The "Europe Embedded Finance Business and Investment Opportunities Databook 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
Embedded Finance industry in the region is expected to grow by 32.1% on annual basis to reach US$ 42.24 billion in 2023. The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.6% during 2024-2029. The embedded finance revenues in the region will increase from US$ 42.24 billion in 2024 to reach US$ 126.99 billion by 2029.
The European embedded finance industry is poised for accelerated growth in 2024. New and innovative startups are entering the market to cater to the growing funding demand of SMEs. These firms are also raising funding rounds and entering into strategic collaborations to accelerate growth and expand their regional footprint. Global firms are also entering the regional market to tap into the high-growth market over the next few years.
In Europe, embedded insurance is creating a significant impact in the automotive sector. There is a rising trend of automakers that are blending insurance policies with the purchase or lease of vehicles. Ford and Jaguar Land Rover are among the big giants that have embraced this, recognizing its influence in enhancing customer satisfaction. This trend is projected to continue further over the medium term across the region.
Firms are entering into strategic collaborations to provide financing services to SMEs in Europe
According to the Bank of England, small and medium-sized enterprises (SMEs) are facing an estimated funding gap of £22 billion. To address this, embedded finance providers are entering into strategic partnerships in the United Kingdom.
- Liberis, for instance, partnered with e-commerce software provider Shop Circle Capital in April 2024. The partnership seeks to deliver financing solutions to merchants in the United Kingdom. Alongside the United Kingdom, the service has been launched in the United States too, with plans to expand in more regions going forward in 2024.
- Froda, which has experienced strong growth and increased focus on its embedded finance offerings, also collaborated with Visma Finance in April 2024. Under the partnership, the two firms have launched a new product invoice loan. Unlike traditional business loans, the loan product is designed to automatically pay the invoice and not the customer.
These strategic collaborations and innovative product launches are expected to further drive the competitive landscape in the fast-growing European embedded finance industry over the medium term.
European embedded finance firms raising capital to expand their regional footprint in 2024
The embedded finance industry is poised for accelerated growth over the medium term in Europe. To tap into the high-growth sector, firms are planning to expand their regional footprint and subsequently, raise venture capital and private equity funding in 2024.
Flowpay, a Czech-based embedded finance provider, announced that the firm had raised €2.1 million in its seed funding round in March 2024. The capital round was backed by investors including Techstars, Soulmates Ventures, and DEPO Ventures, among others. The firm is planning to deploy the capital towards expansion in other European markets, while also utilizing the funding for enhancing technological capabilities and offering a range of services to SMEs.
Finmid, the Berlin-based firm, announced that the firm had raised €35 million as it emerged from stealth in April 2024. The capital round was led by Blossom Capital and also included participation from Earlybird VC. Finmid plans to use the capital to broaden its reach into key European markets, enhance its product offerings, and localize the services to meet regional needs. In partnership with Wolt and Safi, the firm provides tailored financing solutions to various businesses, including restaurants and retailers
Alongside regional players, global firms are also eyeing the European embedded finance market. VoPay, for instance, has entered into the United Kingdom amid high growth prospects over the medium term. The publisher expects the trend to continue further across the region in 2024.
European automakers are leveraging embedded insurance to create more value for their customers
In Europe, embedded insurance is creating a significant impact in the automotive sector. There is a rising trend of automakers that are blending insurance policies with the purchase or lease of vehicles. Ford and Jaguar Land Rover are among the big giants that have embraced this, recognizing its influence in enhancing customer satisfaction. Automakers, especially EV providers, are focusing on a digital approach to reach and engage with their customers in the region.
- Fisker, for instance, is offering customers in Austria, Belgium, Denmark, France, Germany, and the Netherlands the option to customize their insurance coverage digitally. Customers can access and sign up for insurance plans that match their specific car models and expected yearly mileage while placing an order.
- Niu, another EV provider, launched a pan-European embedded insurance program in 2023. This solution is designed to help its customers quickly find suitable insurance for their electric mopeds. The insurance program, notably, is omnichannel enabling customers to access the services in their desired way.
