Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 4.8 % over the past five years, to reach an estimated $9.4bn in 2024.
Trends and Insights
Growth slows for installment lenders as regulatory pressures create headwinds
- In the beginning of the current period, installment loans were replacing payday loans as operators in the Check Cashing and Payday Loan Services (IBISWorld report OD5408) shifted to installment lending due to a more relaxed regulatory environment. But the COVID-19 pandemic, combined with greater regulatory scrutiny of installment lenders, has led to a contraction in industry revenue.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Industry scrutiny is expected to continue in the coming years
- Installment lenders are expected to endure increasing scrutiny by regulators. As installment loans have replaced payday lending as the principal form of short-term lending to consumers with subprime credit, regulatory pressures on the industry have grown. For instance, the increasing availability of short-term, small-dollar credit from banks and financial technology companies, encouraged by regulatory trends, will likely reduce demand for industry services moving forward.
Biggest companies in the Installment Lenders in the US
There are no companies that hold a large enough market share in the Installment Lenders in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Refinancing and rolling over debt, Loans to former customers and Loans to new customers. Refinancing and rolling over debt is the largest segment of the Installment Lenders in the US.
Trends and Insights
Refinancing and rolling over debt is the bread and butter of this industry as people seek out installment lenders for better debt deals
- Refinancing an installment loan might soften the monthly debt payment, but it prolongs the timeline of the debt and origination and other types of fees are often reapplied. Installment lenders mostly sell this product, making it easier for them to keep debts rolling over.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Operators in this industry provide short-term loans that are paid back in installments.
What's included in this industry?
Issuing installment loansAssessing customers' ability to repay installment loansIssuing credit protection insuranceCompanies
Purchase this report to view all major companies in this industry.
Related Terms
ANNUAL PERCENTAGE RATESMALL-DOLLAR LENDINGALTERNATIVE FINANCIAL SERVICESIndustry Code
NAICS 522220 - Installment Lenders in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
At the beginning of the current period, installment loans were replacing payday loans as payday lenders shifted to installment lending due to a more relaxed regulatory environ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Factors that influence volatility in the industry
- Key success factors for businesses to overcome volatility
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Refinancing and rolling over debt are likely to continue being the most popular products. As the standard of living gets worse, many consumers will seek installment loans to ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Purchase this report to unlock analyst insights.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Regulations and compliance requirements can be a significant barrier to entry for new installment lenders. The government is very strict on what installment lenders can and c...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Installment lenders receive neither public nor private assistance. As an industry in the financial sector, assistance only appears when there's a serious economic crisis.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Increased cost has limited profit growth. Wage and purchasing costs have been slightly growing in recent years, and this increase has been reflected in the slow descent of pr...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Installment Lenders in the US industry in United States in 2024?
The market size of the Installment Lenders in the US industry in United States is $9.4bn in 2024.
How many businesses are there in the Installment Lenders in the US industry in 2024?
There are 4,606 businesses in the Installment Lenders in the US industry in United States, which has declined at a CAGR of 1.5 % between 2019 and 2024.
Has the Installment Lenders in the US industry in United States grown or declined over the past 5 years?
The market size of the Installment Lenders in the US industry in United States has been declining at a CAGR of 4.8 % between 2019 and 2024.
What is the forecast growth of the Installment Lenders in the US industry in United States over the next 5 years?
Over the next five years, the Installment Lenders in the US industry in United States is expected to decline.
What does the Installment Lenders in the US in United States include?
Issuing installment loans and Assessing customers' ability to repay installment loans are part of the Installment Lenders in the US industry.
How competitive is the Installment Lenders in the US industry in United States?
The level of competition is high and steady in the Installment Lenders in the US industry in United States.
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Methodology
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IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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