Global Crowdfunding Market Overview:
Crowdfunding Market Size was estimated at 38.15 (USD Billion) in 2022. The Crowdfunding Market Industry is expected to grow from 49.16(USD Billion) in 2023 to 482.37 (USD Billion) by 2032. The Crowdfunding Market CAGR (growth rate) is expected to be around 28.88% during the forecast period (2024 - 2032).
Key Crowdfunding Market Trends Highlighted
Key market drivers for crowdfunding include the increasing popularity of online fundraising platforms, the rise of alternative financing options, and the growing demand for financial inclusion. As crowdfunding becomes more mainstream, it is attracting a wider range of investors, including institutional investors and family offices. This is creating new opportunities for businesses and entrepreneurs to raise capital and grow their ventures.Opportunities to be explored in the crowdfunding market include the development of new platforms and technologies that make it easier for businesses to raise capital. There is also an opportunity to target specific investor groups, such as impact investors and socially responsible investors. Additionally, there is potential for growth in emerging markets, where crowdfunding can provide access to capital for businesses that may not have traditional financing options.Recent trends in the crowdfunding market include the increasing popularity of equity crowdfunding, which allows investors to take an ownership stake in businesses they support. There is also a growing trend towards crowdfunding for social and environmental causes. Additionally, the use of crowdfunding to finance real estate projects is becoming more common.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Crowdfunding Market Drivers
Crowdfunding Market: Emerging Trends and Growth Drivers
The growth of the Crowdfunding Market Industry has taken place at a fast pace in recent years, in part because of a number of notable market drivers. Three of the most interesting market drivers are expected to continue to operate in the coming years. They are the rise of online platforms. It will allow future entrepreneurs and businesspeople access to a much wider range of investors and alternative means of finance than the traditional ones. Online crowdfunding platforms are cost-effective and relatively efficient ways to generate capital and have become increasingly integral to the means of raising finance in the start-up and SME sectors. Growth of demand. With the cost of living and a general increase in expenses across the world, people need to diversify their portfolios and demand alternative ways of investing their money. When it comes to crowdfunding, the growth of demand is particularly strong as investors also realize the high profitability of the investment provided that the crowdfunding campaign brings in the required funding amount.Another strong market driver is government support and regulations. Governments are placing increasing attention and resources on crowdfunding and are implementing protective laws to facilitate its growth. The increasing number and strength of these regulations provide the market with more stability and opportunities for growth. The percentage of the above-listed market drivers in the overall development of the Crowdfunding Market Industry cannot be readily assessed and may vary significantly in individual cases.
Technological Advancements Drive Crowdfunding Market Expansion
The growth of the Crowdfunding Market Industry is also influenced by technological advancements. Nowadays, crowdfunding platforms utilize various technologies to make the work of the organization smoother, to improve customers’ experience and to become more efficient. There are several following technological advancements: Artificial intelligence: the technology uses AI algorithms, which analyze the data of the current and the new investors and help the platforms to map the network of investors to find out which other individuals can be potential investors and to make personalized equity suggestions Blockchain technology: Blockchain platforms and transactions are believed to be safer and more secure than any other online transactions.Besides, blockchain technology may be transferred to any fundraising process, which may replace the work of banks and automated clearing houses. Mobile applications: crowdfunding companies have already developed mobile applications that allow investors to invest in new funding rounds wile they are on the move, though waiting in lines or on boring events.
Growing Popularity of Crowdfunding for Social Impact
People and organizations are now using crowdfunding for social impacts. They are now using the crowdfunding platform as a means of fundraising to support social-related actions, charity, and communities. The cause of this development is: Increasing level of social issues awareness: crowdfunding, creates awareness on the issue their websites or promotions cover. Hence, individuals and organizations donate to the issues or support the cause that affects them or rouses their interest.A means to ensure transparency and credibility: crowdfunding platforms help to ensure transparency and credibility by showing donor how we have used their money. It also shows donors that their donations have been adequately utilized. Encourage by the growth of online community domain: websites and development in the use of community websites and platforms such as the use of Facebook have helped individuals who share or hold the same values to come together.They thus crowd their resources into supporting causes of interest.
