Performance Bank Guarantee Market Report 2026

The performance bank guarantee market size has grown strongly in recent years. It will grow from $10.2 billion in 2025 to $11.17 billion in 2026 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to expansion of infrastructure and construction projects, increased use of contractual risk mitigation, growth in public procurement activities, rising adoption of performance bonds, strengthening role of banks in trade finance.

The performance bank guarantee market size is expected to see strong growth in the next few years. It will grow to $15.91 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to increasing digitalization of trade finance services, rising demand from SMEs for online guarantees, expansion of international contracting activity, growing regulatory oversight on guarantees, increasing automation of credit assessment processes. Major trends in the forecast period include increasing adoption of digital bank guarantee platforms, rising demand for faster guarantee issuance, growing use of risk-based pricing models, expansion of cross-border guarantee services, enhanced focus on compliance and documentation automation.

The increasing demand for construction is expected to drive the growth of the performance bank guarantee market going forward. Construction activities encompass the physical development of buildings, infrastructure, and other structures. Rising construction activity is driven by rapid urbanization, infrastructure expansion, and an emphasis on efficiency and precision in building projects. Performance bank guarantees provide financial security and confidence to project owners and contractors, facilitating smoother project execution and enhancing the overall stability and reliability of construction projects. For instance, in February 2025, according to the US Census Bureau, a US-based government statistical agency, construction spending in 2024 reached approximately US$ 2.15 trillion, a 6.5% increase from the roughly US$ 2.02 trillion recorded in 2023. Therefore, growing construction demand is supporting the expansion of the performance bank guarantee market.

Leading companies in the performance bank guarantee market are focusing on innovative solutions, such as blockchain-based guarantee systems, to improve security, transparency, and efficiency in the issuance and management of guarantees. Blockchain technology enhances the reliability, efficiency, and security of the guarantee process, benefiting both issuing banks and beneficiaries. For instance, in November 2023, Hong Kong and Shanghai Banking Corporation (HSBC), a UK-based banking and financial services firm, launched a blockchain-based performance guarantee solution. This platform allows real-time tracking of guarantees and automated verification processes, providing enhanced security through decentralized ledger technology, significantly reducing processing times, and improving customer experience by minimizing paperwork. Such solutions foster trust among stakeholders and enable companies to meet growing demand for efficient and secure financial services.

In March 2024, Royal Bank of Canada, a Canada-based banking and financial services company, acquired HSBC Bank Canada for US$ 9.96 billion (C$ 13.5 billion). This acquisition enabled Royal Bank of Canada to expand its domestic market presence and strengthen its retail, commercial, and trade finance capabilities by integrating HSBC Bank Canada’s customer base and product portfolio into its operations. HSBC Bank Canada is a Canada-based bank providing retail and commercial banking services, including lending, deposits, trade finance, and financial guarantee and credit products for individual and business clients.

Major companies operating in the performance bank guarantee market are JPMorgan Chase & Co., Citigroup Inc., Wells Fargo & Company, Royal Bank of Canada, BNP Paribas SA, Deutsche Bank AG, Barclays Bank plc, Societe Generale S.A., Standard Chartered PLC, Scotiabank (BNS), HDFC Bank Limited, ICICI Bank Limited, Mizuho Financial Group Inc., DBS Bank Limited, KBC Group, Rabobank Group, Nordea Bank AB, Lloyds Banking Group, United Overseas Bank Limited, Federal Bank Limited, Soleil Chartered Bank (SCB)

Asia-Pacific was the largest region in the performance bank guarantee market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the performance bank guarantee market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the performance bank guarantee market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The performance bank guarantee market includes revenues earned by entities by providing verification and due diligence, document preparation, collateral management, and advisory 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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