Amsterdam, The Netherlands, 24 May 2023
Following the release of the 2022 FCI market survey in January and the robust response that followed from FCI members and strategic stakeholders globally, we are pleased to release the final world factoring statistics. This 2022 report indicates that the Factoring and Receivables Finance Industry volume witnessed a significant increase of +18.3% in 2022 succeeding a double digit increase of 12.3% in 2021. Compared with the previous year’s €3,069 billion, the 2022 estimated volume of €3,659 billion represents back-to-back double-digit increases. Following the rebound from one of the worst calamities in a century, which resulted in massive government stimulus, a tidal wave of pent up consumer demand and the ensuing increase in inflation, the growth rates is subsequently unparalleled compared to any time before. In fact, 2022 will go down in the history books, resulting in the biggest single year increase in volume, accounting for more than €590 billion in new growth, the biggest increase ever reported.
Looking at the past 20 years and adding the strong increase witnessed in 2022, the compounded annual growth rate increased to 8.83%, just an incredible feat. Both domestic and international factoring grew substantially over this 20-year period. In a changing world as we experienced these past three years, it is reassuring to see how factoring and receivables finance can support SMEs and corporates to raise liquidity, protect their businesses against customer bankruptcies, and provide collection support around the world.
Europe, the largest contributor to the industry representing around 68% of global volume with €2,499 billion has shown an overall increase of 18%. From a factoring volume perspective, the top five players include France (+15%), United Kingdom (+8%), Germany (+20%), Italy (+14%) and Spain (+30%). Some markets exceeded expectations, resulting in astounding growth rates like Romania (+31%), Cyprus (+50%), Bulgaria (49%), Georgia (+34%), Greece (33%), Lithuania (+67%), Serbia (+57%), Ukraine (+130%) and Turkey (+51%). Turkey in fact delivered the first increase after a very challenging 4-year period.
The Asia Pacific region represents approximately 24% of global volume with €881 billion, which experienced an increase of +17% over 2021. In 2022, the volume of €671 billion relates to the Greater China region, including Mainland China (+23%), Hong Kong (+2%) and Taiwan (+2%). Japan displayed a decrease of 2% reaching €57 billion. India experienced the most explosive growth rate of +83.4% with €15.7 billion, after the implementation of a strong legal and regulatory framework in the country. Singapore showed an increase of 52% with €44 billion.
The Americas continued the increase from 2021 with a growth rate of 47%. And in terms of market share, the Americas region represents 6% share of the total world factoring volume with an overall figure of €228 billion.
South and Central America, with 3% share of the total world factoring volume with €124 billion witnessed an increase of +44%. The top three players of this region are Chile (+41%), Brazil (+33%), and Mexico (+112%).
North America, with close to 3% share of the total world factoring volume with €104 billion, displayed a marked improvement increasing +7% compared to 2021. Canada increased by 15% and USA by 7%.
Africa represents 1% share of the total world factoring volume. The total market adds up to a total of €41 billion indicating also a significant growth rate of 29% compared to 2021, about the same increase compared to the previous year. South Africa, the largest market accounting for over 80% of the entire volume on the continent witnessed a staggering increase of 38%, certainly an indication that the African market continue its strong growth trajectory into the foreseeable future.
The Middle East, representing 0.3% of the global factoring volume has shown an increase of 2% compared to 2021. The most significant increase was seen in Israel with a 5% growth.
Considering the continuation of a challenging global environment, the FCI market survey results demonstrated the strength and resilience of the factoring and receivables finance industry in 2022, with a staggering 18.3% growth rate over 2021. The expected state of normalcy has been confirmed as we witnessed this significant turnaround in global factoring volume. The concerns shown a year ago regarding the effect of an increase in credit risk in the second half 2022 in part due to the withdrawal of state support, the increase in inflation and interest rates, the conflict in Eastern Europe, and the continued impact of the pandemic particularly felt in Asia have not been reflected in our industry statistics. On the contrary, the increase demonstrates the importance our industry plays for SMEs and corporates globally. It will certainly be remembered as the best year of the century!