Peer to Peer (P2P) Crowdfunding Market Size, Share, Growth, and Industry Analysis By Type (Online Offline and Others), By Application (Individuals, Businesses and Others), Regional Insights and Forecast From 2025 To 2033

Last Updated: 16 July 2025
SKU ID: 21073196

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PEER TO PEER (P2P) CROWDFUNDING MARKET OVERVIEW

The global Peer to Peer (P2P) Crowdfunding Market size stood at USD 6.48 billion in 2024 and is projected to reach USD 7 billion in 2025, growing further to USD 12.96 billion by 2033 at an estimated CAGR of 8% from 2025 to 2033.

Peer to peer (P2P) crowdfunding have become popular methods of funding small businesses in the last decade or so. Yet, both crowdfunding and peer-to-peer lending entail other people donating money to you. Peer-to-peer lending is a type of company financing in which individual investors offer funds to small firms rather than traditional banks or credit unions.

P2P lending is typically in the form of business loan or credit lines. Individual investors contribute funds, however they often do it through a lending platform (such as Funding Circle or StreetShares). These sites frequently aggregate money from many P2P investors to give company loans.

KEY FINDINGS

  • Market Size and Growth: Valued at 6.48 in 2024, projected to touch 7 in 2025 to 12.96 by 2033 at a CAGR of 8%.
  • Key Market Driver: Nearly 80% of U.S. adults report familiarity with crowdfunding platforms, boosting participation rates.
  • Major Market Restraint: Approximately 30% of P2P crowdfunding campaigns face regulatory scrutiny or legal challenges.
  • Emerging Trends: AI‑enabled platforms have improved loan repayment rates by around 25% since 2022.
  • Regional Leadership: Asia‑Pacific contributes over 30% of global P2P crowdfunding deal volume, driven by emerging economies.
  • Competitive Landscape: Top five platforms hold close to 60% of North American market share, indicating concentrated competition.
  • Market Segmentation (Online): Online P2P crowdfunding platforms represent roughly 100% of market transactions, as offline P2P is negligible.
  • Recent Development: In 2024, around 15 new platforms launched within regulatory sandboxes in the UK and Singapore.

COVID-19 IMPACT

The Pandemic Downgraded The Crowdfunding Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the peer to peer (P2P) crowdfunding market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. As per our research, the market is expected to generate substantial revenue by 2031, a robust CAGR during the forecast period. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Due to lockdowns and disruptions in industrial and supply chain activity, COVID-19 initially had a substantial impact on the peer to peer (P2P) crowdfunding market share. COVID-19 has increased the number of demands from investors to sell their P2P loans, causing liquidity concerns throughout the market. Yet, given the influence of COVID-19 on borrowers' creditworthiness, there is a significant concern that firms will be unable to appropriately price loans or will be incentivized to shift loans from one client to another at prices that do not represent the loan's risk profile.

LATEST TRENDS

A Potential Tool for International Development to Advance the Market Share

There is some hope that crowdfunding could serve as a tool accessible to historically marginalised groups of people. A study by the World Bank with the title "Crowdfunding's Potential for the Developing World," which claims that "While crowdfunding is still largely a developed world phenomenon, it could become a useful tool in the developing world as well with the support of governments and development organisations. In many emerging economies, huge reserves of entrepreneurial skill, activity, and capital are dormant. Crowdfunding and crowdfund investment have a number of significant roles to play in the entrepreneurial and venture finance ecosystem of the developing world." ​

  • According to the World Bank, crowdfunding platforms are expanding rapidly, with the potential to raise up to $96 billion annually in developing countries by 2025, highlighting the significant growth and international development of P2P crowdfunding.
  • Funding Circle reports that 70% of UK loan applications receive instant decisions, with the average application process taking just 10 minutes, showcasing the impact of technological advancements on the efficiency of P2P lending platforms.
Peer-to-Peer-(P2P)-Crowdfunding-Market-Share-By-Types,-2033

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PEER TO PEER (P2P) CROWDFUNDING MARKET SEGMENTATION

By Type

Based on type, the peer to peer (P2P) crowdfunding market is subdivided into online, offline and others.

The online is the leading part of the type segment.

By Application

Based on the applications, the peer to peer (P2P) crowdfunding market is subdivided into individuals, businesses and others.

The individual is the leading part of the application segment.

DRIVING FACTORS

A Wide Array of Benefits to Investors to  Amplify the Market Share

A properly regulated crowdfunding platform may offer the chance of alluring rewards for investors in a number of ways: The platforms lower search and transaction costs, enabling greater market participation. Due to the difficulty of finding an early-stage company directly and the high costs of joining an angel group or doing it through a reputable venture capital firm, many individual investors would ordinarily find it impossible to participate in early-stage companies.

The consumer market is frequently ignored in favour of high-tech startups by venture capital firms. Crowdfunding allows individual investors access to some of these under served markets. While crowdfunding doesn't make sense in every sector, it does in some, such as retail and consumer. Investors can benefit businesses by serving as brand ambassadors and even as a focus group. Individual investors can participate in the company they invest in through crowdfunding.

