Crowdfunding Trends and Forecast
The future of the global crowdfunding market looks promising with opportunities in the food and beverage, technology, media and entertainment, real estate, and healthcare markets. The global crowdfunding market is expected to grow with a CAGR of 14.7% from 2024 to 2030. The major drivers for this market are the emergence of crowdfunding platforms and more accessible avenues for entrepreneurs, artists, and creatives to secure funding for their projects.
• Lucintel forecasts that, within the type category, debt-based crowdfunding is expected to witness the highest growth over the forecast period due to the growing demand for debt-based crowdfunding by startup companies to raise funds quickly as compared to traditional banks.
• Within the application category, real estate will remain the largest segment due to the growing popularity of real estate investment trusts.
• In terms of regions, North America is expected to witness the highest growth over the forecast period due to an increase in several successful projects & campaigns and the presence of major players in this region.
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The crowdfunding market, which is global, has seen notable changes happening across major regions, driven by technological advancements, shifts in regulations, and changing customer habits. In the US, the market is mature, with more regulation and various platforms catering to different sectors. However, China, though characterized by stricter government policies, shows growth in certain areas, such as real estate. Germany, on the other hand, has a growing market, especially involving green projects and social ventures, while IndiaÄX%$%Xs rise in crowdfunding activities can be attributed to technology and the youthfulness of its population. JapanÄX%$%Xs market is known to be smaller, but it witnesses slow growth based on creative ideas and entrepreneurial initiatives. These developments demonstrate a dynamic world that recognizes regional aspects as determining factors in the crowdfunding industry.
• United States: In America, the crowdfunding industry has grown considerably, and platforms have started diversifying their offerings to cater to specific niches, such as start-ups or real estate. This diversification has been driven by increased regulation, particularly through the JOBS Act, which provides a legal framework for equity crowdfunding within the country. This change has made investors and project creators more confident in the system, leading to higher levels of participation, thus promoting growth in this sector of finance. Furthermore, there has been an increasing focus on due diligence and transparency, which have built confidence among users. As a result, these steps have positioned the U.S. as one of the key stakeholders influencing trends in crowdfunding globally.
• China: In China, strict government regulations aimed at reducing financial risks have caused numerous challenges for the crowdfunding market. Despite these difficulties, however, areas like real estate and technology continue to flourish. Due to concerns over crackdowns, platforms are increasingly becoming more compliant and aligning with government policiesÄX%$%X requirements. It is worth noting that real estate crowdfunding has become a significant trend, providing alternative investment opportunities during periods of sluggish property markets. While some regulations have hindered growth, industry-specific opportunities continue to drive the market’s progress.
• Germany: Green and social projects are key areas experiencing steady growth in Germany’s crowdfunding market. This is consistent with the country’s strong sustainable development principles and commitment to corporate social responsibility. Renewable energy, environmental conservation, and social impact are increasingly becoming subjects for crowdfunding platforms, thus attracting investors with diverse interests. The German government has also taken a supportive stance through favorable regulations and incentives that promote these types of projects. As a result, Germany has become a common destination for both project initiators and investors interested in contributing toward something worthwhile.
• India: In India, the crowdfunding sector is experiencing a rapid surge, owing to technological advancements and the presence of a young, technologically inclined population. This generally makes it easier for people to participate in crowdfunding due to mobile penetration and the widespread use of digital payment methods. Today, platforms use social media and other digital tools to reach larger audiences, especially when focusing on charity causes, emergency health funding, or creative ideas. The government has also recognized this potential, though regulatory frameworks are still being developed. As a result, the ongoing trend in India shows the adoption of the digital age alongside the entrepreneurial spirit driving life changes.
• Japan: Crowdfunding in Japan is experiencing gradual development, especially in creative and entrepreneurial projects, albeit on a smaller scale than elsewhere. This has led to the rise of platforms dedicated to supporting small businesses, start-ups, music, films, and the arts. The government has also implemented regulations to ensure transparency and protect investors, which has helped build trust in the system. In addition, cultural factors such as the preference for community-based funding and support for innovation are influencing the market. Japan’s crowdfunding landscape is evolving slowly but steadily while nurturing creativity and entrepreneurship.
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Emerging Trends in the Crowdfunding Market
The crowdfunding sector is developing quickly, with emerging trends reshaping how platforms function and campaigns get funded. Key trends include the increased use of niche platforms, blockchain integration, equity crowdfunding, a growing emphasis on sustainability and social impact, and the use of AI and data analytics to improve campaign success. Technological advances, changes in consumer preferences, and regulations lead to new opportunities and challenges for stakeholders within the crowdfunding ecosystem.
