P2P Lending Market: Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2019 - 2025

Report Code : ITR 0236 Format Type: PDF+ Excel Database

P2P Lending Market Overview:

According the Peer2Peer Finance Association (P2PFA), the peer-to-peer lending (P2P lending) contributed more than $1.27 billion to the UK economy in the second quarter of 2018.[1] This is attributed to the increasing practice of lending money to individuals or businesses through online services because it enables direct transactions between the lenders and borrowers. Similar to the UK, countries across the globe are observing significant contribution of P2P lending in their economies, and it is quite evident to the fact that the P2P lending market size was evaluated at $279.6 million as of 2018. Furthermore, the P2P lending market is expected to witness an upsurge at a CAGR of 4.95% during the forecast period 2019-2025.

China is identified as the key country in the P2P industry, and the country had the maximum P2P lending market share of 69.47% in 2018. The most important driving factor for the lucrative China P2P lending market is the availability of the advanced FinTech facilities in the country. Furthermore, limited alternative investment opportunities, and the fact that P2P lending enables high returns has been attracting the investors in the China P2P lending market.

According to the Bank for International Settlements, China had observed a substantial growth in the P2P lending market in 2016 with the ratio of P2P loans to bank loans translating to almost 40% in June 2016. Even though the P2P lending market observed merely 1% ratio of P2P to bank loans, the P2P lending market had a significant contribution to the economy of China.[2] The P2P lending marketplace in China has been offering opportunities to vendors in China P2P lending market.

P2P Lending Market Outlook:

P2P model is a marketplace lending model which is majorly used for transactions of consumer credit loans, small business loans, student loans, and real estate loans. The most lucrative application segment of the P2P lending market is the real estate P2P lending, and it is estimated to grow at a substantial CAGR of 12.75% through to 2025.

P2P lending services have penetrated into the real estate industry, and this has significantly made the loans transactions easier. Real estate industry will register more construction activities in future to fulfill the housing requirement for growing population. It will be followed with an increased adoption of P2P lending in the real estate sector. These factors, in unison, will boost the P2P lending market over the forecast period.

P2P Lending Market Growth Drivers:

· The Small and Medium-Sized Businesses creating a sustainable P2P lending marketplace –

Due to insecurity and risk factors pertaining to startups and small businesses, the business loan transactions through conventional methods in banks are declining. This is particularly attributable to the economic doom in late 2000s after which the number business loan transactions in banks started declining. However, it has been creating growth prospects for the players in the P2P lending market as the small businesses take loans from them. Due to the expansion of various industries such as Pharmaceutical, Oil & Gas, and IT sector, the number of new small businesses will observe a growth globally in coming years, which will create more opportunities for P2P lending market.

· Technology adoption attributed to the P2P lending market growth –

P2P lending is advantageous over the conventional bank transactions. A P2P lending platform connect borrowers and investors directly for better returns in a P2P transaction than that of the bank. Furthermore, P2P lending services provide the investors with risk adjusted returns. The easy loan tenure and the fact that investors can get regular and stable income in a month-on-month returns in the form of principal repayment and EMI is attracting more investors in the P2P lending market. 

P2P Lending Market Trends –

·   India is also one of the growing P2P lending markets. Faircent is India’s largest P2P lending platform with 40,000 registered lenders, 350 thousand borrowers, and 6,000 loans by the end of May, 2018. The Indian Brand Equity Foundation (IBEF) projects the Indian P2P lending market size to reach $4-5 billion by 2023.[3] This growth will contribute to the P2P lending market size in the upcoming years.

P2P Lending Market Key Players Perspective –

The key players in P2P lending market with major share are Upstart, Funding Circle, LendingTree, Prosper Lending, LendingClub, Peerform, Mintos, Grupeer, Circleback Lending, Zopa, Social Finance, Inc., and Kiva Microfunds.

P2P Lending Market Research Scope:

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provide information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the P2P lending market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The P2P lending market research report also analyses the application of P2P lending in various sectors such as real estate, small and medium-sized business, and others.

P2P Lending Market Report: Industry Coverage

The P2P lending market report identified the current trends, opportunities, and challenges in the industry along with a detailed depiction of strategies by the existing market players.

The report also provide facts, figures, and statistics about different types of P2P lending and their use in various sectors.

The report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:

  • North America: The U.S., Canada, Mexico
  • South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
  • Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
  • APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
  • Middle East and Africa: Israel, South Africa, Saudi Arabia

Key Questions Addressed in the P2P Lending Market Report

Is the market demand for P2P lending growing? 


How long will it continue to grow and at what rate?


Which type of P2P lending presents the major growth opportunities?


Is there a possibility for change in the market structure over time?


Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?


Do the key vendors look for partnerships to expand their businesses with respect to geography or product?


What are the short-term, long-term, and medium-term growth drivers for the market?


What are the short-term, medium-term, and long-term challenges for the market?


What are the short-term, medium-term, and long-term opportunities for the market?


Who are the top players/companies of the market?


What are the recent innovations in the market?


How many patents have been filed by the leading players?


What are the types of patents filed by the leading players?


What is our Vision 2030 for the P2P lending market?

A few focus points of this research are given below:

  • Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
  • Provide an overview of the product portfolio, including product planning, development, and positioning
  • Discuss the role of technology companies in partnerships
  • Explore the regional sales activities
  • Analyze the market size and giving the forecast for current and future global P2P lending market during the forecast 2019–2025
  • Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures

References - 

[1] https://www.p2pfa.org.uk/peer-to-peer-lending-contributes-more-than-1-billion-to-the-economy-in-second-quarter-of-2018/

[2] https://www.bis.org/publ/qtrpdf/r_qt1809z.htm

[3] https://www.ibef.org/research/india-study/crowd-funding

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