The UK peer-to-peer (P2P) lending market witnessed continued growth in 2023. At the beginning of the year, the peer-to-peer (P2P) industry was expected to grow by 12% on the previous year, targeting £376.2 million by the end of 2023. This increase followed substantial growth in the sector since 2016 when the revenue was significantly lower at £97.6 million. As of 2023, the market size of the P2P lending platforms industry in the UK was reported to be around £376.6 million, marking a 1.6% increase from 2022.

On a global scale, the peer-to-peer lending market also showed significant growth. It was valued at $113.55 billion in 2021 and was expected to grow from $147.05 billion in 2022 to $1163.09 billion by 2030. This projection of growth suggests a compound annual growth rate (CAGR) of 29.5% during the forecast period from 2023 to 2030.

Is the UK market expected to grow further in 2024?

The growth of the UK’s peer-to-peer (P2P) lending market is expected to continue but at a more moderate pace compared to its earlier rapid expansion. The industry is transitioning as more companies move out of the start-up phase and begin to stabilise their operations. This development is reflected in the projected compound annual growth rate (CAGR) of 7.1% over the five years leading up to 2023-24, taking the revenue to approximately £397.7 million. Factors influencing this performance include wider economic conditions, interest rates, and regulatory changes. The industry still experiences high revenue volatility due to its relative infancy and the recent unstable economic conditions.

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