Joey doesn’t share food…
Well, guess what:
Joey would not make a good participant in the sharing economy.
He wouldn’t use Uber, or Airbnb as many Americans do.
Sharing economy is a modern phenomenon that is set to become a substantial source of money for entire generations.
Just in case you’re worried about Joey: yes, there are actually apps for sharing food!
It has become so mainstream that we at SpendMeNot.com decided to research it extensively. We have gathered the most amazing sharing economy statistics especially for you.
Are you ready?
Sharing Economy Statistics (Editor’s Pick):
- The sharing economy is set to reach $335 billion by 2025.
- Companies working in the sharing economies will grow by 2133% in 12 years.
- Over 86 million Americans will use the sharing economy by 2021.
- Crowdfunding will reach $90 billion in 2020.
- 28% of users are willing to share their electronics.
- Sharing homes is the least desired activity in the sharing economy.
- There are 1,400 islands listed on Airbnb.
- Uber operates in 65 countries.
Impressed? There’s much more where that came from!
But before we get into the details, let’s answer a basic question:
What is Sharing Economy?
Also known as gig economy or access economy, the sharing economy is a system where goods and services are shared between individuals free of charge or for a fee. A driver would share their ride with you in exchange for money. A homeowner would rent a room or an entire property when you’re traveling abroad.
People have been lending stuff for ages, but it is the new technologies, apps, and websites that make the sharing economy possible. Participants use them to find deals that are relevant to what they’re looking for.
Some experts argue that what has become popular as “the sharing economy” is not really sharing. Why? Because you have to pay to use the product.
Truth is, it has become a buzzword. Now, whenever you rent something through an app, it’s considered sharing economy.
Sharing Economy Market Size
So you know the basics. Now let’s dive into the numbers!
1. The sharing economy is set to reach 335 billion by $2025.
Companies that use the sharing economy model are forecast to grow their revenues exponentially. The sharing economy had just $15 billion in revenues back in 2013.
By 2025, the number is set to skyrocket to $335 billion. But keep in mind: this is not the total size of the economy. It only represents the revenue of sharing economy companies in the following sectors: lending, home sharing, ride sharing, music and video streaming, and online distance work.
2. Sharing economy businesses will grow by a staggering 2133% in just 12 years.
What’s even more fascinating is that sharing economy firms grow much faster than the traditional operating companies.
Between 2013 and 2025, sharing economy revenue will increase by the mind-boggling 2133%. By contrast, companies using the traditional operating model will grow their revenue by just 39.6%.
I bet now all of a sudden you want to share.
3. About 44% of Americans are familiar with the sharing economy business model.
This is according to a 2015 survey conducted by PwC. By now, the number of people aware of the sharing economy has probably increased.
At least 19% of them have used a service from a shared economy company.
4. Over 86 million Americans will use the sharing economy by 2021.
According to Statista, the number of US citizens taking part in the sharing economy is expected to hit 86.5 million.
That’s more than the entire population of Germany!
As sharing economy statistics show, not only is the number mind-blowing, but it represents a huge increase in the course of just five years. Back in 2016, only 44.8 million Americans used the shared economy.
5. Over 700 million people participate in the sharing economy of China.
(Source: China Daily)
If you think Americans are keen on the sharing economy, wait until you hear what’s happening in China!
Over 700 million Chinese took part in the sharing economy in 2017. This is roughly half of China’s population, and it represents a 10 million increase since 2016. As you can see, growth is one of China’s most prominent shared economy trends.
But wait, there’s more. Wondering what the size of the sharing economy in China is?
Over $760 billion dollars!
The number highlights China as arguably the biggest sharing economy in the world.
6. Crowdfunding will reach $90 billion a year by 2020.
Want some sharing economy examples?
Crowdfunding will reach $90 billion a year by the end of 2020, according to World Bank estimates.
That’s more than all investments by venture capitalists and angel investors combined!
Crowdfunding gained popularity through sharing economy platforms like Kickstarter. It lets users fund projects they find interesting. Some of these projects (movies, gadgets, low-cost luxury watches, etc.) have managed to cash in millions in crowdfunding.
