Robo Advisory Market | 2031 Strategic Insights | Recent updates
The robo advisory market is projected to grow from US$ 5.89 billion in 2023 to US$ 51.84 billion by 2031; it is expected to expand at a CAGR of 31.2% from 2023 to 2031.
Several emerging economies are encouraging regional players to expand their testing and research into Robo-advisory services. These activities are also expected to serve as a stimulus for market expansion. Robo-advising services primarily provide investment advisory services for individual finances. Robo-advisors are rapidly replacing the gaps left by human investment advisors, such as capability, capacity, and cost, owing mostly to the increased adoption of digitalization across the investment industry, combined with the development of AI in robotics.
Robo Advisory Market Analysis
The growing digitization of the BFSI business has hastened the expansion of digital investments, with robo-advisors playing a significant role. Robo-advisory services are particularly useful for passive investors who do not desire personal monitoring of their portfolio's progress. The need for robo-advisers is expected to rise as the financial sector increasingly uses technology-enabled analytics for investment consultations. Another driver of industry growth is the rapid shift from traditional investment services to robo-advising investment services. Furthermore, robo-advisors are now available on investing platforms rather than traditional financial services, enabling their widespread use.
Robo Advisory Market Overview
- Rapid automation of processes and enterprises in end-user sectors is driving the development of robo-advisory services. These services minimize the need for human labor because internet platforms provide the same services at a much lower cost. Furthermore, as long as the user has access to the Internet, the services are available at all times.
- The growing usage of robo-advisory in industrial verticals such as retail banking, asset management, and others to perform algorithmic calculations on data and communicate complete information is propelling the industry ahead.
- Furthermore, robo-advisers provide unique benefits such as low-cost portfolios, tax loss harvesting, safe and secure investments, better decision-making, and credit risk reduction. Such elements are expected to fuel industry expansion during the predicted period.
Robo Advisory Market Driver and Opportunities
Focus on New Launches to Drive the Robo Advisory Market
- Many robo-advisor solution providers are working on releasing innovative solutions to provide customers with improved financial advice. For instance, In July 2022, The Vanguard Group, Inc. announced the debut of Vanguard Personal Advisor, which is specifically designed for members in employer-sponsored retirement plans.
- Similarly, in June 2023, Revolut, a worldwide neobank and financial technology business, launched a robo adviser in the United States to automate consumer investment portfolios and streamline the investment process.
Increasing Integration of Digital Technology in Financial Services to Create Lucrative Market Opportunities
- Robo advising platforms offer automated financial management services that can be accessed online or via mobile platforms. They provide sophisticated financial information and advice in a simplified manner that everyone can understand, regardless of financial background.
- The global financial sector has grown rapidly as digital technologies have become more widely used. The incorporation of Artificial Intelligence (AI) into investment processes has enabled automated investing.
- The market's rise can also be linked to the service's perks, such as accessibility, cost-effectiveness, and convenience.
Robo Advisory Market Report Segmentation Analysis
The key segment that contributed to the derivation of the Robo Advisory market analysis is type.
- In 2023, the high net worth individuals (HNWIs) sector had the highest market revenue share. The increased demand for HNWIs by private equity managers to protect their investments is expected to promote the segment's growth.
- In 2023, the fintech robo advisors segment had the highest market revenue share. Fintechs around the world rely on both automated and personalized consulting services. Furthermore, fintech firms may quickly deploy robo advisers by leveraging modern technologies like advanced analytics and quantitative finance.
Robo Advisory Market Share Analysis By Geography
- The scope of the Robo Advisory market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America.
- North America is expected to dominate the market due to the presence of various key participants, including Betterment LLC, Wealthfront Inc., Charles Schwab & Co. Inc., and Vanguard Group, among others. Furthermore, the region has outperformed other regions in terms of technological advancement and the robotics sector.
Robo Advisory Market Report Scope
Robo Advisory Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the Robo Advisory market. Some of the recent key market developments are listed below:
- In November 2023, WealthKernel, a wealthtech business that provides digital investing services, announced a partnership with Bambu, a provider of digital wealth technology. This collaboration introduces Bambu GO, a ready-to-use robo-adviser platform developed exclusively for financial institutions. [Source: WealthKernel, Company Website]
Robo Advisory Market Report Coverage & Deliverables
The Robo Advisory market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Robo Advisory Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
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- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Request discounts available for Start-Ups & Universities
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Request discounts available for Start-Ups & Universities
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Application, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
Rising utilization of digital technology and focus on new launches are the major factors that propel the global robo-advisory market.
