Global Robo Advisory Market Size, Share, and COVID-19 Impact Analysis, By Type (Pure Robo Advisor and Hybrid Robo Advisor), By Provider (Fintech Robo Advisors, Banks, Traditional Wealth Managers, and Others), By Service Type (Direct Plan-based/Goal-based and Comprehensive Wealth Advisory), By End User (Retail Investor and High Net Worth Individuals), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Analysis and Forecast 2021 – 2030Industry: Information & Technology
Global Robo Advisory Market Insights Forecasts to 2030
- The global Robo advisory market was valued at USD 4.13 billion in 2021.
- The market is growing at a CAGR of 29.7% from 2022 to 2030
- The global Robo Advisory market is expected to reach USD 42.89 billion by 2030
- The Asia-Pacific is expected to grow the fastest during the forecast period
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The global Robo advisory market is expected to reach USD 42.89 billion by 2030, at a CAGR of 29.7% during the forecast period of 2022 to 2030. A low-cost, automated online wealth management service called a "robo-advisor" can manage a client's portfolio or offer financial advice while requiring little human involvement. The market is primarily driven by variables, including the rising demand for healthcare and the financial services sector's growing tendency toward digitization.
Robo Advisory Market Overview:
The demand for robo-advisers is anticipated to increase due to the financial sector's increased adoption of technology-enabled analytics for investment consultations. Another driver of industry growth is the quick transition from traditional investment services to robo-advising investment services. Furthermore, robo-advisors are now available on investment platforms instead of traditional investment services, allowing for the spread of robo-advisors. The market is being driven ahead by the extensive usage of robo-advisory across several industrial verticals, including retail banking, asset management, and others, for algorithmic calculations to evaluate data and provide thorough information. Additionally, robo advisers provide particular advantages, including tax loss harvesting, low-cost portfolio, superior decision-making, safe and secure investments, and assistance removing credit risks. Over the forecast period, these variables are anticipated to fuel industry expansion. One of the key factors propelling the market's growth is the emergence of new technologies like artificial intelligence (AI) and machine learning (ML). One of the main robo-adviser developments is the expanding use of AI and ML in investment platforms. For instance, the launch of Kenanga Digital Investing was announced by the Malaysian financial services company Kenanga IB in February 2022. (KDI). The market's newest automated Artificial Intelligence (AI) robo-advisor, which seeks to make financial decisions easier, powers this digital investing platform.
Robo Advisory Market Coverage
This research report categorizes the global robo-advisory market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global robo-advisory market. Recent market developments and competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each global robo-advisory market sub-segments.
Robo Advisory Market Segmentation Analysis
- In 2021, hybrid robo-advisors dominated the market with the largest market share of 64% and market revenue of 2.64 billion.
Based on the type, the robo-advisory market is divided into Pure Robo Advisor and Hybrid Robo Advisor. The hybrid robo advisors dominated the industry in 2021 with a market share of 64% and 2.64 billion in sales. The desire for hybrid robo advisers, which combine the human element of a personal financial advisor with the efficiency and reliability of robotic algorithms, is expected to boost the segment's growth. Additionally, hybrid robo-advisers give clients access to a live, one-on-one conversation to review their finances, adding another security layer. For instance, a U.S.-based investment company called Voya Financial introduced a hybrid robo-advisory platform in July 2019 to help its advisors be more productive and to improve communication with the broker-dealer.
- In 2021, the fintech robo accounted for the largest share of the market share of 30% and market revenue of 1.23 billion.
Based on the provider, the robo advisory market is divided into Fintech Robo Advisors, Banks, Traditional Wealth Managers, and Others. The fintech robo advisors dominated the industry in 2021 with a market share of 30% and 1.23 billion sales. Automation and consulting services based on personalization are key components of fintech worldwide. Fintech companies can also quickly roll out robo advisers by implementing cutting-edge technologies like sophisticated analytics and quantitative finance. Retail investors will receive precise and trustworthy advice from this deployment, preventing them from making unwise investment choices.