With crowdfunding gone mainstream, investors are now looking into equity crowdfunding. That’s the process of buying equity in startups – much like a venture capitalist would do – and wait until the value goes up.
7. Peer-to-peer lending and crowdfunding will grow at a compound annual growth rate of 63%.
The peer to peer economy is moving up!
Between 2013 and 2025, online lending is forecast to expand at a CAGR of 63%. That makes it the fastest-growing sector of the sharing economy.
Online landing consists of crowdfunding (which is technically not lending) and peer-to-peer lending. The latter is the practice of users lending money to individuals or businesses through online platforms.
We all know money can’t buy us happiness. But we do need money to survive. Therefore, you can expect considerable interest in online lending… and all types of sharing economy services for that matter.
8. Online staffing will grow at a CAGR of 37%.
With a CAGR of 37% between 2013 and 2025, online staffing is the second-fastest-growing sector of the sharing economy. The labor market is becoming more versatile, with armies of young people choosing to be freelancers instead of jobbers.
There are many online platforms that connect freelancers to businesses. They provide a variety in the labor pool and earn a commission each time a freelancer is assigned a gig. Those platforms fit perfectly into the sharing economy definition.
9. Accommodation, ride-sharing, and content streaming are all set to grow at a double-digit pace.
What brands pop in your head when you hear the words “sharing economy”? Unless you’ve lived under a rock, chances are you think about Uber, Airbnb, and to a lesser extent, Spotify.
Well, guess what – these kinds of sharing economy services are expected to grow in popularity (and monetization)!
Peer-to-peer accommodation should expand at a CAGR of 31% between 2013 and 2025. According to a Credit Suisse forecast, Airbnb alone will control about 5% of global hotel supply by then. This is huge!
10. Car sharing is set to grow at a CAGR of 23%, according to sharing economy statistics.
The poster boy of the ride-sharing economy is Uber. The company’s IPO went fiasco after a sharp drop in the stock price drop.
But that doesn’t change the fact that sharing a ride is still a popular way to add a few extra bucks in your wallet.
Ridesharing statistics prove it.
About 36% of Americans used a ridesharing app in 2018.
11. Music and video streaming will swell at a CAGR of 17%.
Does anyone remember Napster? Back in the 2000s, this file-sharing software lost the battle with the music industry and was panned as a piracy tool. But the file-sharing model did not die. Instead, it evolved into streaming where a provider legally distributes the content to the end-user.
Many streaming companies emerged, with Spotify being the most famous one for music. The model seems to be profitable for certain providers. Experts forecast it will bolster at a CAGR of 17% between 2013 and 2025.
Sharing Economy Apps: What Do People Like to Share?
These fascinating numbers are all fine and dandy, but are users really willing to share? Here’s what survey data has to say about this:
12. 28% of users around the world are willing to share their electronics.
(Source: Credit Suisse)
Sharing economy statistics show that people are most prone to share electronics.
May it be a computer, a smartwatch, or a refrigerator, renting any of these could be a better deal than buying them. So why not make some extra cash lending your electronics to someone who needs them?
There are already apps that let you share sports electronics like smartwatches. Or you can use platforms like Quupe. It connects you to locals who own the item you need and are ready to lend it to you.
13. 26% enjoy sharing economy services.
(Source: Credit Suisse)
About a quarter of users would gladly share services or online lessons they own or are paying for. Actually, you may have already done this if you gave friend access to your Netflix account.
There are also apps like Fon, that let you share your internet connection at home. In exchange, you get access to millions of WiFi networks around the world.
Or you can simply share services you offer yourself: like gardening or painting, and get a fee for that.
14. Need a power tool? 23% are ready to share one with you, sharing economy statistics show.
(Source: Credit Suisse)
Have you ever been in a situation where you need to drill a hole in the wall but you lack the proper tool?
What do you do?
You could always go to the store and buy a drill. But that may turn out to be a senseless expense if you never use it again.