The global Robo Advisory market was estimated to grow at a CAGR of 31.2% during 2023 - 2031.
Increasing integration of digital technology in financial services to play a significant role in the global robo advisory market in the coming years.
Asia Pacific is anticipated to grow with a high growth rate during the forecast period.
The major players holding majority shares are Betterment LLC, Fincite Gmbh, Wealthfront Corporation, The Vanguard Group, Inc., and The Charles Schwab Corporation.
TABLE OF CONTENTS
1. INTRODUCTION
1.1. SCOPE OF THE STUDY
1.2. THE INSIGHT PARTNERS RESEARCH REPORT GUIDANCE
1.3. MARKET SEGMENTATION
1.3.1 Robo Advisory Market - By Type
1.3.2 Robo Advisory Market - By Application
1.3.3 Robo Advisory Market - By Region
1.3.3.1 By Country
2. KEY TAKEAWAYS
3. RESEARCH METHODOLOGY
4. ROBO ADVISORY MARKET LANDSCAPE
4.1. OVERVIEW
4.2. PORTER'S FIVE FORCES ANALYSIS
4.2.1 Bargaining Power of Buyers
4.2.1 Bargaining Power of Suppliers
4.2.1 Threat of Substitute
4.2.1 Threat of New Entrants
4.2.1 Competitive Rivalry
4.3. ECOSYSTEM ANALYSIS
4.4. EXPERT OPINIONS
5. ROBO ADVISORY MARKET - KEY MARKET DYNAMICS
5.1. KEY MARKET DRIVERS
5.2. KEY MARKET RESTRAINTS
5.3. KEY MARKET OPPORTUNITIES
5.4. FUTURE TRENDS
5.5. IMPACT ANALYSIS OF DRIVERS AND RESTRAINTS
6. ROBO ADVISORY MARKET - GLOBAL MARKET ANALYSIS
6.1. ROBO ADVISORY - GLOBAL MARKET OVERVIEW
6.2. ROBO ADVISORY - GLOBAL MARKET AND FORECAST TO 2028
6.3. MARKET POSITIONING/MARKET SHARE
7. ROBO ADVISORY MARKET - REVENUE AND FORECASTS TO 2028 - TYPE
7.1. OVERVIEW
7.2. TYPE MARKET FORECASTS AND ANALYSIS
7.3. AUTOMATED ROBO-ADVISORS
7.3.1. Overview
7.3.2. Automated Robo-Advisors Market Forecast and Analysis
7.4. HYBRID ROBO-ADVISORS
7.4.1. Overview
7.4.2. Hybrid Robo-Advisors Market Forecast and Analysis
8. ROBO ADVISORY MARKET - REVENUE AND FORECASTS TO 2028 - APPLICATION
8.1. OVERVIEW
8.2. APPLICATION MARKET FORECASTS AND ANALYSIS
8.3. AUTOMATED FINANCIAL PLANNING
8.3.1. Overview
8.3.2. Automated Financial Planning Market Forecast and Analysis
8.4. FINANCIAL ADVICE
8.4.1. Overview
8.4.2. Financial Advice Market Forecast and Analysis
8.5. BROKERAGE
8.5.1. Overview
8.5.2. Brokerage Market Forecast and Analysis
8.6. FUND PLATFORMS
8.6.1. Overview
8.6.2. Fund Platforms Market Forecast and Analysis
8.7. OTHERS
8.7.1. Overview
8.7.2. Others Market Forecast and Analysis
9. ROBO ADVISORY MARKET REVENUE AND FORECASTS TO 2028 - GEOGRAPHICAL ANALYSIS
9.1. NORTH AMERICA
9.1.1 North America Robo Advisory Market Overview
9.1.2 North America Robo Advisory Market Forecasts and Analysis
9.1.3 North America Robo Advisory Market Forecasts and Analysis - By Type
9.1.4 North America Robo Advisory Market Forecasts and Analysis - By Application
9.1.5 North America Robo Advisory Market Forecasts and Analysis - By Countries
9.1.5.1 United States Robo Advisory Market
9.1.5.1.1 United States Robo Advisory Market by Type
9.1.5.1.2 United States Robo Advisory Market by Application
9.1.5.2 Canada Robo Advisory Market
9.1.5.2.1 Canada Robo Advisory Market by Type
9.1.5.2.2 Canada Robo Advisory Market by Application
9.1.5.3 Mexico Robo Advisory Market
9.1.5.3.1 Mexico Robo Advisory Market by Type
9.1.5.3.2 Mexico Robo Advisory Market by Application
9.2. EUROPE
9.2.1 Europe Robo Advisory Market Overview
9.2.2 Europe Robo Advisory Market Forecasts and Analysis
9.2.3 Europe Robo Advisory Market Forecasts and Analysis - By Type
