Investment Banking & Brokerage Market

Investment Banking & Brokerage Market Outlook (2024 to 2034)

According to a new industry report released by Fact.MR, turnover of the global investment banking & brokerage market is estimated at US$ 420.11 billion in 2024 and is forecasted to expand at a remarkable CAGR of 8.2% to achieve a value of US$ 927.99 billion by the end of 2034.

Investors are increasingly looking for alternative investment opportunities, including real estate, venture capital, private equity, and others to diversify their portfolios and optimize returns. To structure and advise on these investments, investors require investment banks.

Retail investors are increasing their involvement in stock markets and due to this need for brokerage services growing. This is driven by digital trading platforms and financial literacy campaigns. A new generation of investors is attracted to digital platforms that provide smooth trading and real-time data with lower fees.

In several areas, investment banks now have a chance to provide advisory services on green bonds, sustainable finance, socially conscious investments, and others because of increasing emphasis on Environmental, Social, and Governance (ESG) factors. Increasing investor demand for ethical portfolios is contributing to market growth.

Key Market Growth Drivers

• One of the prominent drivers contributing to the investment banking & brokerage market growth is expanding debt and equity financing via capital markets.
• Businesses from several countries are depending more on bond issuances, secondary sales, and initial public offerings (IPO) to obtain money for growth, innovation, and other activities. Investment banks and brokerage firms are now providing more options to assist transactions and provide underwriting services as a result of this.
• Global M&A activity is increasing as businesses are widely looking for operational synergies, expansion, and consolidation and here investment banks are essential in providing advice on transactions, valuations, deals, and others. They help increase demand for their data, particularly in sectors, such as healthcare, financial services, technology, and others.
• One of the key investment banking & brokerage market trends is the growing utilization of technologies, such as blockchain, artificial intelligence, automated trading platforms, and others. All these latest technologies are completely changing the market dynamics in a positive way.
• Due to the latest technological advancements, more customers and investors are entering the market as they are also helping to increase transaction speed, accuracy, and decision-making tools.
• Demand for wealth management and investment consulting services is increasing due to the rising number of people looking for effective investment planning to secure their future. To meet this demand, investment banks and brokers are providing specialized financial solutions, which is driving revenue growth.

Report Attribute	Detail
Investment Banking & Brokerage Market Size (2024E)	US$ 420.11 Billion
Forecasted Market Value (2034F)	US$ 927.99 Billion
Global Market Growth Rate (2024 to 2034)	8.2% CAGR
North America Market Value (2024E)	US$ 229.15 Billion
East Asia Market Growth Rate (2024 to 2034)	9.3% CAGR
Trading & Related Services Segment Value (2034F)	US$ 465.08 Billion
Financial Companies Segment Value (2034F)	US$ 313.42 Billion
Key Companies Profiled	Goldman Sachs; Morgan Stanley; JPMorgan Chase & Co.; Bank of America Merrill Lynch; Citigroup; Credit Suisse; Barclays; Deutsche Bank; UBS Group; Wells Fargo

Why is the Requirement for Investment Banking and Brokerage Services Growing Across the Globe?

“Rising Popularity of Algo and Digital Trading Platforms Positively Impacting Market Dynamics”

The growing equity and financing through capital markets is playing a crucial role in the investment banking & brokerage market size expansion. Several companies from diverse sectors and countries are increasingly focusing on utilizing bond issuances, secondary offers, initial public offerings (IPOs), and others to acquire money for infrastructural developments, innovation, business expansion, and others.

Due to this market trend, investment banks have several options for offering underwriting, advising, transaction facilitation services, and others. This is also enhancing their position in the financial systems. The need for these services is increasing as companies look for effective ways to raise finance.

Growing adoption of digital trading platforms and algorithm trading is resulting in increased involvement of individual investors in stock markets. Several companies and governments are running financial literacy campaigns, which are also raising investor participation. These ongoing technological innovations are positively affecting the market.

What are the Challenges Encountered by Investment Banks & Brokerage Firms?

“Unfavorable Economic and Geopolitical Conditions Negatively Impact Market”

Uncertain economic conditions, geopolitical conflicts, and volatile financial markets adversely affect the profitability of investment banks and brokerage firms. In such scenarios, businesses and investors are unwilling to focus on mergers and acquisitions, or significant investments during uncertain times, market volatility sometimes results in a decrease in deal flow. These negative situations result in a drop in trading activity and capital-raising initiatives.

Several investment banks and brokers mostly depend on stable market conditions to enable transactions and increase profitability; these factors directly affect the revenue of companies.

Country-wise Insights

North America is leading with a significant investment banking & brokerage market share due to strong capital market activity, high volumes of M&A deals, and importantly rising focus on alternative investment options, such as private equity and venture capital. The existence of significant financial centers, such as New York guarantees ongoing innovation, and developments in digital trading platforms driving the market expansion even further in the region.

