Alternative finance market size to grow by USD 63.35 billion between 2022 and 2027; North America to account for 72% of the market growth - Technavio
NEW YORK, May 3, 2023 /PRNewswire/ -- The alternative finance market size is expected to grow by USD 63.35 billion during 2022 and 2027, progressing at a CAGR of 7.71% during the forecast period. North America will account for 72% of the market growth during the forecast period. The growth of the regional market is driven by factors such as the increasing number of students, growing awareness about clearing personal debt, and rising Internet penetration. In addition, technological advances, the rise of online trading and finance platforms, and the presence of prominent vendors are other factors contributing to the growth of the alternative finance market in North America. For more insights on market size - Request the Sample Report
Alternative Finance Market: Segmentation Analysis
Technavio has segmented the alternative finance market by type (P2P, lending, crowdfunding, and invoice trading), end-user (individual and organization), and geography (North America, APAC, Europe, South America, and Middle East and Africa). The report provides actionable insights and estimates the contribution of all segments to the growth of the global alternative finance market.
The market growth in the P2P segment will be significant over the forecast period. P2P lending is popular among individual borrowers and SMEs, as small- to medium-scale loans can be obtained easily. Many individuals opt for P2P loans for debt consolidation, which allows them to pay debts accrued from credit cards or loans from financial institutions. In addition, the market has several P2P platforms that provide loans for debt consolidation, home improvement, auto refinancing, and education. All these factors drive the growth of the segment.
The report comprises of various segments as well as analysis of the trends and factors
that are playing a substantial role in the market. Download a Sample Report
Key factor driving market growth
The market is driven by better returns for investors offered in alternative finance. Alternative finance offers a better return on investments than fixed deposits (FDs) and bonds offered by financial institutions. For instance, the average yield on fixed deposits in developed countries such as the US and the UK is between 1% to 3%. Alternative finance investment platforms provide returns at a theoretical average of 7%. They can provide a higher rate of ROI due to their lower operating costs compared with banks and other financial institutions. Alternative finance players have no physical assets such as offices and have low human resources and operating costs. Also, since all transactions with investors and debtors take place online, alternative finance operators provide better returns to investors. Such benefits are increasing the demand for alternative finance, which is driving the growth of the market.
Leading trends influencing the market
The rapid growth in APAC is identified as the key trend in APAC. The demand for alternative finance is increasing in APAC due to the presence of several SMEs. The number of SMEs has increased significantly in APAC over recent years. For instance, as of March 2020, there were 63.3 million SMEs present across India, according to the data published by the Ministry of Micro, Small, and Medium Enterprises (MSMEs). Alternative finance service providers help SMEs by strengthening their access to credit and equity, thereby allowing SMEs to invest in growth. Besides, the rising internet penetration and the increased smartphone adoption have increased the number of people using P2P lending and crowdfunding platforms. Many such factors are influencing the growth of the global alternative finance market.
Download the sample In addition to the forecast, the report also highlights the key
opportunities by analyzing drivers, trends, challenges for the market.
Competitive Analysis
The competitive scenario categorizes companies based on various performance indicators. Some of the factors considered include the financial performance of companies, growth strategies, product innovations, new product launches, investments, and growth in market share, among others, Buy the Report
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The alternative finance market size is expected to accelerate at a CAGR of 7.71% during the forecast period.
The alternative finance market is segmented by type (P2P lending, crowdfunding, and invoice trading), end-user (Individual and organization), and geography (North America, APAC, Europe, South America, and Middle East and Africa).
The market is fragmented due to the presence of many established vendors holding significant market share.
The research report offers information on several market vendors, including Bondora Capital OU, CircleUp Network Inc., ConnectionPoint Systems Inc., Crowdfunder Ltd., Fundable LLC, Funding Circle Holdings Plc, Funding Options Ltd., Fundrise LLC, GoFundMe Inc., Indiegogo Inc., Invoice Interchange Pvt. Ltd., Kickstarter PBC, Kriya Finance Ltd., Lending Crowd, LendingClub Corp., OFB Tech Pvt. Ltd., RealCrowd Inc., Sancus Lending Group Ltd., Trade Ledger Pty. Ltd., and Upstart Network Inc.
