PUBLISHER: The Insight Partners | PRODUCT CODE: 1830939
PUBLISHER: The Insight Partners | PRODUCT CODE: 1830939
The crowdfunding market is projected to increase from US$ 1.57 billion in 2024 to US$ 5.2 billion by 2031, with an expected CAGR of 14.2% from 2025 to 2031. The rapid advancements in technology and innovations in crowdfunding platforms, particularly the incorporation of artificial intelligence and machine learning, are significant factors driving the growth of the crowdfunding market. These developments have simplified the process for startup companies to secure funding from investors.
Crowdfunding Market Analysis
The crowdfunding market is experiencing considerable growth due to the rising number of crowdfunding service providers worldwide, which is also propelling market expansion. These providers assist startup companies in connecting with investors and raising capital, creating more opportunities for growth in the crowdfunding sector.
Crowdfunding Industry Overview
In the business sector, crowdfunding acts as a resource for entrepreneurs, business owners, and creators like filmmakers, musicians, and artists to obtain funding for their ventures, businesses, and projects by directly engaging the public for support.Online platforms enable the collection of funds from a broad base of individual investors. Notably, startups and growing companies frequently utilize crowdfunding as a viable method for accessing alternative capital.Crowdfunding platforms have greatly simplified the process for entrepreneurs, artists, and other creatives to obtain project funding, reducing reliance on traditional funding sources such as banks or venture capitalists. This democratization of funding has particularly benefited individuals and small businesses, allowing access to funds regardless of geographical location, credit score, or net worth.
Strategic Insights
Crowdfunding Market Drivers and Opportunities
Improved Access to Funding to Propel Crowdfunding Market Growth
Crowdfunding platforms have transformed the funding landscape for entrepreneurs, artists, and other creatives by offering an alternative to traditional funding sources like banks and venture capitalists. This change has created opportunities for individuals and small businesses, irrespective of their location, credit score, or net worth.Beyond just funding accessibility, crowdfunding platforms provide entrepreneurs and project owners with a venue to present their ideas, connect with potential investors and supporters, and raise awareness for their projects. This exposure to a larger audience increases the chances of successful funding.
Additionally, the emergence of various crowdfunding models, including rewards-based, donation-based, equity-based, and debt-based crowdfunding, has expanded the range of projects and entrepreneurs that can secure funding. This variety of funding models has significantly contributed to the growth and development of the crowdfunding industry.Crowdfunding Market Report Segmentation AnalysisBy type, the crowdfunding market forecast is categorized into reward-based crowdfunding, equity-based crowdfunding, debt-based crowdfunding, donation-based crowdfunding, and others.
The debt-based crowdfunding segment is anticipated to capture a significant share of the crowdfunding market in 2024. Key factors are strongly influencing the growth of this segment. Debt-based crowdfunding offers startup companies an alternative financing option with benefits similar to traditional bank loans, allowing borrowers to access funds at a lower cost and with fewer requirements than traditional banking.
Moreover, debt-based crowdfunding also advantages investors by providing better interest rates for funding projects through regular monthly installments; such features are expected to introduce new trends in the crowdfunding market.
Crowdfunding Market Share Analysis by Geography
The Crowdfunding Market report is primarily divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is expected to hold a significant share of the crowdfunding market in 2024. The debt-based crowdfunding segment has seen substantial growth due to increased competition among platforms, leading to ongoing innovation and improvements in the crowdfunding experience for users. This growth has been further supported by significant amounts of funding raised in North America, reaching billions of dollars in recent years. The region has seen a rise in the popularity of crowdfunding, resulting in a higher number of successful projects and campaigns.
Crowdfunding Market Report Scope
The " Crowdfunding Market Analysis" was conducted based on type, investment size, application, and geography. The market is segmented by type into reward-based crowdfunding, equity-based crowdfunding, debt-based crowdfunding, donation-based crowdfunding, and others. By investment size, it is divided into small & medium investment and large investment. By application, it includes food & beverages, media & entertainment, real estate, healthcare, and others. Geographically, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Crowdfunding Market News and Recent Developments
Companies are employing both inorganic and organic strategies such as mergers and acquisitions in the crowdfunding market. Below are some recent key developments in the market:
In March 2023, Enabot, a rising family robotics company, launched a Kickstarter crowdfunding campaign for their latest product, the EBO X family robot companion. The company aims to establish the EBO X as the first commercially available household robot in the industry. Interested backers can pre-order the EBO X on Kickstarter, with early supporters receiving a special price of USD 569, saving up to 43% off the retail price of US$ 999. The campaign has gained attention, with the EBO X being recognized as a CES 2023 "Innovation Awards Honoree" in both the Smart Home and Robotics categories. The EBO X features advanced capabilities such as a 4K stabilized camera, AI face recognition, and auto navigation. Kickstarter orders are expected to ship starting in May.[Source: Enabot, Company Website]
In April 2022, Crowdcube, a leading platform for crowdsourcing securities in the UK and Europe, expanded its operations by launching a dedicated website for France. This strategic initiative follows recent regulatory changes that have simplified the process for Crowdcube to assist issuers in raising up to Euro 5 million (USD 5.27 million) across European member states. Crowdcube's established presence in Europe, combined with these regulatory developments, positions it to facilitate fundraising for businesses and entrepreneurs in a broader market. This expansion aligns with Crowdcube's mission to empower high-growth businesses and provide investment opportunities for a diverse array of investors.[Source: Crowdcube, Company Website]
Crowdfunding Market Report Coverage & Deliverables
The market report on "Crowdfunding Market Size and Forecast (2021-2031)" offers a comprehensive analysis of the market covering the following areas:
Market size & forecast at global, regional, and country levels for all key market segments included in the scope.Market dynamics such as drivers, restraints, and key opportunities.Key future trends.Detailed PEST & SWOT analysis.Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.Detailed company profiles.