Debt Financing Market Growth, Size, Trends, Analysis Report by Type, Application, Region and Segment Forecast 2022-2026

The debt financing market share is expected to increase to USD 16.17 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 9.66%.

The report extensively covers debt financing market segmentations by the following:

• Source - Private and public
• Geography - North America, Europe, APAC, Middle East and Africa, and South America

The debt financing market report offers information on several market vendors, including Banco Santander SA, Bank of America Corp., Barclays PLC, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, European Investment Bank, Frontier Development Capital Ltd., JPMorgan Chase and Co., Larsen and Toubro Ltd., LVMH Moet Hennessy Louis Vuitton SE, Morgan Stanley, Royal Bank of Canada, SSAB AB, The Goldman Sachs Group Inc., U.S. International Development Finance Corp., and UBS Group AG among others.

This debt financing market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches.

What will the Debt Financing Market Size be During the Forecast Period?

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Debt Financing Market: Key Drivers, Trends, and Challenges

The tax-deductible debt interest costs is notably driving the debt financing market growth, although factors such as collateral may be necessary for some forms of debt financing, which may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the debt financing industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Debt Financing Market Driver

The tax-deductible debt interest costs is one of the key drivers supporting the debt financing market growth. One of the significant benefits of debt financing is that debt interest costs are fully tax-deductible and provide stability to business organizations across the world in budgeting and planning. This reduces the net tax obligation of a company at the end of the year. Furthermore, debt finance is an easy and accessible option for businesses of all sizes across the world. This is because interest costs are tax-deductible, debt financing is being adopted by startups and small- and medium-sized companies across the world as it helps them plan their monthly and yearly budget and also build their credit score by making their EMI payments on time. These factors will drive the debt financing market growth during the forecast period.

Key Debt Financing Market Trend

Increasing collaboration and mergers and acquisitions is one of the key debt financing market trends contributing to the market growth. For instance, in March 2022, Goldman Sachs Group, Inc. acquired GreenSky, Inc. with the aim of increasing its customer base and providing its customers with simple and transparent improvement financing solutions. In August 2021, Goldman Sachs Group, Inc. entered into an agreement to acquire NN Investment Partners, a leading European asset management company, from NN Group N.V. In March 2021, Morgan Stanley acquired Eaton Vance Corp. with the motive to add more fee-based revenues to complement its world-class, integrated investment bank. Such an increase in collaboration and mergers and acquisitions will propel the debt financing market growth during the forecast period.

Key Debt Financing Market Challenge

Collateral may be necessary for some forms of debt financing, which is challenging the debt financing market growth. For instance, if a business is in its growing phase, then some lenders may want the company to provide collateral for securing the desired finance, which may include cash, in addition to the hard assets of the company. This means that some of the company's assets will be at risk if something happens that causes the company to miss payments on its debt. Meanwhile, some lenders might ask the company or other owners or stakeholders to personally guarantee the loan if it is a startup, which means that the owner of the company must consider putting their own assets at risk to get the funding they want for their company. Hence, this can restrict the company or business organization, which is at its early stage, from opting for debt financing. This can hinder the growth of the debt financing market in focus during the forecast period.

This debt financing market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Who are the Major Debt Financing Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Banco Santander SA
• Bank of America Corp.
• Barclays PLC
• Citigroup Inc.
• Credit Suisse Group AG
• Deutsche Bank AG
• European Investment Bank
• Frontier Development Capital Ltd.
• JPMorgan Chase and Co.
• Larsen and Toubro Ltd.
• LVMH Moet Hennessy Louis Vuitton SE
• Morgan Stanley
• Royal Bank of Canada
• SSAB AB
• The Goldman Sachs Group Inc.
• U.S. International Development Finance Corp.
• UBS Group AG

 

This statistical study of the debt financing market encompasses successful business strategies deployed by the key vendors. The debt financing market is fragmented and the vendors are deploying growth strategies such as mergers and acquisitions to compete in the market.

Product Insights and News

• Bankofamerica.com - The company offers debt financing services such as credits and securities.
• Home.barclays - The company offers debt financing services such as bonds, and securities.
• Citigroup.com - The company offers debt financing services such as Deposits, Long term debt, and Equity.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The debt financing market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Which are the Key Regions for Debt Financing Market?

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33% of the market's growth will originate from North America during the forecast period. The US and Canada are the key markets for the debt financing market in North America. Market growth in this region will be slower than the growth of the market in other regions.

The demand for debt financing from business organizations in the region is expected to increase owing to its features and advantages, which will facilitate the debt financing market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the outbreak of COVID-19 badly affected the tourism, aviation, and hospitality industry, and consequently, the debt financing market experienced a huge financial crisis in the region. However, in 2021, the reopening of stores, restaurants, and cafes and the resumption of business activities of companies operating in the region helped in improving the regional demand for debt financing. Therefore, such factors are expected to drive the debt financing market growth during the forecast period.

What are the Revenue-generating Source Segments in the Debt Financing Market?

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The debt financing market share growth by the private segment will be significant during the forecast period. Private debt financing is one of the rapidly developing and most desired resource classes for financial specialists worldwide as it plays a crucial role in lending money to small- and mid-sized organizations globally. The private segment of the market has grown significantly over the last five years owing to an increase in the demand for debt financing by startups, which is increasing every year globally. Advantages such as high returns, predictive cash flow, lower volatility, and increased diversification offered by private source debt financing are expected to drive the growth of this segment, thereby driving the growth of the debt financing market in focus during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the debt financing market size and actionable market insights on post COVID-19 impact on each segment.

Parent Market Analysis

Technavio categorizes the global debt financing market as a part of the global specialized consumer services market within the global diversified consumer services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the debt financing market during the forecast period.

Debt Financing Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the debt financing market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Debt Financing Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 9.66%
Market growth 2022-2026	$ 16.17 billion
Market structure	Fragmented
YoY growth (%)	8.91
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 33%
Key consumer countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Banco Santander SA, Bank of America Corp., Barclays PLC, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, European Investment Bank, Frontier Development Capital Ltd., JPMorgan Chase and Co., Larsen and Toubro Ltd., LVMH Moet Hennessy Louis Vuitton SE, Morgan Stanley, Royal Bank of Canada, SSAB AB, The Goldman Sachs Group Inc., U.S. International Development Finance Corp., and UBS Group AG
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Debt Financing Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive debt financing market growth during the next five years
• Precise estimation of the debt financing market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the debt financing industry across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of debt financing market vendors

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