Alternative Financing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Alternative Financing Market size in terms of transaction value is expected to grow from USD 358.09 billion in 2024 to USD 421.21 billion by 2029, at a CAGR of 3.30% during the forecast period (2024-2029).
The alternative financing market, also known as alternative lending or peer-to-peer lending, has been experiencing significant growth and innovation. Platforms for peer-to-peer (P2P) lending are among the most popular types of alternative finance. These platforms match borrowers and lenders directly, eliminating the need for a traditional financial institution.
Crowdfunding platforms have gained popularity for individuals and businesses to raise funds from many people. Invoice financing platforms allow companies to obtain immediate cash by selling their outstanding invoices to investors at a discount. This lowers the possibility of late payments and helps firms optimize their cash flow. Marketplace lending platforms connect borrowers with various lenders, including individuals, institutions, or banks. These platforms often use technology and data analytics to assess creditworthiness and determine interest rates.
Alternative Financing Market Trends
Increase Business Market is Fuelling the Market
The increasing business market is a significant trend for the growth of the alternative financing market. As the business market expands, more entrepreneurs and small businesses are entering the market, seeking capital to finance their ventures. The growth of the business market has been accompanied by technological advancements, particularly in financial technology (FinTech). These advancements have facilitated the emergence of alternative financing platforms, such as peer-to-peer lending, crowdfunding, invoice financing, and merchant cash advances. The expansion of the business market has coincided with a shift in investor preferences. Many investors, including institutional and retail investors, are now looking for alternative investment opportunities that offer potentially higher returns than traditional investment options. As a result, there has been an increase in alternative financing options that let investors directly fund firms, like marketplace lending and crowdfunding websites.
Rise in Alternative Financing Market in Asia
P2P lending platforms have gained popularity in Asia. These platforms leverage technology to facilitate lending and offer quicker and more accessible funding options, particularly for small and medium-sized enterprises (SMEs). Asia has witnessed a surge in crowdfunding platforms. These platforms allow capital access to startups, creative projects, and social initiatives. Countries like China, Singapore, and South Korea have seen a rise in crowdfunding activities. Asia has witnessed a surge in venture capital (VC) and private equity (PE) investments. Countries such as China, India, and Southeast Asian nations have become attractive destinations for venture capital and private equity investments, fostering entrepreneurship and innovation.
Alternative Financing Industry Overview
The alternative financing market is moderately consolidated. Some major global market players include Lending Club, Funding Circle, Kabbage, SoFi, and OnDeck, among others. In the study period, market players were also involved in mergers and acquisitions, and partnerships focused on expanding their presence in the market. The market has the potential to grow during the forecast period, and this is likely to further fuel competition. However, by securing new contracts and tapping new markets, small- to medium-sized enterprises are increasing their presence on the market with technological progress and product innovation.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
The alternative financing market, also known as alternative lending or peer-to-peer lending, has been experiencing significant growth and innovation. Platforms for peer-to-peer (P2P) lending are among the most popular types of alternative finance. These platforms match borrowers and lenders directly, eliminating the need for a traditional financial institution.
Crowdfunding platforms have gained popularity for individuals and businesses to raise funds from many people. Invoice financing platforms allow companies to obtain immediate cash by selling their outstanding invoices to investors at a discount. This lowers the possibility of late payments and helps firms optimize their cash flow. Marketplace lending platforms connect borrowers with various lenders, including individuals, institutions, or banks. These platforms often use technology and data analytics to assess creditworthiness and determine interest rates.
Alternative Financing Market Trends
Increase Business Market is Fuelling the Market
The increasing business market is a significant trend for the growth of the alternative financing market. As the business market expands, more entrepreneurs and small businesses are entering the market, seeking capital to finance their ventures. The growth of the business market has been accompanied by technological advancements, particularly in financial technology (FinTech). These advancements have facilitated the emergence of alternative financing platforms, such as peer-to-peer lending, crowdfunding, invoice financing, and merchant cash advances. The expansion of the business market has coincided with a shift in investor preferences. Many investors, including institutional and retail investors, are now looking for alternative investment opportunities that offer potentially higher returns than traditional investment options. As a result, there has been an increase in alternative financing options that let investors directly fund firms, like marketplace lending and crowdfunding websites.
