Enjoy complimentary customisation on priority with our Enterprise License!
The foreign exchange market size is projected to reach a value of USD 516.48 billion with a CAGR of 10.31% between 2023 and 2028. The market experiences growth spurred by urbanization and digitalization trends, which enhance accessibility and connectivity. Foreign exchange sees increased liquidity due to rising foreign exchange, amplifying market dynamics. Furthermore, market expansion is fueled by escalating central bank interest rates and developments in online trading platforms, signaling economic strength. However, challenges persist, notably the uncertainty surrounding future exchange rates, which can deter investment confidence. Transaction risks loom over financial dealings, posing potential setbacks, while counterparty risks in transactions raise concerns about counterpart reliability. Addressing these challenges necessitates robust risk management strategies and agile responses to market fluctuations, ensuring stability amidst evolving economic landscapes.
| Page Number | 178 |
| Forecast period | 2024-2028 |
| Historic period | 2018 - 2022 |
| List of Charts and Table | 190 |
| Growth momentum & CAGR | 10.31% |
| Market Growth 2024-2028 | USD 516.48 Billion |
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments
The reporting dealers segment is estimated to witness significant growth during the forecast period. The market participants that operate in the market hold risky inventory positions during the maturity period. In the case of liquidity, the suppliers that absorb an imbalance in the market are compensated through high returns. These returns reflect the risk premium that is associated with non-diversifiable risks. The global forex market size is vast and continuously growing, with the foreign exchange market playing a crucial role in international finance. According to the latest forex forecast, the foreign exchange market for corporates is expected to expand significantly, as illustrated in the foreign exchange market graph.
Forex market size (FX market) analysis shows significant growth, driven by evolving FX trends. Forex market research indicates how big is the currency market. The Forex market size continues to expand, underscoring the dynamic nature of the foreign exchange market.
Financial institutions that actively participate in local and global and derivatives markets are known as reporting dealers. Reporting dealers also include US subsidiaries and branches of foreign institutions with trading or sales desks in the US. If the inventory management practices of individual traders are analyzed, one can find that the reporting dealers do not hold any open positions for a significant amount of time. However, the burden of providing the inter-day liquidity provision rests on non-financial participants. Ideally, it is the market consisting of dealer-financial institutions that provide liquidity overnight and should continue to provide liquidity during the forecast period.
Currency market data provides invaluable insights for conducting thorough forex market analysis, helping traders and investors navigate the complexities of foreign exchange markets. Understanding currency trends is crucial for making informed decisions in this dynamic financial landscape.
For more insights on the market share of various regions, Download PDF Sample now!
Europe is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Foreign exchange trading activity rose by 3.6% between October 2020 and October 2021 in North America. This rise is attributed to continuous trade monitoring and surveillance in the market in the region. The tightening of regulatory scrutiny of top vendors was needed in the wake of recent collusive activities and benchmark manipulations in currency markets. Therefore, more trading firms will reveal the real-time record of the trading activity. Sell-side dealers may play a significant role during the forecast period, and this should increase the auditable standards in trading activities and may enable easy communication between traders. Low volatility often results in stable earnings in safe-haven currencies and heavy gains in their speculative counterparts.
For instance, the US currency is vulnerable to low volatility, and therefore, it heralds short-term interest rate changes. This may allow a few speculators in the market to hold US dollars in their portfolios and may help them to seek higher and riskier returns in other currencies, such as the Australian dollar and the Euro. Such factors are expected to drive the regional market growth during the forecast period. Forex market analysis relies heavily on accurate currency market data to predict movements in foreign exchange markets. By closely monitoring currency trends, investors can better strategize and optimize their trading activities in the ever-evolving forex environment.
The market, driven by factors like interest rate differentials, economic indicators, and political developments, is a hub for trading currencies. Participants include financial institutions, corporations, and individuals, who engage in Buying exchanging currencies to capitalize on fluctuations in foreign exchange rate. This dynamic market operates through an interbank network, facilitating currency swaps and investment flows. With a decentralized structure, Forex enables trading across global financial centers, boasting high trading volume daily. Retailers and non financial customers also participate, contributing to the market's liquidity. Forex plays a crucial role in international trade and the IoT insurance market, reflecting the interconnectedness of global financial systems and economies. Currency counting machines are essential tools in the foreign exchange industry, ensuring accurate and efficient counting of various currencies.
