Crowdfunding Market Size, Share, Growth, and Industry Analysis By Type (P2P Lending, Equity Investment, Hybrid, Reward, and Others), and Regional Forecast To 2032

Updated On: 01 April 2024

Crowdfunding Market REPORT OVERVIEW

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The global crowdfunding market size was USD 124350 million in 2024 and is projected to touch USD 467409.8 million by 2032, exhibiting a CAGR of 18% during forecast period.

Crowdfunding is a method of obtaining funds for a project, business, or charitable cause by soliciting small contributions from a large number of people. To provide financial support, it uses a variety of methods, including equity investment, peer-to-peer lending, reward-based, donation-based, and hybrid models. It's usually done on the internet through websites and social media platforms. It reduces the need for banks or venture capitalists by providing direct access to the market. In comparison to traditional approaches, it is regarded as a scalable, adaptable, and efficient fund-raising alternative.

COVID-19 Impact: Non-Profit Organizations to Drive Market Growth

Several non-profit groups are using crowdfunding campaigns to help with the sudden epidemic of the coronavirus disease (COVID-19). These campaigns provide simple access to large networks of people and assist an organization in raising donations in a shorter amount of time. Aside from that, the growing influence of social media is boosting the expansion of the business. Crowdfunding on these platforms allows the general public to provide essential input and information on the development and demand of a new product. Therefore, it's gaining traction as a way to market a concept, measure audience interest, and pre-sell a product across a variety of businesses.

LATEST TRENDS

"Increasing Adoption of Crowdsourcing to Bolster Market Progress"

Another key element driving the increase of the crowdfunding market share is the use of campaigns as outlets for crowdsourcing. Customers had relatively little involvement with the product before it reached them in typical funding, marketing, and product launch methods. However, one of the benefits of campaigns is that they allow businesses to communicate with customers and even test the success of a product before it is released. With the popularity of crowdsourcing, campaign owners can communicate with the target audience to gauge interest in the project and to learn about their expectations. This enables product developers to continuously improve value propositions and gain a better understanding of a project's possibilities before launching it.

Crowdfunding Market Segmentation

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• By Type Analysis

By type, the market is segmented into P2P Lending, Equity Investment, Hybrid, Reward, and Others.

The P2P Lending segment is expected to lead the market. Individuals in the P2P lending segment can access funds for planned activities in a shorter period of time since P2P lenders liquidate the funds before the loan's term expires. Furthermore, the loans are simpler to obtain. These elements are propelling the P2P lending segment's expansion in the market. These factors are likely to influence the crowdfunding market growth. 

DRIVING FACTORS

"Increasing Use of Social Media for Promotions Aids to Facilitate Industry Progress"

Crowdfunding is the usage of a big group of people pooling their money to fund a business initiative over the internet. Social media and crowdfunding platforms are popular strategies to connect investors and entrepreneurs in order to broaden the pool of potential investors outside the conventional circle of owners. The social media networks serve as low-cost promotion resources for organizations seeking a global audience. It has made it easier for businesses to do pre-sales and marketing for their items. Therefore, active campaigns on social media are projected to continue to fuel the expansion of the business in the near future.

"Increasing Adoption of Equity Crowdfunding to Magnify Market Growth"

Crowdfunding allows members of the public to invest in privately held businesses. An entrepreneur or a company, usually a startup, will use an equity platform to provide securities in exchange for a public investment. Most frequently, that security will be in the form of shares, which will increase in value as the company grows and prospers, giving the investor a return on their investment. Equity crowdfunding allows ordinary people to get in on the ground floor of a business potential. Even the world's largest corporations, such as Google and Amazon, began as startups, allowing ordinary people to contribute right at the start of a future Google's journey. Crowdfunding makes obtaining funds much easier and less time-consuming; an entrepreneur simply needs to select a crowdfunding platform that best suits the campaign theme and purpose, and then share the venture's message with investors by creating a video or launching a creative online campaign. Therefore, one of the primary elements contributing to the global crowdfunding market's growth is the possibility of simple access to funds.

RESTRAINING FACTORS

"Time Constraints to Impede Market Progress"

The market will have significant time constraints. Product development, seeking investors for early investments to support marketing expenses, product registration, and expenses associated with making the product comply with standard process. These pre-launch steps are time-consuming for businesses and frequently cause initiatives to be delayed. The deadlines are set by the individuals/companies in the majority of these initiatives, depending on which the entrepreneurs are able to develop a consumer base for the product.

Crowdfunding Market REGIONAL INSIGHTS

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"Presence of Key Players to Bolster Growth in Europe"

Europe is expected to dominate the market shares due to an increasing number of nations in the region enacting rules. The European Union governments are also working to establish legislation that will allow platforms in the region to operate beyond EU regions. Furthermore, Turkey is one of the European countries that is seeing substantial growth in the sector due to the availability of stable work possibilities.

In Asia Pacific, China is the most important market in the region and will increase at a quicker rate than the market in other regions. Over the forecast period, increased Internet and smartphone penetration will aid the expansion of the crowdfunding market in the region.

KEY INDUSTRY PLAYERS

"Companies Adopt Technologically Advanced Production Techniques to Improve Market Position"

Due to the presence of a few companies dominating the market and several more companies competing among themselves, the global market is moderately concentrated. Furthermore, these businesses are heavily investing in providing clients with a diverse selection of technology for industry-specific end-user applications.

INDUSTRY DEVELOPMENT

• April 2020: Aescuvest International GmbH, a leading platform powered by EIT Health, will launch its Call4Ideas Campaign to assist start-ups and researchers in flattening the COVID-19 curve and expediting their market debut.

List of Market Players Profiled

• AngelList Holdings LLC (U.S.)
• CircleUp Network Inc. (U.S.)
• Crowdfunder Inc. (U.S.)
• Fundable LLC (U.S.)
• Fundrise LLC (U.S.)
• GoFundMe Inc. (U.S.)
• Indiegogo Inc. (U.S.)
• Kickstarter PBC (U.S.)
• Patreon Inc. (U.S.)
• Teespring Inc. (U.S.)

REPORT COVERAGE

The research report has included the analysis of several aspects that contribute to the industry's growth. It consists of market trends, restraints, and drivers that positively or negatively impact the market. This section also discusses the many sectors and applications that may affect the market in the future. The data is based on current trends and historical milestones. This section also includes an analysis of the global market's production volume.