Rise in Alternative Financing Market in Asia
P2P lending platforms have gained popularity in Asia. These platforms leverage technology to facilitate lending and offer quicker and more accessible funding options, particularly for small and medium-sized enterprises (SMEs). Asia has witnessed a surge in crowdfunding platforms. These platforms allow capital access to startups, creative projects, and social initiatives. Countries like China, Singapore, and South Korea have seen a rise in crowdfunding activities. Asia has witnessed a surge in venture capital (VC) and private equity (PE) investments. Countries such as China, India, and Southeast Asian nations have become attractive destinations for venture capital and private equity investments, fostering entrepreneurship and innovation.
Alternative Financing Industry Overview
The alternative financing market is moderately consolidated. Some major global market players include Lending Club, Funding Circle, Kabbage, SoFi, and OnDeck, among others. In the study period, market players were also involved in mergers and acquisitions, and partnerships focused on expanding their presence in the market. The market has the potential to grow during the forecast period, and this is likely to further fuel competition. However, by securing new contracts and tapping new markets, small- to medium-sized enterprises are increasing their presence on the market with technological progress and product innovation.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Need for More Diverse Funding Options is Driving the Market
4.2.2 The Rise of Online Platforms and Social Media
4.3 Market Restraints
4.3.1 Potential for Higher Interest Rates Compared to Traditional Financing Options
4.3.2 Lack of Awareness on Alternative Financing
4.4 Market Opportunities
4.4.1 Access to Capital for Small and Medium-Sized Enterprises is Creating an Opportunity
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Technological Innovations in the Market
4.7 Impact of Covid-19 on the Market
5 MARKET SEGMENTATION
5.1 By End User
5.1.1 Businesses
5.1.2 Individuals
5.2 Type
5.2.1 Peer-To-Peer Lending
5.2.2 Debt-Based Crowdfunding
5.2.3 Invoice Trading
5.3 Geography
5.3.1 North America
5.3.1.1 US
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 UK
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Spain
5.3.2.6 Rest of Europe
5.3.3 Asia Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Japan
5.3.3.4 Rest of Asia Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East
5.3.5.1 UAE
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle East
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Lending Club
6.2.2 Funding Circle
6.2.3 Lending Crowd
6.2.4 SoFi
6.2.5 OnDeck
6.2.6 BlueVine
6.2.7 Prosper
6.2.8 Avant
6.2.9 Square Capital
6.2.10 Zopa*
7 MARKET OPPORTUNTIES AND FUTURE TRENDS
8 DISCLAIMER AND ABOUT US
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Need for More Diverse Funding Options is Driving the Market
4.2.2 The Rise of Online Platforms and Social Media
4.3 Market Restraints
4.3.1 Potential for Higher Interest Rates Compared to Traditional Financing Options
4.3.2 Lack of Awareness on Alternative Financing
4.4 Market Opportunities
4.4.1 Access to Capital for Small and Medium-Sized Enterprises is Creating an Opportunity
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Technological Innovations in the Market
4.7 Impact of Covid-19 on the Market
5 MARKET SEGMENTATION
5.1 By End User
5.1.1 Businesses
5.1.2 Individuals
5.2 Type
5.2.1 Peer-To-Peer Lending
5.2.2 Debt-Based Crowdfunding
5.2.3 Invoice Trading
5.3 Geography
5.3.1 North America
5.3.1.1 US
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 UK
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Spain
5.3.2.6 Rest of Europe
5.3.3 Asia Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Japan
5.3.3.4 Rest of Asia Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East
5.3.5.1 UAE
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle East
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Lending Club
6.2.2 Funding Circle
6.2.3 Lending Crowd
6.2.4 SoFi
6.2.5 OnDeck
6.2.6 BlueVine
6.2.7 Prosper
6.2.8 Avant
6.2.9 Square Capital
6.2.10 Zopa*
7 MARKET OPPORTUNTIES AND FUTURE TRENDS
8 DISCLAIMER AND ABOUT US
