SAN FRANCISCO, Aug. 28, 2023 /PRNewswire/ -- The global peer-to-peer lending market size is expected to reach USD 21.42 billion by 2030, growing at a CAGR of 20.2% from 2023 to 2030, according to a new report by Grand View Research, Inc. Changing consumer preferences and attitudes toward borrowing and investing have propelled the growth of the peer-to-peer (P2P) lending market. Many individuals prefer borrowing directly from peers or investing in loans that align with their goals. P2P lending allows borrowers and lenders to connect on a more personal level, fostering a sense of community and trust that may be lacking in traditional lending channels.
Key Industry Insights & Findings from the report:
- Based on type, the consumer lending segment dominated the market in 2022 with a revenue share of 59.14%. P2P lending offers consumers an appealing choice for accessing affordable loans by providing a combination of lower interest rates and efficient operations
- In terms of loan type, the unsecured segment dominated the market in 2022 with a revenue share of 65.08%. P2P lending platforms leverage sophisticated algorithms and data analytics to evaluate borrower creditworthiness, enabling them to manage and mitigate risks associated with unsecured loans effectively
- Based on end-user, the business loans segment is anticipated to register the fastest CAGR of 22.3% over the forecast period. P2P lending platforms often have more flexible eligibility criteria and are willing to consider alternative factors beyond traditional credit scores when assessing the creditworthiness of businesses
- In terms of purpose type, the home renovation segment is anticipated to register the fastest CAGR of 22.3% during the forecast period. P2P lending platforms attract a diverse pool of investors willing to fund home renovation projects. These investors may be individuals looking to diversify their investment portfolios or those interested in supporting home improvement initiatives
- North America dominated the market in 2022 with a revenue share of 30.24%. The presence of established and reputable P2P lending platforms in the region has also built trust among borrowers and investors, contributing to North America's dominance in the market
Read 120 page market research report, "Peer-to-Peer Lending Market Size, Share & Trends Analysis Report By Type (Consumer Lending, Business Lending), By Loan Type (Secured, Unsecured), By End-user, By Purpose Type, By Region, And Segment Forecasts, 2023 - 2030", published by Grand View Research.
Peer-to-Peer Lending Market Growth & Trends
In June 2023, PeerBerry, a European peer-to-peer lending platform, achieved a significant milestone by surpassing 70,000 investors. The platform experienced substantial growth in May, generating increased interest from investors. In addition to its core platform, PeerBerry has also been promoting its sister platform, Crowdpear, which has the same shareholders. Crowdpear has attracted approximately 2,500 international investors, further expanding the reach of the PeerBerry brand and its investment opportunities.
P2P lending platforms leverage digital technologies to create a transparent and efficient lending ecosystem. Through online platforms, borrowers can easily access information about loan terms, interest rates, and fees, enabling them to make informed decisions. Similarly, investors can access detailed borrower profiles and loan information, empowering them to evaluate and select investment opportunities that align with their risk appetite. This transparency fosters trust between borrowers and investors and contributes to the overall growth and credibility of the P2P lending market.
The COVID-19 pandemic has catalyzed the rapid growth and acceptance of the P2P lending market. As physical branches and in-person interactions became limited, borrowers and investors increasingly embraced P2P lending as a convenient and efficient alternative. The digital nature of P2P lending platforms provided a seamless experience, allowing borrowers to access funds, and investors to diversify their portfolios, without needing a physical presence.
Peer-to-Peer Lending Market Report Scope
Attribute | Details |
Market size value in 2023 | USD 5.91 billion |
Revenue forecast in 2030 | USD 21.42 billion |
Growth rate | CAGR of 20.2% from 2023 to 2030 |
Base year of estimation | 2022 |
Historical data | 2017 - 2021 |
Forecast period | 2023 - 2030 |
Peer-to-Peer Lending Market Segmentation
Grand View Research has segmented the global peer-to-peer lending market based on type, loan type, end-user, purpose type, and region:
Peer-to-Peer Lending Market - Type Outlook (Revenue, USD Billion, 2017 - 2030)
- Consumer Lending
- Business Lending
Peer-to-Peer Lending Market - Loan Type Outlook (Revenue, USD Billion, 2017 - 2030)
- Secured
- Unsecured
Peer-to-Peer Lending Market - End-user Outlook (Revenue, USD Billion, 2017 - 2030)
- Non Business Loans
- Business Loans
Peer-to-Peer Lending Market - Purpose Type Outlook (Revenue, USD Billion, 2017 - 2030)
- Repaying Bank Debt
- Credit Card Recycling
- Education
- Home Renovation
- Buying Car
- Family Celebration
- Others
Peer-to-Peer Lending Market - Regional Outlook (Revenue, USD Billion, 2017 - 2030)
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Asia Pacific
- Indonesia
- India
- Japan
- South Korea
- Australia
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- Israel
- South Africa
- UAE
List of Key Players in the Peer-to-Peer Lending Market
- LendingClub Bank
- Lendermarket
- Prosper Funding LLC
- Proplend
- PeerBerry
- Upstart Network, Inc.
- RateSetter
- StreetShares, Inc.
- Bondora Capital OÜ
- AS Mintos Marketplace
- Landbay Partners Limited
Check out more related studies published by Grand View Research:
- Micro Lending Market - The global micro lending market size is expected to reach USD 86.82 billion by 2030, growing at a CAGR of 13.4% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. The growth is anticipated to be driven by several advantages offered by micro lending to the loan providers, such as the easy accessibility to offer loans within and aboard the country and earning more interest rates compared to the traditional fixed deposit and other investments. Furthermore, the growing demand for micro lending by individuals through peer-to-peer lending platforms is another major factor driving the market's growth.
- Digital Lending Platform Market - The global digital lending platform market size is expected to reach USD 44.50 billion by 2030, registering a CAGR of 26.5% from 2023 to 2030, according to a new report by Grand View Research, Inc. The growing adoption of digitalization in the BFSI sector is expected to create new opportunities for market growth. According to the European Central Bank, in 2020, 46% of European banks could process mortgages digitally in two days compared to 8% in 2015.
- Alternative Lending Platform Market - The global alternative lending platform market size is expected to reach USD 14.47 billion by 2030, growing at a CAGR of 23.6% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. The growing integration of technology in the financial sector worldwide is anticipated to drive the growth. The strong emphasis by market players on offering enhanced lending solutions to revolutionize the financing ecosystem also bodes well for the development of the industry.
Browse through Grand View Research's Next Generation Technologies Research Reports.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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