• Niche Platforms: A significant trend has been observed, where more crowdfunding platforms are concentrating on specific sectors such as real estate, social causes, or creative industries. By narrowing their focus to these niches, they can better serve their target audiences through specialized services and support mechanisms. Niche-focused platforms provide content that matters most, as well as marketing strategies specifically tailored for those particular audiences, leading to increased campaign success rates. This transition reflects an overall shift towards personalization within the digital economy, where websites respond directly to usersÄX%$%X needs and requirements.
• Blockchain Integration: Crowdfunding platforms are increasingly utilizing blockchain technology to enhance transparency, security, and efficiency. The use of blockchain in crowdfunding enables the creation of auditable transactions, which could act as a deterrent against the misappropriation of funds. Smart contracts allow functions such as the distribution of funds based on whether campaign goals have been met. This is particularly important in equity crowdfunding, where trust and transparency are crucial for attracting investors. One of the most significant developments in this field is that blockchain may revolutionize crowdfunding by providing a secure and transparent infrastructure.
• Equity Crowdfunding Growth: Equity crowdfunding has emerged as a popular alternative to traditional methods of raising capital, allowing investors to hold shares in startups and small businesses. As such, it democratizes access to investment opportunities, making them available to a wider range of people who can invest in startups. Platforms are turning their attention to offering equity crowdfunding services while providing more advanced tools for due diligence and investor relations. Furthermore, the growth of equity crowdfunding offers new paths for both entrepreneurs and investors, creating a more diversified and inclusive financial ecosystem.
• Sustainability and Social Impact: There is a growing emphasis on sustainability and social impact within the crowdfunding industry, as consumers and investors seek to support projects that align with their values. Consequently, campaigns focused on environmental conservation, renewable energy, and social good are witnessing increased engagement rates and success. Platforms have increasingly prioritized such projects, offering dedicated categories and resources to support them. The evolution of crowdfunding represents a gradual shift towards responsible consumerism and investment, encompassing both business shareholders and everyday consumers.
These emerging trends in the crowdfunding market—such as niche platforms, blockchain integration, equity crowdfunding growth, and a focus on sustainability—along with AI-driven strategies, have significantly changed its landscape. At the same time, they open new opportunities for platforms, campaigners, and investors, while also creating challenges that require adaptation and innovation. All these trends have made the crowdfunding market very dynamic, and they will define its future development steps, along with how quickly everything evolves in this sector.
Recent Developments in the Crowdfunding Market
The crowdfunding market is changing rapidly due to new technologies, regulatory dynamics, and shifting consumer preferences. These developments are transforming the way campaigns are launched, managed, and funded, with an increasing focus on transparency, inclusivity, and innovation. Some of the areas that have experienced change include the emergence of niche platforms, the integration of blockchain technology, the expansion of equity crowdfunding, the use of AI and data analytics, and the concentration on sustainability and social impact, among others.
• Equity Crowdfunding Growth: One of the most notable developments in the industry is the growth of equity crowdfunding. This allows investors to own part of a startup or small business, improving access to investment opportunities. As a result, more crowdfunding sites offering equity shares have been established, attracting different investors and expanding their range. It also provides alternative sources of capital for entrepreneurs, leading to more businesses being established while offering investment avenues for venture capitalists. This trend significantly expands the scope and impact of crowdfunding on businesses globally.
• Increased Regulation: The adoption of stringent regulations across various jurisdictions is transforming the crowdfunding market by increasing openness and instilling confidence among participants. Regions such as Europe have adopted regulatory frameworks similar to the JOBS Act introduced in the US, providing a legal basis that protects investors while ensuring compliance by platforms (SBA, 2016). The introduction of these regulations plays a crucial role in mitigating fraud and mismanagement, thereby enhancing investor trust. More robust regulatory oversight represents a key advancement towards achieving stability and credibility for the sector, ensuring sustainable performance.
• Blockchain Integration: Blockchain technology has led to significant changes in how transactions are conducted through online funding methods, with its integration into crowdfunding platforms. By creating immutable records of transactions and enabling smart contracts, blockchain offers increased security, transparency, and efficiency. It ensures that funds are used for their intended purposes while minimizing the risk of fraud. The integration of blockchain has improved security for both investors and developers who use crowdfunding platforms, providing them with a competitive advantage. This trend is making crowdfunding developments more dependable and appealing to a wider range of participants.
• Growth of Niche Platforms: Another significant development within the sector is the growth of niche crowdfunding platforms that support specific industries, such as real estate, social causes, or the creative arts (Eckert, 2016). These platforms address the specific needs of their target markets by offering specialized services and support that may not be available on general platforms. Niche platforms are better positioned to engage their communities, leading to higher campaign success rates by focusing on specific sectors. This trend contributes to the expansion of the crowdfunding ecosystem, allowing for more individualized and effective fundraising strategies.
