Robo-Advisors Market Size, Share & Trends Analysis Report By Type (Automated Online Portfolio Management Services, Financial Advisory Services), By Region (APAC, North America), And Segment Forecasts, 2021 - 2028

Report Overview

The global robo-advisors market size was valued at USD 1,400.30 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 18.6% from 2021 to 2028. The cost-effective investment advisory and more accessibility is the key driver for the market. The COVID-19 pandemic had a positive impact on this market. The has witnessed considerable growth owing to the high demand for optimized wealth management during the COVID-19 pandemic. Robo-advisors are digital platforms that primarily offer automated and algorithm-driven financial planning services.

They mainly provide easy account setup, strong goal planning, account services, portfolio management, security features, observant customer service at low rates. 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. The robo advisory online platforms have numerous benefits but the most significant of all is that they are economical and need minimal or no human collaboration.

These platforms have become largely diverse with a portfolio base of several trading theories, approaches, and concepts, which made them very useful even for difficult tasks like tax-loss harvesting and retirement planning. The market had considerable growth during the pandemic, as the younger population took the advantage of investment opportunities during this period. The post-pandemic position is favorable with hybrid robo-advisory. This service provides financial planning along with guidance by usually combining a professionally-managed account with the help of a robo-advisory service. Therefore, the market will grow steadily over the years to come.

Type Insights

The automated online portfolio management services segment dominated the market and accounted for the largest revenue share of more than 75% in 2020. The segment is estimated to expand further at a steady CAGR from 2021 to 2028. Automated online portfolio management services mainly help improve speed as well as accuracy for making business decisions as they seek an advantage in this competitive environment. Moreover, the customers are looking out for digital solutions that help them to budget, save, and invest their money. Thus, the rising demand for automated portfolio management services will drive the growth of this segment.

The financial advisory services segment is expected to witness the highest CAGR from 2021 to 2028. A growing number of new investors are looking for financial advisory services for investment in the market and to complete their financial goals. These services gather customers’ financial data by an online survey and use the information to provide advice & automatically invest customers’ assets. As per the study conducted by Investopedia and the Financial Planning Association, customers generally prefer financial advisory services for financial planning during critical periods, such as a pandemic.

Regional Insights

Asia Pacific is estimated to register the fastest CAGR of 19.2% from 2021 to 2028. The increase of digital investments, advisory landscape supported by a rise in the number of start-ups, and various government initiatives for FinTech growth across the developing nations, such as China, India, and Japan, are anticipated to boost the regional market growth. According to MEDICI, the number of robo-advisors in India rose from 3 companies in 2013 to 16 companies by the end of 2019.

The regional analysis revealed that North America accounted for the largest revenue share in 2020. The U.S. was the major country in this region that contributed largely to the revenue generation of the market in 2020. The development of robo-advisors algorithm-based account services increased in 2020 in the US and Canada, as investors took benefit of investment chances during the COVID-19 pandemic. In 2020, the highest asset under management in the market was reached in the U.S.

Key Companies & Market Share Insights

The market is characterized by the presence of several established as well as new players. Some of the top market players are focusing more on new product development to gain maximum market share. In addition, the governments of various economies are motivating smaller players to enter the market with advanced products or by making strategic collaborations. Some of the prominent players in the global robo-advisors market include:

• Betterment LLC
• Charles Schwab & Co., Inc.
• Social Finance, Inc.
• Wealthfront Corporation
• Axos Financial, Inc.
• Ally Financial Inc.
• TD Ameritrade, Inc.
• Wealthsimple Technologies Inc.
• The Vanguard Group, Inc.
• SigFig Wealth Management, LLC 

Robo-Advisors 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 the purpose of this study, Million Insights has segmented the global robo-advisors market report on the basis of type and region:

• Type Outlook (Revenue, USD Billion, 2017 - 2028)
  • Automated Online Portfolio Management Services
  • Financial Advisory Services
• 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