Pawn Service Market Size, Share, Growth, and Industry Analysis, by Type (Real Estate, Automotive, Jewelry, Electronics, Collectibles, and Others), By Application (Pawn Service Charges, Merchandise Sales, and Others), Regional Insights, and Forecast To 2031

Updated On: 01 April 2024

Pawn Service Market REPORT OVERVIEW

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The global pawn service market size was USD 39100 million in 2022 and market is projected to touch USD 52370.41 million by 2031, at a CAGR of 3.3% during the forecast period.

Pawn service is a business service where people can leave their belongings in order to borrow money or buy objects that others have left there and are now for sale. Pawnshops make money by making personal loans, reselling retail items, and providing ancillary services like money transfers and cellphone activation. The primary income sources for the typical pawnshop business model are interest on loans and profits on retail sales. A pawnshop is similar to a dozen garage sales and a flea market combined. Pawnshops are also important in many communities because they provide people with an easy and quick way to borrow small amounts of money.

Pawnshops make money primarily by making personal loans and reselling retail items. A pawnshop owner makes a loan to a customer in exchange for custody of an item used as collateral for the loan. Because there is a high risk of loan default, the pawnshop owner will charge the customer a higher interest rate than a traditional bank loan. If the customer fails to repay the loan plus interest, the property put up as collateral for the pawnshop is forfeited. Pawnshops can also profit from retail sales by selling merchandise purchased directly from customers or items pledged as loan collateral by customers who later default on their loans.

COVID-19 Impact: Loss of Income During a Pandemic Accelerated Market Growth.

The COVID-19 pandemic was one of the most tragic events of the twentieth century. When a small virus halted the entire world, every aspect of human life began to suffer as a result. A virus that affects living organisms' respiratory systems has an indirect impact on the global economy. Many industries have virtually disappeared. A large number of people were fighting for their lives. These services were not included. Even though some regions experienced slow growth, the pandemic had little impact. When normal income dried up during the pandemic, people turned to pawnshops for assistance. They attempted to maintain their market presence in this manner.

LATEST TRENDS

"Online Platforms Lead the Market Growth"

In this technological age, the pawn service market is conducted entirely online. From the beginning, when a customer accepts money in exchange for their possessions, they can manage everything online. They can make payments through mobile apps. So there's no need to go to the pawn shop to get your money back. They can calculate their remaining balance and receive a phone reminder. Technology advancements have made the industry more user-friendly.

Pawn Service Market SEGMENTATION

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• By Type

Based on type; the market is divided into Real Estate, Automotive, Jewelry, Electronics, Collectibles, and Others

Jewelry is the leading part of this segment.

• By Application

Based on application; the market is divided into Pawn Service Charges, Merchandise Sales, and Others

Pawn Service Charges is the leading part of the application segment.

DRIVING FACTORS

"Increasing Small Enterprises Boost the Market Growth"

Because the industry is countercyclical, it benefits from poor macroeconomic performance. Macroeconomic conditions steadily improved at the start of the current period, resulting in lower unemployment and broad-based income gains. The number of small businesses is growing by the day. Because they need money to start a business, most of them approach pawnshops if they need more money quickly. A pawnshop, unlike a bank, is much easier to set up. This is propelling the pawn service market forward.

"Convenience of the Industry Accelerate a Market Growth"

Pawnshops, unlike banks, do not require as many documents before releasing cash to customers. Furthermore, they are more accessible because they can be found even in remote areas where banks do not operate. When compared to the lengthy procedures at banks, pawning is the quickest way to obtain cash. People in emergency situations can go to pawnshops for immediate assistance. Customers do not need to return to the branch multiple times to obtain the loan. If they have any jewelry or other valuable items, they can get the loan quickly and easily.

RESTRAINING FACTORS

"Negative Image to Hinder the Market Growth"

Nonetheless, despite their critical role as financial service providers, pawnshops have a bad reputation for preying on middle-and low-income people. The perception persists that pawnshops profiteer off of people in need of money, and that many of them are fly-by-night operations that steal pawned jewelry. The pawn shop's negative image is limiting its growth. Despite the fact that there are many pawn shops in the market, people are wary of them due to their negative reputation.

Pawn Service Market REGIONAL INSIGHTS

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"North America to Lead Market Owing to the Increasing Number of SMEs"

When compared to other geographical regions, north America has the largest pawn service market share. More small and medium-sized businesses are being established, which is fueling the pawn service market growth. It is more difficult for small businesses to obtain funding than it is for large corporations. When a large sum of money is required by a company in a short period of time, it is more convenient to use pawn shops. And anyone can go get their money in exchange for the valuables. During the forecast period, this region is expected to have the largest market share.

KEY INDUSTRY PLAYERS

"Prominent Players in the Market to Boost Market Growth"

This market's data was compiled from a variety of sources. Trade journals, professional association statistics, university studies, and government reports are just a few examples. Information is gathered from producers, distributors, sellers, retailers, micro-experts, and other market participants in addition to these primary sources. The report contains details on industry participants and their local activities. To name a few data collection and reporting methods, partnerships, technological advancements, acquisitions, mergers, and industrial facility expansion.

List of Market Players Profiled

• FirstCash (U.S.)
• EZCorp Inc (U.S.)
• Money Mart (U.S.)
• H and T Pawnbrokers (U.K.)
• Manappuram Finance (India)
• Cash Canada (Canada)
• Maxi-Cash (Singapore)
• Daikokuya (Japan)
• Grüne (Germany)
• Speedy Cash (U.S.)
• Aceben (Australia)
• Sunny Loan Top (China)
• China Art Financial (China)
• Huaxia Pawnshop (China)
• Muthoot Finance (India)

REPORT COVERAGE

The study includes a thorough examination of the current state of the market, including raw materials, technology, and equipment, as well as supply and demand, production capacity, and industry chain analysis. This research evaluates both the market potential and the market risks associated with the emergence of specific categories. The impact of major market drivers and restraints on market growth is also evaluated. Major firms' performance is evaluated over time, and their effects on market dynamics are investigated.