Impact Investing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Impact Investing Market size is estimated at USD 1.33 trillion in 2024, and is expected to reach USD 1.88 trillion by 2029, growing at a CAGR of 7.17% during the forecast period (2024-2029).
One of the primary factors propelling the impact investing sector is the growing desire among investors for returns that encompass both financial gains and positive social or environmental outcomes. Investing in renewable energy has the potential to reduce greenhouse gas emissions (GHG) and mitigate climate change. Investing in affordable housing has the potential to help alleviate homelessness. In addition, there is a growing awareness of the need for social and government support and policies to promote impact investing.
The projected growth in the impact investing sector is expected to be fueled by an increase in millennial investors, who are recognized for their lower inclination toward stock investments. In their pursuit of generating consistent wealth and effecting positive change in addressing social and environmental issues, these youthful investors are adopting sustainable investment practices. Millennial investors perceive impact investing as a more effective approach to fostering enduring positive social change than traditional forms of philanthropy.
Acknowledging the possibility of financial gains from investments that result in favorable social and environmental consequences is another factor propelling the expansion of the impact investing industry. The perception of impact investments has shifted from a trade-off between influence and financial returns to a chance to achieve both.
The impact investing sector is also expanding due to the development of effect assessment and reporting standards. As it relates to evaluating and disclosing the social and environmental impact of their investments, investors are calling for increased accountability and transparency. Standardized frameworks such as the Impact Reporting and Investment Standards (IRIS+) and the Global Reporting Initiative (GRI) play a crucial role in shaping the measurement and communication of impact. These frameworks enhance the credibility and confidence of impact investors and enable them to make informed decisions.
Impact Investing Market Trends
Rising Investments from Institutional Investors
Impact investment solutions have seen a surge in demand from institutional and high-net-worth investors in recent years. This is due to several factors, such as the desire to connect investments with values and perceptions, the understanding that impact investing may produce financially competitive returns, and the growing availability of impact investment goods and services.
The growing interest in the area from institutional investors, including endowments and pension funds, has resulted in tremendous growth. These investors understand how critical it is to consider the environment and social issues when making investments. They see impact investing as a chance to improve society and the environment and yield financial gains. As a result, institutional investors' allocations to impact investments have increased dramatically as they look to support sustainable development.
For instance, an institutional player in the impact investing space is the Calvert Foundation, which oversees a program of community investment notes that let investors make investments with positive social and environmental effects. However, there are also difficulties for institutional investors in the impact investing space. One issue is determining impact, which can be challenging to measure as it is frequently a longer-term result.
Asia-Pacific (APAC) is One of the Fastest-growing Regions in Terms of Market Growth
In the Asia-Pacific region, there is a noticeable uptick in the popularity of impact investment, evidenced by recent fund launches, business collaborations, and recruitment drives. However, questions have emerged regarding how the practices of Asian impact investors stack up against those in more established markets like the United States and Western Europe, given this surge in activity. With the region's large and rapidly expanding population, there is a pressing need for innovative solutions to numerous social and environmental challenges. Impact investment offers a framework for addressing these issues while generating sustainable financial returns. Moreover, there is a growing recognition of and enthusiasm for social entrepreneurship and sustainable development throughout the Asia-Pacific region.
The Asia-Pacific region is anticipated to encounter a higher frequency of weather-related disasters compared to other regions. While there's a global increase in funding for adaptation, there remains a substantial deficit in funding, with public funding constituting the majority.
Impact Investing Industry Overview
The impact investing market is fragmented in nature. In the ever-evolving realm of impact investing, prominent companies proactively engage in tactics like mergers and acquisitions, strategic alliances, and collaborations to strengthen their market position and enhance their range of services. The major players dominating the market are Vital Capital, BlueOrchard Finance Ltd, BlackRock Inc., Goldman Sachs, and Bain Capital LP.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
One of the primary factors propelling the impact investing sector is the growing desire among investors for returns that encompass both financial gains and positive social or environmental outcomes. Investing in renewable energy has the potential to reduce greenhouse gas emissions (GHG) and mitigate climate change. Investing in affordable housing has the potential to help alleviate homelessness. In addition, there is a growing awareness of the need for social and government support and policies to promote impact investing.
The projected growth in the impact investing sector is expected to be fueled by an increase in millennial investors, who are recognized for their lower inclination toward stock investments. In their pursuit of generating consistent wealth and effecting positive change in addressing social and environmental issues, these youthful investors are adopting sustainable investment practices. Millennial investors perceive impact investing as a more effective approach to fostering enduring positive social change than traditional forms of philanthropy.
Acknowledging the possibility of financial gains from investments that result in favorable social and environmental consequences is another factor propelling the expansion of the impact investing industry. The perception of impact investments has shifted from a trade-off between influence and financial returns to a chance to achieve both.
The impact investing sector is also expanding due to the development of effect assessment and reporting standards. As it relates to evaluating and disclosing the social and environmental impact of their investments, investors are calling for increased accountability and transparency. Standardized frameworks such as the Impact Reporting and Investment Standards (IRIS+) and the Global Reporting Initiative (GRI) play a crucial role in shaping the measurement and communication of impact. These frameworks enhance the credibility and confidence of impact investors and enable them to make informed decisions.
