Money lending scenarios have witnessed extensive improvements in the past few decades, mainly as most companies are integrating latest technologies to provide highly efficient and seamless solutions. Widespread advancements in technologies that govern the processes associated with money lending are majorly driving the global peer-to-peer lending market to witness fabulous growth. Moreover, with the low cost of associated operations, several users prefer choosing peer-to-peer money lending processes compared to other loaning scenarios. In addition, a burgeoning student population all over the globe too is making the market grow at a rapid pace. This is mainly due to the fact that many students seek loans at cheaper interest rates provided by money lending organizations than banks and other similar financial institutions. Lastly, with a rising awareness regarding closing off personal debt as fast as possible, many people are resorting to solutions such as peer-to-peer money lending.
According to expert analysts, the global peer-to-peer lending market was worth US$26.16 bn in 2015. This revenue is further expected to grow up to US$897.85 bn by the end of 2024. This growth is predicted to occur at meteoric and phenomenal CAGR of 48.2% during the forecast period from 2016 to 2024.
Small Business Segment Thrives Owing to Insufficiency of Enough Capital
The global peer-to-peer lending market is mainly segregated into various segments on the basis of three key criteria: by end user, by business model, and by regional spread. Under end user, the market mainly consists of segments such as consumer credit, small businesses, student loans and real estate. Whereas, under business model type, traditional P2P model and marketplace lending model are two key segments present in the market.
Under end users, the small business sector accounts for a lion’s share of the total market’s revenue. This is mainly due to the fact that small businesses might not have sufficient capital. Such an insufficiency might make them apply for peer-to-peer money lending services, thereby causing the segment to attract more revenue. According to market analysts, the small business sector is expected to expand at a phenomenal CAGR of 48.8% during the aforementioned forecast period.
With respect to business model, the traditional P2P model still exists on a large-scale basis, mainly in developing regions. This is mainly due to less availability of modern technologies in these regions, which makes numerous companies adopt the P2P model. However, the marketplace lending model is gradually catching up all over the globe and could overtake the traditional model during the next few years.
Common Bond Inc., Prosper Marketplace, Inc., Upstart Network Inc., Circle Back Lending, Inc., Funding Circle Limited, Peerform, and Social Finance Inc., Pave, Inc., are some of key players operating in the global peer-to-peer lending market. Even though the market is moderately competitive in current times, with the number of players predicted to increase in the near future, the competition is prophesized to intensify in this sector.
North America Trumps over Other Regions Thanks to Spread of Online Platforms
The global peer-to-peer lending market is manly spread geographically across North America, South America, Europe, Asia Pacific, and the Middle East and Africa. In 2015, North America had held a dominant position comprising of more than 43% of the total market shares. Reduced interest rates in conventional banking, rising dependency of online platforms, and after-effects of last financial crisis, is majorly making the market grow rapidly in North America. However, this market is also developing rapidly in emerging economies, mainly present in Asia Pacific and South America. Some of these emerging economies are: India, China, Japan, Australia, and Brazil, among several others. With numerous businesses looking for financial alternatives to fund their projects, the global peer-to-peer lending market is predicted to expand extensively.
This report aims to provide a detailed and vital analysis of the global peer-to-peer market along with revenue and growth forecasts for the period from 2014 to 2024. The global financial crisis, subsequently resulted in the emergence of the peer-to-peer lending outside of the traditional financial system especially in countries such as the U.S., the U.K. and Europe. Typically, the peer-to-peer lending business provides a unique and transparent platform to individuals, small businesses, and start-ups to invest or borrow money in few clicks
The report offers an in-depth study of the market drivers, restraints, and growth opportunities. Using these factors, the report identifies various trends expected to impact the market during the forecast period from 2016 to 2024. It includes a comprehensive coverage of the underlying economic, environmental, and technological factors influencing the peer-to-peer market. It provides the competitive landscape and analysis of key players in the global peer-to-peer market in order to highlight the state of competition and to identify the various business strategies adopted by them. In this report, the global peer-to-peer lending market is segmented on the basis of end-users and business models and geographies and explains the penetration of each market segment within various geographies, and how these segments have accelerated the growth of the market as a whole.
The end-users segment of the peer-to-peer lending market is classified into consumer credit, small business, student loans, and real estate and the business models segment is classified into traditional P2P model and marketplace lending model. Geographically, the global market for peer-to-peer lending has been segmented into five regions: North America, Europe, Asia Pacific, and Rest of the World (Middle East and Africa and Latin America). The market size and forecast for each region has been provided for the period from 2014 to 2024 along with the CAGR (%) for the forecast period from 2016 to 2024. The study also includes qualitative analysis of the competitive scenario for major countries/regions in these geographical segments.
The report includes an overview of the market strategies, annual revenues, and the recent developments of key companies operating in the market. The key market participants profiled in this study include LendingClub Corporation, Prosper Marketplace, Inc., CommonBond Inc., Upstart Network Inc., Funding Circle Limited, CircleBack Lending, Inc., Peerform, Social Finance Inc., Pave, Inc., and Daric Inc.
Global Peer-to-Peer Lending Market Analysis, By End-Users, 2014 – 2024 (US$ Bn)
- Consumer Credit
- Small Business
- Student Loans
- Real Estate
Global Peer-to-Peer Lending Market Analysis, By Business Model, 2014 – 2024 (US$ Bn)
- Traditional P2P Model
- Marketplace Lending Model
In addition, the report provides cross-sectional analysis of the peer-to-peer market with respect to the following geographical segments along with select country market estimates:
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Rest of Asia Pacific
- Rest of the World
- Middle East and Africa (MEA)
- Latin America