The five most prominent sharing economy sectors in the UK could see a 20-fold increase by 2025, according to new research by PwC. The study estimates that total transactions could increase from £7 billion to £140 billion per annum in the next 9 years. Across Europe, sharing economy transactions in these five prominent sectors - collaborative finance, peer-to-peer accommodation, peer-to-peer transportation, on-demand household services and on-demand professional services - could rise to €570 billion by 2025, up from €28 billion today.
The new research indicates that last week's shock Brexit result will impact Britain's sharing economy minimally, with the collaborative economy predicted to grow faster in the UK (at around 30 per cent, per year) than in the rest of Europe. Although the research was conducted prior to Britain's referendum results being announced, PwC believes that it will have little effect on the predictions.
"While our analysis was carried out ahead of the UK’s vote to leave the EU, at present we do not expect the decision to alter our long-term trajectory for the sharing economy's substantial growth by 2025,"
- PwC in a press release.
The global financial firm's study suggests that London's position as a global FinTech hub will be at the heart of the growth of the sharing economy in the UK. Capital flowing through these finance platforms is expected to increase to £70 billion per year by 2025, up from £3 billion today.
"Although economic and political uncertainty will act as a headwind to growth across every sector of the economy in the short-term, the fundamental drivers of the sharing economy - technological advancements, demographic change and urbanisation - will continue to drive adoption in this space over the long-term."
- PWC in a press release
Rather than just being a headline, major sharing economy enterprises are becoming household names and the default mode of choice for younger cohorts in society. There’s also emerging evidence that sharing models are influencing wider consumer behaviour," said Robert Vaughan, an economist at PwC. "The rise of the sharing economy is changing the face of European business – creating opportunities for new entrants, challenges for incumbent players, and searching questions for all stakeholders. We think it will be those that respond to the new reality the quickest that stand the best chance of creating advantage and capturing the value in this space." This study follows a string of bold predictions about the growth of the sharing economy.
Recently, a study conducted by Juniper Research predicted that sharing economy revenues in the US would increase from US$6.4 billion to US$20 billion by the year 2020. In short, this is very good news for those that are involved in the sharing economy globally, including Expert360's clients, consultants and key stakeholders. To read the finer details of the study, head to PwC's website here.