Accurate currency forecasts and forex trading data are essential for conducting effective foreign exchange market analysis. By utilizing forex real-time data, traders can make informed decisions and adapt quickly to market fluctuations, enhancing their trading strategies. The Forex market size (FX market) is experiencing rapid expansion. FX trends, as identified through Forex market research, highlight how big is the currency market. The Forex market size reflects the substantial activity within the foreign exchange market. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing market liquidity is notably driving the market growth. The global market is the most easily liquidated financial market, as it involves the trading of numerous currencies all around the world. Traders in this market have complete freedom to buy or sell currencies anytime, as per their own choice. Liquidity refers to the ability of the currency pair to be purchased and sold without producing a major change in its exchange rate in the global market.
Furthermore, the rapid availability of news and pricing provides traders with the most up-to-date information for trading. Such factors will fuel market expansion during the forecast period.
Market transparency in trading is an emerging trend shaping market growth. Market transparency is the ability to have knowledge of what is being traded, at what price, by whom, and where. Hence, there is a lot of clarity in the global market. The traders in the global market have full access to all market data and information, which aids in the monitoring of currency price movements in many nations via the real-time portfolio. The global market is huge in size and spans multiple time zones. Hence, information on the global market is freely accessible.
Furthermore, no government or central bank has the power to corner the market or fix prices for an extended period of time on its own. Because of the temporary time lag in transferring information, some entities may get short-term benefits. This advantage, however, cannot be maintained over time. The market size also contributes to its fairness and efficiency. Therefore, such factors will lead to market expansion during the forecast period.
Counterparty risks with respect to foreign exchange are a significant challenge hindering market growth. Counterparty risk is the risk associated with the other party to a financial contract not fulfilling its obligations. The market is an international market. As a result, foreign exchange regulation is a difficult issue because it involves the sovereignty of the currencies of many countries. This creates a scenario wherein the global market becomes mainly unregulated. Therefore, there are no transactions that assure risk-free trade execution.
As a result, when investors or traders enter deals, they must be aware of the risk of defaults, wherein the counterparty will not have the intention or ability to respect the contracts. Forex trading necessitates a thorough assessment of counterparty risks as well as the development of strategies to manage them. Thus, such counterparty risks may hinder market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies. Forex trading data, coupled with forex real-time data, provides traders with the tools needed for precise foreign exchange market analysis. Reliable currency forecasts help investors anticipate market trends, enabling them to optimize their trading performance in the fast-paced forex environment.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bank of America Corp. - The company offers foreign exchange services such as outbound domestic wire transfer and outbound international wire transfer services.
The research report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak. Current Forex market size (FX market) studies reveal impressive growth rates. FX trends emerging from Forex market research explain how big is the currency market. The expanding Forex market size illustrates the vibrancy of the foreign exchange market.
The market is a dynamic arena where currencies are traded globally. It serves a wide array of participants, from individuals to multinational corporations, facilitating international trade and investment flows. Influenced by factors like interest rate differentials, economic indicators, and geopolitical risks, foreign exchange rates fluctuate, impacting buying and selling decisions. Technological advancements have revolutionized trading, with currency exchange software, electronic platforms and online trading platforms enabling round-the-clock operations and accessibility. Regulatory frameworks, central bank interventions, and risk management solutions shape market dynamics, ensuring stability. As a hub for currency exchange services, it plays a vital role in global commerce, international travel, and online shopping, meeting diverse personal financial management needs in an interconnected world.
The foreign exchange market (Forex) is a vital component of the global financial system, facilitating the exchange of currencies between various participants such as banks, retailers, corporations, and individual investors. Factors influencing exchange rates range from macroeconomic indicators like GDP growth and inflation to geopolitical events and Monetary interventions policy decisions by central banks. Speculation, balance of payments, and emerging market dynamics also play significant roles. With advancements in technology, trading platforms and modern infrastructure have made Forex accessible around the clock, allowing for trading in major currency pairs and catering to the needs of both retail and institutional investors. Money transfer agencies facilitate the seamless exchange of funds across borders, often providing competitive foreign exchange rates for international transactions. The dynamic foreign exchange market responds to global economic developments, trade balances, inflationary trends, and financial crises, offering opportunities for hedging strategies and market analysis.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Base year |
2023 |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
8.82 |
|
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
Europe at 43% |
|
Key countries |
US, China, Japan, UK, and Switzerland |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Bank of America Corp., Barclays PLC, BNP Paribas SA, Citigroup Inc., Commonwealth Bank of Australia, DBS Bank Ltd., Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase and Co., London Stock Exchange Group plc, NatWest Group plc, Societe Generale SA, Standard Chartered PLC, State Street Corp., The Bank of Nova Scotia, The Goldman Sachs Group Inc., UBS Group AG, Westpac Banking Corp., and XTX Markets Ltd. |
|
Market dynamics |
Parent market analysis, Market forecasting 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 the Market forecast period. |
|
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this FOREX market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Trade Finance Instruments
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
Get the report (PDF) sent to your email within minutes.