The Global Foreign Exchange Services Market Size is valued at 9.67 billion in 2023 and is predicted to reach 18.27 billion by the year 2031 at a 8.31% CAGR during the forecast period for 2024-2031.
Key Industry Insights & Findings from the Report:
- The market's growth is being propelled by factors like increasing disposable incomes, fierce competition among international banks, and the flow of capital around the world.
- The rising volume of international trade, investments across borders, and the need to hedge against currency fluctuations have all contributed to the fast expansion of the global foreign exchange services sector.
- North America dominated the market and accounted for a revenue share of global revenue in 2023.
- The Foreign Exchange Services industry is notoriously difficult to break into due to its high operating costs.
Increasing urbanization and rising disposable income levels among people are major factors favoring the industry. Therefore, a substantial increase in international trade operations is driving up demand for foreign exchange (FX), which provides several benefits, such as low trading costs, strong liquidity and transactional transparency, round-the-clock trading opportunities, and significant trading volumes. In addition, there has been considerable growth in the number of international trade operations in recent years. In addition, the market is developing due to the growing trend of digitalization and the introduction of outright forward and currency options.
A positive market picture is also being produced by the development of improved electronics and numerous internet-based platforms that enable customers to exchange currencies effortlessly between nations while guaranteeing the delivery of products and services in a secure and controlled environment. Additionally, the advent of automated conversion technologies that allow stronger flexibility and comfort during currency swaps is driving the market. This is one of the factors that is driving the market.
However, businesses are concentrating on building the complete infrastructure to offer better security solutions for trading, fueling market expansion.
Recent Developments:
- In March 2024, Western Union (NYSE: WU) and Visa (NYSE: V) inked a seven-year partnership. Western Union customers can send funds to friends and family in 40 countries across five regions through Visa and bank accounts that qualify under the new agreement.
- In January 2023, The GS25 convenience store chain and GS The Fresh supermarket unit's outlets will now have kiosks for exchanging foreign currencies, according to GS Retail Co. The company's ten locations will test the use of the forex currency exchange kiosks. To meet the rising demand from travellers, the shop is installing kiosks to expand its financial service options.
Competitive Landscape:
Some of the Foreign Exchange Services market players are:
- Barclays,
- Citigroup Inc.,
- American Express Company,
- Standard Chartered,
- Deutsche Bank AG,
- JPMorgan Chase & Co.,
- Wells Fargo,
- Goldman Sachs,
- HSBC Group,
- Western Union Holdings
Market Segmentation:
The Foreign Exchange Services market is segmented by services, providers, and applications. The market is segmented based on services: Currency Exchange, Remittance Services, Foreign Currency Accounts, and Others. By the providers, the market is segmented into Banks, Money Transfer Operators, and Others. By application, the market is segmented into Businesses and Individuals.
Based On Services, The Remittance Services Segment Is Accounted As A Major Contributor In The Foreign Exchange Services Market
The remittance services segment experienced the most significant growth in terms of services. The need for remittance services has increased as a result of the growing population of migrant workers and their need to transfer money back to their home countries. Furthermore, the development of digital technology has made it simpler and more practical for people to move money across international borders through the internet and mobile platforms.
The sector for foreign currency accounts is anticipated to increase the fastest during the projection period, nevertheless. This is explained by the fact that there is a growing demand for practical foreign currency management solutions due to the rise in the number of international travelers and the expansion of the travel and tourism sector.
Businesses Segment To Witness Growth At A Rapid Rate
The increased use of digital technology has changed how foreign exchange services are provided and used, making them quicker, more practical, and available to a wider range of clients, which has contributed to the market's expansion. Furthermore, modern web platforms have made it simpler for companies to obtain foreign currency services, enabling them to compare exchange rates, start transactions, and follow the progress of payments in real time. Moreover, technology has advanced to the point that smartphone apps for using currency exchange services have been released. For instance, TransferWise is a smartphone app for currency conversion services. A mobile app from the fintech business TransferWise enables users to send money abroad swiftly and easily.
The North America Foreign Exchange Services Market Holds A Significant Revenue Share In The Region
The market for foreign exchange services in North America, a crucial component of the financial services industry that offers solutions for risk management and currency exchange to both enterprises and people, experienced the largest increase in 2022.
Large banks, other financial institutions, and specialized foreign exchange service providers dominate the industry in North America. However, Asia-Pacific is anticipated to experience the quickest growth over the forecast period. This is due to the fact that the market is becoming more comfortable and accessible for both individuals and businesses to participate in, due to the shift towards electronic and online foreign exchange services.
Foreign Exchange Services Market Report Scope:
Report Attribute |
Specifications |
Market size value in 2023 |
USD 9.67 Bn |
Revenue forecast in 2031 |
USD 18.27 Bn |
Growth rate CAGR |
CAGR of 8.31% from 2024 to 2031 |
Quantitative units |
Representation of revenue in US$ Billion, and CAGR from 2024 to 2031 |
Historic Year |
2019 to 2023 |
Forecast Year |
2024-2031 |
Report coverage |
The forecast of revenue, the position of the company, the competitive market statistics, growth prospects, and trends |
Segments covered |
Services, Providers, And Applications |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; Southeast Asia |
Competitive Landscape |
Barclays, Citigroup Inc., American Express Company, Standard Chartered, Deutsche Bank AG, JPMorgan Chase & Co., Wells Fargo, Goldman Sachs, HSBC Group, Western Union Holdings. |
Customization scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
Pricing and available payment methods |
Explore pricing alternatives that are customized to your particular study requirements. |