Private Equity

Global Private Equity Market to Reach US$842.9 Billion by 2030

The global market for Private Equity estimated at US$508.9 Billion in the year 2024, is expected to reach US$842.9 Billion by 2030, growing at a CAGR of 8.8% over the analysis period 2024-2030. Buyout, one of the segments analyzed in the report, is expected to record a 10.6% CAGR and reach US$339.7 Billion by the end of the analysis period. Growth in the Venture Capital segment is estimated at 8.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$138.6 Billion While China is Forecast to Grow at 13.9% CAGR

The Private Equity market in the U.S. is estimated at US$138.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$186.8 Billion by the year 2030 trailing a CAGR of 13.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.3% and 8.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.9% CAGR.

Global "Private Equity" Market – Key Trends & Drivers Summarized

Is Investor Appetite Rebounding Amid Economic Uncertainty?

Private equity (PE) has demonstrated notable resilience even in the face of rising interest rates, inflationary pressures, and volatile public markets. While the broader economic environment has challenged many asset classes, private equity continues to attract institutional and high-net-worth investors seeking higher returns, diversification, and long-term value creation. Following a temporary dip in deal volume in 2022 and early 2023 due to macroeconomic uncertainty, confidence has steadily returned, especially in sectors demonstrating structural growth like healthcare, technology, and sustainable energy. Investors are increasingly drawn to PE’s active ownership model, which emphasizes operational improvement and strategic transformation—characteristics particularly valuable during periods of economic realignment. Limited partners (LPs), such as pension funds and sovereign wealth funds, are also increasing their allocation to private equity to offset weaker returns from public equities and fixed income instruments. Furthermore, the secondary PE market is gaining momentum, offering liquidity options and portfolio rebalancing opportunities for LPs. Deal structures are evolving to include more creative financing mechanisms, such as continuation funds and GP-led secondaries, allowing general partners (GPs) to hold onto high-performing assets longer while offering exits to existing investors. Overall, the strong fundamentals and adaptive strategies of PE firms are helping the asset class maintain its position as a core pillar of global capital deployment.

How Are Sector Preferences and Exit Strategies Evolving?

Thematic investing and sector rotation are playing an increasingly pivotal role in shaping private equity strategies. PE firms are strategically repositioning portfolios to target high-growth industries that exhibit defensive characteristics and long-term potential. Healthcare remains a priority due to its aging global population, technological innovation, and regulatory stability, while technology continues to dominate due to its scalability and integration into all aspects of business operations. Notably, there’s growing interest in software-as-a-service (SaaS), cybersecurity, fintech, and artificial intelligence, where recurring revenues and disruptive potential align with PE’s value creation playbook. Meanwhile, traditional sectors like industrials and consumer goods are being re-evaluated through the lens of ESG compliance, supply chain resilience, and digital transformation. On the exit front, while IPO activity has slowed, private equity firms are increasingly relying on strategic sales, secondary buyouts, and continuation vehicles to deliver returns. This shift reflects a broader adaptation to liquidity constraints in public markets and a recalibrated focus on long-term stewardship of assets. Cross-border investments are also expanding, particularly in Asia-Pacific and emerging markets, where valuations remain attractive and demographic trends are favorable. These evolving sector and exit dynamics indicate a more sophisticated, data-driven, and globally diversified approach to portfolio management among leading PE firms.

Can Technology and ESG Integration Drive Competitive Differentiation?

Private equity’s digital transformation is no longer optional—it’s now fundamental to competitive success. PE firms are leveraging technology not just within their portfolio companies, but also in their own operations. Tools such as predictive analytics, robotic process automation, and AI-driven due diligence platforms are enabling more precise risk assessment, faster deal evaluation, and more efficient post-acquisition management. Digitally mature firms are also using data lakes and business intelligence platforms to track portfolio performance in real time, identify underperforming assets, and optimize resource allocation. Alongside technological modernization, environmental, social, and governance (ESG) considerations are being deeply embedded into investment processes. ESG is no longer a compliance exercise; it has become a key metric for value creation and risk mitigation. Investors are demanding ESG-aligned strategies that deliver not only financial returns but also measurable social and environmental impact. This is leading to increased scrutiny of supply chains, labor practices, emissions data, and board diversity within portfolio companies. Regulatory frameworks across Europe and North America are also tightening, compelling PE firms to integrate ESG disclosures into reporting and due diligence. As a result, firms that can harness technology and authentically integrate ESG into their value creation strategies are emerging as more agile, transparent, and investable in an increasingly demanding market environment.

The Growth in the Private Equity Market Is Driven by Several Factors…

The growth in the private equity market is driven by several factors deeply rooted in technology advancement, end-user preferences, and institutional investment trends. First, the widespread adoption of digital tools has streamlined deal sourcing, portfolio management, and risk assessment, allowing firms to operate with greater agility and precision. Second, institutional investors are steadily increasing their PE allocations due to the asset class’s potential for outsized returns and its capacity to hedge against public market volatility. Third, end-use trends, particularly the demand for disruption-resilient assets in sectors like healthtech, renewable energy, and digital infrastructure, are redirecting capital toward innovative targets. Fourth, changes in investor behavior—especially among millennials and Gen Z—are creating appetite for PE vehicles that prioritize impact, inclusivity, and sustainability. Fifth, the global expansion of PE into emerging markets is unlocking new growth frontiers, where lower valuations and favorable demographics create compelling investment opportunities. Additionally, the evolving regulatory environment, including reforms to allow greater access for retail investors and the emergence of democratized platforms, is widening the investor base. Finally, the trend toward specialization—where firms focus on niche sectors or geographic zones—is enabling more tailored, strategic investment theses that outperform broad-based approaches. These interconnected drivers collectively reinforce the robust and increasingly sophisticated nature of the global private equity ecosystem.

SCOPE OF STUDY:

The report analyzes the Private Equity market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Fund Type (Buyout, Venture Capital, Real Estate, Infrastructure, Other Fund Types); Sector (Technology, Financial Services, Real Estate & Services, Healthcare, Energy & Power, Industrial, Other Sectors)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 36 Featured) -

• Advent International
• Apax Partners
• Ardian
• Bain Capital
• Blackstone Inc.
• Carlyle Group
• Cinven
• Clayton, Dubilier & Rice
• CVC Capital Partners
• EQT AB
• General Atlantic
• Hg
• KKR & Co. Inc.
• Leonard Green & Partners
• Partners Group
• Permira
• Silver Lake Partners
• Thoma Bravo
• TPG Capital
• Warburg Pincus

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