Robo Advisory Market Size & Share, by Type (Pure, Hybrid); Services Type (Wealth Management, Cash Management), End-user (Healthcare, Retail, Education) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 2231
  • Published Date: Oct 08, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Robo Advisory Market size was over USD 6.69 billion in 2023 and is anticipated to cross USD 206.71 billion by 2036, witnessing more than 30.2% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of robo advisory is estimated at USD 8.31 billion.

The market is thriving on the back of growing financial industry and the continuous efforts of organizations to adopt new technologies to deliver financial services in cheaper and more efficient ways. Furthermore, growing need to manage assets of people for long term financial goals with minimal risk of loss are some of the factors anticipated to drive the growth of the market. 


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Robo Advisory Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Number Of Internet Users And The Rise In Internet Penetration
    According to International Telecommunication Union (ITU), number of individuals using the internet grew from 1100 million in 2005 to 3924 million in 2018 and is further estimated to reach 4131 million by 2019.
    Increasing penetration of the internet worldwide and rise in the number of internet users is helping financial advisory companies to promote their advices related to investments, and further connect to the customers with mutual engagement and trust. Robo advisory services platform run on the back of internet technology infrastructure and requires its clients on the other end to equally associate into their platform via the internet. Such a factor also helps to significantly decrease the management cost of the financial wealth services providing company involved in providing financial advice through manpower, and thereby provide robo advisory services to clients at a minimal cost.
  • Increase in the Maturity of Digital Advice Technologies
    Advancement in digital technology is helping to transform numerous industries worldwide. Several market forces are driving the need amongst organizations to transform digitally, such as, emergence of new ecosystems accessible through digital channels, reduced barriers to digital entry, reduced ownership of assets and infrastructure, and decoupled value chains among others. Financial advisory companies are adopting to technologies, such as, artificial intelligence (AI) on the back of the ability of the technology to think and act almost like humans and further continuously learn and use the knowledge to solve complex problems. This in return help the companies gain an extra competitive edge to serve their customers and enhance the delivery of advice. Moreover, with the adoption of the robo advisory technology, consumers find increased transparency into investment options and decisions. Furthermore, consumers can also access via the web or mobile apps to build diversified portfolios at minimal fees. Such factors are anticipated to drive the growth of the robo advisory market throughout the forecast period.

Challenges

  • Conflicts of Interests of the Clients
    Rising concern amongst consumers for the definition and suitability of the financial advices, which may create a conflict of interests among the clients is anticipated to hinder the growth of the market during the forecast period.

 

Robo Advisory Market: Key Insights

Base Year

2023

Forecast Year

2024–2036

CAGR

30.2%

Base Year Market Size (2023)

USD 6.69 billion

Forecast Year Market Size (2036)

USD 206.71 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
 

 

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Robo Advisory Segmentation

The global robo advisory market is segmented by service type into wealth management and cash management, out of which, wealth management segment is anticipated to hold the largest market share on the back of growing household wealth amongst population as well as for the growth of affluence worldwide. Moreover, growing need amongst customers for asset allocation on the back of limited financial background knowledge is also anticipated to promote significantly towards the growth of the segment in the market.

Our in-depth analysis of the global market includes the following segments:

           By Type

  • Pure Robo Advisory
  • Hybrid Robo advisory

             By Service Type

  • Wealth Management
  • Cash Management

           By End User

  • Healthcare
  • Retail
  • Education
  • Others
 

 


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Robo Advisory Industry - Regional Synopsis

North America industry is estimated to hold largest revenue share by 2036, led by increased awareness amongst consumers for robo advisory solutions and services as well as the need amongst the consumers to manage their financial activities. Moreover, presence of numerous affluences in the regions is also anticipated to contribute significantly towards the growth of the market over the coming years.

Additionally, Asia Pacific is anticipated to gain significant market share on the back of rising household wealth amongst the population in the region and growing awareness for robo advisory services amongst the consumers. According to Global Wealth Databook 2019 of the Credit Suisse Research Institute, Asia Pacific constituted the largest share of total household wealth of around 39.16% amongst all other regions in the year 2019. North America had the second largest share followed by Europe with 31.78% and 25.17% respectively.

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Companies Dominating the Robo Advisory Landscape

    • Betterment LLC
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • FutureAdvisor
    • Personal Capital Corporation
    • The Vanguard Group, Inc.
    • Wealthfront Corporation
    • Axos Invest, Inc.
    • SigFig Wealth Management, LLC
    • Nutmeg Saving and Investment Limited
    • Charles Schwab & Co., Inc.
    • Bambu

In the News

  • Charles Schwab & Co., Inc. have announced the launch of Schwab Intelligent Income™, which is an income solution designed to modernize how investors can pay themselves in retirement or any other time from their investment portfolios.

  •  The Vanguard Group, Inc. have announced a joint partnership with Ant Financial to bring a new streamlined and broadly available investment advisory wealth management services to retail consumers in China.

Author Credits:  Abhishek Verma


  • Report ID: 2231
  • Published Date: Oct 08, 2024
  • Report Format: PDF, PPT
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