P2p Crowdfunding Market
The market for P2p Crowdfunding was estimated at $256 billion in 2023; it is anticipated to increase to $1.61 trillion by 2030, with projections indicating growth to around $5.97 trillion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global P2p Crowdfunding Market Outlook
Revenue, 2023
$256B
Forecast, 2033
$3.53T
CAGR, 2024 - 2033
30.0%
The P2p Crowdfunding industry revenue is expected to be around $433.3 billion in 2024 and expected to showcase growth with 30.0% CAGR between 2024 and 2033. The P2P (Peer to Peer) Fundraising industry is expanding as an increasing number of people and companies are using internet platforms to support initiatives and endeavors. As of 2023 the market was worth around $256 billion with estimates indicating a growth to $1.6 trillion by 2030 and $6 trillion, by 2035 marking a growth rate of 30% CAGR.
Individuals can use P2P crowdfunding to engage with funders via online platforms instead of going through traditional financial institutions that offer various funding options such as equity and debt models across different sectors like real estate and startups as well, as social causes.
Market Key Insights
- The P2p Crowdfunding market is projected to grow from $256.4 billion in 2023 to $3.53 trillion in 2033. This represents a CAGR of 30%, reflecting rising demand across Debt Crowdfunding, Equity Crowdfunding and Donation-Based Crowdfunding.
- Funding Circle, LendingClub, Seedrs are among the leading players in this market, shaping its competitive landscape.
- U.S. and UK are the top markets within the P2p Crowdfunding market and are expected to observe the growth CAGR of 28.8% to 42.0% between 2023 and 2030.
- Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 22.5% to 31.2%.
- Transition like Rise of Niche Crowdfunding Platforms is expected to add $122 billion to the P2p Crowdfunding market growth by 2030.
- The P2p Crowdfunding market is set to add $3.3 trillion between 2023 and 2033, with service providers targeting Startups & Small and Medium Enterprises Application projected to gain a larger market share.
- With Rising demand for alternative financing, and Increased adoption of digital platforms, P2p Crowdfunding market to expand 1279% between 2023 and 2033.
Opportunities in the P2p Crowdfunding
In developing economies growth prospects due to the rise, in popularity of crowdfunding fueled by greater internet availability and entrepreneurial spirit.
Growth Opportunities in North America and Europe
In the P2P crowdfunding sector in North America takes the lead thanks to internet access and well developed digital payment systems along with regulatory progress that supports alternative financial solutions. Major players in this market emphasize equity and reward based crowdfunding models with involvement, in the U.S.
Europe is experiencing growth in peer to peer crowdfunding due to favorable regulations and a growing focus on social impact investing initiatives embraced by platforms in the region that prioritize adherence, to compliance and transparency standards to meet regulatory obligations.
Market Dynamics and Supply Chain
01
Driver: Rising Demand for Alternative Financing, and Growing Popularity of Social Impact Investments
As small businesses and startups face difficulties with lending options in todays market environment. Pioneering peer to peer crowdfunding emerges as an alternative, for financing needs and contributes to the expansion of funding platforms. More and more investors are also placing a value on social impact nowadays. This has also led to a growing interest, in crowdfunding platforms that focus on supporting initiatives and sustainable projects.
The rise of platforms and mobile technology has also enhanced the accessibility of crowdfunding. This enables donors and recipients to connect on a scale.
02
Restraint: Regulatory and Compliance Challenges, and Data Privacy and Security Concerns
Peer, to peer crowdfunding websites encounter regulations to handle when it comes to equity and debt crowdfunding. These regulations often impede expansion. Pose compliance obstacles.
Dealing with information presents challenges concerning privacy and security. This becomes more critical as platforms expand in size and manage an increasing number of financial transactions.
03
Opportunity: Integration with Blockchain for Transparency and Growth of Niche Crowdfunding Platforms
Blockchain technology has the potential to enhance transparency in peer to peer crowdfunding, through the establishment of verifiable transaction and investment records.
Specialized platforms that concentrate on industries, like real estate or sustainable energy offer fresh possibilities by meeting the specific interests of investors.
04
Challenge: Risks of Default in Debt Crowdfunding
Investors may be hesitant to participate in debt based crowdfunding due, to the possibility of default. To address this concern. Attract investors trust and confidence platforms must improve their risk management practices and transparency.
Supply Chain Landscape
1
Component Suppliers
Platform development softwarePayment processing systems
2
Manufacturers
Funding CircleLendingClub
3
System Integrators
SeedrsCrowdcube
4
Service Providers
GoFundMeJustGiving
1
Component Suppliers
Platform development softwarePayment processing systems
2
Manufacturers
Funding CircleLendingClub
3
System Integrators
SeedrsCrowdcube
4
Service Providers
GoFundMeJustGiving
Use Cases of P2p Crowdfunding in Debt & Equity
Debt Crowdfunding : Businesses can use debt crowdfunding to raise funds by providing debt to investors who then receive fixed interest returns in return, for their investment efforts.LendingClub and Funding Circle are examples of platforms that concentrate on debt crowdfunding and specialize in assisting businesses with their financing needs.
Equity Crowdfunding : Equity crowdfunding enables companies to secure funding by selling shares to investors—a distinctive chance for backers to acquire ownership stakes in the ventures growth trajectory. Platforms such as Seedrs and Crowdcube stand out in the field of equity crowdfunding by backing startups and businesses on their journey, to success.
Donation-Based Crowdfunding : Crowdfunding that relies on donations is a key support system for various social causes and charitable endeavors. Where contributors give without anticipating any form of reciprocation in return. Platforms like GoFundMe and JustGiving stand out as options, for donation based crowdfunding efforts that focus primarily on aiding nonprofits and community driven projects.
Recent Developments
In the P2 person, to person Crowdfunding sector there is a noticeable emphasis on incorporating AI technology and specialized platforms that focus specifically on evaluating risks transparently and offering investment choices tailored to specific needs. Major industry participants are introducing new approaches to cater to a wide range of fundraising requirements and improve user satisfaction levels.
October 2024 : Seedrs launched a tool that uses artificial intelligence to improve how investors decide on funding, for startups.
July 2024 : GoFundMe introduced a feature that allows fundraisers to track donations in real time. This update is designed to enhance transparency, for those contributing to the cause.
March 2024 : LendingClub broadened its peer, to peer lending offerings to cover real estate ventures aimed at attracting individual investors.
Impact of Industry Transitions on the P2p Crowdfunding Market
As a core segment of the Core BFSI industry,
the P2p Crowdfunding market develops in line with broader industry shifts.
Over recent years, transitions such as Rise of Niche Crowdfunding Platforms and Integration of Artificial Intelligence for Risk Assessment have redefined priorities
across the Core BFSI sector,
influencing how the P2p Crowdfunding market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Rise of Niche Crowdfunding Platforms
Specialized platforms are becoming more popular as they target sectors, like real estate and tech startups. This enables investors to concentrate their resources in areas that align with their strategic goals.
02
Integration of Artificial Intelligence for Risk Assessment
AI's being more commonly utilized in PTP fundraising to evaluate borrower risk accurately. It also customizes investment choices. Enhances decision making processes. This ultimately improves the experience, for both supporters and those seeking funds.