Robo Advisors Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2025

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Robo Advisors Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2025

Status : March, 2020 | Technology & Media | PPT format

Report Digest


Global Robo Advisors Market: Snapshot

For professionals working in the investment domain, the advent of robo advisors has been a boon. Working as a solution for someone who refrain from hiring a full time financial advisor, which can be a result of costs or do-it-yourself, robo advisors help in selecting investment plants, rebalancing, and placing trades on their behalf. Robo advisors are made with intelligence to automatically select investment slots and develop a portfolio for the users. As and when the funds have passed hands, the software pertaining to robo advisors can impart changes according to the portfolio. Some can even make automatic traders in order to curtail tax bill, something which is also called as tax-loss harvesting.

Apart from the investment expenses, a marginal fee of paid to these online robo advisors, which is structured as per the percentage of assets. This fee is substantially lower than that charged by personal investment advisors, and no emotional decisions are made based on lows and highs of the market and not gut feeling. Relief from stress is another major driver that is augmenting the demand in the robo advisors market.

Robo advisors are also highly important for investors in the beginner’s stage, as they are able to swiftly invest in modern design and brandings that appeal to millennial irrespective of dissuading the boomers and helps in figuring out exactly how to develop the trust via compress sales cycles. This research report on the robo advisors market offers comprehensive analysis of all factors that will drive or curtail the demand in the near future, segments it into smaller aspects, gauges the potential of demand that will be forthcoming from different regions and countries, and profiles some of the key players who are venturing in this relatively newer market.

Global Robo Advisors Market: Overview

Robo advisors refer to digital platforms that provide financial planning advice with the least intervention of human resources. The financial planning advice provided is algorithm-based and automatic. Owing to a vast variety of services provided, at much lesser costs as compared to renowned financial planning advisors, and the rapid improvement in results, the global robo advice market is expanding at a promising pace.

Global Robo Advisors Market: Trends and Opportunities

One of the key factors expected to drive the global market for robo advisors is the low fees of robo advisory services as compared to professional wealth management advisors. The rising number of people with high disposable incomes across the globe, the rapid rise in number of banks that are integrating robo advisors into their legacy wealth management services, and the rising consumer confidence regarding the effective advice provided by robo advisors are also contributing the overall development of the market. The significant improvement in the quality of interaction between robo advisors and consumers and effective advice at much lower costs as compared to professional wealth management services are also expected to drive the market in the near future.

Global Robo Advisors Market: Regional Analysis

The global market for robo advisors presently has the North America market as its leading revenue contributor as well as a highly fertile ground when it comes to future growth opportunities. With a large number of companies in the U.S., the thriving wealth management industry owing to the large population of high income people, and the willingness to embrace new technologies will continue to work in favor of the global robo advisors market in the next few years as well. Thus, the North America robo advisors market is expected to remain highly competitive and promising as well as one of the leading contributors of revenue to the global market in the next few years as well.

Global Robo Advisors Market: Market Potential

So as to attract new consumers, companies in the market are focusing on the integration of innovative and more effective analytical algorithms, artificial intelligence, and new technologies in their solutions. The U.S.-based company, Wealthfront, for instance, has integrated artificial intelligence (AI) capabilities into its solutions and services. While these functionalities could make services more effective for the consumers, they could also help the company gain an understanding of account activity patterns of their consumers on its products, thus helping it provide more consumer-centric and custom-made services and solutions.

Moreover, several banks are also increasingly partnering with robo advisor vendors so as to provide a variety of financial services to their consumers directly. With financially strong banks predisposed to invest in innovative technologies that can help gain more consumers in the face of the intense competition, companies in the global robo advisor market could benefit from the increased interest of banks in robo advisor solutions.

Global Robo Advisors Market: Competitive Dynamics

The global robo advisors market is presently in its early years of development but has a large number of companies, with most residing in the U.S. Despite the presence of the large number of companies, the market is largely consolidated as it is dominated by a few large companies such as Betterment Holdings and Wealthfront Inc.

With rise in growth opportunities and increased popularity, the company may witness the rise of new players and become more competitive. Some of the leading companies operating in the global robo advisors market presently are Hedgeable, Inc. (U.S.), Bambu (Singapore), Betterment Holdings Inc. (U.S.), Ally Financial Inc. (U.S.), WiseBanyan, Inc.(U.S.), Wealthfront Inc.(U.S.), and Charles Schwab & Co.(U.S)

The study presents a granular assessment and quantitative evaluation of:

  • Key growth factors and prominent trends
  • Size and share of key segments in overall market
  • Key challenges and winning imperatives
  • Factors shaping competitive landscape
  • Insights into how contours of market will change in coming years
  • Technological advances
  • New avenues and imminent investment pockets
  • Regulatory landscape shaping current and future strategies of companies

The region-wise assessment includes market dynamics in:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The study is prepared with the help of an extensive primary and secondary research. Primary research includes but not limited to interactions, interviews, surveys, and events. Opinions of policy makers and industry experts are carefully integrated into the insights to complement primary research. Volumes of secondary data gleaned through renowned paid sources, annual statements, reputed journals, and government documents offer insights into current dynamics and key evolution trajectories the market is likely to assume. The research employs various industry-wide analytics methods and well-established methodologies to ascertain the attractiveness of key segments. Further, it evaluates the lucrativeness of key regions and factors underlying their maturity. The insights notably include a detailed analysis of forces behind vendor differentiation and offers insight into investment-decision making by prominent players.

The report strives to enlighten businesses and industry stakeholders on multiple facets of the growth dynamic of the market, the key of which include answers to:

  • Which key factors will shape the competitive landscape?
  • Which trends will stimulate research and development activities in different geographies?
  • Which are the lucrative growth areas and what is the size of potential they are likely contribute to the overall market?
  • Which disruptions in market growth are likely to come with the new business models?
  • Which are some of the recent overhauls in policies that may change the course of the market significantly?
  • Which are the geographies that will form sizable sources of new streams to new and established players alike?
  • How are top players likely to realign their strategy to counter the forces of competition?
  • Which key strategies emerging players are likely to focus on to consolidate their position?
  • Which changes in end-user preferences might affect the status quo held by the leading players?
  • Which are some of the game-changing innovations influencing the projected share and revenue of the market and its segments?

Note: Utmost care has invariably been taken to present data and arrive at statistics at all the TMR Research reports. Meanwhile, some recent developments and new industry trends may take time to be included in the reports.

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