Impact Investing Market Trends
Rising Investments from Institutional Investors
Impact investment solutions have seen a surge in demand from institutional and high-net-worth investors in recent years. This is due to several factors, such as the desire to connect investments with values and perceptions, the understanding that impact investing may produce financially competitive returns, and the growing availability of impact investment goods and services.
The growing interest in the area from institutional investors, including endowments and pension funds, has resulted in tremendous growth. These investors understand how critical it is to consider the environment and social issues when making investments. They see impact investing as a chance to improve society and the environment and yield financial gains. As a result, institutional investors' allocations to impact investments have increased dramatically as they look to support sustainable development.
For instance, an institutional player in the impact investing space is the Calvert Foundation, which oversees a program of community investment notes that let investors make investments with positive social and environmental effects. However, there are also difficulties for institutional investors in the impact investing space. One issue is determining impact, which can be challenging to measure as it is frequently a longer-term result.
Asia-Pacific (APAC) is One of the Fastest-growing Regions in Terms of Market Growth
In the Asia-Pacific region, there is a noticeable uptick in the popularity of impact investment, evidenced by recent fund launches, business collaborations, and recruitment drives. However, questions have emerged regarding how the practices of Asian impact investors stack up against those in more established markets like the United States and Western Europe, given this surge in activity. With the region's large and rapidly expanding population, there is a pressing need for innovative solutions to numerous social and environmental challenges. Impact investment offers a framework for addressing these issues while generating sustainable financial returns. Moreover, there is a growing recognition of and enthusiasm for social entrepreneurship and sustainable development throughout the Asia-Pacific region.
The Asia-Pacific region is anticipated to encounter a higher frequency of weather-related disasters compared to other regions. While there's a global increase in funding for adaptation, there remains a substantial deficit in funding, with public funding constituting the majority.
Impact Investing Industry Overview
The impact investing market is fragmented in nature. In the ever-evolving realm of impact investing, prominent companies proactively engage in tactics like mergers and acquisitions, strategic alliances, and collaborations to strengthen their market position and enhance their range of services. The major players dominating the market are Vital Capital, BlueOrchard Finance Ltd, BlackRock Inc., Goldman Sachs, and Bain Capital LP.
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 AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Awareness of Environmental and Social Issues is Fueling the Desire for Impact Investment
4.2.2 Rising Interest from Traditional Not-for-Profit Fund Managers
4.3 Market Restraints
4.3.1 Differences in Transparency between Democratized and Non-democratized Countries
4.3.2 Developing Non-financial Intermediaries
4.4 Market Opportunities
4.4.1 Anticipated Rise in Demand for Impact Capital, Expanding Support from Ecosystems, and Impact Readiness
4.4.2 Market Growth Driven by Institutional Investors' Interest, Global Net Zero Pledges, and Next-generation Investors
4.5 Industry Attractiveness: Porter's Five Forces 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 Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Government Initiatives in the Impact Investing Market
4.7 Insights on Technological Advancements in the Industry
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Institutional Investors
5.1.2 Individual Investors
5.2 By End User
5.2.1 Education
5.2.2 Agriculture
5.2.3 Healthcare
5.2.4 Climate Tech
5.3 By Region
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Vital Capital
6.2.2 BlueOrchard Finance Ltd
6.2.3 BlackRock Inc.
6.2.4 Goldman Sachs
6.2.5 Bain Capital LP
6.2.6 Morgan Stanley
6.2.7 Prudential Financial Inc.
6.2.8 Manulife Investment Management Holdings (Canada) Inc.
6.2.9 Leapfrog Investments
6.2.10 Community Investment Management LLC*
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Awareness of Environmental and Social Issues is Fueling the Desire for Impact Investment
4.2.2 Rising Interest from Traditional Not-for-Profit Fund Managers
4.3 Market Restraints
4.3.1 Differences in Transparency between Democratized and Non-democratized Countries
4.3.2 Developing Non-financial Intermediaries
4.4 Market Opportunities
4.4.1 Anticipated Rise in Demand for Impact Capital, Expanding Support from Ecosystems, and Impact Readiness
4.4.2 Market Growth Driven by Institutional Investors' Interest, Global Net Zero Pledges, and Next-generation Investors
4.5 Industry Attractiveness: Porter's Five Forces 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 Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Government Initiatives in the Impact Investing Market
4.7 Insights on Technological Advancements in the Industry
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Institutional Investors
5.1.2 Individual Investors
5.2 By End User
5.2.1 Education
5.2.2 Agriculture
5.2.3 Healthcare
5.2.4 Climate Tech
5.3 By Region
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Vital Capital
6.2.2 BlueOrchard Finance Ltd
6.2.3 BlackRock Inc.
6.2.4 Goldman Sachs
6.2.5 Bain Capital LP
6.2.6 Morgan Stanley
6.2.7 Prudential Financial Inc.
6.2.8 Manulife Investment Management Holdings (Canada) Inc.
6.2.9 Leapfrog Investments
6.2.10 Community Investment Management LLC*
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
