July 18, 2024
global Creator Economy Market

Global Creator Economy Market Is Estimated To Witness High Growth Owing To Social Commerce Trends

The Global Creator Economy Market is estimated to be valued at US$ 127.65 Bn in 2023 and is expected to exhibit a CAGR of 22.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The Global Creator Economy Market comprises of platforms and services that enable individuals to generate income as digital content creators. Popular creator platforms includes YouTube, Instagram, Twitch, and TikTok. These platforms allow individuals to share their talents, whether it be through blogs, videos, podcasts or live streaming and earn money through methods like sponsorships, ad revenue share and direct fan/viewer support through subscriptions or tips.

Market key trends:

One of the key driving factor of the global creator economy market is the rising popularity of social commerce. Social commerce leverages social media platforms, like Instagram, Facebook and TikTok, to enable the direct sale of products and services. A large number of creators on these platforms showcase and review products which their followers can directly purchase. This has given rise to a new category of entrepreneurs called social-sellers who generate a significant portion of their income through the sale of goods/services promoted on social media. The growth of social commerce is expected to further fuel the creator economy by providing an additional revenue stream option for digital creators.

Porter’s Analysis

Threat of new entrants: The global creator economy market has moderate threat of new entrants due to high initial investments required and presence of major players. However, ease of content creation by independent creators has increased threat in recent years.

Bargaining power of buyers: Buyers have moderate to high bargaining power due to availability of substitutable services and platforms that buyers can easily switch to. However, buyer dependency has increased on major established platforms.

Bargaining power of suppliers: Creators have low to moderate bargaining power due to dependence on major platforms for monetization and outreach. Switching costs are low for creators but established creators with large follower base have relatively higher bargaining power.

Threat of new substitutes: Threat of substitutes is moderate to high as new social media platforms, live streaming and e-commerce sites emerge regularly providing content monetization avenues to creators.

Competitive rivalry: The market is highly competitive with intense rivalry between major tech giants.

SWOT Analysis

Strength: Diversified monetization streams offer higher revenue potential to creators. Growing Internet and smartphone penetration globally is expanding the consumer base.

Weakness: Over-dependence on major platforms exposes creators to policy changes. Declining attention span impacts creator’s ability to engage audience.

Opportunity: Leveraging technologies like blockchain, AR/VR provide new experiences and business models. Developing markets offer strong growth prospects.

Threats: Economic slowdowns and regulatory interventions pose challenges. Evolving customer preferences and fragmented attention challenge long term engagement.

Key Takeaways

The Global Creator Economy Market Growth  is expected to witness high, exhibiting CAGR of 22% over the forecast period, due to increasing Internet and smartphone penetration globally. The growing digital transformation and personalization of content as per interests of niche audiences is expected to drive the market.

The North America creator economy market holds the major share currently and is expected to continue dominating over the forecast period. This is attributed to strong presence of tech giants, high disposable incomes allowing monetization experiments, and focus on creator skills/education in the region.

Key players operating in the global creator economy market are Bytedance, Amazon.com Inc., Meta Platforms Inc., Alphabet Inc., Spotify AB, Netflix Inc., Snap Inc., Twitter Inc., Pinterest, Etsy, Shopify, Patreon, OnlyFans, Teespring, Twitch Interactive, Discord, Cameo, TikTok, YouTube, Instagram. Major players are investing in tools/features allowing creators to build engaged community and experiment with multiple monetization models like subscriptions, tipping, e-commerce etc to optimize earning potential.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it