Crowdfunding Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, Canada, China, Australia, UK - Size and Forecast 2024-2028

Crowdfunding Market Forecast 2024-2028 

The Crowdfunding market size is forecast to increase by USD 310.07 billion at a CAGR of 14.94% between 2023 and 2028. Several factors play a crucial role in the market's growth, such as the increasing use of social media as a source of free-of-cost promotion, easy access to capital in comparison with traditional funding, and increasing customer base in terms of investors. Furthermore, the market is experiencing an increase in demand for innovative technologies like Artificial Intelligence (AI) and Machine learning technologies. Crowdfunding platforms like Zippia,Milaap, and ImpactGuru offer Debt-based crowdfunding and Equity-based crowdfunding, empowering startups in diverse sectors such as the food & beverage segment industry with brands like 8 Myles and Waku. Artists and creatives are leveraging these platforms, disrupting traditional channels of financing like banks and venture capitalists.

What will be the size of the Crowdfunding  Market During the Forecast Period?

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In today's digital age, crowdfunding emerges as a pivotal resource for businessmen, filmmakers, musicians, fundraisers, and startup companies, leveraging online platforms and technological advancements to realize innovative ideas. Crowdfunding service providers facilitate seamless interactions between creators and contributors, amplifying outreach through social media platforms and government efforts. From product launches to charitable endeavors, crowdfunding sites empower donors, influencing variables like equity crowdfunding and donation decisions. With the advent of artificial intelligence and machine learning, investors navigate marketing strategies to tap into a global audience. Equity crowdfunding opens doors for entrepreneurs, artists, and creators, fostering public support and driving innovation across diverse sectors.

Market Segmentation

The report includes a comprehensive outlook on the Market, offering forecasts for the industry segmented by  Type which comprises P2P lending, equity investment, hybrid, reward, and others. Additionally, it categorizes Deployment into on-premise, and cloud and covers Geography regions, including APAC, Europe, North America, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments. 

Crowdfunding has transformed the entrepreneurial ecosystem, offering opportunities for businessmen, filmmakers, musicians, and fundraisers to access alternative capital through online platforms. Individual investors, along with startup firms and growing companies, explore diverse sectors like food & beverages, media & entertainment, real estate, and healthcare. While governments regulate crowdfunding to mitigate financial risks and uphold credibility, reward-based and donation-based models cater to small & medium investments as well as large investments. However, challenges such as fraud and misuse of funds persist, impacting funding goals and reputation. With technological advancements and innovations, crowdfunding service providers facilitate fundraising campaigns, leveraging social media platforms and government initiatives to reach a global audience. Equity crowdfunding emerges as a boon for women entrepreneurs, fostering growth in the technology segment and cultural sector with pre-seed and seed capital injections.

By Type Insight

The P2P lending segment is estimated to witness significant growth during the forecast period. In this market, a fund provider lends money to a borrower without the involvement of a financial institution, such as a bank. It is one of the most popular models. Individuals can access the funds for spending on planned activities in a shorter time as P2P lenders liquidate the fund before the end of the terms for which the loan is availed is one of the major driving factors. 

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The P2P lending segment was the largest and was valued at USD 110.32 million in 2018. Several government initiatives from across the globe are supporting the growth of the market in this segment. However, the growth of the market by P2P lending is expected to remain slow during the forecast period, owing to the reduced number of participants opting for the P2P business model, especially from MEA and APAC. Added to this, the nature of the start-ups and projects seeking funds also plays an important role; a start-up could have little or no experience, thus discouraging investment. Furthermore, P2P lending is usually not available for large amounts unless it is a loan for a business. All these factors are expected to result in fairly slow market growth during the forecast period.

Market Dynamic

In the realm of charitable giving, donors' decisions are increasingly influenced by creators across various fields. Entrepreneurs, businessmen, filmmakers, musicians, artists, and creators utilize social networking sites to amplify their voices and advocate for causes close to their hearts. Through compelling storytelling and impactful content, these individuals inspire philanthropic action and encourage support for charities. Donors, in turn, play a pivotal role in shaping the success of these initiatives, as their decisions drive the allocation of resources towards meaningful endeavors. Together, creators and donors form a symbiotic relationship, united by their shared commitment to making a positive difference in the world. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Increasing the customer base in terms of investors is notably driving the market growth. With the growing popularity of as a concept fueling the growing number of platforms, the market is witnessing a significant increase in investors/buyers globally. A successful campaign finds a ready audience in the present digital era. This generates awareness among entrepreneurs, and they start looking for various options available to them. Similarly, investors are significantly contributing monetarily but are also early adopters to enhance their products. 

Furthermore,  platforms help entrepreneurs sell products or concepts that have not been released in the market. This is an optimal method to gauge user reactions and analyze the market. Thus, the increase in customer base in terms of investors/buyers will drive the growth of the market during the forecast period.

