Online Dating Service Market - Forecasts from 2022 to 2027

The online dating services market is projected to grow at a compound annual growth rate of 16.35% to reach a market value of US$14003.837 million by 2027 from US$4852.758 million in 2020. Online dating refers to a system that enables users to connect through online platforms and introduce and find potential connections, generally for further development of relationships. The major factors supplementing the market growth of online dating services include the rising internet penetration, especially across the major developing economies of the region, coupled with the rapid integration of technology, which has led to an upsurge in the usage of smartphones.

The increasing millennial population around the globe along with the shifting preferences of users to meet new people through these platforms for building various kinds of relationships such as casual, social, niche, and others are further widening the opportunities for the market to grow in the near future. The inclination of users to build relationships to meet like-minded people has also led to an upsurge in the demand for online dating services in recent years.

Rapid innovation in service offerings is driving the market's growth

Growing consumer expectations have led to constant participation by the key market players to develop and deliver new and customized services to their users, further showing the potential of the online dating services market to grow in the near future. For instance, in the year 2018, eHarmony, a leading online dating website based in the United States of America, announced the launch of its AI-enabled functionality that will automatically suggest the nudges meet personally after they have chatted for a considerable period of time.

Similarly, companies are expanding the services offered to them to cater to the rising consumer needs. This has led to the integration of additional services on their platforms with the aim of attracting more customers and gaining traction in the market. This is also positively impacting the market growth to some extent during the next five years. For instance, in 2018, Badoo, one of the leading companies operating in the market, announced the integration of video chat facilities for its use for face-to-face interactions.

Rapid penetration of smartphones and mobile devices

The major factors supplementing the online dating service market's growth include the burgeoning penetration of smartphones and other portable computing devices such as tablets and laptops, among others. The deep penetration of smartphones across both the developed and developing economies is boosting the demand for online dating services as the majority of the applications work in real-time based locations. This further enables the user to expand his or her geographic reach and further interact with people at different locations.

As per the data from the World Bank Group, the penetration of mobile phones is highest in Europe, followed by North America and the Asia Pacific region. As a result, market growth in these regions will be supported even further during the forecast period. The penetration of smartphones is considered to be the fastest in the APAC region, especially in countries like India and China due to the fact that more and more people are getting access to cheap and easy internet connectivity with every passing day. Also, the entry of Reliance Jio in India during the year 2016 was the turning point for the mobile internet market, in which the prices were heavily reduced, which further fueled the adoption of smartphones and tablets throughout the country. Therefore, the major factor that is driving the growth of the online dating services market is the deep penetration of smartphones in various countries around the globe.

Booming internet penetration is providing an impetus for the market to grow

The widespread availability of faster and less expensive internet has resulted in an increase in demand for online dating services among the general public. coupled with a rapid increase in smartphone usage, is further widening the opportunities for the market to grow in the near future. According to the World Bank, the percentage of the population using the internet increased from 6.77% in 2000 to 49.723% in 2017. Simultaneously, the number of households with broadband access has increased significantly in both developed and developing economies. For instance, in India, the number of fixed-broadband subscriptions reached 18,170,000 by the year 2018 from 5,280,000 during the year 2008.

Additionally, in the United States of America, it reached 110,568,000 by 2018 from 84,552,000 in 2010. Therefore, the rapid increase in internet penetration is also projected to be a key factor amplifying the demand for online dating services over the course of the next five years.

The recent outbreak of Novel Coronavirus Disease

The recent outbreak of the novel coronavirus is projected to boost the demand for online dating services, especially in the short run. The World Health Organization has declared the outbreak a pandemic as it is difficult to contain. Thus, numerous directives such as social distancing and enforcement of quarantine measures and lockdowns in some highly affected countries are expected to amplify the adoption of these services during the next six to eight months.

This can be backed up by the fact that a huge number of users are signing up during this time of the pandemic. In a press release, Tinder Inc. announced that the company recorded more than 3 billion swipes on March 29, 2020, which was considered the highest figure on a single day that the company has recorded in its history until now.

The online dating services market has been segmented into service type, subscription model, gender, age group, and geography.

Competitive Insights

Prominent key players in the online dating services market include Tinder, Badoo, Sparks Network SE, and eHarmony Inc., among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings.

Major players in the online dating services market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments by different market players over the last two years.

Key Developments

March 2022: Tinder was regarded as one of the World's Most Innovative Companies in 2022, by the Fast Company in the Social Media category. It was recognized for its work in assisting people all over the world in making new connections, despite the COVID-19 pandemic and social distancing norms.

February 2022: Fruitz, one of Europe's fastest-growing dating applications, has been acquired by Bumble Inc. Fruitz has had a tremendous development in France, Belgium, the Netherlands, Switzerland, Spain, and Canada since its introduction in 2017. The dating app is especially popular among Gen Z, a rapidly rising section of online daters.

December 2021: Tinder's Music Mode is the company's newest feature available in the Explore section. With the introduction of Music Mode, Tinder users can vibe out to their potential matches' favourite songs of the moment. Music Mode will be available to users who link their Spotify accounts and add an Anthem to their Tinder profiles.

May 2021: The ParshipMeet Group, a leader in interactive dating solutions, has announced a partnership with TikTok, an immersive, engaging platform that allows anybody to engage with varied groups and express their creativity through a variety of in-app creative tools. Members of ParshipMeet Group's famous MeetMe app will be able to utilize TikTok's new Login Kit to add their most recent TikTok videos to their profiles in a new TikTok Carousel.

Segmentation

By Service Type

• Casual Dating
• Social Dating

By Subscription Model

• Weekly Subscription
• Monthly Subscription
• Quarterly Subscription
• Half Yearly Subscription
• Yearly Subscription

By Gender

• Male
• Female

By Age Group

• Below 20
• 21-30
• 31-40
• Above 40

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• France
• United Kingdom
• Spain
• Italy
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia