Latest News - Impact Investing Market: Institutional investor is expected to lead the Type segment during 2025-2029

The Impact Investing Market is being driven by Increase in awareness regarding social and environmental challenges

The Impact Investing Market is expected to grow at a CAGR of 26.8% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 1312.9 billion. Millennials, defined as individuals born between 1981 and 1996, are demonstrating a significant shift towards impact investing, aligning their financial decisions with their values and contributing to social and environmental advancements. According to a study conducted by Morgan Stanley, an astounding 85% of millennials express interest in sustainable investing, surpassing the figures for Gen Xers (76%) and baby boomers (67%). This trend can be attributed to millennials' heightened social consciousness, desiring investments that generate positive societal and environmental impact. Moreover, millennials view impact investing as a means to instigate systemic change. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on:

• Type
  • Institutional investor
  • Individual investor
  • Others
• Sector
  • Education
  • Agriculture
  • Healthcare
  • Energy
  • Others
• Asset Class
  • Equity
  • Fixed Income
  • Multi-asset
  • Alternatives
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • South America
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Increase in awareness regarding social and environmental challenges
• Government support and policies to promote impact investing
• Rise in investment in renewable energy

However, the market also witnesses some limitations, which are as follows:

• Limited understanding of impact investing among investors and general public
• Risk involved in impact investing
• Limited financial returns in impact investing

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Market Scope in Impact Investing Market Research Report

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Research Analysis Overview

Impact investing refers to investments made with the intention of generating both financial returns and positive social or environmental impact. This market involves various actors, including investors, banks, pension funds, financial advisors, wealth managers, fund managers, private foundations, and family offices. They invest in various asset classes such as stocks, bonds, mutual funds, microloans, and more, seeking financial gains while promoting sustainable practices. Policies and incentives from financial institutions encourage this trend among Impact Investors, who manage Impact Funds and Social Impact Funds, as well as Sustainable ETFs and Green Bonds. The younger generation, particularly Generation Z, is increasingly interested in this approach, driving demand for data-driven decisions in this sector.

Market Research Overview

Impact investing represents a significant segment within the financial services industry, encompassing investments made by various stakeholders such as banks, pension funds, financial advisors, wealth managers, fund managers, private foundations, family offices, and individual investors. This market goes beyond traditional philanthropic donations, focusing on generating social and environmental returns alongside financial gains. Technavio's market analysis for impact investing calculates the market size based on the revenue generated by specialized investment firms, private equity, and impact investment funds dedicated to this sector. Key areas of investment include education, healthcare, microfinance, renewable energy, and affordable housing. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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/