One major growth factor for the private equity market is increased interest from institutional investors seeking higher returns in a low-interest-rate environment. Institutions like pension funds and endowments are allocating more capital to private equity due to its potential for superior returns compared to traditional investments like stocks and bonds, driving significant growth in the sector.
WILMINGTON, Del., Dec. 11, 2023 /PRNewswire/ -- Allied Market Research published a report, titled, "Private Equity Market by Fund Type (Buyout, Venture Capital, Real Estate, Infrastructure, and Others), and Sector (Technology, Financial Services, Real Estate and Services, Healthcare, Energy and Power, Industrial, and Others): Global Opportunity Analysis and Industry Forecast, 2023–2032". According to the report, the global private equity market size was valued at $445.4 billion in 2022 and is projected to reach $1,098.74 billion by 2032, growing at a CAGR of 9.7% from 2023 to 2032.
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- 104 - Tables
- 54 - Charts
- 351 – Pages
Private equity refers to a form of investment where funds are pooled from various sources, such as institutional investors, high-net-worth individuals, or pension funds, to acquire ownership stakes in private companies. Contrary to publicly traded companies, these investments are not listed on stock exchanges. Private equity firms deploy these funds to purchase a significant portion or the entirety of a company, aiming to enhance its value over time through active management strategies. They work closely with the management of the acquired company, implementing operational improvements, strategic changes, and growth initiatives to maximize its performance and ultimately generate returns for investors. Private equity spans various stages of businesses, from startups to established companies, and often involves restructuring expansion, or turnaround efforts to unlock the full potential of the company before exiting the investment through avenues such as IPOs or sales.
Prime determinants of growth
The private equity market is expected to witness notable growth owing to the potential for higher returns, access to specialized expertise and networks, and flexibility in investment strategies. Moreover, the opportunity for ESG integration is expected to provide a lucrative opportunity for the growth of the market during the forecast period. On the contrary, regulatory and compliance challenges and limited liquidity and exit options limit the growth of the private equity market.
Report Coverage & Details:
Report Coverage |
Details |
Forecast Period |
2023–2032 |
Base Year |
2022 |
Market Size in 2022 |
$445.4 billion |
Market Size in 2032 |
$1,098.74 billion |
CAGR |
9.7 % |
No. of Pages in Report |
351 |
Segments Covered |
Fund type, sector, and region. |
Drivers |
Potential for higher returns Access to specialized expertise and networks Flexibility in investment strategies |
Opportunity |
Opportunity in ESG integration |
Restraints |
Regulatory and compliance challenges Limited liquidity and exit options |
COVID-19 Scenario
- COVID-19 had a mixed impact on the private equity market. Initially, there was a downturn as uncertainty and market volatility surged, leading to deal postponements and valuation challenges.
- However, as the economy stabilized and rebounded, the market saw increased opportunities for distressed asset acquisitions at attractive valuations. Sectors like technology, healthcare, and e-commerce experienced growth, bolstering the performance of certain private equity portfolios.
- Overall, while the pandemic initially posed challenges, it also created avenues for strategic investments and lucrative opportunities, resulting in a mixed impact on the private equity landscape.
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The buyout segment to maintain its leadership status throughout the forecast period
Based on fund type, the buyout segment held the highest market share in 2022, accounting for nearly one-third of the global private equity market revenue and is estimated to maintain its leadership status throughout the forecast period. This is due to its versatility and applicability across diverse industries. Buyout funds often acquire controlling stakes in established companies, enabling private equity firms to implement strategic changes, drive operational efficiencies, and ultimately generate substantial returns upon exit. However, the infrastructure segment is projected to manifest the highest CAGR of 13.3% from 2023 to 2032. This is due to the global shifts toward sustainable development, increased demand for modern infrastructure, and the focus on renewable energy solutions. Infrastructure investments address critical needs for energy transition, transportation upgrades, and technological advancements, attracting private equity due to long-term revenue potential and the essential nature of these projects.
The technology segment to maintain its leadership status throughout the forecast period
On the basis of sector, the technology segment held the highest market share in 2022, accounting for more than one-fourth of the global private equity market revenue. This is due to its inherent dynamism and potential for disruptive innovation. The attraction of private equity to technology lies in the rapid evolution of the sector, offering opportunities for high-growth investments in areas such as software, AI, and digital platforms. However, the industrial segment is projected to manifest the highest CAGR of 15.1% from 2022 to 2032. This is primarily due to the renewed focus on manufacturing advancements, automation, and Industry 4.0 initiatives. The interest in private equity in the industrial sector has surged due to opportunities to modernize manufacturing processes, embrace technological advancements, and pursue efficiency gains.
North America to maintain its dominance by 2032
On the basis of region, North America held the highest market share for more than one-third of the global private equity market in terms of revenue in 2022. This is due to the fact that the region has a well-established ecosystem for private equity, boasting a mature financial infrastructure, access to a vast pool of capital from institutional investors, and a robust regulatory environment conducive to investment activities. However, Asia-Pacific is expected to witness the fastest CAGR of 12.9% from 2023 to 2032. This is due to the fact that this region boasts rapid economic development, a burgeoning middle class, and an increase in entrepreneurial activity. In addition, there is a growth in openness to private equity investments, favorable demographics, and a rise in number of high-growth potential companies.
Leading Market Players: -
- Apollo Global Management, Inc.
- Bain Capital, LP.
- Blackstone Inc.
- EQT AB
- HELLMAN & FRIEDMAN LLC
- Insight Partners
- KOHLBERG KRAVIS ROBERTS & CO. L.P.
- Tarrant Capital IP, LLC
- The Carlyle Group
- Thoma Bravo
The report provides a detailed analysis of these key players in the global private equity market. These players have adopted different strategies such as product launch and agreement to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the private equity market segments, current trends, estimations, and dynamics of the private equity market forecast from 2023 to 2032 to identify the prevailing private equity market opportunity.
- Private equity market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the private equity market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global private equity market.
- Private equity market player positioning facilitates benchmarking and provides a clear understanding of the present position of the private equity market players.
- The report includes an analysis of the regional as well as global private equity market trends, key players, market segments, application areas, and market growth strategies.
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Private Equity Market Report Highlights
By Fund Type
- Buyout
- Venture Capital
- Real Estate
- Infrastructure
- Others
By Sector
- Technology
- Financial Services
- Real Estate and Services
- Healthcare
- Energy and Power
- Industrial
- Others
By Region
- North America (U.S., Canada)
- Europe (UK, Germany, France, Italy, Spain, Rest of Europe)
- Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
- LAMEA (Latin America, Middle East, Africa)
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