- In 2021, The direct plan-based/goal-based segment dominated the market, with 56% and market revenue of 2.31 billion.
Based on the service type, the Robo Advisory market is divided into Direct Plan-based/Goal-based and Comprehensive Wealth Advisory. The direct plan based / goal-based dominated the industry in 2021 with a market share of 56% and 2.31 billion in sales. Investors respect a robo-advantages advisor's thorough goal planning, portfolio management, security features, and caring customer care. By adopting goal-based robo-advisors, which offer risk profiling and goal-based suggestions, customers can run scenarios on goal planning and be advised to take steps that will boost their chances of success. It is projected that new goal-setting platforms with flexible options, cost-free digital financial planning tools, and potent progress monitors integrated across the platform will hasten the segment's growth.
Regional Segment Analysis of the Robo Advisory Market
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
- Asia-Pacific (China, Japan, India, Rest of APAC)
- South America (Brazil and the Rest of South America)
- The Middle East and Africa (UAE, South Africa, Rest of MEA)
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Among all regions, North America emerged as the largest market for the global Robo Advisory market, with a market share of around 39.4% and 4.13 billion of the market revenue in 2021.
- In 2021, North America emerged as the largest market for the global robo advisory market, with a market share of around 39.4% and 4.13 billion of the market revenue. The US robo-advising market is anticipated to increase due to numerous notable firms, including Betterment, the Vanguard Group, Inc., and others. For instance, The Vanguard Group, Inc. announced the debut of its robo-advice service in September 2019. The company claims that with this launch, the service would no longer require human input, minimizing errors and enabling quick calculations.
- The Asia-Pacific Robo Advisory Market is expected to grow at the fastest CAGR between 2021 and 2030. It is expected that the Asia Pacific region will expand significantly during the forecast period. The regional market expansion can be linked to consumers' increasing understanding of the advantages of using automated financial help for investments and savings. The employment of robo-advising is being promoted by several businesses around the Asia Pacific, which is anticipated to help the region. For instance, TradeSmart, one of India's top new-age online discount brokerage companies, said in July 2022 that it had partnered with Modern Algos to provide AI-powered advisory services. This platform has AI to give users a productive order management solution. It uses deep insights based on algorithms to ensure they get the appropriate personalized advisory depending on their age, gender, and other factors.
Competitive Analysis of Robo Advisory Market:
The report offers the appropriate analysis of the key organizations/companies involved within the global robo advisory market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the companies' current news and developments, including product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
List of Key Market Players:
- Fincite GmbH
- Wealthfront Corporation.
- The Vanguard Group, Inc.
- Charles Schwab & Co., Inc.
- Ginmon Vermögensverwaltung GmbH
- Wealthify Limited
- Social Finance, Inc.
- SigFig Wealth Management
Key Target Audience
- Market Players
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Third-party knowledge providers
- Value-Added Resellers (VARs)
- In February 2021, The Goldman Sachs Group, Inc. announced opening a digital investment platform as part of the Marcus drive. The main objective of this platform will be to distribute and rebalance consumers' capital among stock and bond portfolios.
- In December 2019, Ant Financial Services and Vanguard Group, Inc. worked together to improve their position in the market. This partnership has allowed Vanguard Group, Inc. to provide simplistic investment advisory and wealth management services to retail customers in China.
This study forecasts revenue at global, regional, and country levels from 2019 to 2030. Spherical Insights has segmented the global robo-advisory market based on the below-mentioned segments:
Global Robo Advisory Market, By Type
- Pure Robo Advisors
- Hybrid Robo Advisors
Global Robo Advisory Market, By Provider
- Fintech Robo Advisors
- Traditional Wealth Managers
Global Robo Advisory Market, By Service Type
- Direct Plan-based/Goal-based
- Comprehensive Wealth Advisory
Global Robo Advisory Market, By End User
- Retail Investor
- High Net Worth Individuals
Global Robo Advisory Market, Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
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