Bond Market to Grow with a CAGR of 2.8% through 2030
The
bond market’s growth is fuelled by infrastructure investment, corporate
financing demand, and investor pursuit of stable returns amidst evolving global
economic dynamics and innovative financial trends.
According to
TechSci Research report, “Bond Market - Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2030F”, the global bonds market was valued at
USD 141.34 Trillion in 2024 and is expected to reach USD 166.81 Trillion by
2030 with a CAGR of 2.8% during the forecast period. The
bond market continues to thrive, driven by robust global economic growth and
the increasing need for infrastructure financing. However, challenges such as
rising interest rates and geopolitical uncertainties underscore the need for
resilience and adaptability among market participants. Innovative trends,
including the growth of green bonds and the adoption of blockchain technology,
position the bond market for sustainable and efficient growth in the coming
years.
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"Global Bond Market.”
The bonds market
is segmented into issuer, type, sector and region.
Among the bond
market segments classified by sector, Non-Financial Corporations stand out as
the fastest-growing category. This growth is driven by a combination of
factors, including corporate expansion, low interest rate environments in
recent years, and increased investor appetite for higher-yield instruments. Non-financial
corporations, spanning industries such as technology, healthcare, energy, and
manufacturing, have increasingly turned to the bond market to raise capital for
expansion, mergers, and acquisitions. The availability of affordable debt has
enabled these corporations to issue bonds at competitive rates, fueling the
segment's growth. Large multinational companies often use bond issuance as a
strategic tool to refinance existing debt, manage working capital, or invest in
growth initiatives. Compared to
government-backed entities and financial corporations, bonds issued by
non-financial corporations generally offer higher yields, making them
attractive to investors seeking enhanced returns. This is particularly
appealing in a low-yield environment, where investors are willing to take on
slightly higher credit risk for better income prospects.
The rapid
development of emerging markets has also contributed to the expansion of this
segment. Non-financial corporations in countries like China, India, and Brazil
are leveraging the bond market to tap into global capital pools. These issuers
provide opportunities for diversification and often operate in high-growth
industries, further enticing investors. Many non-financial corporations are
issuing green and sustainability-linked bonds to finance eco-friendly projects.
This aligns with the growing emphasis on Environmental, Social, and Governance
(ESG) considerations, adding a layer of attractiveness to this segment for
socially conscious investors. The
non-financial corporation segment is experiencing robust growth due to its
diverse issuance opportunities, higher yields, and alignment with global
investment trends, positioning it as a dynamic and rapidly expanding sector
within the bond market.
Based
on region, The Asia-Pacific
(APAC) region is the fastest-growing segment in the global bond market, driven
by several key factors such as rapid economic development, infrastructure
investment, and the growing influence of emerging markets. First, the region's
economic expansion is creating significant demand for capital, both for
government initiatives and private-sector growth. As economies like China and
India continue to scale up, their infrastructure needs—spanning transportation,
energy, and urban development—are fuelling a surge in bond issuance.
Governments and corporations in these countries are increasingly relying on the
bond market to finance large-scale projects, contributing to the region’s
growth in bond issuance. The rising prominence of emerging markets further
accelerates this growth. China has emerged as a major issuer of both sovereign
and corporate bonds, as it continues its transition to a consumption-driven
economy. India is also increasing its bond market participation, with
government bonds playing a critical role in funding its ambitious
infrastructure development plans. Additionally,
the region is attracting global investors seeking higher yields and
diversification opportunities compared to more mature markets. The shift toward
green bonds, sustainability-linked bonds, and other socially responsible
investment products further bolsters the region’s market appeal, positioning
the Asia-Pacific as a rapidly expanding and dynamic player in the global bond
landscape.
Major companies
operating in the global bonds market are:
- Apple Inc.
- Microsoft Corporation
- AT&T Inc.
- Amazon.com Inc.
- Verizon Communications
- Toyota Motor Corporation
- General Electric
- Saudi Aramco
- Berkshire Hathaway
- Nestle S.A.
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“A key trend in
the bonds market is investors
are increasingly looking toward emerging markets to achieve higher yields and
diversification. These markets, driven by economic growth and improving credit
profiles, offer attractive opportunities compared to the low or negative yields
in many developed nations. However, this trend is accompanied by higher risks,
such as currency fluctuations and political instability, prompting investors to
demand robust risk assessment and mitigation strategies. “Said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based management consulting firm.
"Bond Market – Global
Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Issuer
(Public Sector Issuers, Private Sector Issuers), By Type (Treasury Bonds, Municipal Bonds, Corporate
Bonds, High-Yield Bonds, Mortgage-Backed Securities, Others), By Sector (Government Backed Entities, Financial
Corporations, Non-Financial Corporations, Others), By Region &
Competition, 2020-2030F”, has evaluated the future growth potential of global
bonds market and provides statistics & information on market size,
structure and future market growth. The report intends to provide cutting-edge
market intelligence and help decision makers take sound investment decisions.
Besides, the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the global bonds market.
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