April 12, 2024

Commercial or Corporate Card Market is Estimated to Witness High Growth Owing to Increasing Demand from Corporates for Expense Management

The commercial card market allows businesses to streamline and control expenses by consolidating spending on one card. Commercial cards offer increased visibility into spending patterns and improve cash flow management for companies through deferred payment options. Cards are used for various business expenses including travel and entertainment, purchasing, business travel, corporate entertainment, healthcare, and more.

The Global Commercial or Corporate Card Market is estimated to be valued at US$ 5.3 Billion in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period between 2024 to 2031.

Key Takeaways

Key players operating in the Commercial Card Market Size are ABB Ltd., Fuji Electric Co. Ltd., Havells India Ltd., Powell Industries, Mitsubishi Electric Corporation, CG Power and Industrial Solutions Limited, Schneider Electric, Hitachi Ltd., Siemens AG, Meidensha Corporation, Eaton Corporation PLC, and Toshiba International Corporation (Toshiba Corporation). Key players are focusing on developing cost-effective and customized commercial card solutions to gain more customers and market share.

The key opportunities in the commercial card market include rising adoption of commercial cards by small and medium enterprises to improve cash flow and expense tracking. Additionally, growing trend of cashless payments and technological advancements in payment processing are further augmenting the demand for commercial cards.

Globally, the commercial card market is expanding rapidly with growing overseas business dealings. Vendors are focusing on geographic and merchant network expansions to tap growth opportunities in developing regions including Asia Pacific and Middle East & Africa.

Market Drivers

The increasing demand from corporates for expense management solutions is fueling the growth of the commercial card market. Commercial cards offer centralized payment solutions, greater spend control, reduced processing costs, improved reporting of expenses and simplified reconciliation for businesses. Digitalization of payment processes along with innovations such as contactless payments, mobile wallets and blockchain is also driving the adoption of commercial cards globally.

PEST Analysis
Political: The commercial card market is regulated by various banking rules and regulations set by central banking authorities across nations. Changes in banking policies may impact the adoption of commercial cards.

Economic: The overall economic growth impacts corporate spending and business travel affecting demand for commercial cards. A thriving economy leads to increased corporate card usage for expenses.

Social: Younger professionals prefer commercial cards for transparency in expenses and rewards. Social trends like mobile acceptance and E-commerce drive commercial card demand.

Technological: Technologies like mobile payments, cloud-based expense management solutions are enhancing commercial card services. Data analytics helps businesses monitor spending patterns and reduce fraud. Blockchain can further optimize commercial card transactions.

Geographical concentration
North America accounts for the largest share of the global commercial card market value owing to high corporate spending. Businesses prefer commercial cards for simplified expense management and control spending in the region.

Fastest growing region
Asia Pacific region is expected to grow at the fastest pace during the forecast period due to economic development and expanding corporate sectors in major countries like China and India. Increased foreign business investments and travel in the region is propelling the demand for commercial cards in Asia Pacific.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it