June 18, 2024
Treasury Management Market

Treasury Management Enables Efficient Cash Flow and Working Capital Optimization

Treasury management includes services like cash and liquidity management, payment and collection, risk management, and regulatory compliance. It allows organizations to efficiently manage cash flows, reduce borrowing costs, and optimize working capital. Treasury management systems automate routine treasury processes like making payments, tracking cash balances, and facilitating financial planning and forecasting. They offer a centralized view of an organization’s financial position and cash flows across multiple regions and entities, enabling informed decisions.

The global Treasury Management Market is estimated to be valued at US$ 5.1 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Treasury management solutions are evolving with capabilities to collate and analyze a vast amount of financial and operational data in real-time. Advanced technologies like AI, machine learning, and analytics are being integrated into treasury software to gain deeper insights and automate certain complex tasks. For instance, AI-powered cash flow forecasting models analyze historical data patterns and external economic indicators to generate highly accurate forecasts. Furthermore, growing digitization of financial services has increased demand for cloud-based and SaaS-delivered treasury management systems. The cloud delivery model provides scalability, flexibility, ubiquitous access, lower upfront costs, and ability to seamlessly integrate treasury systems with other business suites like ERP. Key trends like rise of FinTechs and digital transformation initiatives across industries are also fueling adoption of cloud and SaaS-based treasury solutions.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the Treasury Management Market requires lot of investments and infrastructure to establish and gain market presence.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are few dominant players operating in the market. However, buyers have choice to select from wide range of solutions.

Bargaining power of suppliers: The bargaining power of suppliers is low since there are multiple component suppliers and technology providers for Treasury Management solutions.

Threat of new substitutes: The threat of substitutes is low as there are no close substitution products forTreasury Management solutions.

Competitive rivalry: The competitive rivalry is high among the key players to stay ahead of each other by introducing innovative solutions.

Key Takeaways

The Global Treasury Management Market Demand is expected to witness high growth. Treasury Management aims at efficiently managing liquidity, mitigating risks, and enhancing the financial performance of organizations. The global Treasury Management Market is estimated to be valued at US$ 5.1 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030.

Regional analysis: North America is expected to continue its dominance during the forecast period owing to high adoption of advanced solutions by enterprises in US and Canada. However, Asia Pacific is projected to grow at fastest pace during 2023 to 2030 with China, Japan and India being major revenue contributors in the region.

Key players: Key players operating in the Treasury Management Market are ABB Ltd., NXP Semiconductors N.V., Bel Fuse Inc., Larsen & Toubro Limited, Schneider Electric SE, Rockwell Automation, Inc., Mitsubishi Electric Corporation, Siemens AG, Eaton Corporation plc., and General Electric Company . ABB Ltd, Siemens AG and Schneider Electric SE capture majority share in the market.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it