This title is a bundled offering, combining the following 17 reports
- Europe Embedded Finance Business and Investment Opportunities
- Austria Embedded Finance Business and Investment Opportunities
- Belgium Embedded Finance Business and Investment Opportunities
- Denmark Embedded Finance Business and Investment Opportunities
- Finland Embedded Finance Business and Investment Opportunities
- France Embedded Finance Business and Investment Opportunities
- Germany Embedded Finance Business and Investment Opportunities
- Greece Embedded Finance Business and Investment Opportunities
- Ireland Embedded Finance Business and Investment Opportunities
- Israel Embedded Finance Business and Investment Opportunities
- Italy Embedded Finance Business and Investment Opportunities
- Netherlands Embedded Finance Business and Investment Opportunities
- Poland Embedded Finance Business and Investment Opportunities
- Russia Embedded Finance Business and Investment Opportunities
- Spain Embedded Finance Business and Investment Opportunities
- Switzerland Embedded Finance Business and Investment Opportunities
- United Kingdom Embedded Finance Business and Investment Opportunities
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 2125 |
| Forecast Period | 2024 2029 |
| Estimated Market Value (USD) in 2024 | $42.2 Billion |
| Forecasted Market Value (USD) by 2029 | $127 Billion |
| Compound Annual Growth Rate | 24.6% |
| Regions Covered | Europe |
Scope
Embedded Finance Market Size and Forecast
Embedded Finance by Key Sectors
- Retail
- Logistics
- Telecommunications
- Manufacturing
- Consumer Health
- Others
Embedded Finance by Business Model
- Platforms
- Enabler
- Regulatory Entity
Embedded Finance by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Insurance Market Size and Forecast
Embedded Insurance by Industry
- Embedded Insurance in Consumer Products
- Embedded Insurance in Travel Hospitality
- Embedded Insurance in Automotive
- Embedded Insurance in Healthcare
- Embedded Insurance in Real Estate
- Embedded Insurance in Transport Logistics
- Embedded Insurance in Others
Embedded Insurance by Consumer Segments
- B2B
- B2C
Embedded Insurance by Type of Offering
- Embedded Insurance in Product Segment
- Embedded Insurance in Service Segment
Embedded Insurance by Business Model
- Platforms
- Enabler
- Regulatory Entity
Embedded Insurance by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Insurance by Distribution Channel
- Embedded Sales
- Bancassurance
- Broker's/IFA's
- Tied Agents
Embedded Insurance by Insurance Type
- Embedded Insurance in Life Segment
- Embedded Insurance in Non-Life Segment
Embedded Insurance in Non-Life Segment
- Motor Vehicle
- Fire and Property
- Accident and Health
- General Liability
- Marine, Aviation and other Transport
- Other
Embedded Lending Market Size and Forecast
Embedded Lending by Consumer Segments
- Business Lending
- Retail Lending
Embedded Lending by B2B Sectors
- Embedded Lending in Retail Consumer Goods
- Embedded Lending in IT Software Services
- Embedded Lending in Media, Entertainment Leisure
- Embedded Lending in Manufacturing Distribution
- Embedded Lending in Real Estate
- Embedded Lending in Other
Embedded Lending by B2C Sectors
- Embedded Lending in Retail Shopping
- Embedded Lending in Home Improvement
- Embedded Lending in Leisure Entertainment
- Embedded Lending in Healthcare and Wellness
- Embedded Lending in Other
Embedded Lending by Type
- BNPL Lending
- POS Lending
- Personal Loans
Embedded Lending by Business Model
- Platforms
- Enabler
- Regulatory Entity
Embedded Lending by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Payment Market Size and Forecast
Embedded Payment by Consumer Segments
- B2B
- B2C
Embedded Payment by End-Use Sector
- Embedded Payment in Retail Consumer Goods
- Embedded Payment in Digital Products Services
- Embedded Payment in Utility Bill Payment
- Embedded Payment in Travel Hospitality
- Embedded Payment in Leisure Entertainment
- Embedded Payment in Health Wellness
- Embedded Payment in Office Supplies Equipment
- Embedded Payment in Other
Embedded Payment by Business Model
- Platforms
- Enabler
- Regulatory Entity
Embedded Payment by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Wealth Management Market Size and Forecast
Asset Based Finance Management Industry Market Size and Forecast
Asset Based Finance by Type of Asset
- Hard Assets
- Soft Assets
Asset Based Finance by End Users
- SME's
- Large Enterprises
For more information about this report visit https://www.researchandmarkets.com/r/ef7uzr
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