by Treasury management refers to the management of capital, debt, currency and other financial operations within a company. It involves liquidity management, cash and liquidity planning, cash positioning and forecasting as well as payments and collections. Treasury management solutions help companies in streamlining daily cash activities, managing investments more effectively and lowering costs. They provide enhanced visibility into cash positions and mobility of funds to help businesses maximize liquidity. Rising focus on liquidity management amid economic uncertainties has propelled the demand for treasury management solutions in recent years.
The global treasury management market is estimated to be valued at US$ 5.1 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The market is primarily driven by growing adoption of treasury management solutions by enterprises to efficiently manage their cash flows, payments, collections and liquidity. These solutions help businesses in gaining real-time insights into cash positions, optimizing working capital as well as detecting and preventing financial risks and frauds.
Market Dynamics:
As highlighted in the heading, the treasury management market is expected to be flourished by growing focus on liquidity management. Effective liquidity management is critical for businesses amid uncertain market conditions to ensure adequate funds are available to meet short-term operating expenses and obligations. Treasury management solutions provide enhanced visibility into current and forecasted cash positions to help companies optimally manage their liquidity. Another key driver for the market growth is the rising adoption of cloud-based treasury management software. Cloud deployment enables remote access to treasury solutions, eliminates upfront capital costs and improves scalability. This factor has significantly boosted the demand for SaaS-based treasury management systems in recent years. Cloud systems also facilitate easy integration of treasury management with other financial applications to streamline operations.
Segment Analysis
The treasury management market is dominated by the banking segment which holds more than 45% share of the overall market. Banking institutions widely adopt treasury management solutions for effective cash management. Banks need advanced treasury management solutions to manage high volumes of transactions involving collection, payment and cash management on a daily basis. Effective cash management solutions help banking institutions in reducing costs, improving operational efficiency and compliance with regulations.
PEST Analysis
Political: Regulations around fraud detection, AML and KYC compliance have increased in recent years which is driving demand for advanced treasury management solutions in the banking sector.
Economic: Growth in banking, financial services and insurance industries along with rising transactions volumes is a key factor positively impacting the treasury management market.
Social: Increased digitalization and demand for omnichannel banking experiences from customers is compelling banks to integrate treasury management solutions with other core banking platforms.
Technological: Adoption of AI, ML and analytics is allowing treasury management solutions to offer advanced features like fraud detection, predictive modeling and customized insights.
Key Takeaways
The Global Treasury Management Market Size was valued at US$ 5.1 Bn in 2023 and is expected to reach over US$ 8 Bn by 2030, expanding at a CAGR of 6.8% during the forecast period.
Regional analysis: North America dominated the global market in 2023 with over 35% share owing to widespread digital transformation in the banking sector in countries like US and Canada. Asia Pacific is anticipated to be the fastest growing region during the forecast period supported by presence of emerging economies like India and growing banking industry in the region.
Key players operating in the treasury management market are ABB Ltd., NXP Semiconductors N.V., Bel Fuse Inc., Larsen & Toubro Limited, Schneider Electric SE, Rockwell Automation, Inc., Mitsubishi Electric Corporation, Siemens AG, Eaton Corporation plc., and General Electric Company. Key players are focusing on integrating AI capabilities and offering cloud-based solutions to gain competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
