Debt Financing Market Regional Analysis

Why is Asia Pacific Leading Debt Financing Market in 2024?

The Asia Pacific Debt Financing market is driven by increasing infrastructure investment, economic growth and development, and increasing corporate debt issuance. Many countries in the Asia Pacific region, such as India, China, India, and Southeast Asia, are experiencing economic growth, which lead to increased demand for financing solutions. In addition, the investing heaving in infrastructure development such as energy, urbanization and transportation projects, which require long term capital and debt financing is one of the viable options for government and corporate to raise the funds.

India Debt Financing Market

The India Debt Financing market is expanding due to the increase in household debt as a percentage of GDPs. The household debt margin increased to 23.9% of GDP in 2025 from 23.1%of GDP in 2024, in India. This surge in borrowing, particularly post-pandemic, has fueled credit expansion, with more consumers opting for loans to finance purchases and expenses. 

China Debt Financing Market

The China debt financing market is driven by local government debt swaps and the government’s increased debt issuance, which support economic growth and infrastructure development. In addition, the monetary policy easing, which covers rate cuts surge the credit demand.

Why is Demand for Debt Financing Fueling Growth in North America?

North America is predicted to grow at the highest rate in the Debt Financing market over the projection period. The growth in the region is led by the strong investment confidence and low interest rate. The business increasingly leverages the debt for expansion, mostly in sectors such as real estate and technology. The developed financial market in the region makes the debt financing and attractive and efficient option. In addition, the venture capital firms and private equity utilize debt in their financing strategies which surge the demand and drive the market growth.

U.S. Debt Financing Market

In North America, the United States led the Debt Financing market due to rising borrowing level across the consumers. In February 2025, The Federal Reserve Bank of New York’s Center reported that the total household debt increased by USD 93 billion (0.5%) in Q4 2024, to USD18.04 trillion. This reflects the continue consumer dependency on loans and credit.

Canada Debt Financing Market

Canada's Debt Financing market is experiencing significant growth, due to surge in adoption of companies seeking capital to scale sustainable and innovative business such as electric vehicle infrastructure. In April 2025, Zenobe, announced the facility of around USD 35.5 million in debt financing to 7Gen, which is one of the leading EV-as-a service provider in Canada. This helps the company to scale its commercial EV leading platform and deploy EV infrastructure across the country.

How is Europe Maintaining its Dominance in Debt Financing Industry?

The Debt Financing market in Europe is experiencing robust growth driven by increasing government spending on recovery program and infrastructure. At a special EU summit in Brussels on March, 2025, EU leaders agreed to mobilize USD 867 billion to support Europe’s rearmament. This surge the demand for joint debt issuance and sovereign. The potential use of Eurobonds, further drive the growth of the debt financing market by offering a new mechanism to pool resources and alleviate fiscal strain among member states.

UK Debt Financing Market

The increasing debt interest cost, is one of the significant drivers for the growth of UK debt financing market. In December 2024, the UK borrowing increased due to surge in the debt interest cost, and a one-off military home purchase. The net borrowing of public sector reached around USD 23.7 billion, which exceed forecast by nearly USD 3.9 billion. This marked a significant increase from the last years.

Spain Debt Financing Market

In Spain, the Debt Financing market is experiencing significant growth, due to decrease in Spain’s foreign indebtedness and the advancement in their lending capacity. By decreasing the foreign debt, Spain enhances its financial stability, making the country more attractive to investors. The surge in lending capacity (4.2% of GDP in 2024), represent the country ability to generate funds internally. The non-financial private sectors, mostly household represent nearly 4.7% of GDP, also contributes to its advancement. Thus, Spain can secure financing at more favorable terms, by benefiting from creditworthiness and reduced borrowing risk.