Market Insights Financial Wealth Management

Digital Investment - Israel

Israel

The projected total transaction value in the Digital Investment market for Israel is estimated to reach €4.78bn by 2024.
It is expected to exhibit a compound annual growth rate (CAGR 2024-2027) of 7.57%, resulting in a projected total amount of €5.95bn by 2027.
Among the market players, Robo-Advisors are poised to dominate with a projected total transaction value of €2.73bn in 2024.
Notably, the highest cumulated transaction value is anticipated United States, reaching €1,652,000.00m in 2024.
Israel's thriving digital investment market is fueled by a strong start-up ecosystem and a culture of innovation.

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

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Analyst Opinion

The Digital Investment market in Israel has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Israeli investors have shown a growing interest in digital investment platforms due to their convenience and accessibility. With the rise of smartphones and internet penetration, investors are increasingly turning to online platforms to manage their investments. These platforms provide users with real-time information, personalized investment recommendations, and the ability to execute trades at any time. Additionally, digital investment platforms often offer lower fees compared to traditional brokerage firms, making them an attractive option for cost-conscious investors.

Trends in the market: One of the key trends in the Israeli Digital Investment market is the emergence of robo-advisors. These platforms use algorithms and artificial intelligence to provide automated investment advice and portfolio management. Robo-advisors offer a low-cost and efficient way for investors to access diversified portfolios and manage their investments. They appeal to both novice investors who may not have the time or expertise to manage their own portfolios, as well as experienced investors looking for a more streamlined and cost-effective investment solution. Another trend in the market is the increasing popularity of social trading platforms. These platforms allow investors to follow and replicate the trades of successful traders, leveraging their expertise and track record. Social trading platforms provide a sense of community and allow investors to learn from each other, making investing more accessible and engaging for a wider audience.

Local special circumstances: Israel is known for its vibrant startup ecosystem and has a high concentration of tech-savvy individuals. This entrepreneurial culture has contributed to the development of innovative digital investment platforms in the country. Israeli investors are often early adopters of new technologies and are willing to embrace digital solutions for their investment needs. The presence of a strong fintech sector in Israel has also fostered the growth of the Digital Investment market, with local startups attracting both domestic and international investors.

Underlying macroeconomic factors: Israel has a strong and stable economy, with a high level of technological innovation and a well-developed financial sector. The country has a robust regulatory framework that supports the growth of digital investment platforms while ensuring investor protection. Additionally, Israel has a relatively young population with a high level of digital literacy, making it an ideal market for digital investment services. The government has also been supportive of the fintech sector, providing incentives and support for startups in the industry. In conclusion, the Digital Investment market in Israel is experiencing significant growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. Investors are increasingly turning to digital platforms for their investment needs, attracted by their convenience, lower fees, and innovative features. The emergence of robo-advisors and social trading platforms has further fueled this growth. With a strong economy and supportive regulatory environment, Israel is well-positioned to continue its growth in the Digital Investment 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.