The crowdfunding market has experienced rapid growth, rising from $15.42 billion in 2023 to $17.87 billion in 2024, with a compound annual growth rate (CAGR) of 15.9%. This growth in the historical period is attributed to the funding needs of startups and small businesses, access to global capital, support for creative projects, crowdfunding for social causes, and regulatory frameworks. Looking forward, the market is anticipated to continue its rapid growth, reaching $32.93 billion by 2028, with a CAGR of 16.5%. This growth is driven by diversification of crowdfunding models, expansion of real estate crowdfunding, increased adoption by established businesses, technological integration and platform enhancements, and global expansion of the crowdfunding ecosystem. Major trends in the forecast period include cross-border crowdfunding campaigns, the introduction of non-fungible tokens (NFTs) in crowdfunding, the rise of community-powered crowdfunding, the use of smart contracts for crowdfunding execution, and increased crowdfunding for real estate projects.
Major Driver In The Crowdfunding Market
The crowdfunding market is set to experience growth, propelled by the widespread adoption of social media platforms. The increased use of social media has become a catalyst for the crowdfunding market, providing a means to promote and publicize crowdfunding initiatives while facilitating fund collection through online platforms. As of January 2023, Hootsuite reported that globally, 4.2 billion people regularly used social media, indicating a continuous and rapid development in social media usage. This represents an increase of 490 million users since the beginning of 2020, encompassing 53.6% of the world's population. The pervasive use of social media platforms contributes significantly to the upward trajectory of the crowdfunding market, with market sizes for 2023, 2024, and 2028 integral to understanding and predicting its growth patterns.
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Crowdfunding Market Competitive Landscape
JD.com Inc. (Jingdong), Alibaba Group Holding Limited, Suning Holdings Group Co. Ltd., BNP Paribas Securities Services, LendingClub Corporation, GoGetFunding Inc., bitFlyer Inc., Thunder Funding, GoFundMe Inc., Indiegogo Inc., Public Good Inc., StartEngine Inc., AngelList LLC, Wefunder Inc., Nav Technologies Inc., Crowdfunder, Kiva, Fundable, Crowdcube Limited, Kickstarter PBC, Ulule, SeedInvest Technology LLC, Owners Circle, Realcrowd Inc., Pozible Pty Ltd, CircleUp, Mightycause, Fundly, Patreon Inc., DuckDAO, Funderbeam Inc., MintMe, Gronns Protocol, Prosper Funding LLC, RocketHub, Fundrise LLC, RealtyMogul LLC
Key Crowdfunding Market Trend
Major companies in the crowdfunding market are focusing on innovative products, such as crowdfunding campaigns to address battery fires. For example, in August 2023, Soteria, a US-based lithium-ion battery safety platform, launched a crowdfunding campaign on StartEngine to develop a line of inherently safe batteries for e-bikes and other devices. The campaign aims to raise funds from both accredited and non-accredited investors to support the development of technology that prevents explosions in batteries by halting energy flow during a short circuit. Soteria has assembled a consortium of over 125 top companies, including NASA, Mercedes, Lenovo, and DuPont, to facilitate widespread access to its technologies.
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Crowdfunding Market Segmentation
The crowdfunding market covered in this report is segmented –
1)By Type: Equity-based Crowdfunding, Debt-based Crowdfunding, Others Types
2)By Platform Type: Open Service Platform, Managed Service Platform
3)By Application: Food And Beverage, Technology, Media, Real Estate, Healthcare, Others Applications
By Geography:The regions covered in the crowdfunding market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the crowdfunding market in 2023.
The Crowdfunding Global Market Report 2024 furnishes information about the global crowdfunding market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
