The global crowdfunding market was valued at USD 20.34 billion in 2023. The global market size is further expected to progress at a CAGR of 18.24% from 2024 to 2029 and be worth USD 55.58 billion by 2029 from USD 24.05 billion in 2024.
Crowdfunding is the use of the amount of money that a large group of people uses the Internet to finance a business. Social media and crowdfunding sites have become typical in bringing investors and entrepreneurs in one place to expand the investor pool beyond the traditional circle. The study of global crowdfunding considered the types of crowdfunding proposed for the different vertical sectors of end users on a global scale. Crowdfunding campaigns as crowdsourcing channels to stimulate market growth. There was minimal interaction with customers in the earlier product launch processes and other marketing traits. However, this scenario has been completely altered by crowdfunding campaigns, as they enable entrepreneurs to meet their customers or assess the product's success before launch.
The concept of crowdfunding has evolved as a dynamic force in finance and is providing access to capital to entrepreneurs, innovators, and creative individuals worldwide. The landscape of crowdfunding has experienced several changes and registered notable growth in recent years due to technological advancements, changing regulatory environments, and shifting consumer preferences. Funding needs and investor preferences have changed over the years, resulting in the diversification of crowdfunding models such as reward-based, equity-based, donation-based, and peer-to-peer lending platforms. The U.S., Canada, The UK, Germany, France, China, India, and Australia are hotspots for crowdfunding. These countries have a vibrant startup ecosystem and favorable regulatory frameworks that support crowdfunding. During the forecast period, the global crowdfunding market is predicted to witness promising growth due to innovation, globalization, and increasing demand for accessible funding solutions across the globe.
In the crowdfunding area, over the years, the use of social networks for promotion has increased considerably. Social media platforms function as free-cost promotion resources and reach the public worldwide. This has allowed companies to pre-sell and market products with greater convenience. Therefore, active crowdfunding campaigns on social media should further stimulate the growth of the crowdfunding market in the next five years. UK-based startup BuffaloGrid, which developed a mobile phone charging hub for entrepreneurs in 2011, said it had raised around USD 683,000 through crowdfunding Crowdcube. The engagement campaign helped the company bring the next iteration to its workplace and begin mass production. BaffaloGrid then partnered with Microsoft's Affordable Access Initiative and launched live tests in India. In January 2020, the company closed a funding cycle of more than USD 4.3 million led by an early-stage venture capital company and a grant from the European Union's Horizon 2020 program.
Reward-based crowdfunding is where the business (usually a new company) raises seed capital and seed capital through an online platform and offers investors a gift or "benefit" for their financial contribution. It is considered pre-sale, in which individual projects or companies raise funds from bankers, who receive a non-monetary reward. This allows companies to join an existing network and request what can be used later. This type of crowdfunding is generally suitable for new companies or for a specific project. Okra Solar, an Australian-based start-up, tested its "intelligent plug-and-play controller" to facilitate sharing of neighbors' power. The company said it had launched an award-based crowdfunding campaign to supplement the small-scale pilot to test the technology. With this campaign, the company raised more than USD 45,000 in seed capital to build a prototype. The campaign later won numerous grants from the UK Department for International Development and the Swedish International Development Agency and obtained pre-seed funding through the Schneider Electric Energy Access Companies Fund. According to the Global Entrepreneurship Monitor, start-ups in the United States represent a significant share of 17.4% of the country's total population. This indicates the great opportunity for reward-based crowdfunding in the region. In addition, with the huge crowdfunding market in North America, this opportunity is growing.
The use of social media as a source of free promotion is one of the key factors in the growth of the global crowdfunding market. It offers the possibility of measuring public interest, pre-selling a product, and acting as a promotional tool. Therefore, an active crowdfunding campaign can go beyond simply raising the necessary funds. Social media campaigns are inexpensive, can access multiple channels quickly, and track referral traffic to websites. With social media, companies can promote an idea at no cost, which should spur growth in the crowdfunding market in the years to come.
Lack of investor confidence due to scams and fraud, limited access to capital for certain projects or industries, and high competition among crowdfunding platforms further inhibit global market growth. Difficulty reaching target audiences for campaigns, costs associated with platforms and transactions, limited scalability for large projects, and uncertain legal framework and jurisdictional issues also hinder global crowdfunding market growth.
