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

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.