Medical Crowdfunding Market Is Estimated To Witness High Growth Owing To Increasing Healthcare Costs

The Medical Crowdfunding Market is estimated to be valued at US$ 6.10 Bn in 2024 and is expected to exhibit a CAGR of 13.2% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights.

The medical crowdfunding market is driven by the increasing healthcare costs and out of pocket medical expenses. The cost of medical care has been rising faster than incomes and inflation. According to Department of Health and Human Services data, national healthcare spending is projected to grow at an average rate of 5.4 percent per year for 2018-2027 and reach nearly $6.0 trillion by 2027. Furthermore, medical crowdfunding offers an alternative source of financing for patients to meet their medical needs without relying on loans or selling assets. It allows people to pool money together for medical and healthcare-related campaigns.

Key Market Trends:

Cancer treatment campaigns are the most commonly crowdfunded. Cancer accounts for the largest share of medical expenses on crowdfunding campaigns. According to statistics, nearly 30% of all medical crowdfunding campaigns are related to cancer treatment. The high treatment cost of cancer is the major factor fueling these campaigns. Another trend in the medical crowdfunding market is the increasing use of social media for campaign promotion. Social media platforms are extensively used to increase campaign visibility and reach larger number of potential donors. Facebook, Twitter, and Instagram are the most popular among campaign organizers to share campaign links and updates. Successful social media promotion significantly improves chances of a campaign getting fully funded. More coverage can be found in the sample copy.

Medical Crowdfunding Opportunities

The growing burden of personal medical expenses and the rising incidence of chronic diseases have opened up a huge market opportunity for medical crowdfunding. Medical crowdfunding enables individuals to raise funds for their medical treatment or expenses from friends, family and the general public through dedicated online platforms. It helps patients cover costs that are not covered by insurance. The medical crowdfunding market is expected to grow at a significant rate in the coming years.

The reward/donation-based crowdfunding segment accounted for the largest share of over 60% in 2019. Reward crowdfunding allows patients to offer donor perks or rewards in exchange for donations. However, the equity crowdfunding segment is projected to witness the highest growth during the forecast period. Equity crowdfunding provides donors with an equity stake or ownership shares of a project or venture in return for their investment. This model appeals more to high value treatments requiring large sums of money.

In 2019, over 70% of medical crowdfunding was utilized for personal medical treatment/procedures. Going forward, medical research funding is expected to emerge as a major application area. With limited public funding for health research, medical crowdfunding can play a bigger role in financing clinical trials and research studies for new drugs and therapies. It enables researchers to tap into public support and philanthropic donations.

Key Market Takeaways

The global medical crowdfunding market size was valued at USD 6.10 Billion in 2024 and is projected to grow at a CAGR of 13.2% during the forecast period until 2031. The market is growing due to the rising cost of healthcare and limited coverage under insurance plans.

On the basis of crowdfunding type, the reward/donation-based crowdfunding segment is expected to hold dominance through 2031 due to its ease of use and fundraising ability.

By application, personal medical treatment crowdfunding currently leads and is anticipated to continue doing so owing to the high incidence of medical ailments worldwide.

Regionally, North America accounted for over 40% share of the overall market in 2024 due to the presence of several medical crowdfunding platforms and high Internet penetration in the region.

Competitor Insights:

Ketto
Milaap
GoFundMe
Gofundme

Recent Developments in Medical Crowdfunding Market

Medical crowdfunding platforms have seen massive growth over the past few years as they provide a way for patients and their families to crowdsource funds for medical treatment costs. These platforms allow people to create fundraising campaigns and share their health condition and treatment cost details to request donations from friends, family, and others online. As healthcare costs continue rising globally and many struggle to afford treatment, these crowdfunding sites have become an important source of funds. Full coverage of the report available here.