From the period of 2022 to 2028, the Global Crowdfunding Market is expected to reach USD 43.48 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 16.50%.
Crowdfunding is the utilization of a big quantity of money raised through the Internet by a large group of individuals to finance a business. These days, social media and Crowdfunding sites are commonplace for bringing together investors and entrepreneurs in one place in order to broaden the investor pool beyond the usual circle. On a worldwide scale, the study of Global Crowdfunding took into account the numerous types of Crowdfunding suggested for different vertical sectors of end consumers. Crowdfunding campaigns can be used to encourage market expansion through crowdsourcing.
Key Highlights from the Report
- Based on Product Type, the market is segmented into Reward-based Crowdfunding, Equity Crowdfunding, Donation and Others. Reward-based Crowdfunding is a type of financing that is not tied to financial institutions or the location of the campaign creator or investor. Crowdfunding campaigns can be launched for a variety of reasons, including product launches, art and film funding, scientific research, and so on.
- Based on End-user, the market is segmented into Cultural Sector, Technology, Product, Healthcare and Other. As the market becomes more competitive, vendors are being forced to invest in advanced technologies such as AI in order to provide better solutions to customers and gain a competitive advantage. To increase their market presence, some vendors are collaborating with other market participants. Healthcare professionals from all over the world are working to combat the recent COVID-19 epidemic. Countries are actively using Crowdfunding platforms to raise funds for them in order to combat the pandemic's spread and impact.
- Asia Pacific is the fastest regional segment. In terms of growth. The Asian-Pacific Crowdfunding Market is continually expanding and developing. The Asia-Pacific market is showing signs of ongoing strong growth. The significant market growth in Asia-Pacific may be due to a number of factors, including the increasing acceptance of innovative technologies for product innovation, increased government Research and Development (R&D) spending, the existence of a large number of important players in the industry, and the growing number of startups. Increased urbanisation, a growing middle-class population with rising income levels, and increased awareness are all factors contributing to Asia-strong Pacific's market growth.
Some of the key players in the Crowdfunding Market include - Kickstarter PBC, Indiegogo Inc., GoFundMe Inc., Fundable LLC, Crowdcube Limited, GoGetFunding, Crowdfunder Inc., Alibaba Group Holding Limited, Wefunder Inc., Fundly, Jingdong Inc., Suning.com Co. Ltd, Owners Circle, Realcrowd Inc. and others.
Use of social media as a Free of Cost Promotion Source
One of the important factors in the worldwide Crowdfunding Market's rise is the usage of social media as a source of free promotion. It allows for the measurement of public interest, the pre-sale of a product, and the use of a promotional tool. As a result, a successful Crowdfunding campaign can accomplish more than just raising funds. Social media campaigns are low-cost, can instantly access various channels, and track website referral traffic. Companies may promote ideas for free on social media, which should help the Crowdfunding business flourish in the next years.
Using Crowdfunding campaigns as avenues for crowdsourcing
Another key element driving the increase of the Crowdfunding Market share is the use of Crowdfunding campaigns as outlets for crowdsourcing. Customers had relatively little involvement with the product before it reached them in typical funding, marketing, and product launch methods. However, one of the benefits of Crowdfunding campaigns is that they allow businesses to communicate with customers and even test the success of a product before it is released. Because crowdsourcing is so popular, campaign managers may engage with their target audience to gauge enthusiasm in the initiative and learn about their expectations. This enables product developers to continuously improve value propositions and gain a better understanding of a project's possibilities before launching it.
In 2021, Europe has the highest revenue share of 43.50 percent. Because a growing number of countries in the region are enacting Crowdfunding regulations, the European Crowdfunding Market share and growth are expected to grow. According to reports, European Union governments are also working to develop legislation that will allow regional Crowdfunding platforms to operate beyond EU borders. With the help of the Crowdfunding platform, the European Investment Bank combined the benefits of a long-term loan with a payment model based on the borrower's success. This methodology was used by the bank to target enterprises with over 3,000 employees in the fields of biotechnology and life sciences, software and information and communications technology (ICT), engineering and automation, and renewables and clean technology.