A lot has happened recently in the crowdfunding market, including the growth of equity crowdfunding, increased regulation, blockchain integration, the emergence of niche platforms, and global expansion, all of which are greatly impacting the industry structure. Furthermore, these changes are encouraging transparency, safety, and ease of access, making crowdfunding a stronger choice for both investors and project initiators. Consequently, some or all of these developments could play a vital role in shaping the future of this market as it continues to evolve.
Strategic Growth Opportunities for Crowdfunding Market
Technological advances, accompanied by changing consumer preferences, have led to numerous strategic growth opportunities in different applications across the crowdfunding sector. The most notable of these opportunities lie within real estate, social impact projects (SIP), creative industries (CI), healthcare services (HS), and small business financing (SBF). Realizing the potential in these areas can help platforms increase their user base while raising transaction volumes, thus improving their overall penetration locally.
• Real Estate Crowdfunding: Real estate crowdfunding offers a significant opportunity for portfolio expansion among individual investors who may not have large amounts of money at their disposal but still want to participate in property markets. This innovation has made property investment accessible to many people, who can now buy shares even with small amounts of money. Real estate crowdfunding platforms are currently experiencing growth in transactions involving both retail and institutional investors. These platforms create revenue streams by offering a wide range of investment opportunities, from residential to commercial to mixed-use properties.
• Social Impact Projects: The trend toward more responsible forms of crowdfunding is creating opportunities for expansion in areas like social impact initiatives, which focus on environmental sustainability, renewable energy, and social equity. The concept of "values-driven" investing applies to issues such as environmental conservation, renewable energy sources, and the fair distribution of social wealth. Crowdfunding platforms that focus on these categories experience more participation and higher campaign success rates. Commercializing this preference reflects a wider societal move toward ethical investing, and hence serves as an opportunity for platforms to build a community that supports positive change.
• Creative Industries: Crowdfunding is one of the fastest-growing sectors within the creative industry, giving creators the opportunity to fund their projects directly through contributions from their audience rather than relying on conventional gatekeepers. This market potential has been demonstrated by successful crowdfunding platforms focusing on creative projects. These platforms enable innovation and content development, providing easy access to unique products and services. The significance of this as a driving force behind the industryÄX%$%Xs expansion is further highlighted by its reliance on creative crowdfunding as a primary source of capital.
• Healthcare Crowdfunding: Healthcare crowdfunding has become an important emerging market, especially in regions with limited insurance coverage and high medical expenses. It allows people to raise funds for medical treatments, operations, and other health-related costs. The increasing occurrence of healthcare-based crowdfunding reflects growing dependence on community-oriented financing mechanisms to meet critical healthcare needs. Strong demand for accessible and affordable healthcare solutions is propelling growth in these sector-focused platforms. By promoting medcrowd campaigns, these sites play an invaluable role in improving health access and outcomes.
The future of crowdfunding includes strategic opportunities for growth in areas like real estate, social impact, creative industries, healthcare crowdfunding, and small business financing. Platforms in these sectors can increase their market presence, attract a diversified user base, and achieve sustainable growth. The significance of these opportunities is that they expand the scope and impact of crowdfunding as an increasingly important tool for funding and investment.
Crowdfunding Market Driver and Challenges
There are several drivers and challenges that influence the crowdfunding market, ranging from technological advancements and economic factors to regulatory frameworks and shifting consumer preferences. These are highly influential variables that determine the growth of this market. As explained before, some of the key development catalysts include digital penetration within the industry and the demand for alternative investment sources.
The factors responsible for driving the crowdfunding market include:
• Technological Advancements: Technological innovations are pushing the crowdfunding market toward further growth. Digital platforms, mobile applications, and online payment systems have become more accessible for individuals to tap into this platform. These technologies include global outreach, smooth transactions, and real-time progress tracking of campaigns on various websites. Additionally, technology is changing how crowdfunding operates, with developments like blockchain and AI enhancing security, transparency, and efficiency. The continued integration of technology into crowdfunding platforms is extending its reach, resulting in increased involvement by both investors and project creators.
• Alternative Financing Demand: Another key driver of the crowdfunding market is the demand for alternative financing systems through non-conventional sources. Due to restrictions in traditional lending institutions, people—including individuals like you—are trying out this new way of financing their projects or businesses. Start-ups, small enterprises, and creative projects that lack eligibility for traditional loans are among those showing greater interest in this option. Through crowdfunding, project initiators can get funds from a wide variety of backers at different levels, not limited to flexible forms of money collection that directly target the intended audience. This has led to an explosion in the popularity of alternative financing, establishing crowdfunding as a crucial part of the world’s financial architecture.
• Regulatory Frameworks: Regulatory frameworks serve as both drivers and hurdles within crowdfunding markets. On one hand, regulations help establish investor protection standards and compliance requirements for platforms while fostering trust-building aspects, such as increased participation from other stakeholders like investors and funders. Conversely, strict regulations may hinder innovation, limiting growth opportunities within markets, particularly in equity-based financing laws across jurisdictions globally.