Amid the recent COVID-19 epidemic, healthcare professionals work around the world. For these activities, countries actively use crowdfunding platforms to raise funds for themselves against the spread and impact of the pandemic. For example, in April 2020, the Malaysian Digital Economy Corporation (MDEC) announced a partnership with the crowdfunding platform for crowdfunding donations to support the front lines with the MKN20 protocol to distribute items to hospitals across the country.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
18.24% |
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Segments Covered |
By Product, End User, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Kickstarter, AngelList, Indiegogo, Fundable, Crowdcube, GoFundMe, Crowdfunder, GoGetFunding, CircleUp, Patreon, Campfire, Crowdo, Milaap, RocketHub, FundRazr, Crowdfunder UK, Modian, Companisto, DonorsChoose, CrowdHousababa Suning and Others. |
The award-based crowdfunding segment was the largest segment and captured 61.8% of the global market share in 2023. Awards-based crowdfunding is one of the most popular types of crowdfunding. The appeal of award-based crowdfunding to creators and backers is primarily propelling the segmental expansion in the global market. Platforms such as Kickstarter, Indiegogo, and GoFundMe have gained recognition worldwide and offer various projects in various categories, including technology, arts, and creative endeavors.
The technology segment led the market in 2023, accounting for 32.7% of the global market share, and is estimated to grow at a healthy CAGR during the forecast period. The domination of the technology segment in the global market is majorly attributed to the rising demand for innovative tech solutions and the democratization of startup funding. Crowdfunding has successfully gained funding for several tech startups. For instance, tech companies such as Pebble, Oculus Rift, and Exploding Kittens have gained multimillion-dollar funding through crowdfunding campaigns.
The product segment is estimated to account for a considerable global market share during the forecast period. The growing demand for unique and innovative products and the accessibility of crowdfunding platforms for product creators are propelling the segment's growth in the global market.
Another notable segment is the cultural segment, which is expected to register a healthy CAGR during the forecast period owing to the increasing support for creative endeavors from individuals and communities worldwide.
North America led the crowdfunding market in 2023, accounting for 40.8% of the global market share. The growth of the North American market is majorly credited to factors such as the rising prevalence of crowdfunding-friendly regulations, such as the JOBS Act in the United States, a strong entrepreneurial ecosystem, a supportive regulatory environment, and high internet penetration. The presence of leading crowdfunding platforms, access to venture capital, and a culture of innovation and entrepreneurship are further boosting the crowdfunding market in North America.
The European region is expected to progress rapidly during the forecast period due to increasing organizing regulations across various European countries for the crowdfunding model. According to reports, European Union countries are also planning to lay down rules to allow crowdfunding platforms in the region to operate in other EU regions. In addition, Turkey is one of the European countries experiencing significant growth in the crowdfunding market with the presence of stable employment opportunities. According to the Global Entrepreneurship Monitor 2019 report, it is one of the key factors in the country's economic growth, improving the conditions for entrepreneurship by 10%, generating more than 331 billion USD for the economy.
The Asia-Pacific region is estimated to be a lucrative regional segment for crowdfunding in the global market during the forecast period. The presence of a young and tech-savvy population, increasing initiatives from the governments of APAC countries to support entrepreneurship and innovation, and rapid adoption of mobile technology and social media platforms in countries like China, India, and Southeast Asia are propelling the crowdfunding market growth in the Asia-Pacific region.
Major Global Companies: Kickstarter, AngelList, Indiegogo, Fundable, Crowdcube, GoFundMe, Crowdfunder, GoGetFunding, CircleUp, Patreon, Campfire, Crowdo, Milaap, RocketHub, FundRazr, Crowdfunder UK, Modian, Companisto, DonorsChoose, CrowdHousababa Suning and others.
By Product
By End-User
By Region
Frequently Asked Questions
North America, Europe, and Asia-Pacific are among the leading contributors to the global crowdfunding market share, with each region exhibiting a diverse landscape and varying regulatory environments.
Challenges include regulatory compliance, maintaining investor confidence, addressing fraud and misuse concerns, and ensuring effective risk management on both sides—project creators and backers.
The COVID-19 pandemic initially led to uncertainties in the crowdfunding market, but it also prompted increased online activities, driving a surge in crowdfunding for medical projects, small businesses, and community initiatives.
Kickstarter, AngelList, Indiegogo, Fundable, Crowdcube, GoFundMe, Crowdfunder, GoGetFunding, CircleUp, Patreon, Campfire, Crowdo, Milaap, RocketHub, FundRazr, Crowdfunder UK, Modian, Companisto, DonorsChoose and CrowdHousababa are some of the notable companies in the global crowdfunding market.
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