USD 4.13 billion
Robo Advisory Market Size, Share, Growth Analysis, By Type(Pure Robo Advisors, Hybrid Robo Advisors), By Provider(Fintech Robo Advisors, Banks, Traditional Wealth Managers, Others), By Service Type(Direct Plan-based/Goal-based, Comprehensive Wealth Advisory), By End User(Retail Investor, High Net Worth Individuals), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2136 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
115
|Figures:
77
Robo Advisory Market Insights
Robo Advisory Market size was valued at USD 5.22 billion in 2022 and is poised to grow from USD 6.77 billion in 2023 to USD 54.21 billion by 2031, growing at a CAGR of 29.7% during the forecast period (2024-2031).
The financial sector's rising usage of technology-enabled data for investment consultations is expected to enhance demand for robo advisers. The swift shift from traditional investing products to robo advising investment services is another factor driving market growth.
The expansion of robo advisers has also been made possible by the availability of robo-advisors on investment platforms in place of conventional financial services.
The market is being driven ahead by the extensive usage of robo advice across many industrial verticals, including retail banking, asset management, and many more, for undertaking algorithmic calculations to analyze data and provide thorough information. Additionally, robo advisers provide particular advantages including tax loss harvesting, low-cost portfolio, superior decision-making, safe and secure expenditures, and assistance in removing credit risks. These factors are predicted to propel industry expansion during the forecast period.
One of the key factors propelling the market's growth is the emergence of new technologies like artificial intelligence (AI) & machine learning (ML). One of the main robo adviser developments is the expanding use of machine learning and artificial intelligence in investment platforms.
The market's newest completely automated artificial intelligence (AI) robo-advisor, that seeks to make financial decisions easier, powers this digital investing platform.
The quantity of errors brought on by human participation is also decreased as a result of such technological improvements, which amplifies firm financials and bodes well for market expansion.
The limited flexibility offered by robo advisers is expected to restrain market growth during the predicted time frame. Additionally, it is projected that a lack of in-person encounters will make it more difficult for investors and advisors to engage with one another.
The demand for affordable investment advice is anticipated to open up new market expansion opportunities. Furthermore, the employment of robo advisors may be substantially expanded by the growing use of big information and sophisticated analytics.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Pure Robo Advisors
Fastest Growth
Pure Robo Advisors
Growth Rate
29.7% CAGR
Global Robo Advisory Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Robo Advisory Market Segmental Analysis
Global robo advisory market is segmented into type, provider, service type, end-use and region. Based on type the market is segmented into pure robo advisors, hybrid robo advisors. Based on Provider the market is segmented into fintech robo advisors, banks, traditional wealth managers, others. Based on service type the market is segmented into direct plan-based/goal-based, comprehensive wealth advisory. Based on end user the market is segmented into retail investor, high net worth individuals. Based on region the global Robo Advisory Market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Analysis by Type
The hybrid robo advisors market share was above 64.0%, leading the market. Hybrid robo advisers are more in demand as they combine the efficiency and dependability of robotic algorithms and the human touch of a personal financial planner, which is predicted to boost the segment's growth. Hybrid robo advisers also give their customers extra peace of mind by providing them with access to a live one-on-one chat to discuss their money.
The pure robo advisers’ segment is likely to increase significantly over the course of the forecast time. Pure robo adviser demand is anticipated to rise in response to the growing consumer demand for robo advice across the board, greatly boosting the segment's growth. Inexpensive consultation fees, extensive instruction, engaging client service, and safety features are further benefits offered by pure robo advisers. These factors have led to a rise in the employment of pure robo advisers.
Analysis by Provider
The fintech robo advisors market sector held a commanding 45.0% share. Key elements of fintech’s worldwide include automation & consulting services built on personalisation. By adopting cutting-edge technologies like advanced analytics and quantitative finance, fintech companies can quickly roll out robo advisors. Retail investors will receive precise and trustworthy advising services from this deployment, avoiding them from making unwise investment choices.
The banking section is estimated to grow at the fastest rate throughout the forecast period. To increase customer satisfaction and digitize their offerings, banks are always working. The need for chat-based robo advice is increasing since small banks, in particular, want to use digitized services when creating bank accounts. All facets of banking are being improved in order to raise leverage and boost market competition, which is expected to stimulate segment growth.
