by The global treasury management market is estimated to be valued at US$ 5.10 billion in 2023 and is expected to exhibit a CAGR of 13.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Treasury management refers to financial functions of a company, especially those relating to its cash and liquidity positions, capital and risk management. This involves activities such as cash management, payment, collection and liquidity management. Treasury management provides tools to organizations to effectively manage daily cash transactions, payments and receipts efficiently. The rise in financial transactions, cross border trade, and need for real time visibility and control has made treasury management inevitable for businesses.
Market key trends:
One of the key trends driving the treasury management market growth is digitization and adoption of advanced payment technologies. This has enabled automation of financial transactions and real time visibility of cashflows. For example, digitization of payments has enabled same day settlements and improved tracking of funds. Technologies like application programming interfaces (APIs) allow easy integration of applications and services. Adoption of cloud based treasury management solutions is also gaining traction as it offers flexibility, scalability and lower upfront costs. This has accelerated treasury digitization among SMEs as well.
Porter’s Analysis
Threat of new entrants: The treasury management market requires large capital investments and has presence of existing major players which makes the entry difficult for new players.
Bargaining power of buyers: Large organizations have significant bargaining power as buyers in the market due to volume purchases.
Bargaining power of suppliers: The suppliers of treasury management software have less bargaining power due presence of numerous software developers in the market.
Threat of new substitutes: There are limited substitute products for treasury management as it provides unique solution for cash, liquidity and risk management.
Competitive rivalry: The treasury management market has high competitive rivalry due to presence of major software providers competing on product features and pricing.
Key Takeaways
The global Treasury Management Market Share is expected to witness high growth, exhibiting CAGR of 13.8% over the forecast period 2023-2030, due to increasing digitization of treasury operations and need for centralized risk management.
Regional analysis indicates that North America dominated the global treasury management market in 2023 due to presence of established treasury management vendors and early adoption of technologies. However, Asia Pacific is expected to emerge as the fastest growing market over the forecast period supported by growing enterprises and digital transformation initiatives in countries like China and India.
Key players operating in the treasury management market are J.P. Morgan Treasury Services, Bank of America Merrill Lynch, Citibank, Wells Fargo, HSBC Global Banking and Markets, BNP Paribas, Deutsche Bank, PNC Bank, Barclays, U.S. Bank. These players are focusing on new product development and partnerships to consolidate their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
