Crowdfunding Market

Crowdfunding Market Size:

The global crowdfunding market size reached US$ 16.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 42.9 Billion by 2032, exhibiting a growth rate (CAGR) of 11.26% during 2024-2032. The market is experiencing steady growth driven by rapid digitalization across industries enabling more efficient operations and opening new avenues, the rising shift towards sustainability and ethical practices across the globe, and strategic international expansion.

Crowdfunding Market Analysis:

• Major Market Drivers: The market dynamics are majorly influenced by the rise in entrepreneurship and the considerable number of startups in search of non-traditional financing options. This trend is further supported by inclusive investment and funding strategies, effectively making the investment process in new ventures more democratic.
• Key Market Trends: The emergence and expansion of social media and digital platforms have significantly enhanced the visibility and accessibility of crowdfunding campaigns. These platforms are capturing attention while cultivating a community around the campaigns, thereby enhancing engagement and fundraising efforts.
• Geographical Trends: North America and Europe are currently the largest regions, attributed to their extensive internet coverage and favorable regulatory frameworks. Nevertheless, the Asia-Pacific region is rapidly gaining traction, due to an increase in internet users and its appeal to entrepreneurs.
• Competitive Landscape: The competitive landscape is supported by fierce competition among numerous platforms that offer varied types of crowdfunding campaigns, such as reward-based, equity-based, and donation-based options. Some of the major market players in the crowdfunding industry include CircleUp Network Inc., Crowdfunder Limited, Fundable LLC, Fundrise LLC, GoFundMe Inc., Indiegogo Inc., Patreon Inc., among many others.
• Challenges and Opportunities: Challenges such as regulatory complexities and fraud risks persist, yet these also present opportunities for innovation in security, transparency, and compliance areas. Such innovations aim to mitigate the impact of these challenges, fostering trust and promoting growth in the sector.
   

Crowdfunding Market Trends:

Technological advancements and digitalization

The escalating integration of artificial intelligence (AI), machine learning, blockchain, and the Internet of Things (IoT) to transform business operations, enhance consumer satisfaction, and enable data-driven decision-making is positively impacting the market. Launching a new crowdfunding campaign on StartEngine, Jurny, the top AI-powered property management system for automating hotel and short-term rental operations, announced its debut. With this move, the rapidly growing Jurny firm now has an early-stage access point, and consumers and private investors may join the ranks of elite venture capitalists in the emerging AI industry. Along with this, businesses are also incorporating these technologies to provide new income streams and business models. Therefore, this is significantly supporting the market. Moreover, the wave of digital transformation generates a more inclusive and widely accessible global marketplace, supports entrepreneurship, and drives economic development.

Globalization and cross-border trade

Globalization, intensified by the simplicity of cross-border trade, is a key driver of the global economy. Additionally, the development of trade agreements, lowering of tariffs, and enhancement of logistics and supply chain networks make it easier for businesses to penetrate new markets, streamline material sourcing, and expand their customer base. Such interconnectedness enhances economic growth diversifies market opportunities and encourages competition, leading to innovation and more favorable prices for consumers. By adjusting to international regulations and cultural distinctions, businesses craft more resilient and adaptable strategies, contributing to a more dynamic and robust global economic landscape.

Consumer preferences and sustainability

The global market is changing as a result of consumers' growing emphasis on sustainability and moral company conduct. In confluence with this, organizations must include sustainable practices in their business plans as essential components and as a means of fulfilling ethical commitments to meet the demands of their customers and comply with legal requirements. For instance, the Ministry of Corporate Affairs, Government of India, and the Indian Institute of Corporate Affairs (IICA), an independent institution, have partnered to launch the "HP Future Impact Leaders – IICA Certified Environmental – Social – Governance (ESG) Professional Program." The purpose of this project is to advance sustainability and enable professionals in corporate social responsibility (CSR) to become experts in negotiating the complexities of environmental, social, and governance (ESG) frameworks. 75 students will receive 100% scholarships under this initiative from HP India and IICA, allowing them to continue further ESG education without financial constraints. Furthermore, sustainability influences the part that businesses may play in solving global concerns while meeting customer expectations since it reflects a broader cultural drive towards environmental conservation and social responsibility.

Crowdfunding Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type and end use.

Breakup by Type:

• P2P Lending
• Equity Investment
• Hybrid
• Reward-based
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes P2P lending, equity investment, hybrid, reward-based, and others.

Breakup by End Use:

• Entrepreneurship
• Social Cause
• Movies and Theater
• Real Estate
• Music
• Technology
• Publishing
• Others
   

A detailed breakup and analysis of the market based on the end use have also been provided in the report. This includes entrepreneurship, social cause, movies and theater, real estate, music, technology, publishing, and others.

Breakup by Regional:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe leads the market, accounting for the largest crowdfunding market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe represents the largest regional market for crowdfunding.

Europe holds the largest share of the market due to its exceptional infrastructure, high consumer purchasing power, and comprehensive regulatory framework. Moreover, Europe is attracting companies and investors across the globe due to its efforts to create a digital single market and harmonize regulations among its member states. Additionally, the region maintains a competitive advantage due to its highly qualified workforce and significant investment in research and development, which foster an innovative hotspot.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the crowdfunding industry include:

• CircleUp Network Inc.
• Crowdfunder Limited
• Fundable LLC
• Fundrise LLC
• GoFundMe Inc.
• Indiegogo Inc.
• Patreon Inc.
   

The key players are navigating through innovation, growth, and an ambition to secure a larger slice of the market share in the face of escalating competition. Moreover, the increasing emphasis on enhancing customer experiences and spearheading digital transformation by employing data analytics and artificial intelligence is also significantly supporting the market. Through these comprehensive strategies, major players are responding to evolving trends and actively molding new benchmarks within the industry. In addition, the accelerating number of mergers and acquisitions as avenues to broaden the spectrum of offerings is also favoring the market. Companies are forming alliances with startups to tap into novel technologies and emerging business models.

Crowdfunding Market News:

• June 2, 2023: CircleUp Network Inc., announced that it has been acquired by Brightflow AI, a platform for financial data and intelligence that aids small businesses to take ownership of their cash flow and make choices supported by facts.
• August 11, 2022: Indiegogo Inc. and StartEngine partnered to guarantee that entrepreneurs will always have access to the funding they require. This is a first: Indiegogo will now share its massive network of backers and entrepreneurs with StartEngine for follow-on investment rounds up to Series C (up to $75 million annually).

Crowdfunding Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the crowdfunding market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global crowdfunding market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the crowdfunding industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.