United States Credit Agency Market Size (2024 - 2029)

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.