Major Market Trends

Promoting campaigns as avenues for crowdsourcing is an emerging trend shaping the market growth. In the traditional funding, marketing, and product launch processes, there was very little interaction with customers before the product reached them. However, this is one of the advantages of campaigns, which enables entrepreneurs to interact with customers or even to gauge the success of the product before launch. In conventional methods of product development and customer acquisition, the post-purchase behavior was used to assess whether there is a demand-pull or technology push for a particular product. This factor of demand-pull or technology push would indicate the investment required toward developing and implementing required marketing strategies.

However, with crowdsourcing becoming popular, campaign owners can engage with the target audience to gauge interest in the project and also to understand the expectations. This helps product developers continuously work toward enhancing value propositions and understand the prospects of a project before launch. Thus, the use of campaigns as an avenue for crowdsourcing will positively impact the growth of the global market during the forecast period.

Major Market Restraints

High time-consuming process is a significant challenge hindering market growth.  is a process, which includes several stages involving product development, finding investors for initial investments to fund marketing expenses, product registration, and expenses related to making the product compliant with standards if any. These pre-launch processes are time-intensive for entrepreneurs and often lead to delays in projects. In a majority of these projects, deadlines are fixed by individuals/companies based on which entrepreneurs manage to establish a customer base for the product.

Moreover, the delays in delivering the projects sometimes result in customers withdrawing from projects, refunds, and, in some cases, a complete refund on the investments to customers. Such delays and failures in the global market result in reduced customer/investor confidence in investing in campaigns. These factors will negatively impact the growth of the market during the forecast period.

Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Crowdfunding Market Companies?

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.

Chuffed.org Pty Ltd. - The company offers a platform namely ChuffedAmplify. 

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Companisto GmbH
• ConnectionPoint Systems Inc.
• Crowdcube Ltd.
• Crowdera Inc
• Crowdfunder Ltd.
• DonorsChoose
• FUELADREAM Online Ventures Pvt. Ltd.
• Fundable LLC
• Fundly Inc.
• GGF Global Ltd.
• GoFundMe Inc.
• Indiegogo Inc.
• Ioby Inc.
• Ketto Online Ventures Pvt. Ltd.
• Kickstarter PBC
• Kiva Microfunds
• OPENDEAL INC.
• Patreon Inc.
• Wishberry Online Services Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Key Regional Analysis

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APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is experiencing significant growth in APAC, which is mainly driven by the increasing Internet and smartphone penetration. Adding to this, the growth of social media has the potential to build credible relationships over short messages, thus leading to the popularity of the P2P business model of in the region. Some notable vendors operating in the regional market are Chuffed.org Pty Ltd., Ketto Online Ventures Pvt Ltd., and Wishberry Online Services Pvt. Ltd., among others. The increased adoption of in Singapore and its surrounding countries is setting new opportunities for individuals and businesses to bring in new and creative ideas.

Market Analyst Overview

Crowdfunding is a modern financial concept revolutionizing fundraising for early-stage companies. Unlike traditional forms of funding, it leverages digital platforms to pool small investments from a large group of individuals. This democratized approach fosters innovation and competition, offering alternative lending options. With government support and tax incentives, crowdfunding offers potential returns to investors, yet faces challenges like regulatory oversight and lack of awareness.

The market attracts a diverse pool of participants including banks, venture capitalists, and small businesses seeking funding. Factors such as location, credit score, and net worth influence participation and investor decisions, driving transparency in crowdfunding platforms. Project creators engage with potential investors and the general public, disrupting traditional forms of funding for early-stage companies. Despite growth prospects, the market faces restraints analyzed through Porter's five forces, including competitive intensity from suppliers, new entrants, and substitutes.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook 
  • P2P lending
  • Equity investment
  • Hybrid
  • Reward
  • Others

• Deployment Outlook 
  • On-premise
  • Cloud

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Crowdfunding Market Scope
Report Coverage	Details
Page number	162
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 14.94%
Market Growth 2024-2028	USD 310.07 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	13.85
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 62%
Key countries	US, Canada, China, Australia, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Chuffed.org Pty Ltd., Companisto GmbH, ConnectionPoint Systems Inc., Crowdcube Ltd., Crowdera Inc, Crowdfunder Ltd., DonorsChoose, FUELADREAM Online Ventures Pvt. Ltd., Fundable LLC, Fundly Inc., GGF Global Ltd., GoFundMe Inc., Indiegogo Inc., Ioby Inc., Ketto Online Ventures Pvt. Ltd., Kickstarter PBC, Kiva Microfunds, OPENDEAL INC., Patreon Inc., and Wishberry Online Services Pvt. Ltd.
Market dynamics	Parent market analysis, Market Forecasting , 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 the forecast period.
Customization purview	If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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