Impact Investing Market Size (2024 - 2029)

Impact Investing Market Analysis

The Impact Investing Market size is estimated at USD 1.33 trillion in 2024, and is expected to reach USD 1.88 trillion by 2029, growing at a CAGR of 7.17% during the forecast period (2024-2029).

One of the primary factors propelling the impact investing sector is the growing desire among investors for returns that encompass both financial gains and positive social or environmental outcomes. Investing in renewable energy has the potential to reduce greenhouse gas emissions (GHG) and mitigate climate change. Investing in affordable housing has the potential to help alleviate homelessness. In addition, there is a growing awareness of the need for social and government support and policies to promote impact investing.

The projected growth in the impact investing sector is expected to be fueled by an increase in millennial investors, who are recognized for their lower inclination toward stock investments. In their pursuit of generating consistent wealth and effecting positive change in addressing social and environmental issues, these youthful investors are adopting sustainable investment practices. Millennial investors perceive impact investing as a more effective approach to fostering enduring positive social change than traditional forms of philanthropy.

Acknowledging the possibility of financial gains from investments that result in favorable social and environmental consequences is another factor propelling the expansion of the impact investing industry. The perception of impact investments has shifted from a trade-off between influence and financial returns to a chance to achieve both.

The impact investing sector is also expanding due to the development of effect assessment and reporting standards. As it relates to evaluating and disclosing the social and environmental impact of their investments, investors are calling for increased accountability and transparency. Standardized frameworks such as the Impact Reporting and Investment Standards (IRIS+) and the Global Reporting Initiative (GRI) play a crucial role in shaping the measurement and communication of impact. These frameworks enhance the credibility and confidence of impact investors and enable them to make informed decisions.

Impact Investing Industry Segmentation

Impact investments involve financial choices with the dual objectives of delivering a financial return while also producing a measurable and beneficial social and environmental impact. Impact investing is segmented by type, end user, and region. 

By type, the market is segmented into institutional and individual investors. By end user, the market is segmented into education, agriculture, healthcare, and climate tech. By region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. The report offers market size and forecasts of the impact investing market in terms of value in USD for all the above segments.