Dublin, Sept. 12, 2024 (GLOBE NEWSWIRE) -- The "Global Robo Advisor Market by Business Model (Hybrid Robo Advisors, Pure Robo Advisors), Provider (Banks, Fintech Robo Advisors, Traditional Wealth Managers), Service Type, End-User - Forecast 2024-2030" report has been added to ResearchAndMarkets.com's offering.
The Robo Advisor Market grew from USD 6.36 billion in 2023 to USD 8.01 billion in 2024. It is expected to continue growing at a CAGR of 26.71%, reaching USD 33.38 billion by 2030.
Robo advisors provide users with personalized investment advice, portfolio recommendations, and asset management solutions at a significantly lower cost compared to traditional human financial advisors. The expansion of financial sectors and the increasing popularity of online trading as a source of income among individuals worldwide are accelerating the use of robo-advisors. Additionally, growing digitization in financial services has increased the need for efficient wealth management solutions, further propelling the demand for robo advisors. However, limited customization options and lack of flexibility can refrain customers from adopting robo advisor services. The ongoing advancements in robo advisors to improve their performance and user experience are expected to encourage their adoption by end users worldwide.
Evolving technology, increasing demand for digital financial services, and growing millennial population have contributed to the elevated demand for robo advisors in the Americas. The APAC is witnessing rapid adoption of robo advisory platforms due to the surging internet penetration rate and central banks encouraging digital innovation in finance. Steady growth in the adoption of robo advisory solutions due to the robust regulatory frameworks that promote transparency and investor protection measures alongside investment in fintech and digital solutions by financial institutions are expanding the usage of robo advisors in the EMEA region.
Furthermore, the development of fully integrated robo advisors and the introduction of hybrid models combining human expertise with digital efficiency is anticipated to encourage the adoption of robo advisors by end-users across the globe.
Market Drivers
- Expansion of financial sectors and rise in online trading for the source of income
- Growing digitization in financial services and need for efficient wealth management
- Awareness about investment and financial planning among the working population
Market Restraints
- Limited flexibility and customization in robo advisors
Market Opportunities
- Integration with advanced technology such as artificial intelligence and the Internet-of-Things
- Development of fully Integrated and hybrid robo advisor
Market Challenges
- Data security and privacy concerns associated with the use of robo advisors
Market Segmentation Analysis
- Business Model: Growing potential of hybrid robo advisors among investors seeking complex financial planning services
- Provider: Growing popularity of fintech robo advisors due to innovative and cost-effective investment services
- Service Type: Growing adoption of direct plan-based or goal-based that readjusts the asset allocation accordingly to align with the set goal
- End-User: Emerging adoption of robo advisor among retail investors to optimize risk-return tradeoff
Recent Developments
Crypto Robo-Advisor Hedgehog Partners With CoinDesk Indices on Automated Investing Services
Hedgehog, an SEC-registered robo-advisor catering to crypto-focused investors, announced to enable users to invest in automated sectors offered by CoinDesk Indices (CDI). CDI's indices offer exposure to various digital asset sectors, including computing, culture and entertainment, currency, decentralized finance (DeFi), and smart contract platforms. Moreover, Hedgehog is incorporating The CoinDesk Market Select Index (CMIS), granting access to all the sectors tracked by CDI.
Revolut Launches Robo-Advisor in the U.S., Streamlining Investment Portfolios
Revolut's robo-advisor is now accessible in the United States, offering customers an automated and cost-effective solution for managing their investment portfolios. It provides five diversified portfolios tailored to individual risk tolerance levels. The robo-advisor efficiently allocates and monitors funds based on customer preferences, ensuring regular portfolio rebalancing to promote long-term growth.
J.P. Morgan Launches Hybrid Robo-Advisor
J.P. Morgan introduced a hybrid robo-advisor program for its wealth management services. This program is accessible to all investors, with a particular focus on banking and credit card customers. It provides a comprehensive digital investment platform that offers continuous access to a human financial advisor, ensuring a seamless blend of technology and personalized guidance.
Strategy Analysis & Recommendation
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Robo Advisor Market.
This critical assessment involves a thorough analysis of the organization's resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 197 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value (USD) in 2024 | $8.01 Billion |
| Forecasted Market Value (USD) by 2030 | $33.38 Billion |
| Compound Annual Growth Rate | 26.7% |
| Regions Covered | Global |
Key Topics Covered:
Market Insights
- Market Dynamics
- Market Segmentation Analysis
- Market Disruption Analysis
- Porter's Five Forces Analysis
- Value Chain & Critical Path Analysis
- Pricing Analysis
- Technology Analysis
- Patent Analysis
- Trade Analysis
- Regulatory Framework Analysis
Robo Advisor Market, by Business Model
- Hybrid Robo Advisors
- Pure Robo Advisors
Robo Advisor Market, by Provider
- Banks
- Fintech Robo Advisors
- Traditional Wealth Managers
Robo Advisor Market, by Service Type
- Comprehensive Wealth Advisory
- Direct Plan-Based or Goal-Based
Robo Advisor Market, by End-User
- High Net Worth Individuals
- Retail Investor
- Ultra High Net Worth Individuals
Americas Robo Advisor Market
Asia-Pacific Robo Advisor Market
Europe, Middle East & Africa Robo Advisor Market
Competitive Landscape
- Market Share Analysis, 2023
- FPNV Positioning Matrix, 2023
- Competitive Scenario Analysis
- Crypto Robo-Advisor Hedgehog Partners With CoinDesk Indices on Automated Investing Services
- Revolut Launches Robo-Advisor in the U.S., Streamlining Investment Portfolios
- J.P. Morgan Launches Hybrid Robo-Advisor
- Strategy Analysis & Recommendation
Company Coverage:
- Acorns Grow
- Ally Financial
- Axos Financial
- Capital One
- Charles Schwab Corporation
- Covestor
- E*TRADE by Morgan Stanley
- Fincite
- FMR
- Ginmon Vermogensverwaltung
- M1 Holdings
- Merrill Guided Investing by Bank of America Corporation
- MFM Investment
- Mphasis
- Profile Software
- Qraft Technologies
- QuietGrowth
- Scalable Capital
- SigFig Wealth Management
- Social Finance
- The Vanguard Group
- Wealthfront
- Wells Fargo Clearing Services
- Zacks Advantage
For more information about this report visit https://www.researchandmarkets.com/r/shwtad
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