Alternative Lending Market to Reach $1,076.3 billion, Globally, by 2033 at 11.6% CAGR: Allied Market Research

24.03.25 11:38 Uhr

Factors such as increase in demand for flexible financing options and surge in favorable regulatory changes positively impacts the growth of the market. In addition, rise of peer-to-peer (P2P) lending and crowdfunding lending is expected to propel the global market growth.

WILMINGTON, Del., March 24, 2025 /PRNewswire/ -- Allied Market Research published a report, titled, "Alternative Lending Market by Type (Peer-to-Peer Lending, Crowdfunding, Invoice Trading), Tenure (Short-term, Mid-term, Long-term), and End User (Individual, Businesses): Global Opportunity Analysis and Industry Forecast, 2024-2033". According to the report, the alternative lending market was valued at $354.8 billion in 2023, and is estimated to reach $1,076.3 billion by 2033, growing at a CAGR of 11.6% from 2024 to 2033.

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However, the data privacy and security concerns and credit risk and loan default are expected to hamper the market growth. Furthermore, the integration of AI, blockchain, and data analytics creates numerous opportunities for alternative lending solutions to optimize risk assessment, improve operational efficiency, and enhance the borrower's experience.

Report Coverage & Details:

Report Coverage

Details

Forecast Period

2024–2033

Base Year

2023

Market Size in 2023

$354.8 billion

Market Size in 2033

$1,076.3 billion

CAGR

11.6 %

 

Segments Covered

Offering, Deployment Mode, Enterprise Size, Application and Region.

Drivers

 

  • Increase in the demand for flexible financing options
  • Surge in favorable regulatory changes
  • Rise of peer-to-peer (p2p) lending and crowdfunding lending

 

Opportunities

The integration of AI, blockchain, and data analytics

Restraints

 

  • Data privacy and security concerns
  • Credit risk and loan default

The peer-to-peer lending accounted for the largest share in 2023.

By type, the peer-to-peer lending segment accounted for the largest share in 2023, contributing for more than two-fifths of the market revenue. This is due to increase in adoption of P2P lending, which offers an accessible alternative for borrowing and lending.

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The mid-term segment accounted for the largest share in 2023.

By tenure, the mid-term segment accounted for the largest share in 2023, contributing for more than two-fifths of the market revenue. This is due to mid-term loans often provide borrowers with larger funding amounts, making them a preferred choice for small and medium-sized enterprises (SMEs) and individual borrowers needing significant capital.

The businesses segment accounted for the largest share in 2023.

By end user, the businesses segment accounted for the largest share in 2023, contributing for less than three-fourths of the market revenue. Small and medium-sized enterprises (SMEs) often face difficulties accessing traditional bank loans due to strict credit requirements. Alternative lending platforms provide a more accessible financing option.

North America region to maintain its dominance by 2033.

By region, the North America region held the highest market share in terms of revenue in 2023, contributing for more than one-third of the market revenue. With the strong adoption of alternative lending owing to the increase in adoption of blockchain and smart contracts, providing enhanced transparency, security, and faster transactions.

Leading Market Players: -

  • Funding Circle Limited
  • Prosper Funding LLC
  • Affirm, Inc.
  • Upstart
  • OnDeck
  • Bluevine Inc
  • Fundbox
  • Capify
  • MoneyLion Inc
  • Biz2Credit
  • Clearco
  • Kiva
  • Crowd2Fund
  • Loanpad
  • American Express Company
  • Tala
  • LendingClub
  • LenDenClub
  • Bond Street Servicing, LLC,
  • Planethome Investment AG.

The report provides a detailed analysis of these key players in the alternative lending market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different countries. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the alternative lending market analysis from 2023 to 2033 to identify the prevailing alternative lending market forecast opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the alternative lending market opportunity segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global alternative lending market trends, key players, market segments, application areas, and market growth strategies.

Alternative Lending Market Report Highlights

Aspects Details

By Type

  • Crowdfunding
  • Invoice Trading
  • Peer-to-Peer Lending

By Tenure

  • Short-term
  • Mid-term
  • Long-term

By End Users

  • Individual
  • Businesses

By Region

  • North America (U.S., Canada)
  • Europe (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Europe)
  • LAMEA (Latin America, Middle East, Africa)

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Key Market Players

Upstart Network, Inc., Fundbox, Biz2Credit, LendingClub, Loanpad Limited, Bluevine Inc, Prosper Funding LLC, Clearco, LenDenClub, Tala, Affirm, Inc., OnDeck, MoneyLion Inc., PlanetHome Investment AG, Crowd2Fund Limited, Kiva, Bond Street Servicing, LLC, Capify, Funding Circle Limited, American Express Company

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SOURCE Allied Market Research