Digital Investment Market Size, Share & Trends Analysis Report By Type (Neobrokers, Robo-Advisors), By Region (North America, Europe, Asia Pacific, Middle East & Africa, Central & South America), And Segment Forecasts, 2021 - 2028

Report Overview

The global digital investment market size was valued at USD 2,149.70 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 16.1% from 2021 to 2028. The most important benefit for most of the users is the economic cost structure which drives the growth of the market. Moreover, the easy accessibility and user-friendly nature of digital investment are also boosting the demand in the market. The COVID-19 outbreak positively impacted the growth, as the market has observed substantial growth, owing to the increase in the new users in the stock market and the large demand for optimized wealth management during the COVID-19 pandemic.

Digital investment is a platform that blends automated financial and business management functions to allow customers to save and invest money in stocks, shares, investments funds. This is particularly appealing to the young investors with a low regular income. The digital investment platform mostly offers a variety of affordable saving plans. This factor is expected to drive the adoption of this platform and drive market growth.

Digital investment platforms are scalable and provide greater access to investment management services; they also present numerous risks than those inherent in traditional investment management platforms. The differences are most noticeable in the investment process, use of technology, compliance with suitability necessities, and disclosure of main risks. The growing focus of organizations on digitalizing their financial services to accomplish business efficiency and better outcomes will drive the growth of the market.

The COVID-19 pandemic has positively affected the growth of the digital investment market. The market has witnessed considerable growth over the years, as most of the new and young investors started investing in the stock market and the demand for portfolio management services increased owing to the COVID-19 pandemic. Thus, the market is anticipated to grow steadily in near future.

Type Insights

The robo-advisors segment dominated the market and contributed a revenue share of around 65% in 2020 and is expected to expand at a CAGR of 15.8% from 2021 to 2028. Robo-advisors have minimum overhead costs as they are hosted electronically and permit customers to change and personalize their online investments to achieve long-term financial goals and short-term investment plans. Moreover, the customers are looking out for digital solutions that help them to budget, save, and invest their money. Thus, the robo-advisors demand is high and contributed more to the market revenue.

The neobrokers segment is expected to witness the highest CAGR of 16.5% from 2021 to 2028. The number of users drastically increased in 2020 owing to the coronavirus pandemic and the rise of meme stocks. Neobrokers offer mostly a high variety of cheap saving plans. The neobrokers is well and simply structured, which makes the trading experience simpler for the customers. The whole process has been simplified and it is often possible to buy or sell orders with just a few clicks. Thus, the neobrokers segment is anticipated to witness a rise in demand over the forecast period.

Regional Insights

Asia Pacific is anticipated to register the highest CAGR of 16.8% from 2021 to 2028. Over the past few years, the adoption of digital investment has increased rapidly among consumers and small businesses, particularly in China and India. The rapid growth of digital investment app installations in the region generally reflects the changing finance and banking landscape, as well as consumer demand. Moreover, digitalization and the COVID-19 pandemic have also contributed to the regional demand for digital investment in the region.

North America accounted for a significant market revenue share of more than 65% in 2020. The U.S. has one of the highest rates of adoption for stock trading, with over 50% of the population owning stocks. Thus, the highest asset under management in the digital investment market was reached in 2020. Huge adoption of robot advisors among investors and more usage of neobrokers are driving the regional demand. Thus, it contributes to more revenue generation in North America.

Key Companies & Market Share Insights

The market is characterized by the existence of established as well as new companies. Most of the players are providing well and simply structured app to their customers. Several digital investment platforms offer mostly a high variety of cheap saving plans. Some of the top market players such as Betterment LLC; Charles Schwab & Co., Inc.; The Vanguard Group, Inc. are making product development to gather maximum market share. Some of the prominent players operating in the global digital investment market are:

• Robinhood Markets, Inc.
• eToro Ltd.
• Betterment LLC
• The Vanguard Group, Inc.
• Plus500
• Ally Financial Inc.
• TD Ameritrade, Inc.
• Charles Schwab & Co., Inc.
• Stash Financial, LLC
• E-Trade Financial Holdings, LLC

Digital Investment Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Million Insights has segmented the global digital investment market based on type and region:

• Type Outlook (Revenue, USD Billion, 2017 - 2028)
  • Neobrokers
  • Robo-Advisors
• Regional Outlook (Revenue, USD Billion, 2017 - 2028)
  • North America
    • U.S.
    • Canada
  • Europe
    •  U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
  • Central & South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa