Dublin, Feb. 04, 2025 (GLOBE NEWSWIRE) — The “United States Credit Agency Market, By Region, Competition, Forecast and Opportunities, 2020-2030F” report has been added to ResearchAndMarkets.com’s offering.
The United States Credit Agency Market was valued at USD 17.73 Billion in 2024, and is expected to reach USD 24.81 Billion by 2030, rising at a CAGR of 5.82%.
The growing demand for credit cards is expected to drive the expansion of the credit agency market in the near future. Credit cards serve as alternatives to cash or checks, typically offering an unsecured revolving line of credit. Credit card issuers frequently share cardholder activity data with credit agencies, aiding in the assessment of individual creditworthiness.
This data plays a crucial role in determining loan eligibility and provides added benefits, including unlimited rewards, insurance coverage, discounts, cashback, and improved credit scores. Additionally, the adoption of blockchain technology is becoming an important trend in the credit agency market. According to the latest consumer debt data from the Federal Reserve Bank of New York, Americans’ total credit card balance reached USD1.166 trillion in the third quarter of 2024. This is an increase from USD1.142 trillion in the second quarter of 2024 and marks the highest balance recorded.
Technological Advancements in Rating Methodologies
Technological innovation is transforming the credit rating industry, with agencies increasingly adopting advanced tools like artificial intelligence (AI), machine learning (ML), and big data analytics. These technologies are enabling more accurate and efficient credit assessments by processing vast amounts of financial and non-financial data in real-time. For example, AI algorithms can analyze historical data, economic trends, and even social media sentiment to better predict credit risks.
This trend is particularly valuable in evaluating complex financial instruments, such as collateralized debt obligations (CDOs) and asset-backed securities (ABS), which require extensive data analysis. By incorporating these technologies, credit agencies can improve the accuracy of their ratings, reduce human error, and offer faster insights to investors. Moreover, automation helps agencies manage the growing volume of credit ratings more efficiently, improving the scalability of their operations and allowing them to stay competitive in a rapidly evolving market.
Shift Toward Independent and Niche Credit Rating Agencies
While the “Big Three” credit rating agencies (Moody’s, S&P, and Fitch) continue to dominate, there is a growing trend toward independent and niche credit rating agencies. These smaller agencies focus on specialized markets, such as municipal bonds, green bonds, or emerging markets, offering more tailored and focused credit assessments. Independent agencies are capitalizing on their ability to provide unbiased, transparent ratings and serve niche sectors that the larger agencies may overlook.
This trend is fueled by the desire for more diverse opinions on credit risk, as investors seek alternatives to the ratings from the established agencies, particularly after the 2008 financial crisis, which led to concerns about conflicts of interest and rating accuracy. As investors demand more specialized ratings, independent and niche agencies are gaining traction, providing valuable competition and enhancing the overall credibility of the credit rating market. This trend may encourage innovation and better transparency in the sector.
Segmental Insights
Client Type Insights
In the United States Credit Agency Market, commercial clients are the leading segment in terms of demand for credit rating services. Commercial entities, including corporations, financial institutions, and government bodies, require credit ratings for a variety of purposes, including issuing bonds, securing loans, and meeting regulatory requirements. These clients typically represent large-scale operations with complex financial structures, making accurate credit assessments crucial for their financial stability and investor confidence.
Credit rating agencies play a vital role in providing independent evaluations of commercial creditworthiness, which influences the terms and conditions of debt issuance and financing options. While individual clients, such as consumers seeking credit scores for personal loans or mortgages, do contribute to the market, the volume and significance of commercial clients’ needs drive the market’s size and growth. Commercial clients often engage credit agencies for ongoing monitoring of creditworthiness and for evaluating risk in large investment portfolios, further cementing their dominance in the credit agency market.
Regional Insights
The Northeast region dominated the United States Credit Agency Market due to its strong economic infrastructure, high concentration of financial institutions, and proximity to major global financial hubs. Cities like New York, home to Wall Street, serve as the financial capital of the country, hosting a significant number of credit agencies, investment banks, and regulatory bodies.
This region benefits from a large pool of commercial clients, including multinational corporations, government entities, and institutional investors, who rely on credit agencies for accurate risk assessments and ratings for debt issuance and investment decisions. Furthermore, the Northeast’s established financial ecosystem fosters a competitive environment, with credit agencies offering a wide range of services, including corporate credit ratings, municipal bond ratings, and structured finance evaluations. The region’s economic prominence, coupled with its deep financial market infrastructure, continues to drive the demand for credit agency services, making it the leading market in the United States.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 85 |
| Forecast Period | 2024 – 2030 |
| Estimated Market Value (USD) in 2024 | $17.73 Billion |
| Forecasted Market Value (USD) by 2030 | $24.81 Billion |
| Compound Annual Growth Rate | 5.8% |
| Regions Covered | United States |
Report Scope:
Key Market Players
- Equifax Inc.
- Trans Union LLC
- Experian PLC
- Fair Isaac Corp.
- Moody’s Corporation
- Fitch Group, Inc.
- S&P Global Inc.
- KBRA Holdings, LLC
- Morningstar DBRS
- A.M. Best Company, Inc
- Company Details
- Products & Services
- Financials (As Per Availability)
- Key Market Focus & Geographical Presence
- Recent Developments
- Key Management Personnel
SWOT Analysis
- Strength
- Weakness
- Opportunity
- Threat
United States Credit Agency Market, By Client Type:
United States Credit Agency Market, By Vertical:
- Direct-To-Consumer
- Government and Public Sector
- Healthcare
- Financial Services
- Software and Professional Services
- Media and Technology
- Automotive
- Telecom and Utilities
- Retail and E-Commerce
- Others
United States Credit Agency Market, By Region:
- South
- West
- Midwest
- Northeast
For more information about this report visit https://www.researchandmarkets.com/r/5toar
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- U.S. Credit Agency Market
