Product Code: GVR-4-68039-969-8
Robo Advisory Market Growth & Trends:
The global robo advisory market size is anticipated to reach USD 41.83 billion by 2030, registering a CAGR of 30.5% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growing use of smartphones coupled with the increased applications of chatbots on various investment and e-commerce platforms worldwide is anticipated to drive the demand for robo advisory during the projected period. In addition, the increasing awareness of digital investment consultation services is expected to drive market growth during the forecast period.
Robo-advisory includes algorithm and automated driven financial planning with little human involvement. Additionally, through an online survey, the robo-advisor gathers financial information from clients, such as their current financial position and future financial goals. Furthermore, using this information, robo advisors offer clients certain benefits such as quick account setup, portfolio management, and security features. Such factors are anticipated to drive the market in the near future.
Players in the robo advisory market are actively prioritizing technological advancements and forming strategic partnerships to broaden their product range, aiming to enhance the automated investment experience for their customers. Major market participants are securing funding to elevate their automated financial advisory services and improve overall customer experience. In September 2021, Betterment LLC secured USD 160 million in funding, propelling the company's market valuation beyond USD 1.3 billion. Such initiatives are driving the growth of the robo advisory market.
The pandemic has contributed positively to the market growth, thereby driving the demand for robo advisors in the near future. Several businesses have reported increased digital consulting activity in the first quarter of 2020. For instance, in April 2021, Betterment reported an increase in account openings by over 25% due to the COVID-19 pandemic These factors are expected to fuel the market growth during the forecast period.
Robo Advisory Market Report Highlights:
- Based on type, the hybrid robo advisors segment dominated the market in 2023. The growth of the segment is attributed to the rising demand for hybrid robo advisors from investors seeking low fees and user-friendly interfaces, alongside personalized advice and guidance typically provided by human advisors
- Based on provider, the fintech robo advisor dominated the market in 2023 and is expected to grow at a significant CAGR during the forecast period. The growing demand for fintech robo advisors owing to its benefits such as tax harvesting, auto rebalancing, estate planning, retirement planning, and simplified insurance processing, among others is attributed to the segment's growth
- Based on service type, the direct plan-based/goal- based segment dominated the market in 2023. The continuous innovations undertaken by market players to offer direct plan-based/goal-based robo advisors are driving the growth of the segment
- Based on end-use, the high net worth individuals segment dominated the market in 2023. Robo advisory platforms provide financial advice to high-net-worth individuals who are seeking to gain maximum returns at lower processing fees
Table of Contents
Chapter 1. Methodology and Scope
- 1.1. Market Segmentation and Scope
- 1.2. Market Definitions
- 1.3. Research Methodology
- 1.3.1. Information Procurement
- 1.3.2. Information or Data Analysis
- 1.3.3. Market Formulation & Data Visualization
- 1.3.4. Data Validation & Publishing
- 1.4. Research Scope and Assumptions
- 1.4.1. List of Data Sources
Chapter 2. Executive Summary
- 2.1. Market Outlook
- 2.2. Segment Outlook
- 2.3. Competitive Insights
Chapter 3. Market Variables, Trends, and Scope
- 3.1. Market Introduction/Lineage Outlook
- 3.2. Industry Value Chain Analysis
- 3.3. Market Dynamics
- 3.3.1. Market Drivers Analysis
- 3.3.1.1. Increasing digitization of financial services
- 3.3.1.2. Shift in preference from traditional investment services to robo advisors
- 3.3.2. Market Challenge Analysis
- 3.3.2.1. Security risks and data privacy concerns
- 3.3.3. Market Opportunity Analysis
- 3.3.3.1. Technological advancements in robo advisory industry
- 3.4. Robo Advisory Market Analysis Tools
- 3.4.1. Porter's Analysis
- 3.4.1.1. Bargaining power of the suppliers
- 3.4.1.2. Bargaining power of the buyers
- 3.4.1.3. Threats of substitution
- 3.4.1.4. Threats from new entrants
- 3.4.1.5. Competitive rivalry
- 3.4.2. PESTEL Analysis
- 3.4.2.1. Political landscape
- 3.4.2.2. Economic and Social landscape
- 3.4.2.3. Technological landscape
- 3.4.2.4. Environmental landscape
- 3.4.2.5. Legal landscape
Chapter 4. Robo Advisory Market: Type Estimates & Trend Analysis
- 4.1. Segment Dashboard
- 4.2. Robo Advisory Market: Type Movement Analysis, USD Million, 2023 & 2030
- 4.3. Pure Robo Advisors
- 4.3.1. Pure Robo Advisors Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
- 4.4. Hybrid Robo Advisors
- 4.4.1. Hybrid Robo Advisors Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
Chapter 5. Robo Advisory Market: Provider Estimates & Trend Analysis
- 5.1. Segment Dashboard
- 5.2. Robo Advisory Market: Provider Movement Analysis, USD Million, 2023 & 2030
- 5.3. Fintech Robo Advisors
- 5.3.1. Fintech Robo Advisors Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
- 5.4. Banks
- 5.4.1. Banks Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
- 5.5. Traditional Wealth Managers
- 5.5.1. Traditional Wealth Managers Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
- 5.6. Others
- 5.6.1. Others Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
Chapter 6. Robo Advisory Market: Service Type Estimates & Trend Analysis
- 6.1. Segment Dashboard
- 6.2. Robo Advisory Market: Service Type Movement Analysis, USD Million, 2023 & 2030
- 6.3. Direct Plan-based/Goal-based
- 6.3.1. Direct Plan-based/Goal-based Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
- 6.4. Comprehensive Wealth Advisory
- 6.4.1. Comprehensive Wealth Advisory Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
Chapter 7. Robo Advisory Market: End-use Estimates & Trend Analysis
- 7.1. Segment Dashboard
- 7.2. Robo Advisory Market: End-use Movement Analysis, USD Million, 2023 & 2030
- 7.3. Retail Investor
- 7.3.1. Retail Investor Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
- 7.4. High Net Worth Individuals
- 7.4.1. High Net Worth Individuals Market Revenue Estimates and Forecasts, 2017 - 2030 (USD Million)
Chapter 8. Robo Advisory Market: Regional Estimates & Trend Analysis
- 8.1. Robo Advisory Market Share, By Region, 2023 & 2030, USD Million
- 8.2. North America
- 8.2.1. North America Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.2.2. U.S.