Why not rent it instead? According to statistics, 23% of users will gladly provide you with one.
15. 21% of people are ready to share their cars.
(Source: Credit Suisse)
Sharing a car is one of the most popular examples of the sharing economy. Uber is now extremely popular. There are all sorts of carpooling apps out there that make it easy to travel at a fraction of the expense.
Some people like to lend trucks or vans, so that’s another niche where the sharing economy can work out.
16. 17% of people are ready to share their furniture.
(Source: Credit Suisse)
The future of sharing economy might rely on your sofa.
I might be exaggerating a little, but lending one’s furniture is a trend. True, it seems to be less popular than sharing other household items. It may have something to do with the fact that a bed or kitchen table is harder to move than a laptop.
17. About 15% of users will share their home with you.
(Source: Credit Suisse)
Home-sharing seems to be the least popular in the sharing economy.
This may sound surprising as one of the most popular sharing economy startups is property lending app Airbnb. But keep in mind that a substantial part of Airbnb listings is owned and managed by companies and not individuals.
A lot of people don’t feel safe letting a stranger in their homes. So it makes sense that home-sharing is the least desired option.
Fun Facts about the Sharing Economy
This is where sharing economy statistics get wacky!
18. The combined market value of Uber, Airbnb, and Lyft, is $106 billion.
(Source: Conde Nast Traveler)
Some of the companies taking advantage of the sharing economy model are now worth billions. Uber used to be valued at $68 billion. Its competitor Lyft is close to a $7.5 billion. Airbnb is worth at least $31 billion.
However, evaluations change fast. Uber is now a public company and its market cap as of January 2020 is around $50 billion. That’s much lower than former value estimates.
19. About 1,400 islands are being rented on Airbnb.
This is a great way to persuade you about the benefits of sharing economy.
If you’ve ever dreamt about being a king on an island, you can now make your wish come true! You can rent one of the 1,400 islands offered through Airbnb.
For example, you can rent Private Heaven, a small mansion located on the Lark Caye island near Belize. The host swears there will be no one else on the island, so you could spend some time completely isolated from the world.
Or perhaps you need to spend a night or two in a castle? Airbnb has that too. Over 3000 castles are being rented through the platform, as well as 2000 yurts, and 10,000 recreational vehicles.
20. The Mushroom Dome Cabin is the most booked property on Airbnb.
This small cabin is located in the woods of Aptos, California. It is one of the most successful examples of sharing economy.
The Mushroom Dome is arguably the most popular Airbnb on Earth. You can rent it for about $130 a night. Be patient though – it’s usually booked for months in advance.
Kitty and Michael Mrache listed their cabin on Airbnb back in 2009. Ever since then, it has grown in popularity, earning the Mraches $130 of passive income every day.
Who says the sharing economy doesn’t work?
21. Uber operates in 65 countries around the world.
The Uber sharing economy is even more impressive. The company is sometimes referred to as the biggest taxi services firm in the world. While this is disputable, it does have a presence in 65 countries.
Traditional taxi companies are not happy with Uber’s popularity as it leads to a decrease in clients. In some countries, the taxi lobby has been powerful enough to push for a ban on Uber’s services.
22. 18% of participants in the sharing economy are over 55.
The definition of sharing economy does not rely on age. However, one would think that the trend appeals mostly to young people.
That’s not the case!
About 18% of people participating in the sharing economy are over 55 years old. What they most like about on-demand gigs is the flexible work schedule and the opportunity to add a little extra to their retirement income.
As smartphones become more popular more and more people at the age of 55 and over will join the gig economy.
Each one of us has things to share, so everyone can make some money out of the sharing economy. While most certainly it won’t make you rich, it can prove to be a very useful side hustle when you need to fill in the family budget.
I hope these sharing economy statistics have laid the ground for your entrepreneurial spirit to take over. It’s never too late to try and you have all the possibilities in the world! All you need is a smartphone with an internet connection. Off you go!
By the way, if you liked this article, don’t hesitate to share it with a friend!
See you around on SpendMeNot.com, guys!