Investment Banking - Europe

Europe

The revenue in the Investment Banking market is projected to reach €71.93bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2028) of -0.81% resulting in a projected total amount of €69.64bn by 2028.

Key regions: Germany, Brazil, France, United States, United Kingdom

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

Amidst the dynamic landscape of Europe's Investment Banking market, several trends and developments are shaping the industry.

Customer preferences: Customers in Europe are increasingly seeking personalized and digitalized investment banking services. They prefer tailored financial solutions that cater to their specific needs and risk appetites. Additionally, there is a growing demand for sustainable and socially responsible investment opportunities, reflecting a shift towards more ethical investing practices.

Trends in the market: In countries like the United Kingdom and Germany, there is a noticeable trend towards consolidation in the Investment Banking sector, with larger institutions acquiring smaller firms to expand their market presence and offerings. On the other hand, countries such as Switzerland and Luxembourg are witnessing a rise in boutique investment banks that specialize in niche areas, providing clients with expertise in specific industries or financial products.

Local special circumstances: In the UK, Brexit has had a significant impact on the Investment Banking market, leading to relocations of some operations to mainland Europe and a reevaluation of business strategies. In Switzerland, the tradition of banking secrecy and political stability continue to attract high-net-worth individuals and multinational corporations to the country's financial institutions. Similarly, Luxembourg's favorable regulatory environment and access to the European market make it an attractive hub for Investment Banking activities.

Underlying macroeconomic factors: The low-interest-rate environment in Europe, coupled with economic uncertainties stemming from global events such as the COVID-19 pandemic and geopolitical tensions, are influencing investment decisions and market volatility. Central bank policies, regulatory changes, and technological advancements are also driving transformations in the Investment Banking landscape across Europe.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.