Digital Transformation Driving Growth: Global Microfinance Market Surges at 12.7% CAGR, Set to Reach $488.9 Billion by 2030

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Jul 26, 2023, 21:45 ET

DUBLIN, July 26, 2023 /PRNewswire/ -- The "Microfinance: Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering.

Global Microfinance Market Expected to Reach $488.9 Billion by 2030

In the post-COVID-19 business landscape, the global microfinance market, which was valued at US$187.3 billion in 2022, is projected to expand significantly and attain a size of US$488.9 billion by 2030. This growth represents a Compound Annual Growth Rate (CAGR) of 12.7% during the analysis period spanning from 2022 to 2030. Among the segments analyzed in the report, the banking sector is expected to perform particularly well, with a projected CAGR of 13.5% and an estimated value of US$285.2 billion by the end of the analysis period.

Europe's Microfinance Market Valued at $13.4 Billion, while Asia-Pacific Expected to Experience a 14.3% CAGR

The microfinance market in Europe is estimated to be worth US$13.4 billion in 2022. Meanwhile, the Asia-Pacific region is expected to see remarkable growth, with a projected market size of US$236.4 billion by 2030, representing a CAGR of 14.3% from 2022 to 2030. Within Europe, Germany's microfinance market is anticipated to grow at a rate of approximately 3.1% CAGR. On the other hand, the Asia-Pacific market will be primarily driven by countries such as Bangladesh, India, Indonesia, and Vietnam, leading to a projected value of US$236.4 billion by 2030.

Select Competitors (Total 186 Featured) -

Citigroup, Inc.
Axis Bank Ltd.
Chicanos Por La Causa, Inc.
Banco Do Brasil
BNP Paribas SA
DCB Bank Ltd.
Dhanlaxmi Bank Ltd.
Manappuram Finance Ltd.
Indusind Bank Ltd.
Equity Group Holdings Plc
BlueOrchard Finance S A
Accion International
China Zheshang Bank Company Limited
ACLEDA Bank
FlexiGroup (New Zealand) Limited

MARKET OVERVIEW

The COVID-19 pandemic and the looming global recession have significantly impacted the global market, creating new challenges for the economy in 2022 & 2023.
Despite the challenges, the microfinance industry has shown resilience, with potential to break the cycle of poverty and provide access to the unbanked population.
The industry has witnessed significant growth in active borrowers and has played a vital role in impact investments and achieving Sustainable Development Goals (SDGs).
Digitalization, mobile payments, and new technologies are driving the growth of the microfinance market, transforming the industry's landscape.

FOCUS ON SELECT PLAYERS

The global microfinance industry has several key competitors with varying market presence, including strong, active, niche, and trivial players in 2022.

MARKET TRENDS & DRIVERS

Microenterprises have emerged as vital drivers of growth for microfinance institutions (MFIs), promoting economic progress.
Financial inclusion efforts to address the large unbanked population have stimulated the microfinance industry's growth, with a focus on reaching rural borrowers.
Digitalization and mobile payments have played a significant role in expanding the reach of microfinance, especially in rural areas.
Advanced technologies such as AI and blockchain are democratizing access to credit, while microinsurance products are providing insurance coverage to low-income customers.
The microfinance industry is also addressing climate change risks and supporting women entrepreneurs.
Collaboration between microfinance providers and fintechs is on the rise, while for-profit MFIs and hybrid models draw both opportunities and criticism.

GLOBAL MARKET PERSPECTIVE

CHINA

Microfinance plays a critical role in enabling financial inclusion in China, with both banks and non-banks offering micro-loans to various end-users.

EUROPE

Microfinance in Europe has a significant presence, with banks and non-banks contributing to annual lending for small enterprises, self-employed individuals, and microenterprises.

ASIA-PACIFIC

In Asia-Pacific, countries like Bangladesh, India, Indonesia, Vietnam, and others are witnessing notable growth in microfinance, focusing on financial inclusion and small enterprises' support.

LATIN AMERICA

Latin America's microfinance market has strong and active competitors, contributing to lending for small enterprises, self-employed individuals, and microenterprises.

REST OF WORLD

The rest of the World sees various microfinance institutions, both banks and non-banks, offering loans to support small enterprises, self-employed individuals, and microenterprises.

CONCLUSION

The microfinance industry continues to show resilience amidst global challenges, playing a vital role in economic progress, financial inclusion, and poverty alleviation.
Advancements in technology and strategic collaborations are driving market growth, providing hope for a brighter and more inclusive future for the industry.

For more information about this report visit https://www.researchandmarkets.com/r/ac8fug

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