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Some of the key topics covered in the report include:
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Alternative Finance Market Scope | |
Report Coverage | Details |
Base year | 2022 |
Historic period | 2017-2021 |
Forecast period | 2023-2027 |
Growth momentum & CAGR | Accelerate at a CAGR of 7.71% |
Market growth 2023-2027 | USD 63.35 billion |
Market structure | Fragmented |
YoY growth 2022-2023 (%) | 5.65 |
Regional analysis | North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution | North America at 72% |
Key countries | US, China, Indonesia, UK, and Germany |
Competitive landscape | Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled | Bondora Capital OU, CircleUp Network Inc., ConnectionPoint Systems Inc., Crowdfunder Ltd., Fundable LLC, Funding Circle Holdings Plc, Funding Options Ltd., Fundrise LLC, GoFundMe Inc., Indiegogo Inc., Invoice Interchange Pvt. Ltd., Kickstarter PBC, Kriya Finance Ltd., Lending Crowd, LendingClub Corp., OFB Tech Pvt. Ltd., RealCrowd Inc., Sancus Lending Group Ltd., Trade Ledger Pty. Ltd., and Upstart Network Inc. |
Market dynamics | Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview | If our 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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Table of contents:
1 Executive Summary
1.1 Market overview
2 Market Landscape
2.1 Market ecosystem
3 Market Sizing
3.1 Market definition
3.2 Market segment analysis
3.3 Market size 2022
3.4 Market outlook: Forecast for 2022-2027
4 Historic Market Size
4.1 Global alternative finance market 2017 - 2021
4.2 Type Segment Analysis 2017 - 2021
4.3 End-user Segment Analysis 2017 - 2021
4.4 Geography Segment Analysis 2017 - 2021
4.5 Country Segment Analysis 2017 - 2021
5 Five Forces Analysis
5.1 Five forces summary
5.2 Bargaining power of buyers
5.3 Bargaining power of suppliers
5.4 Threat of new entrants
5.5 Threat of substitutes
5.6 Threat of rivalry
5.7 Market condition
6 Market Segmentation by Type
6.1 Market segments
6.2 Comparison by Type
6.3 P2P lending - Market size and forecast 2022-2027
6.4 Crowdfunding - Market size and forecast 2022-2027
6.5 Invoice trading - Market size and forecast 2022-2027
6.6 Market opportunity by Type
7 Market Segmentation by End-user
7.1 Market segments
7.2 Comparison by End-user
7.3 Individual - Market size and forecast 2022-2027
7.4 Organization - Market size and forecast 2022-2027
7.5 Market opportunity by End-user
8 Customer Landscape
8.1 Customer landscape overview
9 Geographic Landscape
9.1 Geographic segmentation
9.2 Geographic comparison
9.3 North America - Market size and forecast 2022-2027
9.4 APAC - Market size and forecast 2022-2027
9.5 Europe - Market size and forecast 2022-2027
9.6 South America - Market size and forecast 2022-2027
9.7 Middle East and Africa - Market size and forecast 2022-2027
9.8 US - Market size and forecast 2022-2027
9.9 UK - Market size and forecast 2022-2027
9.10 Germany - Market size and forecast 2022-2027
9.11 China - Market size and forecast 2022-2027
9.12 Indonesia - Market size and forecast 2022-2027
9.13 Market opportunity by geography
10 Drivers, Challenges, and Trends
10.1 Market drivers
10.2 Market challenges
10.3 Impact of drivers and challenges
10.4 Market trends
11 Vendor Landscape
11.1 Overview
11.2 Vendor landscape
11.3 Landscape disruption
11.4 Industry risks
12 Vendor Analysis
12.1 Vendors covered
12.2 Market positioning of vendors
12.3 Bondora Capital OU
12.4 CircleUp Network Inc.
12.5 ConnectionPoint Systems Inc.
12.6 Crowdfunder Ltd.
12.7 Fundable LLC
12.8 Funding Circle Holdings Plc
12.9 Fundrise LLC
12.10 GoFundMe Inc.
12.11 Indiegogo Inc.
12.12 Invoice Interchange Pvt. Ltd.
12.13 Kickstarter PBC
12.14 Kriya Finance Ltd.
12.15 LendingClub Corp.
12.16 RealCrowd Inc.
12.17 Sancus Lending Group Ltd.
13 Appendix
13.1 Scope of the report
13.2 Inclusions and exclusions checklist
13.3 Currency conversion rates for US$
13.4 Research methodology
13.5 List of abbreviations
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