Impact Investing Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 102.09 Bn

Forecast Year, 2035

USD 659.50 Bn

CAGR, 2026 - 2035

20.51%

Report Coverage

Global

What is Impact Investing Market Size in 2026?

The global impact investing market size was calculated at USD 102.09 billion in 2025 and is predicted to increase from USD 123.03 billion in 2026 to approximately USD 659.50 billion by 2035, expanding at a CAGR of 20.51% from 2026 to 2035. The market is rapidly growing as investors increasingly seek financial returns alongside measurable social and environmental benefits. A strong emphasis of the government on attaining carbon neutrality by 2070 is playing a prominent role in shaping the market's landscape.

Key Takeaways

• North America led the market with the largest market share of 39% in 2025.
• Asia Pacific is expected to grow at the highest CAGR during the forecast period.
• By asset class, the equity segment held the largest share of the market in 2025.
• By asset class, the fixed income segment is expected to expand with the fastest CAGR during the forecast period.
• By offerings, the equity segment held the largest share of the market in 2025.
• By offerings, the bond funds segment is expected to grow with the highest CAGR between 2026 and 2035.
• By investment style, the active segment held the largest share of the market in 2025.
• By investment style, the passive segment is expected to grow with the fastest CAGR during the forecast period.
• By investor type, the institutional investors segment held the highest share of the market in 2025.
• By investor type, the retail investors segment is expected to grow at the fastest CAGR during the forecast period.

Market Overview

The impact investing market deals with the investment of funds to generate a measurable, beneficial social or environmental impact, along with getting a financial return. Impact investing is a strategy that directs capital into companies, organizations, and funds with the intention of generating a measurable profit margin. The growing focus of investors in purchasing green bonds and social bonds to generate fixed income has boosted the growth of the market. This market is expected to rise significantly due to supportive government policies, ESG reporting frameworks, and rising demand from institutional and retail investors for purpose-driven investment opportunities.

Impact Investing Market Trends

• Partnerships: Numerous financial institutions are partnering with regulatory commissions to enhance sustainable finance in different regions. For instance, in June 2025, the International Finance Corporation (IFC) partnered with the Financial Regulatory Commission (FRC). Through this partnership, these organizations advance sustainable financing in Mongolia.
• Investments: Various government-backed financial organizations are investing significantly to contribute to infrastructure development. For instance, in February 2026, the European Investment Bank made an investment of 740 million euros. This investment is aimed at developing numerous sectors, including water, education, energy, healthcare, and roads in Morocco.
• Popularity of Endowment Funds: The popularity of endowment funds has grown rapidly in various countries such as India, Saudi Arabia, Brazil, and France. For instance, in February 2026, the Ministry of Saudi Arabia launched an endowment fund. This fund is designed to accelerate economic and social development goals in this country.

How is AI Influencing the Impact Investing Market?

Artificial Intelligenceis influencing the impact investing market by enabling more precise measurement, analysis, and reporting of social and environmental outcomes alongside financial performance. Machine learning and data analytics help investors identify high-impact opportunities, assess ESG risks, and predict long-term sustainability trends more accurately. AI-driven platforms also streamline due diligence and portfolio monitoring, allowing faster, data-backed investment decisions. Overall, AI enhances transparency, efficiency, and effectiveness in aligning investments with both impact goals and financial returns.

• In April 2025, Investing.com launched WarrenAI. WarrenAI is a cutting-edge AI-driven platform designed to revolutionize investor analysis and insights gathering.

Market Scope

Segment Analysis

Asset Class Insights

Why Did the Equity Segment dominate the Impact Investing Market?

The equity segment dominated the market with the largest share in 2025. This is due to the increased use of equity assets to generate long-term wealth through dividend income and capital appreciation. Equities allow investors to influence corporate strategies, support sustainable business practices, and participate in the growth of impact-focused enterprises. Additionally, numerous advantages of equity assets, including high return potential, liquidity, limited liability, and inflation hedge, have driven their adoption.

The fixed income segment is expected to grow at the fastest CAGR during the forecast period. This is mainly due to the rising adoption of corporate bonds and mutual fund bonds by consumers to generate fixed income regularly. Also, the rising focus of the investment firms to launch a wide range of fixed-income plans to attract modern investors, as well as the rapid investment by the insurance companies in delivering fixed-income policies to the people living in developing nations, is playing a vital role in shaping the segmental landscape. Moreover, collaborations among government organizations and bond providers to launch fixed-income bonds are expected to propel the growth of this segment.

Offerings Insights

What Made Equity the Leading Segment in the Impact Investing Market?

The equity segment led the market while holding a major share in 2025. This is due to the increased focus of the companies in selling their shares to expand their businesses and increase working capital without repayment obligations. Additionally, the increasing use of equity offerings by private companies to enhance their R&D operations and facilitate acquisitions is positively driving segmental expansion. Moreover, the growing utilization of equity offerings by public organizations to raise additional capital for strengthening their financial stability has boosted segmental development.

The bond funds segment is expected to grow with the highest CAGR between 2026 and 2035. This is owing to the increasing emphasis of the retired employees to purchase bond schemes for generating regular income through interest payments. Additionally, the surging investment by the insurance companies in launching bond fund schemes to enhance their portfolio diversification with less risk, as compared to equity funds, is playing a crucial role in shaping segmental development. Moreover, the surging demand for government bonds to provide financial assistance in several sectors, such as infrastructure development, social programs, and public services, is expected to accelerate the growth of this segment.

