by Treasury management refers to the strategies and systems adopted by organizations to effectively manage their cash inflows and outflows. Treasury management solutions help maximize cash availability and optimize overall liquidity by providing tools for cash positioning, payments and collections, liquidity management, and bank relationship management. They empower finance teams with real-time visibility into cash balances across accounts located globally to facilitate data-driven liquidity decisions. By automating routine cash management tasks and centralizing financial data on integrated platforms, treasury management solutions help reduce costs, improve efficiency, and mitigate risks associated with manual processes.
The global treasury management market is estimated to be valued at US$ 5.88 Mn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends shaping the treasury management market size is the rising adoption of cloud-based solutions. Cloud-based treasury management provides on-demand access to cash visibility and liquidity management tools from any internet-connected device, enabling finance teams to make decisions remotely. It eliminates the need for costly on-premise infrastructure and reduces IT maintenance expenses. Moreover, cloud-based deployment allows seamless integration of treasury management capabilities with other back-office applications via APIs. This facilitates data exchange and automates inter-departmental processes to enhance efficiency. As adoption of cloud-based applications grows across industries, demand for cloud-based treasury management is expected to increase markedly over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the treasury management market is moderate. Established players have significant resources and economies of scale. However, switching costs are relatively low for customers.
Bargaining power of buyers: The bargaining power of buyers in the treasury management market is high. Buyers have a variety of options to choose from and switching between providers is simple. This forces providers to offer competitive pricing and tailored solutions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While suppliers of key components have expertise, the needs of treasury management solutions are standardized. This keeps supplier power in check.
Threat of new substitutes: The threat of substitutes is low. While some specialized point solutions exist, integrated treasury management platforms provide unique functionality across the treasury functions.
Competitive rivalry: The competitive rivalry in the market is high. Major players compete on the basis of pricing, innovation, functionality, and services. This drives companies to invest more in R&D and customer experience.
Key Takeaways
The global treasury management market is expected to witness high growth over the forecast period.
North America holds the largest share of the market currently due to high adoption by large enterprises in the region. Growing penetration of advanced technologies as well as stringent regulatory compliances around cash, debt, and risk management are supporting regional market growth.
Key players operating in the treasury management market include 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. The major players are focusing on new product launches and partnerships to expand their global reach.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
