Consumer Credit Market Growth, Share, and Size | 2031
The Consumer Credit market size is expected to grow from US$ 12.18 billion in 2023 to US$ 18.60 billion by 2031; it is anticipated to expand at a CAGR of 5.4% from 2023 to 2031. Consumer credit, often known as consumer debt, is personal debt incurred in order to acquire goods or services. Although any sort of personal loan could be classified as consumer credit, the phrase is most commonly used to indicate unsecured debt in small sums. Consumer credit stats are a key index to monitor the health of an economy. It conveys the spending power of a consumer in a particular economy.
Consumer Credit Market Analysis
Credit is an important enabler of consumption for customers who would otherwise be unable to afford a particular product. As more people shop online, innovative digital solutions for point-of-sale finance, frequently designed by nimble technology businesses and seamlessly integrated into the customer journey, are gaining popularity among millennial shoppers who are cautious of incumbent banks' inadequate digital capabilities. Technological advancements and supportive regulation have made it easier for these new competitors to disrupt incumbents' control over the lending value chain and compete on the basis of faster, more personalized, and more efficient service delivery. The loyalty and inertia that formerly bound consumers to their banks are fading across Europe, as regulation has made it easier than ever to create partnerships with several financial service providers.
Consumer Credit
Industry Overview
- Some of the major factors driving the growth of the consumer credit market are changing urban lifestyles, the rapid proliferation of e-commerce in all regions of the world, technological advancements, and others. For instance, The introduction of artificial intelligence will change the fundamental process of consumer lending. AI technology is designed to improve and simplify administrative tasks, allowing bank workers to devote more time to customer connections. AI-driven interactions enable seamless customer onboarding and reduced turnaround times for risk and compliance duties. Positive consumer experiences can increase client loyalty and referrals.
- A country's consumer credit business highly depends on the spending behavior of a consumer in the country. For instance, Consumer card spending climbed by only 4.1 percent year on year in 2023 in the UK, far lower than the growth observed in 2022 (10.6 percent), as Brits cut back on new clothes, dining out, and home improvements due to growing inflation and family costs. Consumers, on the other hand, continued to prioritize moments of delight and shared experiences, driving growth in travel, entertainment, and pubs and bars.
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Consumer Credit Market: Strategic Insights
Market Size Value in US$ 12.18 billion in 2023 Market Size Value by US$ 18.60 billion by 2031 Growth rate CAGR of 5.4% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Consumer Credit Market: Strategic Insights
| Market Size Value in | US$ 12.18 billion in 2023 |
| Market Size Value by | US$ 18.60 billion by 2031 |
| Growth rate | CAGR of 5.4% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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Consumer Credit Market Driver
Demand for Flexibility in Spending to Drive the Consumer Credit Market
- Offering consumer loans boosts conversion by giving the flexibility that today's customers want. According to the Foreign & Colonial Investment Trust's Millennial Money Survey, 16% of millennials do not save any money each month, and 7.8 million have no savings at all.
- Millennials frequently value experiences such as travel, dining out, and entertainment over traditional asset ownership such as homes and cars. As a result, individuals may rely more on credit cards and personal loans to fund these experiences, fuelling demand in the consumer credit market.
Consumer Credit
Market Report Segmentation Analysis
- Based on the credit type, the consumer credit market report is segmented into revolving credits and non-revolving credits.
- Revolving credit, which includes credit cards, can be used for any purchase. The credit is "revolving" in the sense that the line of credit remains open and can be utilized up to the full limit repeatedly as long as the borrower continues to make the minimum monthly payment on time.
Consumer Credit
Market Analysis by Geography
The scope of the consumer credit market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant consumer credit market share. The region's significant economic development, growing population, and increasing focus on risk management and insurance have contributed to this growth. North America is home to many developing countries like the US and Canada, driving the consumer credit market growth.
Consumer Credit
Market Report Scope
The "Consumer Credit Market Analysis" was carried out based on core investment strategies and geography. In terms of credit type, the market is segmented into revolving credits and non-revolving credits. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Consumer Credit
Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the consumer credit market. A few recent key market developments are listed below:
- In February 2024, Barclays PLC and Blackstone Credit & Insurance today announced that Barclays Bank Delaware has entered into an agreement with insurance accounts managed by Blackstone’s Asset Based Finance group to sell approximately US$1.1 billion of currently outstanding credit card receivables in relation to a defined set of Barclays-branded credit card accounts in the United States of America. This is the first in a series of activities Barclays plans to conduct to reduce its risk-weighted assets (RWAs) and create additional lending capacity for BBDE.
[Source: Barclays PLC, Company Website]
Consumer Credit
Market Report Coverage & Deliverables
The market report "Consumer Credit Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Credit Type, Service Type, Issuer, Payment Method, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The global consumer credit market was estimated to be US$ 12.18 billion in 2023 and is expected to grow at a CAGR of 5.4% during the forecast period 2023 - 2031.
The use of AI and data analytics is impacting consumer credit, which is anticipated to bring new consumer credit market trends in the coming years.
The key players holding majority shares in the global Consumer Credit market are American Express, U.S. Bank, Citi, and Wells Fargo Bank.
The global consumer credit market is expected to reach US$ 18.60 billion by 2031.
Demand for flexibility in spending and rapid urbanization are the major factors that propel the global consumer credit market growth.
- American Express
- U.S. Bank
- Citi
- Wells Fargo Bank
- Capital One Bank
- Revolut
- Barclays
- Discover
- Finastra
- Affirm
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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