Loan Brokers Market Opportunities and Strategies to 2033

This report describes and explains the loan brokers market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global loan brokers market reached a value of nearly $252.1 billion in 2023, having grown at a compound annual growth rate (CAGR) of 9.20% since 2018. The market is expected to grow from $252.1 billion in 2023 to $477.3 billion in 2028 at a rate of 13.62%. The market is then expected to grow at a CAGR of 14.71% from 2028 and reach $947.9 billion in 2033.

Growth in the historic period resulted from the rise in the number of SMEs, rise in disposable income, increased number of fintech companies, increased financial literacy and growing complexity of lending regulations. Factors that negatively affected growth in the historic period include regulatory challenges.

Going forward, strong economic growth in emerging markets, rising urbanization, rising demand for homeownership and favorable government support will drive the market. Factors that could hinder the growth of the loan brokers market in the future include low-profit margins.

The loan brokers market is segmented by component into products and services. The products market was the largest segment of the loan brokers market segmented by component, accounting for 59.23% or $149.3 billion of the total in 2023. Going forward, the products segment is expected to be the fastest growing segment in the loan brokers market segmented by component, at a CAGR of 15.21% during 2023-2028.

The loan brokers market is segmented by application into home loans, commercial and industrial loans, vehicle loans, loans to government and other applications. The home loans market was the largest segment of the loan brokers market segmented by application, accounting for 40.84% or $102.9 billion of the total in 2023. Going forward, the other applications segment is expected to be the fastest growing segment in the loan brokers market segmented by application, at a CAGR of 16.67% during 2023-2028.

The loan brokers market is segmented by end-user into businesses and individuals. The businesses market was the largest segment of the loan brokers market segmented by end-user, accounting for 58.43% or $147.3 billion of the total in 2023. Going forward, the businesses segment is expected to be the fastest growing segment in the loan brokers market segmented by end-user, at a CAGR of 14.35% during 2023-2028.

The loan brokers market is segmented by enterprise size into large enterprise and small and medium-sized enterprises. The large enterprise market was the largest segment of the loan brokers market segmented by enterprise size, accounting for 57.78% or $145.6 billion of the total in 2023. Going forward, the small and medium-sized enterprises segment is expected to be the fastest growing segment in the loan brokers market segmented by enterprise size, at a CAGR of 14.10% during 2023-2028.

North America was the largest region in the loan brokers market, accounting for 32.79% or $82.7 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the loan brokers market will be Asia-Pacific and the Middle East, where growth will be at CAGRs of 16.15% and 15.47% respectively. These will be followed by Africa and South America, where the markets are expected to grow at CAGRs of 14.92% and 13.99% respectively.

The global loan brokers market is fairly concentrated, with large players operating in the market. The top ten competitors in the market made up to 31.98% of the total market in 2023. Bank of America Corporation was the largest competitor with a 7.82% share of the market, followed by the Royal Bank of Canada with 6.64%, BNP Paribas with 5.15%, Truist Financial Corporation with 3.28%, Mitsubishi UFJ Financial Group Inc. with 3.08%, PT Bank Central Asia Tbk (Bank Central Asia) with 1.79%, Qatar National Bank (QNB Group) with 1.48%, Standard Chartered PLC with 1.23%, China Zheshang Bank with 0.99% and Federal National Mortgage Association (FNMA) with 0.53%.

The top opportunities in the loan brokers market segmented by component will arise in the products segment, which will gain $153.7 billion of global annual sales by 2028. The top opportunities in the loan brokers market segmented by application will arise in the home loans segment, which will gain $89.5 billion of global annual sales by 2028. The top opportunities in the loan brokers market segmented by end-user will arise in the businesses segment, which will gain $140.6 billion of global annual sales by 2028. The top opportunities in the loan brokers market segmented by enterprise size will arise in the large enterprise segment, which will gain $125.9 billion of global annual sales by 2028. The loan brokers market size will gain the most in the USA at $57.7 billion.

Market-trend-based strategies for the loan brokers market include focus on developing advanced solutions, such as digital verification processes, to streamline and expedite the loan approval process for homebuyers, focus on AI (artificial intelligence) technologies such as machine learning-powered platforms, use of blockchain technologies such as decentralized lending platforms to gain a competitive advantage and strategic partnerships and collaborations to expand geographical presence and product portfolio.

Player-adopted strategies in the loan brokers market include focus on new launches to help consumers and to expand business expertise, expanding business capabilities through strategic partnerships and enhancing operational capabilities through new initiatives.

To take advantage of the opportunities, the analyst recommends the loan brokers companies to focus on digital verification solutions to accelerate loan approval, focus on AI-driven automation to enhance efficiency, focus on integrating blockchain for efficient loan transactions, focus on the products segment for growth, expand in emerging markets, continue to focus on developed markets, focus on expanding geographical reach through strategic partnerships, focus on competitive pricing strategies, focus on targeted digital marketing, focus on partnerships and referrals and focus on targeting businesses for loan brokers.