The latest data available on the worldwide market for crowdfunding shows a market in rapid growth in all regions of the world with a worldwide growth rate of 44.2%. The three countries dominating the world’s crowdfunding market is China, the United States, and the United Kingdom. China still represents the largest crowdfunding volume in the world with a market share of an astonishing 86% followed by the USA with 10.3% and the UK with 1.88%. Next on the list, we find countries like Australia, South Korea, Canada, France, Germany, Japan, and the Netherlands – all with a significantly smaller market share.
This article will provide an overview of the worldwide market for crowdfunding, which includes financing models like P2P consumer lending and P2P business lending, real estate crowdfunding, invoice trading, balance sheet lending, equity-based crowdfunding, reward-based crowdfunding, donation-based crowdfunding, and more.
If you want to know more about the characteristics of crowdfunding and what types of crowdfunding that exists, you can check out this article about the main types of crowdfunding.
Top 30 Crowdfunding Volume by Country
Cambridge Centre for Alternative Finance (CCAF) has been studying alternative finance and collecting data about the crowdfunding market since 2015. The latest rapports published are from 2019, and it is these rapports that the numbers presented below are based on. The data is collected through surveys, which means that there is a delay in time before the data are processed and published. Therefore, the newest data available reflects how the market performed in 2017.
The data presented here at P2PMarketData are updated monthly, why it reflects a more accurate picture of how the market looks right now. Also, you will be able to compare data on a platform level and not just on a country level. At the moment, we are offering an overview of funding volume in Europe, the UK, and the USA with the goal of bringing complete transparency to the market by listing data from all P2P platforms in the world. However, our focus is mainly on P2P lending and equity-based crowdfunding. Hence, in this article, we are using data from the Cambridge Centre for Alternative Finance, as they provide a larger data set and include more financing models such as donation-based and reward-based crowdfunding.
Below, you will find a table showing the 30 countries with the largest market share within crowdfunding including the world’s total funding volume of crowdfunding. The numbers from Cambridge Centre for Alternative Finance shows a total worldwide crowdfunding market in 2017 of $416.67 billion up from $288.99 billion in 2016.
China - The Largest Crowdfunding Market in the World
With a market volume of $358.28 billion and a market share of 85.99%, China is by far the largest crowdfunding market in the world. The development of crowdfunding in China did not take off before 2013 and the impressive growth rates leading to the status of the world’s largest market has not come without consequences. Since late 2015, several crowdfunding platforms have been revealed as frauds and many others have been forced to close down due to liquidity problems. Others again are pivoting away from P2P lending and other types of crowdfunding to focus on more traditional markets, like the retail investment market. Chinese authorities are still in the midst of enforcing a stricter regulation on crowdfunding platforms with a special focus on P2P lending, something that will definitely affect the market negatively – at least in the short term. However, there is a very real demand for crowdfunding in China and financing through crowdfunding still only accounts for a small part of overall borrowing market leaving plenty of room for further growth after the many regulatory initiatives are implemented. You can read more about the future of crowdfunding and P2P lending in China here: The Future of P2P Lending in China: Is There a Time After the Great Cleanup? Also, a closer look at the Chinese crowdfunding market can be found here: Crowdfunding in China: A Look at the World’s Largest Market.
The Asia-Pacific Region ex. China
With Australia placed as number 4 with a funding volume of $1.49 billion and South Korea placed as number 5 with $1.13 billion, we also find other countries the Asia-Pacific region high on the list of the world’s largest crowdfunding countries. Japan is also to be found in the top 10, and further down the list, we have India (#12), New Zealand (#13), Singapore (#17), Chinese Taipei (#24), and Indonesia (#28).
The United States and Americas Region
Just as China in the Asia-Pacific region, the US is absolutely dominant in the Americas region where it has a market share of 96.5%. With a worldwide market share of 10.27% and a funding volume of $42,8 billion, the US is also the only real contender to China when looking at the global data. From the Americas region, especially Canada could be an interesting case in the following years as it is already placed as number 6 on the list with a funding volume of $0.87 billion and at the same time is experiencing high growth rates (159.4% in 2017). Further down the list, we find three Latin American countries – Brazil as #11, Mexico as #20, and Chile as #21 – that will also be interesting to follow in the coming years as Latin America and the Caribbean has experienced consistent growth rates of close to or more than 100% since 2013.
You can read more about crowdfunding in the Americas region here: Crowdfunding in the Americas: USA, Canada, Latin America & the Caribbean.
The United Kingdom and Europe
Even though Europe has many players in crowdfunding, especially within P2P lending, compared to the Americas and the Asia-Pacific, it is, in general, a small region. However, the UK is placed firmly as number three in the world with a market share of 1.88% and a funding volume of $7.85 billion and has one of the most well-established markets for crowdfunding in the world. Other fairly big markets for crowdfunding in Europe is France placed as number 7 and Germany placed as number 8 with funding volumes of $0.73 billion and $0.66 billion, respectively. Europe is well-represented on the top 30 list, but the region mostly includes countries with smaller funding volumes. The other European countries represented in top 30 are: Netherlands (#10), Italy (#14), Finland (#15), Sweden (#16), Spain (#19), Poland (#22), Ireland (#23), Latvia (#25), Belgium (#26), Estonia (#27), Switzerland (29), and finally Lithuania (#30).
You can read more about crowdfunding in Europe here: Crowdfunding in Europe: Market Size by Country and Finance Model.