Investment Style Insights

Why Did the Active Segment Dominate the Impact Investing Market?

The active segment dominated the market in 2025. This is because active management allows investors to carefully select companies and projects that align with specific social, environmental, and governance objectives. Through active strategies, fund managers can engage with portfolio companies, influence corporate practices, and continuously monitor impact performance alongside financial returns. Additionally, active investment provides flexibility to adjust allocations based on evolving impact metrics and market conditions, making it more effective for achieving targeted outcomes.

The passive segment is expected to grow with the fastest CAGR during the forecast period. This is because it offers cost-effective, transparent, and easily accessible exposure to ESG-focused and socially responsible indices. Investors increasingly favor passive strategies to diversify across a broad range of impact-driven companies while minimizing management fees and complexity. Additionally, the rise of ESG ETFs and index funds has made it simpler for retail and institutional investors to align portfolios with sustainability goals without active stock selection.

Investor Type Insights

What Made Institutional Investors the Dominant Segment in the Impact Investing Market?

The institutional investors segment dominated the impact investing market in 2025. This is because they manage large pools of capital and can deploy significant resources toward long-term, socially and environmentally responsible projects. Their focus on sustainable returns, regulatory compliance, and ESG mandates drives consistent demand for impact-focused investments. Additionally, institutional investors, such as pension funds, insurance companies, and endowments, have the expertise and infrastructure to evaluate, monitor, and measure impact performance at scale.

The retail investors segment is expected to expand with the highest CAGR during the forecast period. This is due to the increasing focus of retail investors on investing in small-cap funds to uncover hidden growth opportunities. Also, the growing emphasis of retail investors to leverage social media and enable family-based planning is positively impacting the segmental development. Moreover, several strategies of retail investors, such as diversification, growth investing, value investing, and systematic investment plans, are expected to propel the growth of this segment.

Regional Insights

North America Impact Investing Market Size and Growth 2026 to 2035

The North America impact investing market size is estimated at USD 39.82 billion in 2025 and is projected to reach approximately USD 260.50 billion by 2035, with a 20.66% CAGR from 2026 to 2035.

Why did North America dominate the Impact Investing Market?

North America dominated the impact investing market by capturing a major share in 2025. This is due to a strong emphasis by investors on purchasing equity bonds in several nations, such as the U.S., Canada, and Mexico. Numerous government initiatives aimed at launching ESG bonds, coupled with the rise in the number of capital investment firms, have also boosted the market in the region. Moreover, strategic investments and product launches by numerous market players, such as BlackRock, Goldman Sachs, and Morgan Stanley, have driven the growth of the market in this region.
In February 2026, Goldman Sachs launched an AI Impact pair trade investment strategy. This strategy focuses on purchasing stocks that have regulatory advantages and require human oversight in the U.S.

U.S. Impact Investing Market Size and Growth 2026 to 2035

The U.S. impact investing market size is calculated at USD 29.86 billion in 2025 and is expected to reach nearly USD 196.68 billion in 2035, accelerating at a strong CAGR of 20.74% between 2026 to 2035.

U.S. Market Trends

The U.S. is a major contributor to the North American impact investing market. This is due to the surging focus of consumers to purchase green bonds, along with the rapid investment by the government for enhancing sustainable development goals. The rise in the number of financial institutions, coupled with regulatory support and policy frameworks by the organizations, is positively contributing to the industry. Additionally, the proliferation of ESG-focused funds, impact-driven startups, and innovative financial products has made it easier for both retail and institutional investors to participate, driving market expansion.

Why is Asia Pacific Expanding with the Fastest CAGR in the Market?

Asia Pacific is expected to expand with the fastest CAGR during the forecast period. This is mainly due to the increasing popularity of ETFs/Index Funds in numerous countries, including Japan, China, India, and South Korea. Also, the increase in the number of private equity firms, along with the rapid investment in the education sector, is playing a prominent role in shaping the industry in a positive manner. Moreover, collaborations and funding by several market players, such as ABC Impact, AVPN, and Patamar Capital, are expected to drive the growth of the impact investing market in this region.

China Market Analysis

The market in China is growing due to rising government support for sustainable development, green finance initiatives, and policies promoting ESG adoption among corporations. Increasing awareness of environmental and social issues, such as pollution control and social equity, is encouraging both institutional and retail investors to consider impact-focused investments. Additionally, the rapid growth of the country's startup ecosystem and green technology sectors is creating new opportunities for capital allocation toward measurable social and environmental outcomes, driving market expansion.

Impact Investing Market Companies

• BlueOrchard Finance
• LeapFrog Investments
• Triodos Investment Management
• Acumen
• Generation Investment Management
• Aavishkaar Capital
• AXA Impact Fund
• Patamar Capital
• Omidyar Network
• Root Capital
• Norrsken VC
• Astanor Ventures
• Regeneration.VC
• Rubio Impact Ventures
• New Climate Ventures
• Working Capital Fund
• Achieve Partners
• The De-Carceration Fund
• Mission Driven Finance
• Rockefeller Foundation

Segments Covered in the Report

By Asset Class

• Equity
• Fixed income
• Multi-asset
• Alternatives

By Offerings

• Equity
• Bond Funds
• ETFs/Index Fund
• Alternatives/Hedge Funds

By Investment Style

• Active
• Passive

By Investor Type

• Institutional Investors
• Retail Investors

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa