Freelance Platforms Market Size, Share & Industry Report 2031

Report Description

Freelance Platforms Market Outlook 2031

The global freelance platforms market size was valued at USD 5.1 Billion in 2022 and is likely to reach USD 18.3 Billion by 2031, expanding at a CAGR of 15.1% during the forecast period, 2023–2031. The market growth is attributed to the increasing adoption of freelance technology platforms by established companies around the world and the rising involvement of Generation Z working as freelancers.

Freelancing management platforms provide businesses with an integrated platform for hiring the services of freelancers. Freelance platforms allow users to create a network of people and connect with them. Moreover, the emerging Artificial Intelligence is further contributing to the market growth.

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Freelancing management platforms are beneficial to both freelancing individuals and businesses. Hiring and availing services of individuals working remotely is possible through the use of freelance platforms. Moreover, the increasing number of companies hiring freelance workers is boosting the market.

• According to research in 2022, the number of freelance workers rose to nearly 70.4 million up from 67.4% in 2021 in the US.

The Impact of Artificial Intelligence on the Freelance Platforms Market

Artificial Intelligence has a significant impact on the market as it benefits freelancers to gain information using new resources offered by AI. Nearly half of freelancers use AI for research as it saves time and automates work. For instance, Microsoft implemented ChatGPT into the Bing search engine to compete with Google. To counter that, Google has launched their own search engine AI chatbot Bard for finding answers quickly in a professional manner.  

• According to a report by Citrix, an American cloud computing company, nearly 89% of senior professionals believe that new technology is expected to boost productivity in the organization by 2035

However, some freelance workers believe that AI is expected to become a threat to the market in the coming years. A survey shows that 2 out of 10 freelancers somehow believe that AI has the potential to replace jobs and some say that AI benefits them and is expected to provide more advantages in the near future.

The market report finds that the COVID-19 pandemic negatively affected the freelance platforms market. Several businesses closed down during the pandemic which led to decreased investments in hiring freelancers affecting the freelance platforms market. 

According to the University of Sheffield, self-employment is higher in the cultural sector than in other industries, at 37% versus 15%, where freelancers earn more than a third less than directly employed workers. At the time of the pandemic most needed backing was funding, followed by health, wellbeing, networking, and paid work opportunities.

• For instance, research from Edelman Intelligence reveals that between June 15 to July 7, 2020, 6000 employees were surveyed in the Upwork freelance jobs platform. In the past 12 months, 59 Mn U.S. workers performed freelance work, an increment of 2 Mn people year over year.

Freelance Platforms Market Dynamics

The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global freelance platforms market report has up-to-date insights about market scenarios that can shape the overall market performance and condition during the forecast period, 2023 to 2031.

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Major Drivers

Increasing Need for Change in Vendor Hiring Processes

The demand for freelance platforms is growing due to a need to replace vendor hiring processes. The integration of freelance technology platforms in businesses reduces the time for vendor searches and negotiations. Payroll management, invoicing, convergent billing, and contract management are some of the key features presented by freelance management platforms that are likely to boost the freelance platforms market in the coming years.

Freelancing helps digital-age workers to do almost anything they want without the need to satisfy the traditional gatekeepers. In freelancing, there are no limits to how much a worker earns. People get to choose what working hours are best for them which is another reason for the adoption of the freelancing platform.

Freelancers can work virtually from anywhere in the world. Freelancing allows workers to work from wherever they want. Research shows that nearly 38% of freelance workers spend less than 2 hours in writing jobs. Thus, the flexibility in work is another reason for the market growth.

Existing Restraints 

Hindrances of Platform Integration with Existing Business Setups

Integration of freelance working platforms into already existing business setups involves technological modifications. High upfront costs of technological changes are a major hindrance to the rapid expansion of the market.

Moreover, in freelancing, people usually face the problem of having an unstable income, unlike an employee which is further expected to hinder the freelancer platform market in the coming years.

Emerging Opportunities 

Non-contractual Staffing as per Business Needs

The creation of workforces by merging full-time staff and freelancers to manage varied business functions is a significant growth opportunity for the freelance platforms market. The rising number of gig economy and remote working opportunities are leveraging freelance employees to showcase their skills and connect with clients all around the world.

Moreover, the new Generation Z is more interested in working as freelancers which resulted in boosting market opportunities. The research estimated that nearly 48% of Gen Z workers are freelancers.

Scope of Freelance Platforms Market Report

The market report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Freelance Platforms Market Segment Insights

Component Segment Analysis

On the basis of component, the market is bifurcated into platform and services. The platform segment is further classified into solution-based, project-based, hybrid, and talent-based.

The solution-based segment is projected to register a considerable CAGR during the forecast period. Solution-based freelance platforms provide solutions in the form of solutions or services to specific problems. Freelancers use these platforms to offer services and clients hire highly skilled freelancers for specific services or solutions. Applications include Fiverr, Toptal, Gigster, and others are some of the solution-based freelance platforms.

• In May 2022, Fiverr, on their fifth annual freelance economic impact report revealed freelancers in the US earned nearly USD 247 billion in 2021
• According to research, it is estimated that as of 2023 there are around 73.3 million freelancers in the United States

The project-based segment is expected to expand at a significant growth rate during the forecast period. Some project-based freelance platform includes Freelancer, Guru, Upwork, and others. In project-based freelancing a company hires any freelancer for a specified period to complete a specific project that needs to be completed within the time span. With the increasing number of freelancers, the growth of the segment is further boosted.

Application Segment Analysis

Based on application, the freelance platforms market is segmented into sales & marketing, web and graphic design, project management, it, and others.

The web and graphic design segment is expected to expand at a considerable CAGR during the projection period due to the rapid growth in the e-commerce sector. The rising number of e-commerce sector has created a demand for new web and graphic designers which is boosting the segment growth.

Graphic designers are hired to make new portfolios and several advertisements for the e-commerce websites. Additionally, the rapid growth in digital communication has made it easier for freelancers to communicate with clients all over the world.

The project management segment is anticipated to increase at a rapid pace during the forecast period. The growing need for freelance project managers is boosting the market segment as they bring their proficiency regarding various projects. Moreover, with the increasing number of the freelance economy or gig economy, the number of freelance workers is further increasing resulting in a boost in the market.

End-user analysis

On the basis of end-user, the market is classified as large enterprises, small and medium enterprises, and freelancers. The large enterprise segment is expected to hold a key share of the market during the forecast period. Large enterprises have a high demand for specific projects and specialized skills.

Nowadays with the emergence of freelance technology most large enterprises are focusing on the client's growth. Research shows that nearly 57% of participants reported an increase in building relationships with larger enterprises. Hence, boosting the segment growth.

Regional Analysis

In terms of region, the global freelance platforms market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period.

North America is expected to dominate the market during the projection period. The regional market growth is attributed to the significant developments in business strategies and the work culture. Traditional ways of entering into lengthy service contracts are seeing a sea change with the introduction of freelance platforms in corporate work structures. Moreover, the launch of new freelance platforms in the region is expected to witness a boost in the market.

• In October 2023, The Mom Project, a digital talent marketplace and community platform, announced the launch of SelfMade, a professional platform focused on helping moms create their brands and start their businesses. SelfMade enables moms to build their businesses around their professional expertise and skills to create new ways of work with more flexibility and autonomy between career and family needs.

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