Europe Crowd Lending And Crowd Investing Market Size (2024 - 2029)

The Europe crowd lending and crowd investing market is projected to experience steady growth, driven by increasing digitization and easier access to financing services. The shift towards digital transformation is creating new opportunities for market participants, particularly in countries like Spain, the Netherlands, and the United Kingdom. The widespread use of smartphones and digital technologies is enhancing access to financial services, facilitating direct connections between savers and borrowers. Despite challenges posed by the COVID-19 pandemic, such as reduced funds and economic downturns, the market is expected to recover and expand, supported by strategic partnerships and government-backed initiatives.

Market Size of Europe Crowd Lending And Crowd Investing Industry

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Europe Crowd Lending And Crowd Investing Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 13.44 Billion
Market Size (2029) USD 14.67 Billion
CAGR (2024 - 2029) 1.76 %
Market Concentration Medium

Major Players

Europe Crowd Lending And Crowd Investing Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Crowdlending and Crowd Investing Market Analysis

The Europe Crowd Lending And Crowd Investing Market size is estimated at USD 13.44 billion in 2024, and is expected to reach USD 14.67 billion by 2029, growing at a CAGR of 1.76% during the forecast period (2024-2029).

The Europe Crowd Lending and Crowd Investing Market size was estimated at USD 13.21 billion in the current year to USD 14.41 billion in five years, registering a CAGR of 1.76% during the forecast period.

  • The Europe crowd lending and crowd investing market is analyzed to witness steady growth in the coming years. The growing digitization coupled with growing easy access to financing services is driving the studied market growth in Europe. Further, the shift towards digital transformation opens up new opportunities for the market vendors in the region. Countries like Spain, the Netherlands, and the United Kingdom are witnessing significant growth in the market.
  • Moreover, the shift to digital media opens up several new possibilities for private loans offered online and bank-independent loans. Additionally, the pandemic significantly accelerated the development of crowdlending. According to a recent report by Mastercard, 62% of Europeans have been considering moving from traditional banking to digital platforms, and 42% of Europeans now manage their finances digitally more regularly than before the pandemic. The transition to digital technologies has made it simpler for lenders to obtain funding.
  • The transformation and the expansion of access to essential financial services are being driven by the widespread use of smartphones and digital technologies, which include a variety of newly released applications that enable online banks to reach more customers and web-based platforms to connect savers and borrowers for lending money directly.
  • Additionally, the region is witnessing significant partnership and acquisition activities among market vendors, thus significantly supporting the market expansion. For instance, several acquisitions in the past few months, such as the Dutch platform Symbid acquisition by Romanian crowdfunding firm SeedBlink, which focuses on tech startups and scale-ups, and the October platform acquisition by its French competitor Credit.fr, etc., are analyzed to transform the market in the region.
  • The COVID-19 pandemic impacted the market, considering the funds raised were decreased due to the region's loss of jobs and economic downturn. Vendors operating in the market studied have witnessed a significant slump in revenue during the pandemic, which was due to the effect of the pandemic-induced lockdown, which forced businesses to close, thereby resulting in low levels of investment in business expansion and other activities, diminishing the need for loans which have impacted the market studied during the pandemic. Also, demand for lending post-pandemic is suppressed by rising inflation and the financial impact of the war in Ukraine. However, the growth is expected to bounce back over the next three years with initiatives such as government-backed pandemic loan schemes.

Europe Crowdlending and Crowd Investing Industry Segmentation

Crowdlending allows businesses to finance themselves through a large and diverse group of people through the Internet without going to a bank. The most common crowd financing models include equity-based crowdfunding (or crowd investing). It is a form of equity financing, reward-based, donation-based, lending-based crowdfunding (or crowdlending), and a debt-based financing solution.

The Europe Crowd Lending and Crowd Investing Market are segmented by type (business and consumer) and geography (United Kingdom, Germany, France, Italy, Poland, Czech Republic, other CEE countries, Rest of Europe). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Type
Business
Consumer
By Country
United Kingdom
Germany
France
Italy
Poland
Czech Republic
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Europe Crowd Lending And Crowd Investing Market Size Summary

The European crowdlending and crowd-investing market is poised for steady growth, driven by the increasing digitization and easy access to financing services. The shift towards digital transformation is creating new opportunities for market vendors, particularly in countries like Spain, the Netherlands, and the United Kingdom. The pandemic has accelerated the adoption of digital platforms, with a significant portion of the population moving away from traditional banking. This transition has facilitated easier access to funding for lenders and has expanded the reach of online and bank-independent loans. The proliferation of smartphones and digital technologies, along with partnerships and acquisitions among market players, is further supporting market expansion. Despite the challenges posed by the pandemic, such as job losses and economic downturns, the market is expected to recover and grow, aided by government-backed loan schemes.

In the Central and Eastern European (CEE) region, crowdfunding is emerging as a significant opportunity for entrepreneurs and startups facing challenges in securing traditional funding. The region's reliance on banks and micro-lenders is shifting, with peer-to-peer lending gaining traction. The demand for mobile-based financial services is expected to rise, driven by increased smartphone penetration and digital initiatives like 5G deployment. The CEE countries are becoming attractive for crowdfunding due to their development needs and higher capital costs compared to Western Europe. The market is moderately competitive, with firms innovating and forming strategic partnerships to maintain their market share. Key developments include mergers and collaborations aimed at enhancing funding avenues and expanding market reach, particularly in the tech startup sector.

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Europe Crowd Lending And Crowd Investing Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Assessment of the Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Business

      2. 2.1.2 Consumer

    2. 2.2 By Country

      1. 2.2.1 United Kingdom

      2. 2.2.2 Germany

      3. 2.2.3 France

      4. 2.2.4 Italy

      5. 2.2.5 Poland

      6. 2.2.6 Czech Republic

Europe Crowd Lending And Crowd Investing Market Size FAQs

The Europe Crowd Lending and Crowd Investing Market size is expected to reach USD 13.44 billion in 2024 and grow at a CAGR of 1.76% to reach USD 14.67 billion by 2029.

In 2024, the Europe Crowd Lending and Crowd Investing Market size is expected to reach USD 13.44 billion.

Europe Crowdlending and Crowd Investing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)