Enjoy complimentary customisation on priority with our Enterprise License!
The peer to peer (P2P) lending market size is estimated to grow at a CAGR of 29.96% between 2022 and 2027. The market size is forecast to increase by USD 381.28 billion. The growth of the market depends on several factors such as reduced operational costs of P2P lending companies, use of advanced technologies in lending process, and the rising number of small and mid-sized enterprises Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
This report extensively covers market segmentation by business segment (traditional lending and marketplace lending), end-user (individual consumer, small businesses, large businesses, and real estate), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Peer-to-Peer Lending Market Forecast 2023-2027
To learn more about this report, Request Free Sample
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Unlike traditional financial institutions like banks, peer to peer (P2P) lending market players do not require a large space for their business operations. The low labor requirements also reduce operating costs. Data on publicly available lending services and the online services that provide access to their websites help consumers get a clearer picture of the type of loan available. These P2P lending service providers make a profit by charging borrowers and deducting fees from loan repayments made to investors, which fuels the growth of the P2P lending market
Similarly, P2P lending market players have no physical branches allowing them to save maximum money by renting or leasing the property. Thus, the minimal cost of operating a P2P lending business makes it a profitable option and P2P lending service providers offer high returns to investors and low interest rates to borrowers, making them unique, which in turn will fuel the growth of the market during the Forecast Period.
Digital lending is gaining popularity across the globe. Digital infrastructure has allowed loan providers to greatly simplify the lending process. Nowadays, most people prefer to operate online rather than meet in person. Furthermore, borrowers want to have all the information at their fingertips. This helps them to compare different loan products and can gauge the creditworthiness of the lending company. As a result, the increasing adoption of digital lending is driving the growth of the global peer to peer lending market.
Moreover, the increase in the number of smartphones around the world has led to a growing demand for digital lending solutions for faster and hassle-free loan processing from anywhere. In addition, the rapid disbursement of funds to consumers or businesses is one of the key factors driving the adoption of digital loans by different peer to peer lending market players, including P2P lenders. Hence, due to the reliability and convenience of digital lending, the global P2P lending market will increase significantly during the forecast period.
The potential for data theft is higher in digital P2P lending platforms because consumers' financial information is available on these platforms. As P2P providers handle sensitive financial information, any breach of security can result in the loss of investor funds and damage the reputation of the platform. As a result, P2P platforms need to invest in strong security measures to combat cyberattacks and data breaches.
Furthermore, fraud is another concern in the P2P lending space. Borrowers may misrepresent their financial situation, which can result in losses for investors. As a result, P2P platforms must implement a thorough verification process to confirm the identity of the borrower and the accuracy of their financial information. Therefore, the threat of financial information leakage could hinder the growth of the global P2P lending market during the forecast period.
The traditional lending segment will account for a major share of the market's growth during the forecast period.?Traditional lending is the most popular form of money lending service for small and medium businesses. In traditional P2P lending, the lending platform processes transactions and collects debt. In addition, traditional loans bring certain advantages such as better loan quality, high transparency, simple loans, easy to understand, and simple investment structure that helps to promote the development of the peer to peer lending market
Get a Customised Report as per your requirements for FREE!
The traditional lending segment was valued at USD 32.04 billion in 2017 and continued to grow until 2021.?The growing demand for lending options due to individual or business fund requirements is driving the growth of the P2P lending market. The need to borrow money in an emergency when consumers are unable to manage their spending drives the demand for loans, which in turn drives the growth of the market. Hence, due to the high demand for transparent lending, the traditional lending model is expected to expand, which will drive the growth of the market during the forecast period.
Based on end-user, the market has been segmented into individual consumers, small businesses, large businesses, and real estate. The individual consumer?segment will account for the largest share of this segment.? Individual consumers are very interested in flexible loans with low-interest rates because financial institutions, such as banks, offer loans with high-interest rates. Additionally, consumer P2P personal loans are approved with no collateral required. In addition, the flexible terms in the EMI and the schedule contribute to a stress-free situation for the borrower. Digitization is one of the most widely used marketing tactics in the financial services industry to increase loan processing and provide better services and information to customers. Thus, such factors will. drive the growth of the market during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
APAC is estimated to contribute 44% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Fintech companies in the region are investing heavily in R&D to bring new functionality to platform-based business models. Furthermore, the growth of the P2P lending market in the region is driven by the lending boom in the online marketplace and the rising awareness among investors and borrowers of alternative financing methods such as P2P loans. The growing adoption of peer-to-peer lending in Singapore and surrounding countries presents new opportunities for individuals and businesses to contribute new and innovative ideas. In addition, the increase in the number of investors and borrowers in the region is expected to boost the growth of the market in the region during the forecast period.
Due to the outbreak of the COVID-19 pandemic In 2020, most APAC countries, such as China, Japan, and India, were severely affected. However, in 2021, the initiation of large-scale vaccination drives?has lifted the lockdown and travel restrictions, which led to the resumption of business and production units. Such factors are expected to drive the market during the forecast period. Moreover, small businesses applied for business loans to restart their businesses as they suffered losses during the pandemic. P2P lenders have helped these businesses by providing capital to restart their operations. Therefore, with the provision of convenient services such as documents, fast disbursement, etc., the P2P lending market in APAC is expected to significantly increase during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
AS Mintos Marketplace, Bondora Capital OU, Bridge Fintech Solutions Pvt. Ltd., Enova International Inc., Fairassets Technologies India Pvt. Ltd., Funding Circle Holdings plc, Innofin Solutions Pvt. Ltd., Kiva Microfunds, Lendbox, LendingClub Corp., Lendingkart Finance Ltd., LendingTree LLC, Metro Bank Plc, Prosper Funding LLC, and Zopa Bank Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The peer-to-peer lending market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Peer-to-Peer Lending Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 29.96% |
Market growth 2023-2027 |
USD 381.28 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
27.82 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, Canada, China, Australia, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AS Mintos Marketplace, Bondora Capital OU, Bridge Fintech Solutions Pvt. Ltd., Enova International Inc., Fairassets Technologies India Pvt. Ltd., Funding Circle Holdings plc, Innofin Solutions Pvt. Ltd., Kiva Microfunds, Lendbox, LendingClub Corp., Lendingkart Finance Ltd., LendingTree LLC, Metro Bank Plc, Prosper Funding LLC, Zopa Bank Ltd., and Avant LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.