9.2.4 Europe Robo Advisory Market Forecasts and Analysis - By Application
9.2.5 Europe Robo Advisory Market Forecasts and Analysis - By Countries
9.2.5.1 Germany Robo Advisory Market
9.2.5.1.1 Germany Robo Advisory Market by Type
9.2.5.1.2 Germany Robo Advisory Market by Application
9.2.5.2 France Robo Advisory Market
9.2.5.2.1 France Robo Advisory Market by Type
9.2.5.2.2 France Robo Advisory Market by Application
9.2.5.3 Italy Robo Advisory Market
9.2.5.3.1 Italy Robo Advisory Market by Type
9.2.5.3.2 Italy Robo Advisory Market by Application
9.2.5.4 United Kingdom Robo Advisory Market
9.2.5.4.1 United Kingdom Robo Advisory Market by Type
9.2.5.4.2 United Kingdom Robo Advisory Market by Application
9.2.5.5 Russia Robo Advisory Market
9.2.5.5.1 Russia Robo Advisory Market by Type
9.2.5.5.2 Russia Robo Advisory Market by Application
9.2.5.6 Rest of Europe Robo Advisory Market
9.2.5.6.1 Rest of Europe Robo Advisory Market by Type
9.2.5.6.2 Rest of Europe Robo Advisory Market by Application
9.3. ASIA-PACIFIC
9.3.1 Asia-Pacific Robo Advisory Market Overview
9.3.2 Asia-Pacific Robo Advisory Market Forecasts and Analysis
9.3.3 Asia-Pacific Robo Advisory Market Forecasts and Analysis - By Type
9.3.4 Asia-Pacific Robo Advisory Market Forecasts and Analysis - By Application
9.3.5 Asia-Pacific Robo Advisory Market Forecasts and Analysis - By Countries
9.3.5.1 Australia Robo Advisory Market
9.3.5.1.1 Australia Robo Advisory Market by Type
9.3.5.1.2 Australia Robo Advisory Market by Application
9.3.5.2 China Robo Advisory Market
9.3.5.2.1 China Robo Advisory Market by Type
9.3.5.2.2 China Robo Advisory Market by Application
9.3.5.3 India Robo Advisory Market
9.3.5.3.1 India Robo Advisory Market by Type
9.3.5.3.2 India Robo Advisory Market by Application
9.3.5.4 Japan Robo Advisory Market
9.3.5.4.1 Japan Robo Advisory Market by Type
9.3.5.4.2 Japan Robo Advisory Market by Application
9.3.5.5 South Korea Robo Advisory Market
9.3.5.5.1 South Korea Robo Advisory Market by Type
9.3.5.5.2 South Korea Robo Advisory Market by Application
9.3.5.6 Rest of Asia-Pacific Robo Advisory Market
9.3.5.6.1 Rest of Asia-Pacific Robo Advisory Market by Type
9.3.5.6.2 Rest of Asia-Pacific Robo Advisory Market by Application
9.4. MIDDLE EAST AND AFRICA
9.4.1 Middle East and Africa Robo Advisory Market Overview
9.4.2 Middle East and Africa Robo Advisory Market Forecasts and Analysis
9.4.3 Middle East and Africa Robo Advisory Market Forecasts and Analysis - By Type
9.4.4 Middle East and Africa Robo Advisory Market Forecasts and Analysis - By Application
9.4.5 Middle East and Africa Robo Advisory Market Forecasts and Analysis - By Countries
9.4.5.1 South Africa Robo Advisory Market
9.4.5.1.1 South Africa Robo Advisory Market by Type
9.4.5.1.2 South Africa Robo Advisory Market by Application
9.4.5.2 Saudi Arabia Robo Advisory Market
9.4.5.2.1 Saudi Arabia Robo Advisory Market by Type
9.4.5.2.2 Saudi Arabia Robo Advisory Market by Application
9.4.5.3 U.A.E Robo Advisory Market
9.4.5.3.1 U.A.E Robo Advisory Market by Type
9.4.5.3.2 U.A.E Robo Advisory Market by Application
9.4.5.4 Rest of Middle East and Africa Robo Advisory Market
9.4.5.4.1 Rest of Middle East and Africa Robo Advisory Market by Type
9.4.5.4.2 Rest of Middle East and Africa Robo Advisory Market by Application
9.5. SOUTH AND CENTRAL AMERICA