Crowdfunding Market Segment Insights:
Crowdfunding Market Funding Type Insights
Funding Type Segment Insights Equity crowdfunding is projected to hold the largest degree of the crowdfunding market in 2023. The estimated value will be nearly USD 18.3 billion. This segment is expected to grow at a CAGR of 29.1% from 2024 to 2032. The estimated valuation of this segment by the end of 2032 will be around USD 143.2 billion. Debt crowdfunding is a prominent segment of the crowdfunding market and is expected to be valued at nearly USD 12.7 billion in 2023. The market is anticipated to surge at a CAGR of 28.3% from 2024 to 2032.At the estimated end of 2032, the valuation of this segment is expected to be nearly USD 99.6 billion. Reward-based crowdfunding is anticipated to gain substantial growth during the forthcoming years and is expected to be valued at nearly USD 10.2 billion in 2023. The segment is projected to be valued at a CAGR of 27.1% from 2024 to 2032. By 2032, the segment is predicted to be valued at over USD 80.4 billion. Donation-based crowdfunding is an important segment contributing to the crowdfunding market and is expected to be valued at nearly USD 7.6 billion in 2023.The segment is projected to grow at a CAGR of 26.3% from 2024 to 2032, and by 2032, the segment is expected to be valued at USD 59.7 billion. Shared-based crowdfunding is a relatively new segment in the crowdfunding market and is estimated to be below USD 3.1 billion in 2023. The market is estimated to grow at a CAGR of 30.2% from 2024 to 2032, to be valued at over USD 24.7 billion by the end of 2032. The crowdfunding market is anticipated to be driven by various factors such as the increasing use of online platforms, the raised social awareness of crowdfunding among investors, businesses and individuals, ease of raising funds, and governments and non-profit organizations adopting the platform to raise funds for public works and social causes.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Crowdfunding Market Platform Type Insights
The Crowdfunding Market segmentation by Platform Type is categorized into Generalist Platforms, Specialized Platforms, and Cause-Based Platforms. Among these, Generalist Platforms hold a significant share of the market, facilitating a wide range of crowdfunding campaigns across various industries and causes. Specialized Platforms, on the other hand, focus on specific niches such as real estate, healthcare, or creative projects, catering to targeted audiences with specialized needs. Cause-Based Platforms are dedicated to supporting social and charitable causes, enabling individuals and organizations to raise funds for non-profit initiatives.The growth of the Crowdfunding Market is driven by factors such as increased internet penetration, rising adoption of mobile crowdfunding, and the emergence of new regulatory frameworks. The market is expected to witness continued growth in the coming years, with a projected revenue of USD 102.14 billion by 2025, expanding at a CAGR of 27.8% from 2023 to 2032.
Crowdfunding Market Investor Type Insights
The Crowdfunding Market is segmented into various categories based on investor type, including individuals, accredited investors, venture capitalists, angel investors, financial institutions, and government agencies. In 2023, the individual investor segment held the largest market share of 45%, followed by accredited investors at 30%. Venture capitalists and angel investors collectively held a share of 15%, while financial institutions and government agencies accounted for the remaining 10%. The market segmentation is expected to continue as individuals remain the primary source of funding for crowdfunding campaigns.However, accredited investors and venture capitalists are expected to play a more significant role in the future, driven by the increasing number of high-growth startups seeking funding.
Crowdfunding Market Industry Vertical Insights
The Crowdfunding Market segmentation by Industry Vertical offers valuable insights into the diverse applications of crowdfunding across various sectors. The technology industry holds a significant market share, driven by the need for funding for innovative projects and startups. Healthcare crowdfunding platforms enable patients to raise funds for medical treatments and research, contributing to the industry's growth. Real estate crowdfunding platforms provide alternative financing options for property development and investments. Energy crowdfunding supports renewable energy projects and initiatives, addressing environmental concerns.
Manufacturing and consumer goods industries utilize crowdfunding for product development and marketing campaigns. Education crowdfunding platforms facilitate funding for educational expenses, scholarships, and research projects. Finance crowdfunding platforms offer alternative lending and investment opportunities to businesses and individuals. Entertainment crowdfunding enables artists, filmmakers, and musicians to fund their creative endeavors. Crowdfunding platforms have revolutionized access to capital for businesses and individuals, empowering them to pursue their goals and contribute to the growth of their respective industries.The Crowdfunding Market segmentation by Industry Vertical provides valuable data and insights for stakeholders to understand the specific needs and opportunities within each sector.
Crowdfunding Market Regional Insights
The Crowdfunding Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023, owing to the presence of a large number of crowdfunding platforms and a supportive regulatory environment. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness the highest growth rate during the forecast period due to the increasing adoption of crowdfunding by startups and small businesses in the region.South America and MEA are expected to account for a relatively smaller share of the Crowdfunding Market during the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Crowdfunding Market Key Players And Competitive Insights:
The development of the Crowdfunding Market is prominently powered by businesses and individuals’ increasing utilization and the rising preference for alternative financing options. A part of such growing interest in crowdfunding as a concept is the onus of its home crowd as an approach more heavily tied to accountability and community relations. Another part of it is the constantly innovating and developing products and services that the market participants make available to the broader public or the more limited target audience. All major Crowdfunding Market players are working on new services and products, locally and globally, and trying to form more partnerships to bridge a wider audience. The Crowdfunding Market Competitive Landscape is fragmented, and hang-time market players share with one another and are added with the also-new entrances to the niche.Some of the leading Crowdfunding Market players include Kickstarter, GoFundMe, Indiegogo, Patreon, and Crowdfunder. Kickstarter is one of the most prominent players in the market, being one of the pioneering entities in general to enable people to get the means to launch their creations. According to the official Kickstarter website, as of the time of this research, creators from all over the world have successfully launched over 200,000 projects with the help of the platform. Kickstarter is also known for its focus on creative projects and offers creators a range of resources and tools. It is a vibrant and well-built platform that unites a substantially-sized and active community of backers behind it, with over $5 billion in funding brought to a range of creators with the platform.
