Robo Advisory Market Analysis by Service Providers (Traditional Wealth Managers, Banks, FinTech Robo Advisors, and Others); by Business Model Type (Hybrid, and Pure Robo Advisory); and by Service Type (Wealth, and Cash Management)-Global Supply & Demand Analysis & Opportunity Outlook 2022-2031
6 Sep 2022
ICT & Telecom
Impact Analysis on the Growth of Market
Inflation and Looming Recession to Haunt Businesses:
In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022...
The Research Report is Updated with 2021 Base Year, 2022 Estimated year and Forecast till 2031 with Market Insights.
With the dip in global production, the GDP has contracted in 2020 and impacted the market across the world. Upon placing a Sample Request, you will receive an updated report with 2021 as base year, 2022 as estimated year and forecast to 2031. This will have market drivers, recovery rate in the market, insights and competitive analysis.
Global Robo Advisory Market Size, Forecast, and Trend Highlights Over 2022 - 2031
The global robo advisory market is estimated to garner a notable revenue by the end of 2031 by growing at a CAGR of ~30% over the forecast period, i.e., 2022 – 2031. Further, the market generated a remarkable revenue in the year 2021. The growth of the market can be attributed to the surging requirement of advisory for investment advices for better returns and growth. For instance, there is a requirement for more than 25,000 new advisors for planning services and financial products in the United States.
Robo advisory are digital platforms that offer algorithm-driven and automated financial planning services with no or little human intervention. It is majorly divided into 2 types on the basis of service type such as cash management, and wealth management. Moreover, there has been an increase in the number of internet users worldwide, that are supporting financial advisory firms by promoting themselves through digital form and providing better advice related to investments. According to the World Bank, the percentage of individuals using the internet has increased to 10 per cent in 2020 from 8 per cent in 2018.
Global Robo Advisory Market: Growth Drivers and Challenges
Rise in Digital Economy– Organizations are transforming from traditional to digital form to provide better service to their customers. In a similar way, advisory services are provided by technology to provide better advisory. Therefore, it is anticipated to increase the growth of the global robo advisory market. As per the U.S. Bureau of Economic Analysis, the digital economy has reached to 10.2 per cent of the U.S. GDP in the year 2020.
Increasing Automation- More than 80 per cent of the finance teams are opting for automation in one of their processes in the United Kingdom and the United States.
Rising Household Wealth– There has been rising household wealth among the population across the globe that increase the chances of investment. Hence, it is expected to boost the growth of the global robo advisory market. The global household health has been increased to USD 360, 603 in the year 2019 from USD 351,516 in the year 2018 as per the Global Wealth Databook 2019 of the Credit Suisse Research Institute.
Growing Insurance Industry– People are opting for insurance in order to make their future lives easier, and it is projected to drive the growth of the global robo advisory market. As per the India Brand Equity Foundation, the life insurance industry in India is anticipated to reach USD 317.98 billion by the end of financial year 2031.
Lack of Common Interest Among the Clients
High Risk Attached with Robo Advisory Technology
Lack of Human Interaction
The global robo advisory market is segmented and analyzed for demand and supply by service providers into traditional wealth managers, banks, fintech robo advisors, and others. Out of these, the banks segment is anticipated to hold the largest share over the forecast period owing to the rise in the number of banks worldwide, and increasing digitalization among the banks to provide better customer needs. For instance, there were approximately more than 6,000 banks in the 27 European Countries till August 2021.
Global Robo Advisory Market Regional Synopsis
Regionally, the global robo advisory market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in the North America region is projected to hold the largest market share by the end of 2031 on the back of growing awareness among people related to robo advisory solutions. Moreover, the market in the Asia Pacific region is expected to witness significant growth owing to the surging population percentage, and increasing household wealth among them. Approximately, 39.16 per cent share of the world’s household wealth is held by the Asia Pacific region in the year 2019, as per the Global Wealth Databook 2019 of the Credit Suisse Research Institute.
Our in-depth analysis of the global robo advisory market includes the following segments:
By Service Providers
By Business Model Type
By Service Type
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Key Companies Dominating the Global Robo Advisory Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global robo advisory market that are included in our report are Betterment LLC, Axos Invest, Inc., Charles Schwab & Co., Inc., The Vanguard Group, Inc., FutureAdvisor, Wealthfront Corporation, Nutmeg Saving and Investment Limited, SigFig Wealth Management LLC, Personal Capital Corporation, Bambu, and others.
Global Robo Advisory Market: Latest Developments
December, 2019: The Vanguard Group, Inc. announced the collaboration with Ant Financial in order to provide a new broadly and streamlined available investment advisory wealth management services in China to retail customers.
December, 2019: Charles Schwab & Co., Inc., announced the launch of Schwab Intelligent Income, that operate as an income solution to modernize the way the investors can pay themselves in retirement or any other time.
Key Reasons to Buy Our Report
The report covers detailed analysis comprising market share attained by each market segment and its sub-segments.
It covers market dynamics including growth drivers, trends, potential opportunities, price trend analysis and challenges that impact the market growth.
The report includes detailed company profiles of the major players dominating the market.
We use effective research methodologies to calculate the market numbers and provide value-added assessment for overall growth.
We provide customized reports as per the clients’ requirement helping them to see possible and unexpected challenges and unforeseen opportunities in order to help them reach their goal.
The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:
- North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys & Opportunity Outlook
- Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook
FREQUENTLY ASKED QUESTIONS
Increase in the number of internet users, growing insurance industry, rising household wealth, rise in digital economy
The market is anticipated to attain a CAGR of ~30% over the forecast period, i.e., 2022 – 2031.
Lack of common interest among the clients, high risk attached with robo advisory technology, and lack of human interaction
Which region will provide more business opportunities for growth of robo advisory market market in future?
The market in the Asia Pacific region is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
The major players in the market are Betterment LLC, Axos Invest, Inc., Charles Schwab & Co., Inc., The Vanguard Group, Inc., FutureAdvisor, Wealthfront Corporation, Nutmeg Saving and Investment Limited, SigFig Wealth Management LLC, Personal Capital Corporation, Bambu, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by business model type, service providers, service type, and by region.
The banks segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.
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- Betterment LLC
- Axos Invest Inc.
- Charles Schwab & Co.Inc.
- The Vanguard Group Inc.
- Wealthfront Corporation
- Nutmeg Saving and Investment Limited
- SigFig Wealth Management LLC
- Personal Capital Corporation