United States Credit Agency Market Size
| 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
*Disclaimer: Major Players sorted in no particular order |
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 Market Trends
Rising Trends In Consumer Credit Outstanding
The expanding consumer credit landscape increasingly prompts lenders to rely on credit reports to assess borrower risk. This growing reliance highlights the escalating demand for precise and detailed credit reporting. As the number of credit accounts rises, consumers become more vigilant about their credit health, leading to a surge in demand for personal credit reports. Credit agencies are responding by investing in sophisticated credit scoring models bolstered by advanced analytics and data processing capabilities. Lenders are searching for more refined risk assessment tools with increasing credit portfolios. Credit agencies are introducing specialized risk assessment services to meet this demand. Credit agencies are broadening their data collection efforts to improve credit scoring accuracy. They are now delving into alternative sources like utility payments, rental histories, and telecommunications data. Such initiatives require data, advanced processing infrastructure, and specialized expertise.
US Economy's Stability Fuels Credit Agency Innovation And Expansion
As economies expand, financial institutions ramp up lending, driving the need for credit reports and scores from agencies. A stable economy spurs financial innovation, prompting credit agencies to develop new scoring models and risk tools. Economic growth often enhances data collection and reporting practices, equipping credit agencies with richer datasets to refine their models. Furthermore, economic upswings introduce fresh data sources for credit agencies, aiding in more precise risk assessments. With the economic expansion, the financial sector witnesses a surge in complex products, underscoring the necessity for advanced risk tools from credit agencies. A stable economy bolsters investor confidence, heightening the demand for credit ratings to evaluate investment opportunities.
Economic growth frequently ushers in new market segments with distinct credit risk profiles, enabling credit agencies to broaden their services and reach new clientele. Capitalizing on this economic upswing, credit agencies are exploring untapped markets. The escalating demand for credit reports, scoring models, and risk tools directly translates into heightened revenues and profitability for these agencies. Simultaneously, a stable economic backdrop empowers credit agencies to invest in cutting-edge technologies like AI and machine learning, further elevating their services. A stable economic growth environment ultimately sets the stage for the credit agency sector to flourish, bolstering demand, refining data access, enhancing asset quality, and solidifying the industry's base.
United States Credit Agency Industry Overview
The US credit agency market is consolidated. It is dominated by a few major players, namely Experian PLC, S&P Global, Moody’s Corporation, Equifax, and TransUnion, collectively holding the lion's share. These firms wield extensive databases, deep lender relationships, and cutting-edge technology, posing formidable challenges for potential newcomers. These major players enjoy a competitive edge with their comprehensive data coverage and entrenched market presence. However, the market's high barriers, stemming from the need for substantial investments in technology, data, and regulatory compliance, deter new entrants.
United States Credit Agency Market Leaders
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Equifax inc.
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Transunion
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Experian Plc
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Fair Isaac Corp
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Moody's Corporation
*Disclaimer: Major Players sorted in no particular order
United States Credit Agency Market News
- June 2024: Equifax unveiled an education verification tool, Talent Report High School, tailored to assist employers and background screeners in confirming high school diploma details during pre-employment checks. This solution offers real-time verification of US high school diploma data, made possible by its direct integration with the National Student Clearinghouse.
- June 2024: TransUnion and Asurint Partnered to offer cutting-edge screening solutions for Multifamily Property Managers. Multifamily property managers grapple with the demanding responsibility of screening applicants. They must efficiently perform comprehensive criminal background checks while navigating stricter consumer privacy laws. TransUnion unveiled a strategic alliance with Asurint to deliver a compliance-centric approach to criminal background screening.
United States Credit Agency Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.1.1 Demographic and Macroeconomic Factors Impacting Rating Agencies in the US Industry
4.2 Market Drivers
4.2.1 Rising Demands Of Credit Reports With Increasing Fraud And Cyber Threats
4.3 Market Restraints
4.3.1 Conflict Of Interest In Credit Rating Agency Business Model
4.4 Regulatory Landscape and Industry Policies Impacting the Market
4.5 Key Technological Advancement Shaping the Market
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Bargaining Power of Buyers
4.6.2 Bargaining Power of Suppliers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Insights on Consumer Debt Trends in the Market
4.8 Insights on Role of Credit Rating Agencies in Structured Finance Market
4.9 Impact of Covid-19 on the Market
5. MARKET SEGMENTATION
5.1 By Client Type
5.1.1 Individual
5.1.2 Commercial
5.2 By Vertical
5.2.1 Direct-to-Consumer
5.2.2 Government and Public Sector
5.2.3 Healthcare
5.2.4 Financial Services
5.2.5 Software and Professional Services
5.2.6 Media and Technology
5.2.7 Automotive
5.2.8 Telecom and Utilities
5.2.9 Retail and E-commerce
5.2.10 Other Verticals
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Equifax Inc.
6.2.2 Transunion
6.2.3 Experian PLC
6.2.4 Fair Isaac Corp.
6.2.5 Moody's Corporation
6.2.6 Fitch Ratings
6.2.7 S&P Global Inc.
6.2.8 Kroll Bond Rating Agency (KBRA)
6.2.9 Morningstar DBRS
6.2.10 A.M Best Ratings*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
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 |
United States Credit Agency Market Research FAQs
How big is the United States Credit Agency Market?
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.
What is the current United States Credit Agency Market size?
In 2024, the United States Credit Agency Market size is expected to reach USD 17.59 billion.
Who are the key players in United States Credit Agency Market?
Equifax inc., Transunion, Experian Plc, Fair Isaac Corp and Moody's Corporation are the major companies operating in the United States Credit Agency Market.
What years does this United States Credit Agency Market cover, and what was the market size in 2023?
In 2023, the United States Credit Agency Market size was estimated at USD 16.55 billion. The report covers the United States Credit Agency Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Credit Agency Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Credit Agency Industry Report
Statistics for the 2024 United States Credit Agency market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Credit Agency analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
United States Credit Agency Market Report Snapshots
