treasury and risk management Market

The global treasury and risk management market is expected to grow from US$ 4739.39 million in 2021 to US$ 7156.90 million by 2028; it is estimated to grow at a CAGR of 6.1% during 2021-2028.

The treasury and risk management market is expanding in North America and Europe, driven by the growth of the technology and automotive sectors. In North America, the technology industry's rise has led to greater adoption of treasury and risk management solutions as smart companies recognize their importance in providing financial advice and sustainability. Efficient cash management and payment collection methods are also essential for the rapid expansion of tech firms. Meanwhile, Europe's automotive sector is also experiencing growth, resulting in increased demand for treasury and risk management services. Benefits such as efficient cash management tools, scalability, and comprehensive finance and treasury transformation programs have contributed to this trend. Consequently, the demand for treasury and risk management solutions and services is growing in these regions due to the expanding technology and automotive industries.

The treasury and risk management market in the Asia-Pacific (APAC) region is expanding due to the growth of the banking sector. Notably, banks such as China Merchants Bank Co. Ltd., China Construction Bank Corp., Bank of China Ltd., and Agricultural Bank of China Ltd. have experienced significant market capitalization growth. Additionally, the number of banks in the region is rising, creating a substantial opportunity for players in the treasury and risk management market to provide their solutions and services.

The treasury and risk management market is experiencing growth in the Middle East and Africa (MEA) and South America (SAM) due to the expansion of the manufacturing sector in these regions. The development of the manufacturing sector is supported by factors such as the fourth industrial revolution (4IR) and government initiatives like Saudi Arabia's Vision 2030, Bahrain's Economic Vision 2030, Abu Dhabi's Economic Vision 2030, and Dubai's Industrial Strategy 2030 in the UAE. As the manufacturing sector grows in these regions, there is an increasing demand for treasury and risk management solutions and services. These solutions and services are particularly effective in managing cash in the manufacturing sector, including payment processing, account analysis, and statements. Additionally, outsourced treasury management solutions that offer managed bank connectivity are in high demand.

Impact of COVID-19 Pandemic on Global Treasury and Risk Management Market

Before the COVID-19 pandemic, the rising trend towards digitalization drove demand for treasury and risk management solutions and services. As an example, Business Wire reported in April 2019 that spending on digital transformation reached US$1.18 trillion in 2019, representing a 17.9% increase from 2018.

In 2020, the COVID-19 pandemic significantly impacted businesses and their operations, according to the treasury and risk management market analysis. In response to the crisis, many countries imposed lockdowns, leading to a surge in the adoption of digital technologies to keep enterprises running. As a result, businesses shifted towards cloud infrastructure and continued their operations while complying with lockdown restrictions. The pandemic also prompted companies to consider the future of corporate treasury in light of digitization, integrated risk management, and a renewed focus on cost optimization and cash management. Consequently, there was an increase in the adoption of treasury and risk management solutions and services in 2020, leading to a positive impact on the overall market.

The analysis of the treasury and risk management market in 2021 and 2022 indicates that the relaxation of lockdown measures, the increasing adoption of cloud technologies by businesses, and the adoption of automation technologies like AI and machine learning for cash management have had a positive impact on market growth. A case in point is the collaboration between Refinitiv and IBSFINtech in May 2021 to launch a cloud-based automated treasury management solution called InTReaX. This solution offers cash and liquidity management and currency risk management. The growing adoption of cloud-based treasury management solutions among businesses is expected to create multiple opportunities for market players.

In 2019, the treasury and risk management market size was recorded at US$ 4,337.46 million, while in 2020, during the COVID-19 pandemic, it grew to US$ 4,526.57 million. Additionally, in 2021, the market size further increased to US$ 4,739.39 million. This indicates that despite the pandemic, the treasury and risk management market witnessed growth in 2020, resulting in a positive impact on market share.

The treasury and risk management market is categorized into solution and services segments based on component, with the solution segment having a larger share in 2020. The deployment segment is separated into cloud-based and on-premises, with the cloud-based segment leading the market in 2020. Based on enterprise size, the market is classified into small & medium-sized enterprises and large enterprises, with the latter accounting for a larger market share in 2020. The market is also segmented by application into account management, cash & liquidity management, compliance & risk management, and financial resource management, with cash & liquidity management having the largest share in 2020. The end-user segment includes BFSI, IT & telecom, retail & ecommerce, healthcare, manufacturing & automotive, and others, with the BFSI segment leading the treasury and risk management market with the largest share in 2020. Geographically, the market is divided into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with the North America segment leading the market in 2020.

The treasury and risk management market analysis is based on a combination of primary and secondary research methodologies. The research process began with comprehensive secondary research, utilizing internal and external sources to gather both qualitative and quantitative information on the market. This process helped in gaining an overview and forecast for the treasury and risk management market across all segments and regions. Additionally, primary interviews were conducted with industry experts and analysts to validate the data and obtain further insights. These industry participants included VPs, business development managers, market intelligence managers, national sales managers, valuation experts, research analysts, and key opinion leaders with specialization in the treasury and risk management market.

The key companies operating in the treasury and risk management market include Broadridge Financial Solutions, Inc.; FIS; Oracle Corporation; Pricewaterhousecoopers International Limited (PWC); SAP SE; Fiserv, Inc.; Calypso Technology, Inc (Adenza); Kyriba Corp; Mors Software; and Wolters Kluwer.