Asset Reliability Software Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The asset-based lending market size has grown rapidly in recent years. It will grow from $785.6 billion in 2024 to $896.12 billion in 2025 at a compound annual growth rate (CAGR) of 14.1%. The growth in the historic period can be attributed to economic downturns and credit challenges, need for working capital financing, cyclical nature of industries, corporate restructuring and turnarounds, asset-rich, cash-poor situations.

The asset-based lending market size is expected to see rapid growth in the next few years. It will grow to $1.43 trillion in 2029 at a compound annual growth rate (CAGR) of 12.5%. The growth in the forecast period can be attributed to global economic trends and volatility, increased demand for non-traditional financing, expanding role in cross-border transactions, focus on working capital optimization, industry-specific tailoring. Major trends in the forecast period include expansion of cross-border asset-based lending, application of artificial intelligence (ai) in credit decisioning, collaboration between traditional lenders and fintech, focus on non-traditional collateral types, integration of risk management analytics.

The growing demand for loans is anticipated to drive the expansion of the asset-based lending market in the future. A loan is a financial arrangement where one party, usually a lender like a bank or financial institution, provides a specified amount of money or other assets to another party, the borrower. Asset-based lending presents several advantages by offering loans with flexible financing, improved liquidity, and scalability. For example, in April 2024, a report from UN Trade and Development, a Switzerland-based organization, indicated that rising global interest rates since 2022 have pressured public budgets, with net interest payments in developing countries reaching $847 billion in 2023 - a 26% increase from 2021. Notably, a record 54 developing nations, or 38%, allocated 10% or more of their revenues to interest expenses. Thus, the increasing demand for loans is fueling the growth of the asset-based lending market.

The escalating need for alternative financing avenues is poised to propel the expansion of the asset-based lending market in the foreseeable future. Alternative financing options, emerging outside the conventional finance system such as banks and capital markets, offer businesses various channels to access funding and capital with advantages such as lower costs, enhanced flexibility, and simplified loan approval processes. Asset-based lending stands out as a particularly versatile and comprehensive financing alternative, surpassing conventional loans and grants. For instance, as highlighted by the Pew Research Center in April 2022, tens of millions of Americans engaged in alternative financing arrangements, where buyers make direct payments to sellers, showcasing the growing traction of non-traditional financing methods. Consequently, the rising demand for alternative financing solutions continues to fuel the momentum of the asset-based lending market.

Key players in the asset-based lending market are concentrating on creating platforms that incorporate advanced technologies, such as data analytics, to enhance decision-making, improve risk assessment, and streamline the loan origination process. This technology allows for a more thorough evaluation of borrower creditworthiness and real-time asset monitoring. Data analytics involves examining and interpreting data to uncover insights and support informed decision-making, identifying patterns and trends. For instance, in September 2024, Compass Business Finance, a UK-based finance company, introduced "Unlocking Capital: Strategic Advantages of Asset-Based Lending." This initiative emphasizes that asset-based lending (ABL) provides businesses with flexible access to capital by leveraging their assets, facilitating quicker funding and larger loan amounts. It aids in cash flow management, growth initiatives, and financial stability while presenting lower risk for lenders.

In August 2024, Planet Home Lending, a US-based company providing loan options and services, acquired Axia Home Loans for an undisclosed amount. This acquisition aims to boost Planet Home Lending's retail market share and branch presence, as well as increase loan volume by utilizing experienced personnel. Axia Home Loans, a US-based provider of residential mortgage solutions, links to asset-based lending, which offers financing options by leveraging real estate or other assets, thus enhancing real estate investment strategies.

Major companies operating in the asset-based lending market report are JPMorgan Chase and Co., Wells Fargo And Company, HSBC Holdings PLC, Goldman Sachs Group Inc., BMO Harris Bank N.A., Barclays Bank PLC, Hilton-Baird Group, KeyCorp Limited, Huntington Business Credit, Lloyds Bank PLC, BB&T Corporation, CoreVest Finance, Crystal Financial LLC, Triumph Commercial Finance, CIT Group, Bibby Financial Services, Sterling National Bank, Berkshire Bank N.A., White Oak Financial LLC, Porter Capital Corporation, First Capital Federal Credit Union, LSQ Funding Group L.C., Action Capital Corporation, LQD Business Finance LLC, Capital Funding Solutions Inc.

North America was the largest region in the asset-based lending market in 2024. The regions covered in the asset-based lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the asset-based lending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The asset-based lending market includes revenues earned by entities by providing supply chain financing, trade financing, cash flow-based asset-based lending, and equipment financing. 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.

Asset-Based Lending (ABL) is a financial strategy employed by businesses to secure a loan or credit line by leveraging tangible assets as collateral. This approach allows businesses to borrow funds based on the assessed value of their assets, providing security for the lender in the event of loan default. ABL serves multiple purposes for businesses, including meeting working capital requirements, facilitating business expansion, and supporting restructuring initiatives.

The primary types of asset-based lending include inventory financing, receivables financing, equipment financing, and other variations. Inventory financing involves using a company's inventory as collateral to secure a loan or line of credit, playing a significant role in the broader landscape of ABL transactions. Different interest rate structures, such as fixed rates and floating rates, are utilized in ABL, catering to the diverse needs of borrowers. Asset-based lending finds application across various end-users, including large enterprises and small and medium-sized enterprises.

The asset-based lending market research report is one of a series of new reports that provides asset-based lending market statistics, including asset-based lending industry global market size, regional shares, competitors with an asset-based lending market share, detailed asset-based lending market segments, market trends, and opportunities, and any further data you may need to thrive in the asset-based lending industry. This asset-based lending market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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