Crowdfunding Market Size to grow by USD 310.07 billion between 2024-2028
According to a research report “ Crowdfunding Market” by Type (P2P lending, Equity investment, Hybrid, Reward, Others ) Deployment (On-premise, Cloud ) Geography (APAC, Europe, North America, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 310.07 billion, at a CAGR of 14.94% during the forecast period. The global crowdfunding market is experiencing significant growth due to its role as an effective promotional tool for businesses. By launching a crowdfunding campaign, companies can pre-sell their products and leverage the platform as a cost-efficient marketing solution. Active campaigns can reach a wide audience through various channels, increasing brand awareness and potentially surpassing fundraising goals. Social media is a popular choice for campaign execution, offering real-time analytics and the ability to engage with potential investors and supporters. This free marketing exposure is a key driver of the market's expansion during the forecast period.
Browse market data tables, figures, and in-depth TOC on “Crowdfunding Market” by Type (P2P lending, Equity investment, Hybrid, Reward, Others ) Deployment (On-premise, Cloud ) Geography (APAC, Europe, North America, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Type, the P2P lending segment is projected to dominate the market size in 2024
In the crowdfunding market landscape of 2023, the cloud-based segment is poised for significant growth. This expansion is driven by the increasing globalization and the need for BFSI institutions to adopt centralized systems and software for managing their recurring business processes. Cloud-based crowdfunding solutions offer organizations greater control, automation, and optimization, enabling them to enhance efficiency and client relations through access to CRM and ERP applications. The emergence of SMEs, advancements in data security, inherent cost-effectiveness, and flexibility are further key growth factors during the forecast period.
By Deployment, On-premise segment is expected to hold the largest market size for the year 2024
In the burgeoning crowdfunding market, Peer-to-Peer (P2P) lending emerges as a prominent financing model. In this arrangement, a lender extends funds directly to a borrower, bypassing traditional financial intermediaries such as banks. Factors fueling the market expansion include the expedited access to funds for individuals, with P2P lenders often liquidating loans prior to term end. Additionally, P2P lending platforms facilitate the aggregation of minor investments, providing essential financing for small businesses. Moreover, earnings from P2P lending are considered part of an individual's personal savings, thereby augmenting customer appeal.
APAC is forecasted to hold the largest market size by region in 2024
The APAC crowdfunding market is witnessing substantial expansion, fueled primarily by the escalating Internet and smartphone usage, as well as the proliferation of social media. This digital environment enables the formation of credible relationships via brief communications, thereby bolstering the popularity of the peer-to-peer (P2P) business model in the region. Notable vendors in this market include Chuffed.org Pty Ltd., Ketto Online Ventures Pvt Ltd., and Wishberry Online Services Pvt. Ltd. Depending on the nature of the project, appropriate crowdfunding platforms are essential. For instance, small businesses, charities, and individual projects are best suited for platforms like GoFundMe. In contrast, large projects and start-ups in search of investors would benefit from utilizing peer-to-business lending platforms.
The Crowdfunding Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
.
For insights on company offerings- Request a sample report!
Research Analysis Overview
Crowdfunding is a revolutionary way of raising funds for various projects and initiatives, relying on the support of a global audience. Donations remain a significant aspect of crowdfunding, particularly for charities and social causes. However, equity crowdfunding has gained popularity among investors, startup companies, artists, musicians, filmmakers, and creators, offering them a chance to pitch their ideas to a wider audience in exchange for equity. Social networking sites and crowdfunding sites have become influential variables in the donor's decision-making process. Marketing strategies, such as social media platforms, machine learning, and artificial intelligence, help reach potential contributors more effectively. Government efforts to regulate and support crowdfunding have also played a crucial role in its growth. Crowdfunding service providers offer various tools and resources to help fundraisers maximize their reach and support. Businessmen and entrepreneurs have embraced this online platform to bring their ideas to life, fostering innovation and creativity. Whether it's a charitable cause or a business venture, crowdfunding continues to be an essential tool for those seeking to make a difference or build something new.
Market Research Overview
The crowdfunding market has seen significant growth in recent years, particularly in the technology segment, with AI and machine learning playing a crucial role. Seed and pre-seed capital are now commonly raised through equity crowdfunding, allowing startups to access a global audience of potential investors. The cultural sector, including charities, arts, and media, also benefits from donation-based crowdfunding. Influencing variables in the donor's decision include marketing strategies, social networking sites, and the credibility and reputation of the crowdfunding platform. Internet penetration and awareness are key factors driving the growth of this market. Crowdfunding sites cater to various industries, such as food & beverage, healthcare, real estate, and technology, with women entrepreneurs increasingly becoming a significant presence. Government efforts and regulations are also shaping the landscape, with traditional channels like banks and venture capitalists facing competition from alternative capital sources. Despite the potential for fraud and financial risks, crowdfunding offers growth prospects for both small and large investment opportunities. Social media platforms and influencers can significantly impact fundraising campaigns, making them essential marketing tools. Investors, contributors, and project creators come from diverse backgrounds, including artists, musicians, filmmakers, businessmen, and entrepreneurs. The success of a crowdfunding campaign depends on several factors, including funding goals, customer satisfaction, and product development. Crowdfunding service providers offer various models, including reward-based, equity-based, debt-based, and donation-based, catering to different business needs and investor preferences. As the market continues to evolve, it is essential to stay informed about the latest trends and regulations to make informed decisions.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
