limited,Bryant Park Capital,HSBC Bank USA N.A.,Royal Bank of Canada Website,The USA Capital Advisors LLC,Deutsche Bank AG,Citigroup Inc.,The Goldman Sachs Group Inc.,UBS Group AG,Wells Fargo and Co.,Barclays plc,BNP Paribas SA,Societe Generale Group,Mizuho Financial Group, Sumitomo Mitsui Financial Group,Nomura Holdings,Industrial and Commercial Bank of China,China Construction Bank, Agricultural Bank of China, Standard Chartered plc,PNC Financial Services, Toronto Dominion Securities Inc.,RBC Capital Markets LLC,Scotiabank, National Bank of Canada Financial Inc.

North America was the largest region in the merchant banking services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global merchant banking services market report during the forecast period. The regions covered in the merchant banking services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the merchant banking services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of merchant banking services include trade financing, business management, portfolio management, credit syndication, initial public offering (IPO) management, and project management. Trade financing involves financial instruments and services that facilitate international trade, covering various risks such as non-payment, political instability, and currency fluctuations. These services are typically provided by both banks and non-banking financial institutions, catering to end users such as businesses and individuals.

The merchant banking services market research report provides merchant banking services market statistics, including merchant banking services industry global market size, regional shares, competitors with a merchant banking services market share, detailed merchant banking services market segments, market trends, and opportunities, and any further data you may need to thrive in the merchant banking services industry. This merchant banking services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The merchant banking services market includes revenues earned by entities by providing merchant bank services such as portfolio services, mergers and acquisitions, initial public offerings (IPOs), and investment banking services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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