Fintech Global Market Opportunities and Strategies to 2032

This report describes and explains the fintech market and covers 2017 to 2022, termed the historic period, and 2022 to 2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global fintech market reached a value of nearly $162.7 billion in 2022, having increased at a compound annual growth rate (CAGR) of 11.1% since 2017. The market is expected to grow from $162.7 billion in 2022 to $388.1 billion in 2027 at a rate of 19.0%. The market is then expected to grow at a CAGR of 22.4% from 2027 and reach $1,065.5 billion in 2032.

Growth in the historic period resulted from strong economic growth in emerging markets, the rise in globalization and cross-border payments, increased internet penetration, the rise in the penetration of smartphones and the rise in disposable income. Factors that negatively affected growth in the historic period were the rise in cyber security concerns and the lack of consumer education and awareness on fintech.

Going forward, the rising penetration of e-commerce, government support, the rising penetration of blockchain technology and the rising urbanization will drive the market. Factors that could hinder the growth of the fintech market in the future include regulatory challenges and geopolitical tensions.

The fintech market is segmented by type of service into payments, insurance, fund transfer, wealth management, personal finance, personal loans and other types of service. The insurance market was the largest segment of the fintech market by type of service, accounting for $75.1 billion or 46.2% of the total market in 2022. The fund transfer market is expected to be the fastest-growing segment going forward at a CAGR of 31.3%.

The fintech market is segmented by service provider into payment processors, securities brokerages and investment firms, banks, non-banking financial companies and other service providers. The payment processors market was the largest segment of the fintech market by service provider, accounting for $70.1 billion or 43.1% of the total market in 2022. It is expected to be the fastest-growing segment going forward at a CAGR of 20.0%.

The fintech market is segmented by technology into mobile commerce and transfers, robotic process automation, data analytics and other technologies. The other technologies market was the largest segment of the fintech market by technology, accounting for $92.8 billion or 57.0% of the total market in 2022. The robotic process automation market is expected to be the fastest-growing segment going forward at a CAGR of 30.0%.

North America was the largest region in the fintech market, accounting for 37.1% of the global market in 2022. It was followed by Asia Pacific, Western Europe and the other regions. Going forward, the fastest growing regions in the fintech market will be Africa and the Middle East, where growth will be at CAGRs of 32.4% and 27.2% respectively from 2022-2027.

The global fintech market is highly concentrated, with a large number of players operating in the market. The top ten competitors in the market made up to 54.39% of the total market in 2022. PayPal Holdings Inc was the largest competitor with 14.38% share of the market, followed by Block Inc with 9.05%, Stripe Inc with 7.32%, Tencent Holdings Ltd. with 7.21%, Adyen N.V. with 5.28%, Ant Group with 4.49%, Nubank with 2.50%, ZhongAn Online P&C Insurance Co. Ltd. with 1.98%, Microsoft Corporation with 1.22% and IBM Corporation with 0.96%.

The top opportunities in the fintech market by type of service will arise in the insurance market, which will gain $74.8 billion of global annual sales by 2027. The top opportunities in the fintech market by service provider will arise in payment processors market, which will gain $104.3 billion of global annual sales by 2027. The top opportunities in the fintech market by technology will arise in other technologies market, which will gain $102.0 billion of global annual sales by 2027. The fintech market size will gain the most in China at $76.8 billion.

Market-trend-based strategies for the fintech market include launch of advanced tech labs, increasing use of mobile payment technology, implementation of blockchain technology, smart contracts, focus on innovation platforms, focus on artificial intelligence, increasing investments, embedded fintech and strategic partnerships and collaborations.

Player-adopted strategies in the fintech industry includes expanding business through acquisitions, increasing mergers and acquisitions to expand geographical reach, focuses on strategic partnerships and collaborations to expand geographic reach and focusing on product innovations.

To take advantage of the opportunities, the recommends the fintech companies to focus on innovation platforms, focus on artificial intelligence, focus on blockchain technology, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships and collaborations, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions focus on small and medium-sized enterprises (SMEs), continue to target financial institutions, and focus on investors and traders.