- 8.2.2.1. U.S. Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.2.3. Canada
- 8.2.3.1. Canada Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.3. Europe
- 8.3.1. Europe Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.3.2. U.K.
- 8.3.2.1. U.K. Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.3.3. Germany
- 8.3.3.1. Germany Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.3.4. France
- 8.3.4.1. France Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.4. Asia Pacific
- 8.4.1. Asia Pacific Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.4.2. China
- 8.4.2.1. China Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.4.3. India
- 8.4.3.1. India Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.4.4. Japan
- 8.4.4.1. Japan Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.4.5. South Korea
- 8.4.5.1. South Korea Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.4.6. Australia
- 8.4.6.1. Australia Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.5. Latin America
- 8.5.1. Latin America Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.5.2. Brazil
- 8.5.2.1. Brazil Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.5.3. Mexico
- 8.5.3.1. Mexico Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.6. Middle East & Africa
- 8.6.1. Middle East & Africa Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.6.2. Kingdom Of Saudi Arabia (KSA)
- 8.6.2.1. Kingdom Of Saudi Arabia (KSA) Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.6.3. UAE
- 8.6.3.1. UAE Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
- 8.6.4. South Arica
- 8.6.4.1. South Africa Robo Advisory Market Estimates & Forecasts, 2017 - 2030 (USD Million)
Chapter 9. Competitive Landscape
- 9.1. Recent Developments & Impact Analysis by Key Market Participants
- 9.2. Company Categorization
- 9.3. Company Market Positioning
- 9.4. Company Market Share Analysis
- 9.5. Company Heat Map Analysis
- 9.6. Strategy Mapping
- 9.6.1. Expansion
- 9.6.2. Mergers & Acquisition
- 9.6.3. Partnerships & Collaborations
- 9.6.4. New Product Launches
- 9.6.5. Research And Development
- 9.7. Company Profiles
- 9.7.1. Betterment LLC
- 9.7.1.1. Participant's Overview
- 9.7.1.2. Financial Performance
- 9.7.1.3. Product Benchmarking
- 9.7.1.4. Recent Developments
- 9.7.2. Fincite Gmbh
- 9.7.2.1. Participant's Overview
- 9.7.2.2. Financial Performance
- 9.7.2.3. Product Benchmarking
- 9.7.2.4. Recent Developments
- 9.7.3. Wealthfront Corporation
- 9.7.3.1. Participant's Overview
- 9.7.3.2. Financial Performance
- 9.7.3.3. Product Benchmarking
- 9.7.3.4. Recent Developments
- 9.7.4. The Vanguard Group, Inc.
- 9.7.4.1. Participant's Overview
- 9.7.4.2. Financial Performance
- 9.7.4.3. Product Benchmarking
- 9.7.4.4. Recent Developments
- 9.7.5. The Charles Schwab Corporation
- 9.7.5.1. Participant's Overview
- 9.7.5.2. Financial Performance
- 9.7.5.3. Product Benchmarking
- 9.7.5.4. Recent Developments
- 9.7.6. Ellevest, Inc.
- 9.7.6.1. Participant's Overview
- 9.7.6.2. Financial Performance
- 9.7.6.3. Product Benchmarking
- 9.7.6.4. Recent Developments
- 9.7.7. Ginmon Vermogensverwaltung GmbH
- 9.7.7.1. Participant's Overview
- 9.7.7.2. Financial Performance
- 9.7.7.3. Product Benchmarking
- 9.7.7.4. Recent Developments
- 9.7.8. Wealthify Limited
- 9.7.8.1. Participant's Overview
- 9.7.8.2. Financial Performance
- 9.7.8.3. Product Benchmarking
- 9.7.8.4. Recent Developments
- 9.7.9. SoFi Technologies, Inc.
- 9.7.9.1. Participant's Overview
- 9.7.9.2. Financial Performance
- 9.7.9.3. Product Benchmarking
- 9.7.9.4. Recent Developments
- 9.7.10. SigFig Wealth Management, LLC
- 9.7.10.1. Participant's Overview
- 9.7.10.2. Financial Performance
- 9.7.10.3. Product Benchmarking
- 9.7.10.4. Recent Developments