9.5.1 South and Central America Robo Advisory Market Overview
9.5.2 South and Central America Robo Advisory Market Forecasts and Analysis
9.5.3 South and Central America Robo Advisory Market Forecasts and Analysis - By Type
9.5.4 South and Central America Robo Advisory Market Forecasts and Analysis - By Application
9.5.5 South and Central America Robo Advisory Market Forecasts and Analysis - By Countries
9.5.5.1 Brazil Robo Advisory Market
9.5.5.1.1 Brazil Robo Advisory Market by Type
9.5.5.1.2 Brazil Robo Advisory Market by Application
9.5.5.2 Argentina Robo Advisory Market
9.5.5.2.1 Argentina Robo Advisory Market by Type
9.5.5.2.2 Argentina Robo Advisory Market by Application
9.5.5.3 Rest of South and Central America Robo Advisory Market
9.5.5.3.1 Rest of South and Central America Robo Advisory Market by Type
9.5.5.3.2 Rest of South and Central America Robo Advisory Market by Application
10. INDUSTRY LANDSCAPE
10.1. MERGERS AND ACQUISITIONS
10.2. AGREEMENTS, COLLABORATIONS AND JOIN VENTURES
10.3. NEW PRODUCT LAUNCHES
10.4. EXPANSIONS AND OTHER STRATEGIC DEVELOPMENTS
11. ROBO ADVISORY MARKET, KEY COMPANY PROFILES
11.1. AXOS INVEST, INC.
11.1.1. Key Facts
11.1.2. Business Description
11.1.3. Products and Services
11.1.4. Financial Overview
11.1.5. SWOT Analysis
11.1.6. Key Developments
11.2. BETTERMENT LLC
11.2.1. Key Facts
11.2.2. Business Description
11.2.3. Products and Services
11.2.4. Financial Overview
11.2.5. SWOT Analysis
11.2.6. Key Developments
11.3. CHARLES SCHWAB AND CO., INC.
11.3.1. Key Facts
11.3.2. Business Description
11.3.3. Products and Services
11.3.4. Financial Overview
11.3.5. SWOT Analysis
11.3.6. Key Developments
11.4. FUTUREADVISOR
11.4.1. Key Facts
11.4.2. Business Description
11.4.3. Products and Services
11.4.4. Financial Overview
11.4.5. SWOT Analysis
11.4.6. Key Developments
11.5. HEDGEABLE, INC.
11.5.1. Key Facts
11.5.2. Business Description
11.5.3. Products and Services
11.5.4. Financial Overview
11.5.5. SWOT Analysis
11.5.6. Key Developments
11.6. NUTMEG SAVING AND INVESTMENT LIMITED
11.6.1. Key Facts
11.6.2. Business Description
11.6.3. Products and Services
11.6.4. Financial Overview
11.6.5. SWOT Analysis
11.6.6. Key Developments
11.7. PERSONAL CAPITAL CORPORATION
11.7.1. Key Facts
11.7.2. Business Description
11.7.3. Products and Services
11.7.4. Financial Overview
11.7.5. SWOT Analysis
11.7.6. Key Developments
11.8. SIGFIG WEALTH MANAGEMENT, LLC
11.8.1. Key Facts
11.8.2. Business Description
11.8.3. Products and Services
11.8.4. Financial Overview
11.8.5. SWOT Analysis
11.8.6. Key Developments
11.9. THE VANGUARD GROUP, INC.
11.9.1. Key Facts
11.9.2. Business Description
11.9.3. Products and Services
11.9.4. Financial Overview
11.9.5. SWOT Analysis
11.9.6. Key Developments
11.10. WEALTHFRONT CORPORATION
11.10.1. Key Facts
11.10.2. Business Description
11.10.3. Products and Services
11.10.4. Financial Overview
11.10.5. SWOT Analysis
11.10.6. Key Developments
12. APPENDIX
12.1. ABOUT THE INSIGHT PARTNERS
12.2. GLOSSARY OF TERMS
The List of Companies
1. AXOS INVEST, INC.
2. BETTERMENT LLC
3. CHARLES SCHWAB AND CO., INC.
4. FUTUREADVISOR
5. HEDGEABLE, INC.
6. NUTMEG SAVING AND INVESTMENT LIMITED
7. PERSONAL CAPITAL CORPORATION
8. SIGFIG WEALTH MANAGEMENT, LLC
9. THE VANGUARD GROUP, INC.
10. WEALTHFRONT CORPORATION
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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