Crowdfunding Market Share, Size, Trends, Industry Analysis Report: Information By Type (Equity-based, Debt-based, Others), By Application And By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) – Market Forecast, 2024 -2032
- Published Date:Aug-2024
- Pages: 119
- Format: PDF
- Report ID: PM2917
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global crowdfunding market was valued at USD 117.53 billion in 2023. The crowdfunding market is projected to grow from USD 166.95 billion in 2024 to USD 2,801.29 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 42.3% during the forecast period (2024 - 2032).
Crowdfunding is a new advancement that aims to organize funds from non-financial institutions such as credit finance and investment companies, venture capitalists, peer-to-peer lenders and others, especially for small and medium-sized businesses. The rapid growth in technological advancements and innovations in crowdfunding platforms, along with the integration of advanced technologies such as artificial intelligence and machine learning, is driving the growth of the crowdfunding market. Additionally, the increasing number of crowdfunding service providers worldwide is helping startup companies raise funds from investors. Moreover, several social media platforms such as Facebook, Twitter, Instagram, and LinkedIn are gaining popularity for crowdfunding activities, facilitating the collection of donations from investors. The growing government efforts to support product launches related to crowdfunding platforms are expected to further fuel the market’s growth.
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The healthcare industry is experiencing significant growth due to the increased utilization of crowdfunding to provide financial assistance to patients. Crowdfunding assists in raising substantial funds for various healthcare needs, including treatments, vaccine research, medical operations, and support for individuals affected by major accidents. The utilization of crowdfunding in healthcare has proven to be highly beneficial for patients, as it provides them with crucial financial assistance in case of necessity. This is considered as driving factor anticipated to boost the market revenue.
Crowdfunding Market Trends
Use of Social Media is Driving Market Growth
The growing adoption of social media platforms has significantly contributed to the growth of social connections, the development of original content and advertisements, and the expansion of audiences. Additionally, platforms such as Instagram, Twitter, Facebook, and LinkedIn are being effectively utilized to engage customers, capture their interest in businesses or products, and support startups, leading to a growing demand for crowdfunding platforms.
The widespread accessibility of fast internet has revolutionized the crowdfunding market by providing investors with valuable market insights. These insights empower investors to make well-informed decisions when backing startups, thereby significantly influencing the crowdfunding landscape.
Reward-Based Crowdfunding is Expected to Boost Market Growth
Reward-based crowdfunding generally involves providing non-monetary rewards or gifts to investors in exchange for their financial donations. It is considered as pre-sales, allowing organizations to interact and build a larger network, which can increase business audience. Moreover, crowdfunding helps maintain transparency, which is crucial for gaining customer trust, especially for early-stage businesses.
For instance, Patreon is a reward-based crowdfunding platform for musicians and content creators who provide rewards such as pre-sold concert tickets, personal gifts, and others to investors for funding their projects. Moreover, additional benefits gained by investors is another key factor anticipated to boost the market growth.
Crowdfunding Market Segment Insights
Crowdfunding Type Insights
The crowdfunding market segmentation, based on the crowdfunding type, includes equity-based crowdfunding, debt-based crowdfunding, and others. Debt-based crowdfunding accounted for the largest share in 2023 because such platforms connect businesses directly to lenders, eliminating the need to navigate through long and complicated bank procedures, thus saving businesses time. Debt-based crowdfunding practices benefit investors by providing them with better interest rates for funding projects in monthly installments.
Equity-based crowdfunding is expected to grow at highest CAGR over the forecast period. This is due to its ability to raise funds in exchange for shares of the company. For instance, in November 2022, 8 Myles, a macaroni and cheese maker, initiated an equity crowdfunding campaign and successfully raised funds to expand its operations, purchase production equipment to increase capacity, and enhance brand awareness. This approach allows investors to own a portion of the company and take part in decision-making processes, fostering transparency and trust among investors. Such initatives by the companies to expand their operations are likely to drive the market revenue.
Crowdfunding Application Insights
Crowdfunding market segmentation based on application insights includes food & beverage, healthcare, technology, media, real estate, and others. The food and beverage industry is expected to dominate the market during the forecast period due to the increasing number of food & beverage startups across the globe. For instance, in the year 2024, Chilau Foods, a stew maker, raised a crowdfunding campaign through WeFunder to expand their production, packaging, distribution, and other operations.
Furthermore, the technology segment is expected to grow significantly over the forecast period due to technological advancements. The development of AI, machine learning, blockchain, and fintech has gained popularity in the market. For instance, blockchain used in crowdfunding provides better security options while performing financial activities on the Internet. Moreover, the demand for innovative technology and fundraising campaigns is expected to increase for technology companies, which is anticipated to boost the crowdfunding market over the estimated period.
Crowdfunding Market Regional Insights
By region, the study provides market insights into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The North America region accounted for the largest market share in the year 2023, owing to the growing rate of technological innovation and the emergence of IT companies. Moreover, the emergence of startups from sectors such as comics & illustration, art, publishing, and others tends to drive the market growth for crowdfunding in the region. Additionally, the government has introduced guidelines to encourage more crowdfunding activities in North America, thereby driving market expansion. The key market players are merging, acquiring, and collaborating to strengthen their market presence and serve better offerings in North America, further driving the market during the forecast period.
