Market Insights Financial Corporate Finance

Investment Banking - Japan

Japan

The revenue in the Investment Banking market is projected to reach €10.12bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.97% resulting in a projected total amount of €10.62bn by 2029.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (€120.70bn in 2024).

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Analyst Opinion

The Investment Banking market in Japan is experiencing a shift in customer preferences towards more personalized and tailored financial services.

Customer preferences: Customers in Japan are increasingly seeking customized investment banking solutions that cater to their specific financial goals and risk appetite. This trend is driven by a growing demand for sophisticated financial products and services that are aligned with individual preferences and investment objectives.

Trends in the market: One notable trend in the Japanese Investment Banking market is the focus on technology and innovation to enhance efficiency and provide seamless digital experiences for clients. Firms are investing in advanced analytics, artificial intelligence, and blockchain technology to streamline operations and offer cutting-edge solutions to customers. Additionally, there is a rising interest in sustainable and socially responsible investing, with more emphasis on environmental, social, and governance (ESG) factors in investment decisions.

Local special circumstances: Japan's Investment Banking market is influenced by unique cultural and regulatory factors. The culture of long-term relationships and trust in business dealings shapes the way investment banking services are delivered and perceived in the market. Moreover, strict regulatory requirements and a conservative approach to risk management contribute to the stability and reliability of the financial sector in Japan.

Underlying macroeconomic factors: The development of the Investment Banking market in Japan is also influenced by macroeconomic factors such as the country's economic growth, interest rates, and global market conditions. As the Japanese economy continues to recover from past challenges and demographic shifts, there is a growing opportunity for investment banks to expand their services and tap into new market segments. Additionally, fluctuations in global financial markets and trade dynamics play a significant role in shaping the investment landscape in Japan.

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.