Robo Advisory Market Size, Share, Growth, and Industry Analysis, By Type (Pure Robo Advisor & Hybrid Robo Advisor), By Downstream industry (Healthcare ,Retail & Education) and Regional Forecast to 2032

Updated On: 04 November 2024

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ROBO ADVISORY MARKET REPORT OVERVIEW

The Robo Advisory Market Size was Valued at US$ 7151.5 Million in 2023. The Market is likely to Surpass US$ 122959 Million by 2032 at a CAGR of 32.9% During the Forecast period [2024-2032].

Robo-advisory market is growing at a fast pace due to the changes brought by technology in financial planning and investment management services. Automated financial advisors are highly technical-financial platforms that help investors manage their money with little or no interference from real human beings. These kinds of commodity markets’ digital platforms offer cheaper ways of managing assets for individual investors and institutions. Owing to the growing need for automated, easy, and effective financial advisory services, it is probable that the robo-advisory market will also grow at a similar pace. New technologies in the analysis of data and machine learning are the main factors that are pushing the scaling and further development of such services.

COVID-19 Impact: Market Growth During Pandemic Due to Due to uncertainty, accessibility, and automation

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID 19 really helped the robo-advisory market grow because, during a lockdown, people are in search of low-cost and affordable ways to manage their funds. The shift in demand for digital services emerged because people adapted to the circumstances and cut costs by planning their finances remotely, which naturally led them towards robo advisors. This shift to automated and company platforms pointed to the virtues of robo advisors; it improved their standing and spurred the markets. It is for this reason that the pandemic highlighted the advantages of employing automated financial tools to handle the market’s instabilities.

LATEST TRENDS

"AI-driven personalization boosts market growth and investment"

Robo-advisory market include AI applications, services’ widening into the sphere of full-fledged financial planning, and the growing popularity of ESG investment. One pattern observed in the course of the study is that robo advisors have started incorporating AI to generate better optimized investment plans and real-time information that would help clients get personal advice on their investments. With this kind of personalization made possible by AI, investors are already shaping how the solutions for their financial planning are rendered.

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ROBO ADVISORY MARKET SEGMENTATION

By Type

Based on type the market can be categorized into Pure Robo Advisor & Hybrid Robo Advisor

• Pure Robo Advisor: Fully automated robo-advisors have very little face-to-face interaction with clients and automate most of the processes using a set of rules. They provide affordable, computerized managed investments that are based on consumers’s risk appetites and/or requirements. This model concentrates on charges and functionality, which is the reason why, to a large extent, it attracts buyers who are into technological advancement and would prefer cheap fees coupled with more services.

• Hybrid Robot Advisor: Virtual advisors are fully automated but include some blend of human intervention in the planning process to provide digital and personal financial advice. This model combines the use of technology with the services of professionals and a user-friendly company feel. It satisfies the needs of investors who are looking for an automated solution with a touch of advisory services needed to make the services provided more versatile.

By Downstream industry

Based on Downstream industry the market can be categorized into Healthcare, Retail & Education

• Healthcare: Another area in which robo advisors help with controlling employee benefit and retirement concerns is making the perfect investment for healthcare institutions. They help doctors and other members of our staff with saving and investment via efficient financial planning. The benefits of using robo-advisors in the handling of financial assets common in healthcare institutions make it easier and more efficient.

• Retail: Robo advisors in the retail industry are used by investing novices to provide them with secure personal investment advice and digital solutions. The services they offer address people’s needs in retirement planning as well as wealth building, thus serving a diverse population. Hedge funds also gain from the new markets' accessibility and lower fees from retail investors.

• Education: Robo advisors work in the context of the educational institution’s financial plan with regard to endowment, savings plans, and retirement funds for the faculty. They provide robo-advisory solutions for investment to schools and universities to help them manage their finances effectively. So for the educators, it is evident that the robo-advisors are special in the case of delivering advice and planning on the effective and efficient utilization of the money, therefore resulting in an improvement in financial health.

DRIVING FACTORS

"Market growth driven by demand for cost-effective financial tools"

This has been enabled by increasing demand for low-cost tools in the management of finances, hence the robo-advisory market. The conventional advisory services are expensive, and this has made investors look for cheaper means that are efficient, which has pushed them toward robo advisors.

"Market growth is fueled by enhanced AI effectiveness and efficiency"

The robo-advisory market is growing robustly because of the improvements in artificial intelligence, known as AI. AI increases the effectiveness and efficiency of the robo advisors and the quality of the delivery of recommendations to the clients, thus targeting the large population that craves a personal and professional way of managing their investments which leads to Robo Advisory market growth.

RESTRAINING FACTOR

"Regulatory complexities impact market growth and operational costs"

The robo-advisory market share moves and evolves based on regulations, which are a great concern because complicated and ever-changing requirements affect the operational background of the robo-advisory market. Adherence to multiform standards of regulations in various regions can also cause operational costs and hinder market expansion.

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ROBO ADVISORY MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America's high-tech infrastructure drives strong market growth"

The present technological infrastructure holds largest share in North America, accompanied by a high usage of internet services and a sound financial services industry, which supports this report on the robo-advisory market. The region’s investors demonstrate a great demand for innovative, cost-efficient financial services, hence the high adoption of robo-advisors. Also, it is supported by the location of the main fintech players and welcoming regulatory environments, which all strengthen North America’s market position.

KEY INDUSTRY PLAYERS

"Innovation and partnerships drive market growth and expansion"

Robo-advisory market players are constantly extending efforts to innovate and cooperate to ensure the segment’s growth. Introducing information technologies like artificial intelligence and machine learning makes these firms more customized and quicker in their methods. Further, a network of connections with financial institutions and penetration into new markets amplifies the companies’ scope and consumer base and thus drives market growth.

LIST OF MARKET PLAYERS PROFILED

• Wealthify Limited (U.K)
• SigFig Wealth Management, LLC (California)
• Ellevest, Inc. (U.S)
• SoFi Technologies, Inc. (U.S)
• Betterment LLC (U.S)

INDUSTRIAL DEVELOPMENT

May 2023: An online financial advisory service for women called Ellevest released Ellevest Goals. The market is experiencing an increase in features that are oriented especially toward investors. This enables the users to have their financial targets set and their portfolios rebalanced for them. This is a perfect example because this robo-advisory market has emphasized user-centric functionalities.

REPORT COVERAGE

This report is based on historical analysis and forecast calculation that aims to help readers get a comprehensive understanding of the global Robo Advisory Marketfrom multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the growth of the market by discovering the dynamic categories and potential areas of innovation whose Downstream industrys may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points into consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.