United States Credit Agency Market Size (2024 - 2029)

The United States Credit Agency Market is projected to experience growth over the forecast period, driven by the essential role of credit rating agencies in assessing the creditworthiness of entities and financial products. Despite the market's expansion, challenges such as managing conflicts of interest due to the 'issuer-pay' model and concerns over the accuracy of ratings, particularly in structured finance, persist. The market is characterized by a high concentration of National Recognized Statistical Rating Organizations, which face scrutiny over their rating practices. In response to these challenges, credit agencies are investing in advanced analytics and unconventional data sources to enhance their risk assessments and fraud detection capabilities, addressing rising consumer concerns about identity theft and financial security.

Market Size of United States Credit Agency Industry

United States Credit Agency Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 17.59 Billion
Market Size (2029) USD 23.10 Billion
CAGR (2024 - 2029) 5.90 %
Market Concentration High

Major Players

United States Credit Agency Market Major Players

*Disclaimer: Major Players sorted in no particular order

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United States Credit Agency Market Analysis

The United States Credit Agency Market size is estimated at USD 17.59 billion in 2024, and is expected to reach USD 23.10 billion by 2029, growing at a CAGR of 5.90% during the forecast period (2024-2029).

Credit rating agencies, such as National Recognized Statistical Rating Organizations (NRSROs), play a crucial role in assessing the creditworthiness of entities and financial products. They gauge the ability to meet financial obligations promptly, providing pivotal insights for investors. However, the market is highly concentrated, with only ten NRSROs by the end of 2023. Credit rating agencies face a significant challenge in managing conflicts of interest, primarily due to the prevalent 'issuer-pay' model. This model can incentivize agencies to offer overly optimistic ratings to retain clients, potentially compromising the ratings' accuracy.

Despite the rising demand for credit ratings, there have been concerns, especially in structured finance. While agencies have expanded their risk assessments, there have been instances, notably during the financial crisis, where ratings failed to reflect the true risks. Securities on the brink of bankruptcy were still receiving high ratings, raising questions about the reliability of these assessments. Credit agencies are investing significantly in advanced analytics and fraud detection models to combat evolving fraud. By leveraging unconventional data sources, like social media and device information, credit agencies can paint richer consumer profiles, aiding in spotting irregularities. With rising identity theft concerns, consumers are increasingly turning to protection services.

United States Credit Agency Industry Segmentation

A credit agency is a for-profit entity that gathers data on individuals' and businesses' debts. It then evaluates this data to generate a credit score, a numerical representation of the borrower's creditworthiness. United States credit agencies are segmented by client type and vertical. By client type, the market is segmented into individual and commercial, and by vertical, the market is segmented into 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, and other vertical types. The report offers market size and forecasts for the United States credit agency market in terms of value (USD) for all the above segments.

By Client Type
Individual
Commercial
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
Other Verticals
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United States Credit Agency Market Size Summary

The United States credit agency market is poised for significant growth over the forecast period, driven by the increasing demand for credit ratings and risk assessment tools. Credit rating agencies, particularly National Recognized Statistical Rating Organizations, play a vital role in evaluating the creditworthiness of entities and financial products, offering essential insights for investors. Despite the market's concentration, with a few major players dominating, the sector faces challenges such as managing conflicts of interest due to the 'issuer-pay' model. This model can lead to overly optimistic ratings, raising concerns about their accuracy. In response to these challenges, credit agencies are investing in advanced analytics and fraud detection models, utilizing unconventional data sources to enhance consumer profiles and improve credit scoring accuracy.

Economic expansion further fuels the demand for credit reports and scores, as financial institutions increase lending activities. This growth prompts credit agencies to develop new scoring models and risk tools, leveraging richer datasets and fresh data sources to refine their assessments. The stable economic environment encourages credit agencies to explore new market segments and invest in cutting-edge technologies like AI and machine learning, enhancing their service offerings. The market's high barriers, including substantial investments in technology and regulatory compliance, deter new entrants, allowing major players to maintain their competitive edge. As the demand for credit reports, scoring models, and risk tools rises, credit agencies are well-positioned to capitalize on the economic upswing, driving revenue and profitability.

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United States Credit Agency Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

      1. 1.1.1 Demographic and Macroeconomic Factors Impacting Rating Agencies in the US Industry

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Demands Of Credit Reports With Increasing Fraud And Cyber Threats

    3. 1.3 Market Restraints

      1. 1.3.1 Conflict Of Interest In Credit Rating Agency Business Model

    4. 1.4 Regulatory Landscape and Industry Policies Impacting the Market

    5. 1.5 Key Technological Advancement Shaping the Market

    6. 1.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Buyers

      2. 1.6.2 Bargaining Power of Suppliers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitutes

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Insights on Consumer Debt Trends in the Market

    8. 1.8 Insights on Role of Credit Rating Agencies in Structured Finance Market

    9. 1.9 Impact of Covid-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Client Type

      1. 2.1.1 Individual

      2. 2.1.2 Commercial

    2. 2.2 By Vertical

      1. 2.2.1 Direct-to-Consumer

      2. 2.2.2 Government and Public Sector

      3. 2.2.3 Healthcare

      4. 2.2.4 Financial Services

      5. 2.2.5 Software and Professional Services

      6. 2.2.6 Media and Technology

      7. 2.2.7 Automotive

      8. 2.2.8 Telecom and Utilities

      9. 2.2.9 Retail and E-commerce

      10. 2.2.10 Other Verticals

United States Credit Agency Market Size FAQs

The United States Credit Agency Market size is expected to reach USD 17.59 billion in 2024 and grow at a CAGR of 5.90% to reach USD 23.10 billion by 2029.

In 2024, the United States Credit Agency Market size is expected to reach USD 17.59 billion.

United States Credit Agency Market Size & Share Analysis - Growth, Trends and Forecasts (2024 - 2029)