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Reward-Based Crowdfunding - Asia

Asia

The Reward-Based Crowdfunding market in Asia is expected to reach a total transaction value of €226.60m by 2024.
When comparing globally, the United States leads with a projected transaction value of €426m in 2024.
In Asia, Japan is witnessing a surge in equity crowdfunding platforms, providing diverse investment opportunities for both startups and investors.

Key regions: Germany, Brazil, Australia, Israel, United States

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Analyst Opinion

The Crowdfunding market in Asia has been experiencing significant growth in recent years, driven by customer preferences for alternative financing options, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Asia, customers are increasingly turning to crowdfunding as a way to support innovative projects, start-ups, and social causes. This is driven by a desire to be part of something bigger than themselves and to have a direct impact on the success of a project or company. Additionally, crowdfunding provides an opportunity for individuals to discover and support unique and creative ideas that may not receive traditional funding.

Trends in the market: One of the key trends in the crowdfunding market in Asia is the rise of reward-based crowdfunding platforms. These platforms allow individuals to contribute funds to a project in exchange for a reward or product. This model has gained popularity due to its simplicity and the tangible benefits it offers to contributors. Additionally, equity-based crowdfunding is also gaining traction, allowing individuals to invest in start-ups and potentially earn returns on their investments.

Local special circumstances: Asia is a diverse region with unique cultural, economic, and regulatory environments that impact the crowdfunding market. For example, in countries like China and India, where access to traditional financing may be limited, crowdfunding provides an alternative avenue for entrepreneurs and small businesses to raise capital. Additionally, Asia has a large and growing middle class with disposable income, creating a pool of potential contributors to crowdfunding campaigns.

Underlying macroeconomic factors: The growth of the crowdfunding market in Asia is also influenced by underlying macroeconomic factors. Economic growth, urbanization, and technological advancements have created a favorable environment for crowdfunding to thrive. As more individuals gain access to the internet and mobile devices, they are able to easily discover and contribute to crowdfunding campaigns. Furthermore, the rise of social media and online communities has facilitated the spread of crowdfunding campaigns, allowing them to reach a larger audience. In conclusion, the Crowdfunding market in Asia is experiencing significant growth due to customer preferences for alternative financing options, trends in the market such as the rise of reward-based and equity-based crowdfunding platforms, local special circumstances such as limited access to traditional financing and a growing middle class, and underlying macroeconomic factors including economic growth, urbanization, and technological advancements. This growth is likely to continue as more individuals and businesses recognize the benefits and opportunities offered by crowdfunding.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.