Key Companies in the Crowdfunding Market Include:
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Crowdcube
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Patreon
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Fundly
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Plumfund
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Indiegogo
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Razoo
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Tilt
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Kickstarter
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Mightycause
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Seedrs
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YouCaring
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Chuffed
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GoFundMe
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Benevity
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Givebutter
Crowdfunding Market Industry Developments
The Crowdfunding Market is poised for substantial growth in the coming years, driven by the increasing adoption of alternative financing methods, technological advancements, and supportive government regulations. Growing internet and smartphone penetration, particularly in emerging economies, is expanding the reach of crowdfunding platforms. Key industry participants are focusing on strategic partnerships, platform enhancements, and geographic expansion to gain a competitive edge. Recent notable developments include the launch of new crowdfunding platforms tailored to specific industries or demographics, as well as the integration of artificial intelligence and blockchain technology for improved efficiency and transparency. The market is witnessing a surge in equity-based crowdfunding, owing to the potential for high returns for investors. Real estate crowdfunding is also gaining traction as a means to diversify investment portfolios and access alternative real estate investment opportunities. Overall, the crowdfunding market is expected to witness continued innovation and growth, driven by the evolving needs of businesses and investors seeking alternative financing solutions.
Crowdfunding Market Segmentation Insights
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Crowdfunding Market Funding Type Outlook
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Equity Crowdfunding
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Debt Crowdfunding
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Reward-Based Crowdfunding
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Donation-Based Crowdfunding
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Revenue-Based Crowdfunding
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Crowdfunding Market Platform Type Outlook
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Generalist Platforms
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Specialized Platforms
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Cause-Based Platforms
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Crowdfunding Market Investor Type Outlook
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Individuals
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Accredited Investors
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Venture Capitalists
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Angel Investors
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Financial Institutions
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Government Agencies
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Crowdfunding Market Industry Vertical Outlook
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Technology
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Healthcare
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Real Estate
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Energy
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Manufacturing
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Consumer Goods
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Education
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Finance
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Entertainment
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Crowdfunding Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
38.15 (USD Billion) |
| Market Size 2023 |
49.16 (USD Billion) |
| Market Size 2032 |
482.37 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
28.88% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Crowdcube, Patreon, Fundly, Plumfund, Indiegogo, Razoo, Tilt, Kickstarter, Mightycause, Seedrs, YouCaring, Chuffed, GoFundMe, Benevity, Givebutter |
| Segments Covered |
Funding Type, Platform Type, Investor Type, Industry Vertical, Regional |
| Key Market Opportunities |
Key Market Opportunities in the Crowdfunding Market Increased adoption of online fundraising Growth in internet connectivity and digital payments Expansion of alternative investment options Limited access to traditional capital sources Growing popularity of equity crowdfunding Investment opportunities for startups and early-stage businesses Emergence of reward-based crowdfunding Nonmonetary rewards for backers Cross-industry collaborations Partnerships with financial institutions and other service providers |
| Key Market Dynamics |
Rise of equity-based crowdfunding Growing popularity of peer-to-peer lending Increasing adoption of mobile crowdfunding Emergence of reward-based crowdfunding Expansion into nontraditional markets |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Crowdfunding Market is anticipated to register a remarkable CAGR of 28.88% from 2024 to 2032.
By 2032, the Crowdfunding Market is projected to reach an impressive valuation of USD 482.37 billion.
North America is expected to maintain its dominance in the Crowdfunding Market throughout the forecast period.
The growing popularity of crowdfunding platforms, the increasing number of startups and entrepreneurs seeking funding, and the rising adoption of digital payment methods are primarily driving the growth of the Crowdfunding Market.
Some of the prominent players in the Crowdfunding Market include Kickstarter, GoFundMe, Indiegogo, and Patreon.
Crowdfunding encompasses various types, including donation-based crowdfunding, reward-based crowdfunding, equity-based crowdfunding, and debt-based crowdfunding.
Crowdfunding has found widespread adoption across diverse industries, including technology, healthcare, creative projects, and social causes.
Technological advancements, such as the integration of blockchain and artificial intelligence, are revolutionizing the Crowdfunding Market by enhancing platform security, streamlining fundraising processes, and facilitating wider investor participation.
The Crowdfunding Market is subject to regulatory scrutiny in various jurisdictions, with governments seeking to balance the need for investor protection with the promotion of innovation and entrepreneurship.
Emerging trends shaping the Crowdfunding Market include the growing popularity of decentralized crowdfunding platforms, the integration of social media, and the increasing use of crowdfunding for social impact initiatives.