In addition, according to the Code of Federal Regulations, under Article 17, codes and rules are proposed for sourcing, exemption, and requirements for crowdfunding. Therefore, factors such as government initiatives or campaigns to promote crowdfunding activities tend to boost market growth.
Further, the major countries studied in the market report are the US, Canada, Germany, France, UK, Italy, Netherlands, Spain, Russia, China, Japan, India, Malaysia, Indonesia, Australia, South Korea, Mexico, Argentina, Brazil, Saudi Arabia, UAE, Israel and South Africa.
The Asia Pacific region dominates the crowdfunding market during the upcoming years. The region’s dominance is due to rapid digitalization, which has led to an increase in the number of startups and projects in the region for which a number of funds were raised. In addition, various crowdfunding platforms, such as ArtisteConnect.com, Give.Asia, and Wujudkan.com are increasingly gaining traction in the region due to their high adaptability and scalability. The rising prominence of crowdfunding platforms is a key factor that boosts the market revenue in the Asia Pacific region. In Asian countries, regulatory platforms have been established to offer financial guidance, prevent fraud, and deter illegal practices, all of which contribute to the growth of the crowdfunding market. For example, Japan’s Financial Services Agency (FSA), New Zealand’s Financial Market Authority (FMA), and other similar entities serve as regulatory bodies for non-banking institutions like peer-to-peer lending and crowdfunding.
Crowdfunding Key Market Players & Competitive Insights
Leading market players in the crowdfunding industry are working on creating solutions to facilitate fundraising for startups, charities, non-profit organizations, and researchers. Moreover, many companies are also concentrating on developing crowdfunding platforms based on blockchain technology to streamline the funding process. The demand for crowdfunding solutions is growing because they are flexible, scalable, and effective methods for raising money. Companies in the market are concentrating on expanding their product offerings to meet the evolving needs of investors. Additionally, vendors are prioritizing business strategies such as partnerships, mergers, and acquisitions.
The increasing number of startups attracts many new entrepreneurs to crowdfunding platforms. Major players in the crowdfunding market include Kickstarter, SeedInvest, RM Technologies, Fundly, Indiegogo, Crowdcube, Gofundme, Crowdfunder, StartEngine, Jingdong, Owners Circle, Alibaba, Patreon, Wefunder, RealCrowd, Nav Technologies, Thunder Fund, and Pozible.
StartEngine is an equity-based crowdfunding platform headquartered in the United States that allows individuals to invest in startups and private companies. The company has two key operating subsidiaries, StartEngine Crowdfunding, Inc. and StartEngine Capital LLC. Moreover, StartEngine has over 35,000 investors who help the company gain capital through crowdfunding. For instance, in May 2023, StartEngine has acquired SeedInvest's assets, including user email lists and IP, expanding its leadership in equity crowdfunding amid VC market shifts, aiming to support more entrepreneurs.
Kickstarter is a crowdfunding company headquartered in the United States. Kickstarter provides a platform for artists, creators, musicians, filmmakers, and others to raise funds for their projects. Additionally, the platform crowdfunds for various purposes, including movies, music, art, theater, games, comics, technology, fashion, food, design, and photography. Moreover, individuals who support and fund projects tend to receive tangible awards or unique experiences from the artists. For instance, Kickstarter focuses more on product-based crowdfunding rather than equity-based crowdfunding or debt-based crowdfunding. In addition, about 2,61,035 projects were successfully funded from different sectors, such as games, fashion, art, comics, and others.
Key Companies in the crowdfunding market include
- CicleUp
- Crowdcube
- Crowdfunder
- Fundly
- Give.Asia
- Gofundme
- Indiegogo
- Jingdong
- Kickstarter
- Nav Technologies
- Patreon
- Pozible
- RM Technologies
- SeedInvest
- StartEngine
- Thunder Fund
- Wefunder
- Wujudkan.com
Crowdfunding Industry Developments
April 2024: GoFundMe expanded its operation in Mexico with the aim of providing a secure and effective method to raise funds for the cause of individuals.
June 2023: Brightflow acquired CircleUP with the aim to help small businesses manage their cash flow and make informed business decisions.
December 2023: Enaboat launched a Kickstarter crowdfunding campaign for the EBO X, a commercialized household robot. The EBO X is designed to act as a smart guardian when individuals are away from their homes.
Crowdfunding Market Segmentation
Crowdfunding Type Outlook
- Equity-based crowdfunding
- Debt-based crowdfunding
Crowdfunding Application Outlook
- Food & Beverage
- Healthcare
- Technology
- Real Estate
- Media
- Others
Crowdfunding Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Crowdfunding Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 117.53 billion |
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Market size value in 2024 |
USD 166.95 billion |
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Revenue Forecast in 2032 |
USD 2,801.29 billion |
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CAGR |
42.3% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
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Segments covered |
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|
Regional scope |
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, region, and segmentation. |
FAQ's
The crowdfunding market size was valued at USD 117.53 billion in 2023 and is projected to grow to USD 2,801.29 in 2032.
The global market is projected to grow at a CAGR of 42.3% during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market are Kickstarter, SeedInvest, RM Technologies, Fundly, Indiegogo, Crowdcube, Gofundme, Crowdfunder, and StartEngine.
The debt-based crowdfunding type dominated the market in the year 2023.
The food and beverage application segment had the largest share of the global market.
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