Global Robo Advisory Market By Type
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Robo Advisory Market Regional Insights
North America dominated the market with over 29.0% of the share. The emergence of various illustrious companies, such as Betterment, the Vanguard Group, Inc., and others, is expected to lead to an expansion of the US robo advising business. The Vanguard Group, Inc., for example, heralded the arrival of robo-advice. The company asserts that with the service's debut, human input would no longer be necessary, reducing errors and facilitating quick calculations.
The Asia Pacific area is predicted to grow significantly during the projection period. The regional market's growth can be attributed to consumers' growing awareness of the benefits of adopting automated financial assistance for savings and investing. Numerous companies in the Asia Pacific region are promoting the use of robo advising, which is expected to help the region grow. As an illustration, Trade Smart, one of India's top new-age online discount brokerage companies, established a cooperation with Modern Algos in 2022 to provide AI-powered advisory services.
Global Robo Advisory Market By Geography
- Largest
- Fastest
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Robo Advisory Market Dynamics
Drivers
Accessibility
- Robo-advisory platforms are easily accessible to a wide range of investors. They provide user-friendly interfaces and require lower minimum investment amounts, enabling individuals with limited funds to participate in the market.
Restraints
Lack of Human Interaction
- While some investors appreciate the convenience of automated services, others prefer a human touch and value the ability to discuss their investments with a financial advisor. Robo-advisory platforms may not adequately address the emotional or complex financial needs of certain individuals.
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Robo Advisory Market Competitive Landscape
The market is a very competitive one, with a number of significant companies. Market leaders put a strong emphasis on expansion tactics including partnerships, mergers, & acquisitions to increase their position on the worldwide market. Through this partnership, Vanguard Group, Inc. is now able to offer straightforward wealth management and investment advising services to retail clients in China.
Top Player’s Company Profiles
- Charles Schwab Intelligent Portfolios
- Acorns
- SigFig Wealth Management
- Ellevest
- SoFi Invest
- Nutmeg
- Personal Capital
- WiseBanyan
- FutureAdvisor (a BlackRock company)
- TD Ameritrade Essential Portfolios
- M1 Finance
- E*TRADE Core Portfolios
- Robinhood
- Fidelity Go
- Stash Invest
- Scalable Capital
- Moneyfarm
Recent Developments
- In September 2021, Wealthfront, a leading robo-advisory platform, announced the launch of its high-interest cash account called "Wealthfront Cash." The account offers a 0.35% APY (Annual Percentage Yield) and provides clients with a convenient way to manage their cash alongside their investment portfolios.
- In October 2021, Betterment, a prominent robo-advisory firm, introduced a new feature called "Flexible Portfolios." This feature allows investors to customize their asset allocation beyond Betterment's pre-built portfolios, giving them more control over their investment strategies.
Robo Advisory Key Market Trends
- The robo-advisory market is expected to continue its growth trajectory, driven by increasing investor awareness, technological advancements, and a shift towards digital financial services. The adoption of robo-advisory platforms is expected to expand across various investor segments.
- Some robo-advisory firms are incorporating hybrid models that combine automated investment advice with human interaction. This approach aims to provide a personalized experience while leveraging the efficiency of technology. Hybrid models cater to investors who seek a blend of automated services and human expertise.
- Traditional financial institutions, such as banks and wealth management firms, are recognizing the potential of robo-advisory services and are integrating them into their offerings. This trend allows established players to tap into the growing demand for digital investment solutions.
Robo Advisory Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, we found that the robo advisory market , The financial sector's rising usage of technology-enabled data for investment consultations, is expected to enhance demand for robo advisers. The swift shift from traditional investing products to robo advising investment services is another factor driving market growth. The expansion of robo advisers has also been made possible by the availability of robo-advisors on investment platforms in place of conventional financial services. However, Asia Pacific is projected to emerge as the fastest growing region during the forecast period due to The regional market's growth can be attributed to consumers' growing awareness of the benefits of adopting automated financial assistance for savings and investing.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 4.13 billion |
| Market size value in 2031 | USD 41.83 billion |
| Growth Rate | 29.7% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Robo Advisory Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Robo Advisory Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Robo Advisory Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Robo Advisory Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Robo Advisory Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Robo Advisory Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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