The global marketplace lending (consumer) market size was valued at USD 181.09 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.1% from 2021 to 2028. The development of small and medium-sized enterprises, mainly in emerging countries, is encouraging the growth of the market. Minimum operating costs and lower market risk for the lenders and the borrowers are other significant factors driving the market. The COVID-19 outbreak positively impacted the growth of the market.
The market has observed substantial growth, as most SMEs witnessed a drastic drop in revenue leading to the high demand for SME loan requests to the marketplace lenders offering individual and SME loans. Marketplace lending is a non-bank lending industry that mainly uses advanced financial technology to offer loans to individuals and small businesses. It is also known as peer-to-peer lending or online platform lending. It enables lending and borrowing for investment diversification. Compared to the traditional alternatives, itis quick, paperless, provides higher returns, and is more flexible.
Marketplace lending is a quickly growing and evolving industry including new firms and technologies, individual borrowers and savers, and institutional investors. Lenders have recently increased prominence following quick development in markets such as the U.K., U.S., and China. The COVID-19 pandemic positively affected the market. The demand for all types of loans has increased after the pandemic. Recent research has indicated that the businesses on marketplace lending platforms have seen a significant rise in revenue, helping the economy dramatically.
The personal loans segment dominated the marketplace lending (consumer) market and contributed to a revenue share of more than 50% in 2020 and is expected to expand at a CAGR of 5.1% from 2021 to 2028. Numerous people have been taking personal loans for various requirements such as medical emergencies, daily expenditures or to make a big-ticket buying. For battling a financial crisis, personal loans are always the foremost choice among borrowers. Thus, the demand for personal loans is always high, which is expected to contribute to growth.
The educational loans segment is expected to witness the highest CAGR of 5.6% from 2021 to 2028. The demand for education loans increased to a record level in 2020. The factors such as fear of job losses, disturbance in workplaces, and the stagnant situations in terms of increments and promotions are encouraging professionals to study the post-COVID-19 scenario. Moreover, top management institutions have seen a rise in attention from professionals wanting to sign up as the interruption pushed people to improve their career development opportunities. Thus, the demand for educational loans is witnessing a rapid rise and is expected to witness the fastest CAGR over the forecast period.
North America is anticipated to register the highest CAGR of 5.6% from 2021 to 2028.Most players in the U.S. market focus on an extensive range of individual segments, like student loans. The U.S. has already witnessed increased collaboration between banks and marketplace lenders. Such partnerships will help increase awareness among borrowers and investors, gain scale, and possibly lower customer acquisition costs. Canada is also expected to witness a considerable CAGR owing to the advancements in SMEs and growing startup businesses.
Asia Pacific accounted for a significant revenue share of more than 80% in 2020. China is the major revenue contributor in the region. Marketplace lending has become an important source of funds for small companies and consumers in China. The numerous factors such as rapidly developing and high-growth Asian economies with large but credit-worthy under banked populations and support from regulators and government bodies toward inclusive financial growth are expected to fuel the growth.
The market is characterized by the existence of established as well as new companies. The marketplace lending industry is quickly growing and evolving, and various companies are constantly developing new variants of old business models. Most of the companies operating in this market are concentrating on certain types of loans, such as personal, small business, or educational loans. Some of the prominent players operating in the global marketplace lending (consumer) market are:
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Report Attribute |
Details |
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Market size value in 2021 |
USD 188.53 billion |
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Revenue forecast in 2028 |
USD 267.14 billion |
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Growth Rate |
CAGR of 5.1% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD Billion and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Type, region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Canada; U.K.; Germany; France.; China; India; Japan; Brazil; Argentina; Saudi Arabia; South Africa |
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Key companies profiled |
LendingClub Corporation; Prosper Marketplace, Inc.; Funding Circle Holdings PLC; On Deck Capital, Inc.; Zopa Limited; Social Finance, Inc.; Upstart Network, Inc.; LendingTree LLC; CreditEase Corporation; Kabbage, Inc. |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Million Insights has segmented the global marketplace lending (consumer) market report based on type and region:
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