Product Code: RP-ID-10352408 |
Published Date: 21 Mar 2025 |
Region: Global |
Category: ICT & Telecom |
Report ID: 10352408
Market Overview:
Robo Advisory Market Analysis by Service Providers (Traditional Wealth Managers, Banks, FinTech Robo Advisors, and Others); by Business Model Type (Hybrid, and Pure Robo Advisory); and by Service Type (Wealth, and Cash Management)-Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Definition of Robo Advisory Market
Robo advisory are digital platforms that offer algorithm-driven and automated financial planning services with no or little human intervention. Robo advisor uses algorithm calculations to analyze the data for providing comprehensive asset allocation approach that meets with the investor’s goals. There has been continuous investment made in the robo advisor industry for its development leading to the economic growth. It is majorly divided into 2 types on the basis of service type such as cash management, and wealth management.
Global Robo Advisory Market: Key Insights
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~30% |
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Base Year Market Size (2022) |
~ USD 9.0 Billion |
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Forecast Year Market Size (2035) |
~ USD 52.0 Billion |
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Regional Scope |
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Global Robo Advisory Market Size, Forecast, and Trend Highlights Over 2023 - 2035
The global robo advisory market is estimated to garner a revenue of USD 52.0 Billion by the end of 2035 by growing at a CAGR of ~30% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 9.0 Billion in the year 2022. The growth of the market can be attributed to the surging requirement of advisory for investment advices for better returns and growth. For instance, there is a requirement for more than 25,000 new advisors for planning services and financial products in the United States.
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There has been an increase in the number of internet users worldwide, that are supporting financial advisory firms by promoting themselves through digital form and providing better advice related to investments. Therefore, it is projected to drive the growth of the global robo advisory market. According to the World Bank, the percentage of individuals using the internet has increased to 10 per cent in 2020 from 8 per cent in 2018.
Global Robo Advisory Market: Growth Drivers and Challenges
Growth Drivers
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Rise in Digital Economy– Organizations are transforming from traditional to digital form to provide better service to their customers. In a similar way, advisory services are provided by technology to provide better advisory. Therefore, it is anticipated to increase the growth of the global Robo-advisory market. As per the U.S. Bureau of Economic Analysis, the digital economy reached 10.2 percent of the U.S. GDP in the year 2020.
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Increasing Automation- More than 80 percent of the finance teams are opting for automation in one of their processes in the United Kingdom and the United States.
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Rising Household Wealth– There has been rising household wealth among the population across the globe that increases the chances of investment. Hence, it is expected to boost the growth of the global Robo-advisory market. Global household health has increased to USD 360, 603 in the year 2019 from USD 351,516 in the year 2018 as per the Global Wealth Databook 2019 of the Credit Suisse Research Institute.
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Growing Insurance Industry– People are opting for insurance in order to make their future lives easier, and it is projected to drive the growth of the global Robo-advisory market. As per the India Brand Equity Foundation, the life insurance industry in India is anticipated to reach USD 317.98 billion by the end of the financial year 2031.
Challenges
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Lack of Common Interest Among the Clients
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High Risk Attached with Robo Advisory Technology
If an investor invests through a low fee advisor, there is a risk in what the investor has invested as well as the risk associated with the robo-advisors. Moreover, the investor can’t choose their own investments and is confined to a limited number of options. Therefore. it is expected to retrain the growth of the global robo-advisory market.
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Lack of Human Interaction
The global robo advisory market is segmented and analyzed for demand and supply by service providers into traditional wealth managers, banks, fintech robo advisors, and others. Out of these, the banks segment is anticipated to hold the largest share over the forecast period owing to the rise in the number of banks worldwide, and increasing digitalization among the banks to provide better customer needs. For instance, there were approximately more than 6,000 banks in the 27 European Countries till August 2021.
Global Robo Advisory Market Regional Synopsis
The North America region market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035 on the back of growing awareness among people related to robo advisory solutions. Moreover, the market in the Asia Pacific region is expected to witness significant growth owing to the surging population percentage, and increasing household wealth among them. Approximately, 39.16 per cent share of the world’s household wealth is held by the Asia Pacific region in the year 2019, as per the Global Wealth Databook 2019 of the Credit Suisse Research Institute.
Market Segmentation
Our in-depth analysis of the global Robo advisory market size includes the following segments:
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By Service Providers |
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By Business Model Type |
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By Service Type |
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Key Companies Dominating the Global Robo Advisory Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global Robo advisory market that are included in our report are Betterment LLC, Axos Invest, Inc., Charles Schwab & Co., Inc., The Vanguard Group, Inc., FutureAdvisor, Wealthfront Corporation, Nutmeg Saving and Investment Limited, SigFig Wealth Management LLC, Personal Capital Corporation, Bambu, and others.
Global Robo Advisory Market: Latest Developments
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December 2019: The Vanguard Group, Inc. announced the collaboration with Ant Financial in order to provide a new broadly and streamlined available investment advisory wealth management services in China to retail customers.
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December 2019: Charles Schwab & Co., Inc., announced the launch of Schwab Intelligent Income, which operates as an income solution to modernize the way investors can pay themselves in retirement or any other time.
- Betterment LLC
- Axos Invest Inc.
- Charles Schwab & Co.Inc.
- The Vanguard Group Inc.
- FutureAdvisor
- Wealthfront Corporation
- Nutmeg Saving and Investment Limited
- SigFig Wealth Management LLC
- Personal Capital Corporation
- Bambu
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