Market Insights Financial Wealth Management

Digital Investment - Europe

Europe

Total transaction value in the Digital Investment market is projected to reach €359.90bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 3.35% resulting in a projected total amount of €424.40bn by 2029.
Neobrokers dominates the market with a projected total transaction value of €230.60bn in 2024.
The highest cumulated transaction value is reached in the United States (€1,652,000.00m in 2024).

Key regions: United Arab Emirates, Switzerland, Singapore, United Kingdom, Europe

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Comparación de regiones

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Analyst Opinion

The Digital Investment market in Europe is experiencing significant growth and development. Customer preferences are shifting towards digital investment platforms due to their convenience and accessibility.

Additionally, the market is being driven by various trends, such as the rise of robo-advisors and the increasing adoption of mobile investment apps. Local special circumstances, such as regulatory changes and the presence of traditional financial institutions, also play a role in shaping the market. Furthermore, underlying macroeconomic factors, such as low interest rates and the need for alternative investment options, contribute to the growth of the Digital Investment market in Europe.

Customer preferences in Europe are evolving, with individuals increasingly turning to digital investment platforms. These platforms offer convenience and accessibility, allowing customers to manage their investments anytime and anywhere. The ability to access real-time market information and make trades quickly and efficiently is highly valued by customers.

Furthermore, digital investment platforms often offer lower fees compared to traditional investment options, making them an attractive choice for cost-conscious investors. One of the key trends in the Digital Investment market in Europe is the rise of robo-advisors. These automated investment platforms use algorithms to provide personalized investment advice and manage portfolios.

Robo-advisors appeal to customers who prefer a hands-off approach to investing, as they eliminate the need for human financial advisors. The simplicity and low cost associated with robo-advisors make them particularly popular among younger investors. Another trend in the market is the increasing adoption of mobile investment apps.

These apps allow customers to manage their investments directly from their smartphones or tablets. The convenience and ease of use offered by mobile investment apps have made them a preferred choice for many investors. Additionally, mobile apps often provide educational resources and tools to help customers make informed investment decisions.

Local special circumstances also play a role in shaping the Digital Investment market in Europe. Regulatory changes, such as the implementation of the European Union's MiFID II directive, have increased transparency and investor protection. These regulations have led to the development of new digital investment platforms that comply with the new requirements.

Furthermore, the presence of traditional financial institutions in Europe has both fueled competition and facilitated the entry of established players into the digital investment market. Underlying macroeconomic factors contribute to the growth of the Digital Investment market in Europe. Low interest rates have made traditional savings accounts and fixed-income investments less attractive, leading investors to seek alternative investment options.

Additionally, the need for retirement planning and wealth accumulation has driven individuals to explore digital investment platforms as a means to achieve their financial goals. The availability of a wide range of investment products, including stocks, bonds, and exchange-traded funds, further supports the growth of the market. Overall, the Digital Investment market in Europe is experiencing significant growth and development.

Customer preferences for convenience and accessibility, coupled with trends such as the rise of robo-advisors and the adoption of mobile investment apps, are driving the market forward. Local special circumstances, including regulatory changes and the presence of traditional financial institutions, also shape the market. Underlying macroeconomic factors, such as low interest rates and the need for alternative investment options, further contribute to the growth of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us 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 relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.