; Peer to Peer Lending Market Size, Industry Share, Forecast, 2030

Peer to Peer Lending Market

Peer to Peer Lending Market by business (Traditional Lending and Alternate marketplace lending);by End User (Real Estate Loans, Consumer Credit Loans, Student Loans, and Small Business Loans); and Region -Analysis of Market Size, Share & Trends for 2016 - 2019 and Forecasts to 2029

Published on: Aug-2022
Report Code: FG ICT 00124
No. of Pages: 170 - 350
Report Format: PDF

Product overview

Peer to Peer lending market to surpass USD 1056.3 billion by 2030, which is valued at 108.9 billion in 2021 at a compound annual growth rate of 28.8%.

Peer-to-peer lending (P2P) is the method of lending money through online platforms to individuals or businesses that connect lenders with debtors. Other than conventional financial institutions, P2P provides its services more cheaply. Consequently, borrowers can gain higher returns relative to deposits and savings on services offered by banks and other institutions. This cycle of giving loans is also known as crowdlending. Most peer-to-peer loans are an unsecured type of personal loan while the vast amount is loaned to businesses. The form which is a secured loan may often be given by the use of large-scale assets such as antique vehicles, houses, fine arts, watches, or other business properties. Some types of peer-to-peer lending include student loans, industrial, pay-day loans, secured business loans, leases, and factoring.

Market Highlights

Peer to Peer lending market  is expected to project a CAGR of 28.8% during the forecast period, 2021-2030

Lower operational costs and reduced market risk for lenders and borrowers are the main factors driving global peer-to-peer loan market growth. Moreover, the introduction of digitization in the banking sector contributes to the transparency over conventional banking structures that are expected to drive demand growth.

Peer to Peer lending market: Segments

The small business loan is anticipated to register XX% of the volume share and is expected to grow at the highest CAGR.

This is attributed to a spike in the number of small enterprises in nations such as India and Singapore. Nevertheless, during the forecast period, the consumer credit loan segment is expected to rise at the highest pace, due to the significant adoption of consumer credit loans between individuals and businesses to provide financial flexibility, thus providing the peer with a valuable opportunity to compare industry developments in lending.

Traditional P2P accounted for XX% of the global volume in 2019 and is anticipated to grow at the highest CAGR.

Global Peer to Peer lending market is segmented by business: Traditional lending and Alternate marketplace lending. The traditional P2P model is increasing widely, primarily in emerging regions. Due to the less availability of modern technologies in the country, numerous companies are expanding their adoption of the P2P model. The marketplace lending model, however, is slowly expanding across the globe and is expected to replace the conventional model in the coming years.

Market Dynamics

Drivers

Lower operational cost

P2P lending platform aims to minimize operating costs by lowering the costs of physical branches, hiring, and branch management, thus increasing business growth. Also, peer to peer lending network offers an effective framework to ensure a repayment mechanism for the borrower, which reduces the investor's market risk. With the aid of peer-to-peer lending services, investors can reduce various types of market risks such as interest rates, unemployment levels, and risk of property prices, which further positively impact global business development.

Greater transparency   

P2P network lending operates via Internet-based services. The data is publicly accessible and the online providers require access to their websites, giving customers a better image of the accessible loans and types of loans P2P lending network has a creative advantage over conventional banking structures because it offers greater market transparency. A prospective borrower applies to the platform for approval before a loan is placed on the platform’s website, with all of the risks and interest rates explicitly outlined along with the repayment period.

Restraints

Risk Involved

Most people prefer to choose banks over peer loan services as they may pose potential risks and this is an important factor expected to hinder global peer-to-peer loan market revenue growth. Consequently, service providers are at risk as they provide guarantees against the debt without any collateral, which can result in a loss to providers. That's another aspect that might negatively affect global peer-to-peer lending market growth.

Global Peer to Peer lending Market: Regions

Asia Pacific was the largest market accounting for XX% of the total market volume share in 2019

The most important driving factor for promising China's P2P lending market is the country's accessibility to advanced FinTech facilities. In addition, limited alternative investment options and higher returns from P2P lending have been attracting investors in the China P2P lending market.

 The global peer to Peer lending market is further segmented by region into: 

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – the United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • APAC Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • MENA Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa

GlobalPeer to Peer lending market: Key Players

  • Avant Inc.

Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis

  • Kabbage Inc
  • Lending Club Corporation
  • On Deck Capital Inc.
  • RateSetter
  • Funding Circle Limited
  • Zopa Limited
  • LendingTree LLC
  • Prosper Marketplace Inc.
  • Social Finance Inc.
  • Other prominent Players

The global Peer to Peer lending market report also contains an analysis on:

Peer to Peer lending Market Segments

  • By business type
    • Traditional lending
    • Alternate marketplace lending
  • By end-user             
    • Real Estate Loans
    • Consumer Credit Loans
    • Student Loans
    • Small Business Loans
    • Others
  • Peer to Peer lending Market Dynamics
  • Peer to Peer lending Market Size
  • Supply & Demand
  • Current Trends/Issues/Challenges
  • Competition & Companies Involved in the Market
  • Value Chain of the Market
  • Market Drivers and Restraints

Frequently Asked Questions (FAQ):

The Peer to Peer Lending Market size was estimated at USD 108.9 billion in 2019 and is expected to reach USD 1056.3 billion by 2030

Kabbage Inc, Lending Club Corporation, On Deck Capital Inc., RateSetter, Funding Circle Limited, Zopa Limited Lending, Tree LLC, Prosper Marketplace Inc., Social Finance Inc. Other prominent Players

The small business loan and Traditional P2P are anticipated to hold the Peer to Peer Lending Market

Drivers Lower operational cost

Peer-to-peer lending (P2P) is the method of lending money through online platforms to individuals or businesses that connect lenders with debtors. Other than conventional financial institutions, P2P provides its services more cheaply.

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