COMMERCIAL OR CORPORATE CARD MARKET ANALYSIS

Regional Analysis

North America held dominant position in the commercial or corporate card market in 2017

North America held dominant position in the market in 2017 and is expected to retain its dominance throughout the forecast period. Rising trend of digitalization and the region being early adopter of novel technologies are major factors aiding in growth of the market in this region. High adoption of commercial cards by various buyers and suppliers has become a major trend in the market in this region, as buyers are shifting from physical checks to electronic payment options. Moreover, electronically generated virtual card numbers are being increasingly adopted as a highly effective purchasing tool by various organizations in the U.S. According to the National Automated Clearinghouse Association, in the U.S., business-to-business electronic payment transactions witnessed an increase of 5.6% from 2016 to 2017.

Figure. Global Commercial or Corporate Card Market Share (%), by Region, 2017

Asia Pacific commercial or corporate card market is expected to witness considerable growth during the forecast period. Increasing business travel spending in Asia Pacific region is a major factor driving growth of the commercial or corporate card market. According to Coherent Market Insights’ analysis, the spending on business trips in Asia Pacific region is expected to reach US$ 900 Bn by 2026, which was US$ 494 Bn in 2015. Moreover, Asia Pacific accounted for 40% of the global business travel spending in 2015, according to Coherent Market Insights’ analysis. China is one of the major countries that holds largest share in business travel spending in Asia Pacific. According to Coherent Market Insights’ analysis, China accounts for a share of 59% of the total Asia Pacific business travel spending. This increasing business travel spending increases demand for travel cards, which is expected to accelerate growth of the market in Asia Pacific region.