Market Insights Financial Wealth Management

Digital Investment - Worldwide

Worldwide

Total transaction value in the Digital Investment market is projected to reach €2,559.00bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 4.24% resulting in a projected total amount of €3,149.00bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of €1,652.00bn in 2024.
The highest cumulated transaction value is reached in the United States (€1,635,000.00m in 2024).

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

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Analyst Opinion

The Digital Investment market is experiencing significant growth worldwide due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers are increasingly turning to digital investment platforms for their investment needs. This is driven by several factors, including convenience, accessibility, and cost-effectiveness. Digital investment platforms offer users the ability to invest at any time and from anywhere, using their mobile devices or computers. This flexibility is particularly appealing to younger generations who are more comfortable with technology and value convenience. Additionally, digital investment platforms often have lower fees compared to traditional investment options, making them an attractive choice for cost-conscious investors.

Trends in the market: One of the key trends in the digital investment market is the rise of robo-advisors. These are automated investment platforms that use algorithms to provide investment advice and manage portfolios. Robo-advisors have gained popularity due to their low fees, ease of use, and ability to provide personalized investment recommendations based on individual risk profiles. This trend is expected to continue as more investors embrace the convenience and cost-effectiveness of robo-advisors. Another trend in the market is the increasing focus on socially responsible investing. Investors are becoming more conscious of the impact their investments have on society and the environment, and are seeking investment options that align with their values. Digital investment platforms are responding to this demand by offering socially responsible investment portfolios, allowing investors to support companies that prioritize sustainability and social responsibility.

Local special circumstances: In certain countries, there are specific local circumstances that are driving the growth of the digital investment market. For example, in countries with a large unbanked population, digital investment platforms provide a means for individuals to access financial services and invest their money without the need for a traditional bank account. This is particularly relevant in emerging markets where traditional banking infrastructure may be limited. Additionally, in countries with a high smartphone penetration rate, digital investment platforms are able to reach a larger customer base and provide a seamless user experience.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the growth of the digital investment market. One key factor is the low interest rate environment in many countries. With interest rates at historic lows, investors are seeking alternative investment options to generate higher returns. Digital investment platforms offer a wide range of investment products, including stocks, bonds, and mutual funds, providing investors with the opportunity to diversify their portfolios and potentially earn higher returns. Furthermore, the increasing adoption of technology and internet connectivity worldwide is creating a favorable environment for the growth of the digital investment market. As more people gain access to the internet and become comfortable with online transactions, the demand for digital investment platforms is expected to increase. This trend is further supported by advancements in financial technology, which are making it easier for individuals to invest and manage their portfolios online. In conclusion, the Digital Investment market is experiencing significant growth worldwide due to customer preferences for convenience and cost-effectiveness, market trends such as the rise of robo-advisors and socially responsible investing, local special circumstances such as the need for financial inclusion and high smartphone penetration rates, and underlying macroeconomic factors including low interest rates and increasing adoption of technology. These factors are driving the development and expansion of the digital investment market, providing investors with new opportunities to grow their wealth and access financial services.

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.