DUBLIN, Oct. 30, 2024 (Globe Newswire) — The “Foreign Exchange – Global Strategic Business Report” report has been added to ResearchAndMarkets.com’s offering.
The global market for foreign exchange was estimated at USD 791.2 billion in 2023 and is projected to reach USD 1.4 trillion by 2030, growing at a CAGR of 8.7% from 2023 to 2030. This comprehensive report provides a detailed analysis of market trends. Provide drivers and forecasts to help you make informed business decisions.
The foreign exchange (FX) market plays a vital role in global finance due to its important function of facilitating international trade, investment, and financial transactions. The world’s largest and most liquid financial market, with more than $6 trillion in daily trading volume, the foreign exchange market enables the exchange of currencies essential to businesses, governments, and individuals operating across borders.
What is driving the growth of the global foreign exchange market?
The growth of the global foreign exchange market is driven by several key factors, including increasing international trade volumes, expanding global investments, advances in trading technology, and the rise of retail trading. One of the main drivers is the growth of international trade and cross-border business activities, which require foreign exchange.
As globalization increases, businesses and governments need efficient foreign exchange markets to facilitate trade, settle international transactions, and hedge currency fluctuations. The expansion of e-commerce and the rise of multinational corporations have further increased the need for efficient exchange systems as businesses operate in multiple currencies in different markets.
The growth of global financial markets and cross-border investments is also contributing to the expansion of the foreign exchange market. Institutional and retail investors alike are increasingly participating in foreign exchange trading as part of a broader investment strategy. Global financial institutions, hedge funds, and investment companies use the foreign exchange market to take advantage of currency fluctuations, diversify their portfolios, and reduce the risks associated with fluctuations in currency values.
Additionally, the rise in foreign direct investment (FDI) and global mergers and acquisitions has increased the demand for foreign exchange trading as companies need to exchange currencies to complete cross-border transactions. . As international investment flows increase, the volume of foreign exchange trading also increases, driving market expansion.
Advances in technology, particularly the rise of electronic and mobile trading platforms, have democratized access to the foreign exchange market, allowing individual retail traders to participate alongside institutional investors. The introduction of low-cost, user-friendly platforms has led to a surge in retail trading, with individual traders now accounting for a significant portion of daily Forex trading. These platforms provide retail investors with real-time data, charting tools, and educational resources, allowing them to trade from anywhere in the world. Buoyed by easy access to trading platforms and a broader understanding of the foreign exchange market, the participation of retail traders has increased, further accelerating the growth of the market.
Additionally, globalization and the increasing complexity of global supply chains are increasing the need for foreign exchange solutions. Multinational companies are exposed to currency risk in their daily operations, and the ability to hedge against exchange rate fluctuations is critical to maintaining profitability. Businesses rely on foreign exchange markets to reduce the risks associated with exchange rate fluctuations that can affect revenues and operating costs. Central banks also participate in the foreign exchange market to stabilize their national currencies, maintain foreign exchange reserves, implement monetary policy, and further contribute to market growth and liquidity.
Expanding international trade, increased cross-border investment, advances in trading technology, and increased retail participation are combining to drive the rapid growth of the global foreign exchange market. As globalization and digitalization continue to shape the future of finance, foreign exchange markets are poised for further expansion, becoming an integral part of the world’s economic infrastructure and investment strategies.
Key insights:
Market Growth: Understand the significant growth trajectory of the reported dealer segment, expected to reach USD 717.1 billion by 2030 at a CAGR of 9.7%. The non-financial customer segment is also expected to grow at a CAGR of 7.0% during the analysis period. Regional analysis: Gain insight into the US market, estimated at $215.6 billion in 2023, and the Chinese market, expected to grow by an impressive 12.2%. The CAGR is expected to reach $297.9 billion by 2030. Check out growth trends in other key regions such as Japan, Canada, Germany, and Asia Pacific.
Report features:
Comprehensive market data: Independent analysis of annual sales and market forecasts (USD million) from 2023 to 2030. Detailed regional analysis: Detailed insights into key markets including the US, China, Japan, Canada, Europe, Asia Pacific, and Latin. America, Middle East, Africa. Company Profile: Covers major players in the foreign exchange market such as Barclays Bank Plc, BNP Paribas CIB, CurrencyFair, Deutsche Bank AG and FXCM. Free updates: Receive 1 year of free report updates. We will keep you informed of the latest market trends.
Key attributes:
Report Attribute Details No. Number of Pages 186 Forecast Period 2023 – 2030 Estimated Market Value in 2023 (US$) 791.2 billion US$ Predicted Market Value by 2030 (US$) 140 Billion US$ Average Annual Growth Rate 8.7% Target Region Worldwide
Main topics covered:
Market overview
Influencer Market Insights Global Market Trajectory Forex – Key Competitors in the World Market Share Percentage in 2024 (E) Competitive Market Presence – Strong/Active/Niche/ for Players Worldwide in 2024 Ordinary (E)
Market trends and drivers
Globalization and increased cross-border trading are driving the growth of the foreign exchange market The growing popularity of online foreign exchange trading platforms expands the addressable market opportunity Case Summary: Growth in e-commerce and digital payments is driving the growth of the foreign exchange market Bodes well for expansion in trading solutions Growing focus on real-time forex analytics will drive demand for advanced forex analytics Trading solutions Increased adoption of blockchain technology and cryptocurrencies will expand opportunities for forex innovation AI and machine learning Technological innovations drive foreign exchange risk management solutions Increasing demand for foreign exchange hedging in global supply chains drives market adoption popularity drives retail forex market expansion
Focus on selected players: Some of the 45 companies profiled in this Forex market report include:
Barclays Bank PlcBNP Paribas CIBCurrencyFairDeutsche Bank AGFXCMGoldman Sachs & Co. LLCHSBC Holdings PlcICICI Bank Ltd.Joyalukkas ExchangeLuLu Forex Pvt. Ltd.
For more information about this report, please visit https://www.researchandmarkets.com/r/yk5io8.
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