USD 65.0 billion
Impact Investing Market Size, Share, Growth Analysis, By Asset Class, By Offerings, By Investment Style, By Investor Type, By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45F2163 |
Region:
Global |
Published Date: December, 2024
Pages:
157
|Tables:
0
|Figures:
0
Impact Investing Market Insights
Global Impact Investing Market size was valued at USD 65.0 billion in 2022 and is poised to grow from USD 77.3 billion in 2023 to USD 311.0 billion by 2031, growing at a CAGR of 19.01% in the forecast period (2024-2031).
Growing emphasis of organizations and governments to resolve environmental and social issues to promote economic growth is projected to drive the demand for impact investing. Increasing awareness regarding social and environmental responsibility among enterprises and investors is also expected to create new opportunities for impact investing providers in the future. Launch of new government initiatives and incentives to promote impact investments and improve the general well-being of the economy is slated to drive impact investing market outlook in the future. The influence of millennials and Gen Z on investment decisions owing to their high ethical awareness and education is also estimated to bolster the demand for impact investing in the long run. Growing interest in impact investing from institutional investors such as pension funds, insurance companies, and foundations will also boost the business scope for impact investing companies going forward. On the contrary, the risk of impact washing, challenges in impact measuring, lower short-term returns, and lack of awareness regarding impact investing are some key restraints that are expected to slow down the demand for impact investing going forward.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Equity
Fastest Growth
fixed
Growth Rate
19.01%
Global Impact Investing Market ($ Bn)
Country Share for North America Region (%)
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Impact Investing Market Segmental Analysis
Global Impact Investing Market is segmented by Asset Class, Offerings, Investment Style, Investor Type and region. Based on Asset Class, the market is segmented into Equity, Fixed Income, Multi-asset, Alternatives. Based on Offerings, the market is segmented into, Equity, Bond Funds, ETFs/Index Funds, Alternatives/Hedge Funds. Based on Investment Style, the market is segmented into Active, Passive. Based on Investor Type, the market is segmented into Institutional Investors, Retail Investors. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Asset Class
Equity is projected to account for a substantial share of the global impact investing industry. Equity allows investors or organizations to hold an ownership share in companies delivering impact investments for social and environmental causes. Equity allows investors to be directly involved in the impact of their investments and offers higher transparency for investments as compared to other asset classes. However, equity investments require companies to directly align with the vision and morales of investors, which can become challenging sometimes. The potential for higher financial gains also makes equity a preferred choice for impact investing companies as they look for more profitable deals.
On the other hand, the demand for fixed income investments is projected to rise at an impressive pace in the future. As the name suggests, these investments promise a steady revenue and eliminate certain risks and possibilities of loss associated with equity or other asset classes. Growing availability of green and social bonds from different governments are expected to emerge as highly popular fixed income impact investments in the future. Moreover, the potential tax benefits and capital preservation benefits of fixed-income impact investments are also estimated to create a highly opportune setting for companies targeting this segment going forward.
Analysis by Investment Type
Active investments are estimated to hold a prominent impact investing market share in the future. Active investments are investments in which investors have direct engagement and influence on projects or organizations that they have invested in. This sense of better control and hand-on approach allows investors to ensure proper use of their funds and maximize the impact of their investments whilst keeping themselves profitable. Better risk management and the ability to adjust investment portfolio as per current market conditions are also key benefits that are projected to bolster the demand for active impact investments going forward.
Meanwhile, the demand for passive impact investments is slated to rise at a notable pace in the future. The simplicity and low costs associated with passive impact investing are driving its popularity around the world. This type of investment is highly popular among investors who are focusing on developing a diversified portfolio with multiple types of assets. Exchange-traded Funds (ETFs) and index funds are projected to be highly popular passive impact investments for all investors in the long run. Investors looking for a broad impact are expected to be more likely to opt for passive impact investing through 2031 and beyond.
Global Impact Investing Market By Investment Type
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Impact Investing Market Regional Insights
North America is projected to account for a major chunk of the global impact investing market share going forward. The presence of multiple impact investors, growing interest among investors to align their investments with impact, and the presence of a strong investing ecosystem allow North America to lead the global impact investing demand. The imposition of stringent regulatory mandates to promote sustainability and positive social impact are also estimated to contribute to the dominance of this region. The United States is forecasted to be the top market for impact investing companies followed by Canada.
