Crowdfunding Market will Gain Momentum by 2031 to Surpass $6.8 Bn - Industry Demand and Trends

Crowdfunding Market Global Opportunity Analysis and Industry Forecast, 2021-2031

Crowdfunding Market Global Opportunity Analysis and Industry Forecast, 2031

Crowdfunding Market is segmented by Type, by Investment Size, by Application : Global Opportunity Analysis and Industry Forecast, 2021-2031.

PORTLAND, OR, UNITES STATES, May 25, 2023 /EINPresswire.com/ -- The crowdfunding market is forecasted to grow rapidly with the integration of AI, Blockchain, and machine learning technologies by crowdfunding platforms to mitigate investors' concerns and thus contribute to the growth of the market. Additionally, in upcoming years crowdfunding platforms will use AI tools to help people start online campaigns, predict the investor's behavior, create innovative content, detect fraud, show targeted ads, and verify the campaigner's identities. Furthermore, crowdfunding platforms have also started experimenting with AI-driven chatbots to assist the campaigners in fundraising deals and launch campaigns quickly. Such trends and adoption of technologies is expected to create lucrative growth opportunities for the crowdfunding market over the forecast period.

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The crowdfunding market was valued at $1.9 billion in 2021, and is estimated to reach $6.8 billion by 2031, growing at a CAGR of 14.3% from 2022 to 2031.

Crowdfunding is a way for entrepreneurs, businessmen, and other creators, including films, music, and art projects to raise money for their projects by appealing directly to the public for support. It helps to raise funds for a project or venture by gathering small contributions from a large number of people, typically via the internet.

Furthermore, major market players have undertaken various strategies to survive the competition and offer enhanced services to their customers. For instance, in May 2021, government officials in Dubai helped to launch Dubai Next, a crowdfunding platform to support entrepreneurship in Dubai. As a result, crowdfunding platform supported creative ideas & projects of emirates to start their own businesses in Dubai. Therefore, these crowdfunding market trends have lead to the growth of the market.

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On the basis of investment size, the small & medium investment segment grows at the fastest rate. This is attributed to the fact that the crowdfunding platforms can be a helpful tool for small & medium-sized investments as it provides access to funding for individuals & businesses that may not have access to traditional sources of financing, such as banks and venture capital firms. Moreover, crowdfunding for business campaigns can reach a large and diverse audience, which means that small and medium-sized businesses have the potential to raise significant funds from a large number of investors. Furthermore, crowdfunding has low barriers to entry, which means that anyone can launch a campaign and seek funding from a large number of investors. This makes it a relatively accessible way for small and medium-sized businesses to raise capital. Overall, crowdfunding can provide a valuable source of funding and support for small and medium-sized businesses, helping them to grow and succeed leading towards crowdfunding market growth. However, large investment segment is considered to be the fastest growing segment during the forecast period. This is because there has been increase in government support & regulatory bodies such as SEC have implemented regulations under Title III of the JOBS Act, which has made it easier for startups and small businesses to raise large sums of money through crowdfunding and further increased the number of investors who can participate in these campaigns.

By region, North America attained the highest growth in 2021. This is attributed to the fact that the traditional methods of crowdfunding have been shifted toward reward-based crowdfunding where backers receive a tangible reward in exchange for their support, which has become increasingly popular in North America. This has been driven by the success of platforms such as Kickstarter, which specializes in reward-based crowdfunding for creative projects. However, Asia-Pacific region is considered to be fastest growing region during the forecast period. This is attributed to the fact that, crowdfunding has helped to democratize access to capital, allowing people to raise money from a large number of small investors, rather than relying on traditional sources such as banks or venture capitalists. Thus, these has provided lucrative opportunities for the growth of crowdfunding market in Asia-Pacific region.

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The COVID-19 pandemic has had a significant impact on the crowdfunding industry. Many businesses and individuals have turned to crowdfunding as a way to raise money during the economic downturn caused by the pandemic. This has led to an increase in the number of crowdfunding campaigns and a corresponding increase in the amount of money raised. However, the pandemic has also led to an increase in the use of crowdfunding for certain causes, such as those related to healthcare and medical research. Additionally, many people have been looking for ways to support healthcare workers and researchers working to combat the virus, and crowdfunding has provided an easy way for them to do so. Furthermore, the pandemic also brought up the awareness of crowdfunding as an alternative way to raise funds, as traditional fundraising methods were impacted by the social distancing and lockdowns. On the contrary, the pandemic has also made it more difficult for some campaigns to reach their fundraising goals, as many people have less disposable income due to job losses or other financial difficulties. Thus, overall, the impact of the pandemic on the crowdfunding market has been mixed, with some sectors seeing a boost in activity while others have struggled. Therefore, the COVID-19 moderately impacted the crowdfunding industry.

Key findings of the study

By type, the debt-based crowdfunding segment led the crowdfunding market size in terms of revenue in 2021.
By application, the food and beverage segment led the crowdfunding market share in terms of revenue in 2021.
By region, North America generated the highest revenue in 2021.

The key players profiled in the crowdfunding market analysis are ConnectionPoint Systems Inc. (CPSI) (FundRazr), Crowdcube Capital Ltd, Fundable, Fundly, GoFundMe, Indiegogo, Inc., Kickstarter, PBC, Seedrs Limited StartSomeGood, and Wefunder Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

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