The B2B payments market is set for significant growth, projected to reach a staggering $313,947.8 billion by 2031, according to a recent report published by Allied Market Research.
This forecast underscores the increasing demand for digitalisation and automation in B2B payment systems, driven by the need for seamless networking and connectivity among businesses, suppliers, wholesalers, and retailers.
The escalating trend of digitalisation and automation, coupled with the expansion of global trade and cross-border transactions, are key drivers propelling the growth of the B2B payments market. However, challenges such as rising fraud in business payments and disruptions caused by the COVID-19 pandemic hinder market expansion. Despite these challenges, advancements in digitalisation and automation are anticipated to present lucrative opportunities for market growth during the forecast period.
Market Growth and Projections
According to the report, the global B2B payments market was valued at $125,432 billion in 2021 and is expected to grow at a CAGR of 9.9% from 2022 to 2031, reaching a market value of $313,947.8 billion by 2031. The rapid adoption of automation and digitalisation, along with strategies to expand businesses, are major determinants fuelling market growth. However, fraud in business payments and disruptions caused by the pandemic pose challenges to market expansion.
The report highlights that the domestic payments segment held the largest share in 2021, accounting for over two-thirds of the global B2B payments market. However, the cross-border payments segment is projected to witness the highest CAGR of 11.8% during the forecast period, driven by enhanced financial security and technological advancements. Additionally, small-sized enterprises are expected to exhibit the highest CAGR of 13.1%, attributed to the increasing adoption of B2B payment technology among smaller businesses.
Industry Verticals and Regional Dominance
In terms of industry verticals, the manufacturing segment dominated the market in 2021, leveraging enterprise blockchain technology to streamline processes and mitigate payment frauds. However, the IT and telecom segment is projected to register the highest CAGR of 15.1% during the forecast period, driven by advancements in cybersecurity and analytics tools. Regionally, Asia-Pacific leads the market, accounting for nearly two-fifths of the global B2B payments market in 2021 and expected to maintain its dominance throughout the forecast period.
The forecasted growth of the B2B payments market underscores the increasing importance of digitalisation and automation in streamlining business transactions and fostering global connectivity among enterprises. As businesses strive to navigate evolving challenges and harness emerging opportunities, the B2B payments landscape is poised for significant transformation in the coming years.
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