The Dynamic Applications to Small Business to Witness Significant Growth and Attract the Market Share

Because P2P lenders typically have less borrower criteria, small business owners frequently favour P2P lending over traditional loans (such as credit score and revenue requirements). P2P lenders, on the other hand, frequently charge cheaper interest rates than many alternative lenders. To put it another way, P2P lending platforms act as a type of happy medium between banks and instant online lenders (though specific rates and requirements will depend on the P2P lender you go with).

Both peer to peer (P2P) crowdfunding offer wonderful alternatives to raise money for your small business. Although each of them allow you to get cash from private investors, how they operate is rather different. Because it is campaign-driven, crowdfunding is most effective for companies that offer items. On the other hand, P2P financing benefits businesses that provide services as long as they can meet the basic borrower standards.

  • Funding Circle has facilitated over £14 billion in loans to more than 130,000 businesses since its inception in 2010, demonstrating the role of P2P platforms in providing essential funding to small and medium-sized enterprises (SMEs).
  • Funding Circle achieved a Net Promoter Score (NPS) of 80 in the UK and 83 in the US, indicating strong customer satisfaction and trust in P2P lending services.

RESTRAINING FACTORS

Neuro-Physiological Issues and High Cost of Devices to Restrain the Market Growth

While growing in popularity, there are a number of possible risks or obstacles associated with crowdfunding. Studies reveal that there are "high degrees of risk, uncertainty, and information asymmetry" in crowdfunding, both for the creative and the investor. Due diligence by investors is less possible on crowdfunding platforms, which exacerbates the issue of information asymmetry. Money laundering is a possibility on crowdfunding websites as well.

  • As per the U.S. Securities and Exchange Commission (SEC), nearly 40% of P2P crowdfunding campaigns in 2022 faced legal challenges due to inadequate regulations in the U.S.
  • According to the U.K. Financial Conduct Authority (FCA), in 2023, fraudulent crowdfunding campaigns accounted for 6.3% of total P2P funding requests, leading to investor skepticism.

PEER TO PEER (P2P) CROWDFUNDING MARKET REGIONAL INSIGHTS

North American Region to Lead  With Impressive Growth and Major Key Players

Over the projected period, the North American peer to peer (P2P) crowdfunding market share is expected to expand rapidly, particularly in the growing nations like U.S.A. and Canada. In contrast to last year's global statistics on crowdfunding, which showed that the industry was expanding quickly everywhere, a more recent research shows a more complex picture. The top three nations in the world for crowdfunding each have excellent growth rates of 42.4% and 30.7%. Furthermore, peer to peer (P2P) Crowdfunding's are getting more popular, with countries like U.S.A and Canada making a significant peer to peer (P2P) crowdfunding market growth in the North American region utilising more often.

KEY INDUSTRY PLAYERS

The Prominent Players Contributing in the Market Growth

The international, regional, and local players in the brain-computer interface market are well-diversified and the market is moderately competitive. However, a few significant international companies, such Natus Medical Incorporated, Compumedics Ltd, Emotive Incorporation, g.tec medical engineering GmbH, and NeuroSky, control a large portion of the industry thanks to their strong brand names and wide distribution networks. Companies are discovered making investments in cutting-edge technology to provide their clients a digital transformation.

  • Funding Circle (U.K.): As of 2024, Funding Circle has extended over £14 billion in credit to approximately 130,000 businesses, contributing £6.9 billion to the UK GDP and supporting 106,000 jobs, underscoring its significant role in the P2P lending market.
  • LendingClub (U.S.A.): In the fourth quarter of 2024, LendingClub reported a 13% increase in loan originations to $1.85 billion and a 17% rise in total net revenue to $217.2 million, reflecting its strong performance in the U.S. P2P lending sector.

List of Top Peer-to-Peer (P2P) Crowdfunding Companies

  • Funding Circle (U.K)
  • Lending Club (U.S.A)
  • Zopa (U.K)
  • Rate Setter (U.K)
  • Landbay (U.K)
  • Patch of Land (U.S.A)
  • Prosper (U.S.A)
  • Upstart (U.S.A)
  • GoFundMe (U.S.A)
  • Indiegogo (U.S.A)
  • GiveForward (U.S.A)
  • YouCaring (U.S.A)
  • CommonBond (U.S.A)
  • Sofi (U.S.A)
  • Zero Bound (U.S.A).

REPORT COVERAGE

The report examines elements affecting the demand and supply sides and estimates dynamic market forces for the forecast period. The report offers drivers, restraints, and future trends. After evaluating governmental, financial, and technical market factors, the report provides exhaustive PEST and SWOT analysis for regions. The research is subject to alteration if the key players and probable analysis of market dynamics change. The information is an approximate estimate of the factors mentioned, taken into consideration after thorough research.

Peer to Peer (P2P) Crowdfunding Market Report Scope & Segmentation

Attributes Details

Market Size Value In

US$ 6.48 Billion in 2024

Market Size Value By

US$ 12.96 Billion by 2033

Growth Rate

CAGR of 8% from 2025 to 2033

Forecast Period

2025-2033

Base Year

2024

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

By Type

  • Online
  • Offline

By Application

  • Individuals
  • Businesses
  • Other

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