Challenges in the crowdfunding market are:
• Regulatory Hurdles: The crowdfunding market may face significant regulatory hurdles, especially when expanding to new regions with different legal environments. The difficulty and expense of conforming to diverse regulations, including those related to consumer protection and securities laws, can be high. As a result, platforms could be dissuaded from entering some markets or may have limited campaigns they can host. Understanding local legal frameworks in depth and adapting quickly to changes in regulations are necessary to navigate these challenges. Platforms that can manage these issues properly have an advantage in the current crowdfunding world.
• Market Saturation: With the increasing number of platforms in the crowdfunding industry, market saturation becomes more problematic. This makes it harder for platforms to distinguish themselves since they offer several similar possibilities. Ultimately, increased levels of saturation can lead to fierce competition, resulting in low profit margins and limiting entry by novice operators. Therefore, platforms need continuous innovation, improved user experience, and a focus on narrow market segments to succeed in this crowded space. In crowdfunding, differentiation is key during expansion.
• Investor Education: In crowdfunding, one significant issue is investor education, as many investors do not have enough information about the nature and working principles of crowdfunding, leading them to make poor decisions. A knowledge gap among investors may cause doubt or ill-advised investments that damage the reputation of the market. Consequently, companies need to invest in educational resources to help potential investors understand the risk factors associated with crowdfunding options available on their websites or elsewhere. By improving investor education programs, businesses can develop more confident and engaged customers, which are critical for the overall development of this growing sector.
The growth and development of the crowdfunding market are influenced by a combination of drivers and challenges. For example, technological advancements, demand for alternative finance, regulatory frameworks, investor protection, and global economic conditions are some of the key drivers that have propelled the market. However, issues such as regulatory hurdles, market saturation, and the need for investor education must be addressed for sustainable growth to be achieved. By navigating these dynamics, platforms can capitalize on the opportunities in the crowdfunding market while mitigating its risks.
List of Crowdfunding Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies crowdfunding companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the crowdfunding companies profiled in this report include-
• StartSomeGood
• Wefunder
• ConnectionPoint Systems
• Gofundme
• Kickstarter
• PBC
• Fundable
• Seedrs
• Indiegogo
• Fundly
Crowdfunding by Segment
The study includes a forecast for the global crowdfunding by type, investment size, application, and region.
Crowdfunding Market by Type [Analysis by Value from 2018 to 2030]:
• Reward-based Crowdfunding
• Equity-based Crowdfunding
• Debt-based Crowdfunding
• Donation-based Crowdfunding
• Others
Crowdfunding Market by Investment Size [Analysis by Value from 2018 to 2030]:
• Small and Medium Investment
• Large Investment
Crowdfunding Market by Application [Analysis by Value from 2018 to 2030]:
• Food and Beverage
• Technology
• Media and Entertainment
• Real Estate
• Healthcare
• Others
Crowdfunding Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Features of the Global Crowdfunding Market
Market Size Estimates: Crowdfunding market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Crowdfunding market size by type, investment size, application, and region in terms of value ($B).
Regional Analysis: Crowdfunding market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, investment sizes, applications, and regions for the crowdfunding market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the crowdfunding market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the growth forecast for crowdfunding market?
Answer: The global crowdfunding market is expected to grow with a CAGR of 14.7% from 2024 to 2030.
Q2. What are the major drivers influencing the growth of the crowdfunding market?
Answer: The major drivers for this market are the emergence of crowdfunding platforms and more accessible avenues for entrepreneurs, artists, and creatives to secure funding for their projects.
Q3. What are the major segments for crowdfunding market?
Answer: The future of the crowdfunding market looks promising with opportunities in the food and beverage, technology, media and entertainment, real estate, and healthcare markets.
Q4. Who are the key crowdfunding market companies?
Answer: Some of the key crowdfunding companies are as follows:
• StartSomeGood
• Wefunder
• ConnectionPoint Systems
• Gofundme
• Kickstarter
• PBC
• Fundable
• Seedrs
• Indiegogo
• Fundly
Q5. Which crowdfunding market segment will be the largest in future?
Answer: Lucintel forecasts that debt-based crowdfunding is expected to witness the highest growth over the forecast period due to the growing demand for debt-based crowdfunding by startup companies to raise funds quickly as compared to traditional banks.
Q6. In crowdfunding market, which region is expected to be the largest in next 5 years?
Answer: North America is expected to witness the highest growth over the forecast period due to an increase in several successful projects & campaigns and the presence of major players in this region.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the crowdfunding market by type (reward-based crowdfunding, equity-based crowdfunding, debt-based crowdfunding, donation-based crowdfunding, and others), investment size (small and medium investment and large investment), application (food and beverage, technology, media and entertainment, real estate, healthcare, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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