Global Freelance Platforms Market 2022-2028

Global Freelance Platforms Market 2022-2028

Global Freelance Platforms Market Size, Share & Trends Analysis Report by Type (Cloud-Based and Web-Based), by End-User (Large Enterprises, SMEs and Freelancers) Forecast Period (2021-2028)

The global freelance platform market was valued at around $2.9 billion in 2021 and is projected to reach around $8.4 billion in 2028, growing at a CAGR of 16.1% during the forecast period. The freelance platform is a marketplace that supports companies to find and hire independent professionals for job roles temporarily or even for special projects from all across the globe. The market growth is attributed to the growing number of freelance workers and the increasing demand for IT professionals as freelancers across the globe.

Moreover, new players are entering the freelance platform landscape and making the competitive landscape cut-throat. Moreover, various organizations are gaining hefty funding which improves the structural competence of the platforms. For instance, Worksome is a growing company in the freelance platform market that has recently affirmed a new funding expedition. The company in May 2021, closed a $13 million Series A funding round for its freelance talent platform. In addition, in July 2021, Venice-based financial technology company Willa Inc. has raised $18 million in Series A funding for its platform that helps freelancers get paid on time for their work.Willa plans to use the funding to expand its invite-only app, which currently has a waitlist of 150,000 freelance workers, and to expand the services it offers. The company also plans to hire between 40 and 50 more employees by the end of 2021. 

SEGMENTAL ANALYSIS

The global freelance platform market is segmented on the basis of type and end-user. Based on the type, the market is bifurcated into the web-based freelance platform and cloud-based freelance platform. Among these, web-based freelance platform dominated the market owing to the fact that it is the most widely used platform. The web-based freelance platform market generated around $2.2 billion in 2021 and is further projected to reach around $6.1 billion in 2028, growing at a CAGR of 16.0% during the forecast period.

Further, the cloud-based freelance platform market is projected to exhibit the highest CAGR of 16.6% during the forecast period. As freelancing continues to become a more lucrative career option, the number of independently employed workers across the globe is expected to keep rising. Cloud-based computing has been at the forefront, giving independent professionals the ability to operate remotely, communicate freely and navigate the financial complexities of freelancing with ease.

Based on end-user, the market is segmented into large enterprises, small and medium-sized enterprises, and individual freelancers. Among these, freelancers dominated the market and generated around $1.6 billion in 2021 and are projected to reach around $4.5 billion in 2028, growing at a CAGR of 16.1% during the forecast period. Major players such as Upwork offer freelance platforms for and generate the majority of their revenue from individual freelancers. For freelancers, the players serve as a powerful marketing channel to find rewarding, engaging, and flexible work. Freelancers benefit from access to quality clients and secure and timely payments while enjoying the freedom to run their own businesses, create their own schedules, and work from their preferred locations. Moreover, freelancers have real-time visibility into opportunities that are in high demand, so that they can invest their time and focus on developing sought-after skills.

REGIONAL ANALYSIS

Based on region, the market report covers the analysis of four major regions including North America, Europe, Asia-Pacific, and the Rest of the World. North America dominated the market and generated around $1.4 billion in 2021. The value is further projected to reach around $4.0 billion in 2028, growing at a CAGR of 16.0% during the forecast period. The regional growth is attributed to the increasing number of skilled individuals going through freelancing every year in the US along with the growing earning of freelancers year on year. Freelancers are a vital part of the American workforce. Several companies are continuously hiring gig workers in short-term as well as long-term contracts. A huge portion of the US population is also considering freelance work, especially during the COVID-19 pandemic when many people have more time on their hands as they stay at home.

Market Players Outlook 

Some of the prominent players operating in the include Fiverr International Ltd., Upwork Global Inc., People Per Hour Ltd., Freelancer, and Toptal, LLC, among others. The players are focusing on adopting different strategies such as mergers and acquisitions, collaborations, partnerships, product launch, and innovation among others. For instance:

In May 2021, Upwork Inc. and Budweiser announced a partnership and launched Upwork CoLab, a new Upwork brand-partnership program that connects freelancers with exciting brands to collaborate on high-value, relevant, and innovative projects.

In November 2021, Fiverr International Ltd. announced that it has expanded its international footprint to Latin America, with launches in both Brazil and Mexico. This follows successful entries Fiverr made into a number of markets in Europe, including Germany, France, Spain, the Netherlands, Italy, and Portugal.