Global Merchant Banking Services Market Size to worth USD 254.38 Billion by 2033
According to a research report published by Spherical Insights & Consulting, the Global Merchant Banking Services Market Size is Expected to Grow from USD 48.23 Billion in 2023 to USD 254.38 Billion by 2033, at a CAGR of 18.09% during the forecast period 2023-2033.
Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global Merchant Banking Services Market Size, Share, and COVID-19 Impact Analysis, By Services (Portfolio Management, Business Restructuring, Credit Syndication, and Others), By services provider (Banks, Non-Banking Institutions), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.
Merchant banking services encompass a variety of financial offerings provided by merchant banks to large corporations, high-net-worth individuals, and institutional investors. Merchant banks are specialized financial institutions that focus on international trade and corporate finance, acting as intermediaries between businesses and the capital markets. Unlike retail or commercial banks, which cater to individual savings and loans, or investment banks that work with public companies, merchant banks serve a distinct niche. The market for merchant banking services is driven by several factors. As businesses expand globally, they require financial services to manage foreign exchange risks, comply with local regulations, and facilitate cross-border transactions. Additionally, merchant banks are increasingly leveraging technologies such as artificial intelligence, machine learning, and data analytics to enhance their operations. They assist foreign investors by providing advice on local markets, identifying potential investment opportunities, and arranging financing. The merchant banking services market is expected to grow alongside economic expansion, as the demand for financial services continues to rise. However, several challenges can restrain this market, including the high cost of services. Other concerns include the complexity of merchant banking services and the associated risks, such as conflicts of interest. Additionally, the increasing prevalence of security concerns might hinder market growth. It's also important to note that merchant banking services are not available to the general public; they are typically accessible only to affluent individuals who meet specific asset size requirements.
The business restructuring segment is predicted to hold the largest market share through the forecast period.
Based on the Services, the merchant banking services market is classified into portfolio management, business restructuring, credit syndication, and others. Among these, the business restructuring segment is predicted to hold the largest market share through the forecast period. The segmental growth due to the growing necessity for companies to adjust to fluctuating economic conditions and competitive challenges, organizations are increasingly seeking expert assistance to realign their operations, optimize resources, and enhance financial performance. This trend is influenced by elements such as technological progress, changes in regulations, and evolving consumer preferences, leading businesses to reorganize for improved efficiency and sustainability.
The banks segment is anticipated to hold the highest market share during the projected timeframe.
Based on the services provider, the merchant banking services market is divided into banks, non-banking institutions. Among these, the banks segment is anticipated to hold the highest market share during the projected timeframe. Their enormous role in enabling financial transactions and providing critical services such as lending, investing, and risk management is mainly responsible for this. As financial institutions continue to innovate their products and embrace digital technologies, they improve customer engagement and streamline their operations. Moreover, the rising demand for comprehensive banking solutions, along with a heightened focus on financial stability and regulatory compliance, positions banks as central figures in the market.
North America is estimated to hold the largest share of the merchant banking services market over the forecast period.
North America is estimated to hold the largest share of the merchant banking services market over the forecast period. Their substantial role in facilitating financial transactions and delivering crucial services such as lending, investment, and risk management primarily accounts for this. As financial institutions continue to innovate their products and embrace digital technologies, they improve customer engagement and streamline their operations. Moreover, the rising demand for comprehensive banking solutions, along with a heightened focus on financial stability and regulatory compliance, positions banks as central figures in the market.
Asia Pacific is expected to grow the fastest during the forecast period. This growth is driven by swift economic development, urbanization, and a growing middle class. As firms in this area increasingly pursue access to advanced financial services and investment options, the demand for merchant banking services is anticipated to rise sharply. Additionally, governmental initiatives that encourage entrepreneurship and foreign investments, along with technological advancements, are expected to improve the broader financial environment, driving the expansion of merchant banking services in the Asia Pacific region.
Company Profiling
Major key players in the merchant banking services market includes U.S. Capital Advisors LLC, JP Morgan Chase & Co, Bank Of America Corporation, DBS Bank Ltd, NIBL Ace Capital Limited, Bryant Park Capital, Morgan Stanley, HSBC Bank USA N.A., and Others.
Recent Developments
- In August 2024, Axis Bank, one of the largest private sector banks in India, has announced the launch of "neo for merchants" in partnership with VISA and Mintoak. This initiative represents a significant milestone in Axis Bank's commitment to empowering businesses with advanced banking solutions. With its user-friendly interface, versatile payment acceptance options, and valuable business insights, the neo for merchant’s app is poised to transform the payment landscape for merchants across India.
Key Target Audience
- Market Players
- Investors
- End-users
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
Market Segment
This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the merchant banking services market based on the below-mentioned segments:
Global Merchant Banking Services Market, By Services
- Portfolio Management
- Business Restructuring
- Credit Syndication
- Others
Global Merchant Banking Services Market, By Services Provider
- Banks
- Non-Banking Institutions
Global Merchant Banking Services Market, By Regional Analysis
- North America
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- UAE
- Saudi Arabia
- Qatar
- South Africa
- Rest of the Middle East & Africa