Scale and growth trajectory

Viewed globally, debt collection represents a resilient multibillion-euro industry with steady, recurring demand. According to 2025 aggregated reports, the market for debt collection agencies is expected to grow from USD 29.3 billion in 2024 to USD 34.5 billion by 2029 (Source: Global Information, May 2025), reflecting annual growth of approximately 3–3.5%. Long-term projections extend this trajectory further — to USD 41.7 billion by 2033 — confirming the consistent rhythm of a mature sector that evolves alongside global credit expansion and rising delinquency rates (Source: Market.us, December 2024).

The structure of this market is also shifting. Third-party collection remains dominant, with the majority of activity focused on bad debt portfolios. More creditors now choose to outsource recovery processes to professional agencies — a practical move toward cleaner balance sheets, optimized resources, and higher operational efficiency.

Regional perspectives

North America remains the most advanced and largest regional market, generating around 40% of global activity. The United States leads this growth, driven by extensive consumer credit and an established legal and regulatory system. As of Q2 2025, total U.S. household debt reached USD 18.39 trillion, setting a new historical record (Source: FRB, Q3 2025). The strongest demand for professional collection is concentrated in unsecured lending — credit cards and auto loans — where delinquency rates are rising.

In Europe, regulators are maintaining a cautious stance. Official non-performing loan (NPL) ratios remain low — between 2% and 3% — but oversight authorities continue to warn banks about growing risks in consumer and commercial credit. Even in a relatively stable environment, localized stress points sustain the need for external recovery services (Source: ECB, June 2025).

Across the Asia-Pacific region, growth remains rapid, led by expanding retail lending and digital finance. India exemplifies this trend, with elevated unsecured credit levels and ongoing adjustments following the post-pandemic surge in consumer borrowing.

Latin America presents a different landscape — strong credit demand paired with volatility in asset quality. In markets such as Mexico, unsecured lending delinquency exceeds 10%, driving high recovery activity in retail portfolios, while secured lending remains comparatively stable.

B2B segment: corporate pressures rising

Beyond consumer credit, the B2B segment faces its own challenges. Across markets, businesses report persistent payment delays and rising insolvency risks. European research suggests that nearly half of companies experience chronic late payments, while in North America, a significant share anticipates increased default rates among partners and clients.
According to Allianz Trade, global corporate bankruptcies grew by 10% in 2024, with a projected 6% increase in 2025 and 3% in 2026 — marking five consecutive years of upward trend (Source: Allianz, March 2025). For professional agencies, this signals expanding opportunities in the corporate debt recovery sector.

Key market drivers

North America continues to define the industry benchmark — not only in market volume, but also in data transparency and regulatory clarity. Europe faces tighter supervision and gradual restructuring; Asia is experiencing a surge in portfolio size and fintech-driven lending; Latin America navigates volatility while digital adoption accelerates; and Australia maintains balanced, moderate growth under high living costs.

What it all means for the industry

In 2025, the global debt collection market stands as a mature, evolving ecosystem. Several defining dynamics shape its future:

– Sustained Demand: Debt recovery remains an essential element of the global financial system as long as credit continues to expand.

– Operational Models: Outsourcing and portfolio acquisitions dominate, reflecting creditors’ focus on efficiency and compliance.

– Technology and AI: Automation, analytics, and artificial intelligence enhance precision, transparency, and communication with debtors.

– Regulatory Alignment: Ethical, structured, and data-driven practices are becoming the global standard, gradually replacing outdated aggressive methods.

At MBA Consult, we observe these global trends firsthand — across markets, portfolios, and partnerships. Our experience confirms that the future of debt collection lies in combining financial expertise with responsible, human-centered practices.
The focus is shifting from recovering debt to creating impact — helping individuals and businesses restore balance, while reinforcing the integrity of the financial system.
Debt has evolved from a simple obligation into an asset — one that, when managed professionally, contributes to stability, trust, and sustainable economic growth.