The global letter of credit (L/C) confirmation market generated US$3.91 billion in 2020. It is projected to generate US$5.09 billion by 2031, and grow at an annual rate of 2.7 per cent between 2021 and 2030, according to a new report published by Allied Market Research.

The report takes a look at the impact of the Covid-19 pandemic on the L/C confirmation market, and analyses leading market players, including Bank of America, Citigroup, DBS Bank, JPMorgan Chase, MUFG Bank, Mizuho Bank, Scotiabank and Standard Chartered.

Segmental analysis

The report offers a detailed segmentation of the global L/C confirmation market based on L/C type, end user, and region.

Based on type, sight L/Cs held the largest share of the confirmation market in terms of revenue in 2020, and are expected to continue to dominate this market segment during the forecast period.

End-users and regions

Based on end-users, large enterprises accounted for the largest share in 2020. Companies in several sectors, including healthcare, media, technology, power and utilities, have been the major adopters of L/C services in recent years.

Based on region, Asia-Pacific has the largest share of the confirmation market. As traders in the region still depend on L/C services, the region is expected to continue to hold the largest market share over the forecast period.

Covid-19 impact

The report takes a look at how the Covid-19 pandemic, exacerbated by several government's opting to enact strict trade restrictions, has had a negative impact on L/C confirmation market trends.

The pandemic and these restrictions resulted in geopolitical tensions and a rapid shift in trading patterns, which depressed demand for L/C confirmation products, the report concludes.

Further details on the report, Letter of Credit Confirmation Market by L/C Type and End User: Global Opportunity Analysis and Industry Forecast, 2021-2030, can be found here.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.