The “Europe Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments – Q1 2024 Update” report is now available on ResearchAndMarkets.com.
The embedded finance industry in Europe is projected to grow by 32.1% annually, reaching US$ 42.24 billion in 2024. Over the forecast period, the industry is expected to maintain steady growth, with a compound annual growth rate (CAGR) of 24.6% from 2024 to 2029. By 2029, embedded finance revenues in the region are forecasted to reach US$ 126.99 billion.
Accelerated Growth in 2024
The European embedded finance industry is set for rapid expansion in 2024, driven by new and innovative startups addressing the funding needs of small and medium-sized enterprises (SMEs). These startups are not only raising funds but also forming strategic collaborations to fuel growth and expand their presence in the region. Global firms are also entering the market to capitalize on its high-growth potential.
Embedded Insurance Impact
Embedded insurance is significantly impacting the automotive sector in Europe. Automakers are increasingly integrating insurance policies with vehicle purchases or leases. Major players like Ford and Jaguar Land Rover are leading this trend, recognizing its potential to enhance customer satisfaction. This trend is expected to continue growing across the region in the medium term.
Strategic Collaborations for SME Financing
According to the Bank of England, SMEs face a funding gap estimated at £22 billion. To address this, embedded finance providers are forming strategic partnerships in the United Kingdom. These collaborations aim to offer financing solutions to SMEs, helping to bridge the funding gap and support business growth.