Asset-based Lending Global Market Opportunities and Strategies to 2033

This report describes and explains the asset-based lending market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global asset-based lending market reached a value of nearly $682.04 billion in 2023, having grown at a compound annual growth rate (CAGR) of 10.7% since 2018. The market is expected to grow from $682.04 billion in 2023 to $1.28 trillion in 2033.

Growth in the historic period resulted from the increasing demand for loans, rising demand for alternative financing and the rise in the number of SMEs (small and medium-sized enterprises). Factors that negatively affected growth in the historic period include rise in cyber security concerns and interest rate challenges.

Going forward, strong economic growth in emerging markets, rising government support, high levels of corporate debt and increased focus on risk management will drive the market. Factors that could hinder the growth of the asset-based lending market in the future include corporate bankruptcies.

The asset-based lending market is segmented by type into inventory financing, receivables financing, equipment financing and other types. The receivables financing market was the largest segment of the asset-based lending market segmented by type, accounting for 52.2% or $356.14 billion of the total in 2023. Going forward, the inventory financing segment is expected to be the fastest growing segment in the asset-based lending market segmented by type, at a CAGR of 14.8% during 2023-2028.

The asset-based lending market is segmented by lender into banks, captives, finance companies and other lenders. The banks market was the largest segment of the asset-based lending market segmented by lender, accounting for 41.4% or $282.57 billion of the total in 2023. Going forward, the other lenders segment is expected to be the fastest growing segment in the asset-based lending market segmented by lender, at a CAGR of 15.7% during 2023-2028.

The asset-based lending market is segmented by borrower into manufacturing, staffing, distribution, logistics, transportation, business services and other borrowers. The manufacturing market was the largest segment of the asset-based lending market segmented by borrower, accounting for 29.8% or $203.49 billion of the total in 2023. Going forward, the logistics segment is expected to be the fastest growing segment in the asset-based lending market segmented by borrower, at a CAGR of 18.1% during 2023-2028.

The asset-based lending market is segmented by interest type into fixed rate and floating rate. The fixed rate market was the largest segment of the asset-based lending market segmented by interest type, accounting for 68.1% or $464.38 billion of the total in 2023. Going forward, the floating rate segment is expected to be the fastest growing segment in the asset-based lending market segmented by interest type, at a CAGR of 14.4% during 2023-2028.

The asset-based lending market is segmented by end user into large enterprises and small and medium-sized enterprises. The small and medium-sized enterprises market was the largest segment of the asset-based lending market segmented by end-user, accounting for 63.5% or $433.2 billion of the total in 2023. Going forward, the small and medium-sized enterprises segment is expected to be the fastest growing segment in the asset-based lending market segmented by end-user, at a CAGR of 14% during 2023-2028.

North America was the largest region in the asset-based lending market, accounting for 41.6% or $284.03 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the asset-based lending market will be Asia-Pacific and Africa, where growth will be at CAGRs of 16.4% and 15.6% respectively. These will be followed by the Middle East and South America, where the markets are expected to grow at CAGRs of 14.9% and 14% respectively.

The global asset-based lending market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up 17% of the total market in 2023. Banco Santander S.A. was the largest competitor with a 3.4% share of the market, followed by BNP Paribas with 2.4%, Sumitomo Mitsui Banking Corporation with 2.2%, JPMorgan Co. & Chase with 1.8%, Royal Bank of Canada with 1.7%, Wells Fargo Capital Finance Ltd. with 1.6%, Bank of America Corporation with 1.2%, Bank of Montreal (BMO) Financial Corporation with 1.1%, M&T Bank Corporation with 1% and Truist Financial Corporation with 0.6%.

The top opportunities in the asset-based lending market segmented by type will arise in the receivables financing segment, which will gain $317.26 billion of global annual sales by 2028. The top opportunities in the asset-based lending market segmented by lender will arise in the banks segment, which will gain $247.53 billion of global annual sales by 2028. The top opportunities in the asset-based lending market segmented by borrower will arise in the manufacturing segment, which will gain $140.77 billion of global annual sales by 2028. The top opportunities in the asset-based lending market segmented by interest type will arise in the fixed rate segment, which will gain $393.09 billion of global annual sales by 2028. The top opportunities in the asset-based lending market segmented by end-user will arise in the small and medium-sized enterprises segment, which will gain $400.84 billion of global annual sales by 2028. The asset-based lending market size will gain the most in the USA at $191.38 billion.

Market-trend-based strategies for the asset-based lending market include use of AI in advanced lending platforms to provide automated lending, focus on geographical expansion through launch of new lending businesses, alternative investment capabilities with new asset-backed finance business and establishment of new asset-based lending divisions.

Player-adopted strategies in the asset-based lending market include focuses on strengthening operational capabilities through strategic acquisitions, expanding business capabilities through new business units and business expansion through mergers and acquisitions.

To take advantage of the opportunities, the analyst recommends the asset-based lending companies to focus on AI-driven lending platforms, focus on developing asset-backed finance businesses, focus on introducing asset-based lending divisions, focus on inventory financing segment, focus on floating rate segment, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships for market expansion, focus on geographic expansion, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on tailored solutions for small and medium-sized enterprises (SMEs) and focus on targeting end-users in manufacturing, distribution, and transportation.