Asia Pacific is expected to emerge as the fastest expanding market for impact investing companies over the coming years. Rapidly increasing population in this region coupled with growing need for resolution of key social and environmental issues are projected to create a new business scope for impact investors in this region. India and China are estimated to be the most rewarding markets for impact investing as emphasis on sustainable development increases in these countries. Supportive government initiatives to promote impact investments and increasing interest of investors in Asian countries will also offer new opportunities for impact investing companies through 2031.
Global Impact Investing Market By Region
- Largest
- Fastest
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Impact Investing Market Dynamics
Drivers
- Emphasis on Environmental and Social Responsibility
Increasing awareness regarding climate change, poverty, unemployment, and inequality is pushing enterprises and investors to focus on other aspects other than financial returns. Impact investing helps investors diversify their portfolio by investing in social and environmental causes that create a positive image and boost revenue generation as well.
- Better Impact Measurement and Reporting Capabilities
Impact investing has also gained massive popularity as the ability to gauge the impact of investments has improved substantially in recent years. Standardized metrics and frameworks like the Global Reporting Initiative (GRI) and Sustainable Development Goals (SDGs) are providing accountability and transparency to help investors envision and witness the impact of their investments.
Restraints
- Impact Washing Risks
Impact washing refers to the idea of false claims of delivering funds for a social or environmental cause to project a positive image of an organization or investor. This has led to skepticism and resulted in issues in identifying genuine impact investments that actually make a difference. Hence, the risk of impact washing could slow down impact investing market growth in the future.
- Low Short-terms Returns
Impact investments are often designed to provide a better long-term return in monetary as well as societal impact terms. This results in lower short-term returns, which could discourage investors and push them towards traditional investments offering better short-term returns. This issue of low returns is estimated to slow down the demand for impact investing going forward.
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Impact Investing Market Competitive Landscape
Impact investing companies should target developing and underdeveloped countries to maximize their business scope. Taking advantage of supportive government initiatives and incentives will also boost the demand for impact investing going forward. Launching new impact funds to attract investors will also be a key strategy for impact investing companies across the study period and beyond.
Top Player’s Company Profiles
- BlueOrchard Finance
- LeapFrog Investments
- Triodos Investment Management
- Patamar Capital
- Omidyar Network
- Root Capital
- Acumen
- Generation Investment Management
- Aavishkaar Capital
- AXA Impact Fund
- Norrsken VC
- Astanor Ventures
- Regeneration.VC
- Rubio Impact Ventures
- New Climate Ventures
- Working Capital Fund
- Achieve Partners
- The De-Carceration Fund
- Mission Driven Finance
- Rockefeller Foundation
Recent Developments
- In November 2024, EFG Asset Management along with BlueOrchard, a leading name in impact investing business announced the launch of a new impact credit fund. New Capital - BlueOrchard Global Impact Credit Fund will be focusing on investing on sustainable, social, and green bonds.
- In May 2024, Elevance Health Foundation announced its commitment of USD 10 million for the launch of a new impact investing fund. The company aims to expand its social impact beyond its existing grant portfolio by providing loans to small businesses and start-ups focusing on health equity.
- In April 2024, Sumitomo Mitsui Financial Group, Sumitomo Mitsui Banking Corporation, and SMBC Venture Capital announced their plans to start impact investing for start-ups. The move came after SMBC Group signed the Impact-Oriented Finance Declaration in 2023 and joined the Japan Impact Startup Association.
Impact Investing Key Market Trends
- Thematic Investing: Impact investing providers are projected to focus on developing diverse thematic investment portfolios that focus on a certain social or environmental issue. Clean energy, affordable housing, and gender equality are some key types of pf thematic impact investments that impact investing companies can focus on in the future to maximize their business scope.
- Green and Social Bonds: Impact investing companies are projected to focus on green and social bonds as they offer fixed income for investors whilst delivering positive impact on societal and environmental issues. Increasing issuance of new green and social bonds by organizations and governments is projected to be a major impact investing market trend for all companies operating in this industry landscape.
Impact Investing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing emphasis on social and environmental responsibility and rising availability of better impact measurement solutions are slated to be key factors driving impact investing market growth. On the contrary, risk of impact washing and low short-term returns are slated to be key constraints for impact investing providers in the long run. North America is expected to be the leading market for impact investing companies owing to increasing interest of investors in making an impact with their investments. Taking a thematic investing approach and investing in green and social bonds will be top trends for impact investing market development in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 65.0 billion |
| Market size value in 2031 | USD 311.0 billion |
| Growth Rate | 19.01% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Impact Investing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Impact Investing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Impact Investing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Impact Investing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Impact Investing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Impact Investing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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