Why Market Players are Aiming at Market in the United States?

“Well-established Stock Market and Continuous Technological Advancements Making it Leading Player”

Attribute	United States
Market Value (2024E)	US$ 205.38 Billion
Growth Rate (2024 to 2034)	8.4% CAGR
Projected Value (2034F)	US$ 461.06 Billion

The United States continues to be an important market for investment banking & brokerage due to strong capital markets, technology improvements, rising demand for M&A advising, initial public offerings, and alternative investments. New York City and other major financial centers in the United States are home to leading international investment banks that set the standard for deal execution and innovation.

Increasing interest in sustainable finance, venture capital, and private equity is further supporting the market expansion in the United States. Other than this, the rising utilization of AI and fintech solutions, along with improvements in digital trading platforms are increasing productivity and drawing in more investors.

Because of its established financial system and high investor confidence, the United States continues to lead the world in investment banking despite obstacles, including market volatility and regulatory restrictions.

What is the Market Outlook for Investment Banking & Brokerage in Japan?

“High Volume of Activities Related to Equity Financing and Merger & Acquisitions”

Attribute	Japan
Market Value (2024E)	US$ 17.65 Billion
Growth Rate (2024 to 2034)	9% CAGR
Projected Value (2034F)	US$ 41.87 Billion

The market in Japan is analyzed to provide lucrative opportunities to investment banks and brokerage companies due to rising capital market operations, such as equity financing and mergers & acquisitions, especially in the industrial, automotive, and technology sectors.

The stable economy, developed financial infrastructure, and strong corporate governance of Japan offer a strong basis for investment banking services. The requirement for advice & brokerage services is also increasing due to Japan's development as a center for private equity investments and cross-border transactions.

There are limitations due to issues, including low interest rates and complicated regulations to compete with competitors worldwide. Consequently, the market is poised for further growth due to Japan's increasing participation in international financial markets and the growing demand from high-net-worth individuals (HNWIs).

Category-wise Insights

Based on product and service, the demand for corporate finance services is evaluated to rise at a CAGR of 8.8% between 2024 and 2034. The need for these services is growing because several factors are driving businesses to seek external expertise for financial management and strategic growth. To successfully navigate complex financial environments, businesses are increasingly pursuing operations, including capital raising, restructuring, and mergers and acquisitions.

Why is Demand for Trading & Related Services Continuously Increasing?

“Growing Investments from Institutional & Retail Investors in International Financial Markets”

Attribute	Trading & Related Services
Segment Value (2024E)	US$ 183.75 Billion
Growth Rate (2024 to 2034)	9.7% CAGR
Projected Value (2034F)	US$ 465.08 Billion

As more institutional & retail investors are participating in international financial markets, there is a growing need for trading and related services. With the increasing connectivity and accessibility of markets, especially through digital trading platforms, investors are looking for new ways to diversify their holdings across different asset classes, including stocks, bonds, commodities, and cryptocurrencies.

Algorithmic trading and AI-driven insights are also gaining popularity, which is increasing trading efficiency and drawing in new investors. The rising demand for these services is also a result of investors' increasing interest in active trading and short-term investments as a way to profit from market volatility.

Why do Financial Companies Hold a Significant Portion of the Worldwide Market Revenue?

“Crucial Role in Supporting Capital Raising Initiatives and Investment Activities”

Attribute	Financial Companies
Segment Value (2024E)	US$ 120.1 Billion
Growth Rate (2024 to 2034)	10.1% CAGR
Projected Value (2034F)	US$ 313.42 Billion

The financial companies segment holds a significant portion of overall revenue because they play a key role in promoting investment activities and capital-raising initiatives. These businesses, which include private equity firms, banks, and asset managers, generally hold large and varied portfolios and need advanced trading, brokerage, and advisory services.

They are important players in the market because of their capacity to handle complex transactions, provide a broad diversity of financial products, and take advantage of vast networks. Financial firms also play a crucial role in wealth management, M&A, and capital markets, all of which greatly contribute to the sector's leadership.

Competitive Landscape

Key players in the investment banking & brokerage market are expanding the range of services they provide beyond standard trading and advice by adding wealth management, asset management, and alternative investments, including venture capital and private equity.

This makes it easier to attract a larger clientele and produce more sources of income. To increase productivity, cut expenditures, and offer advanced services, including automated trading and real-time analytics, businesses are investing in blockchain technology, artificial intelligence (AI), and sophisticated trading algorithms.

• In June 2024, the 16th main conglomerate in South Korea, LS Group, announced that it rebranded its brokerage business, eBest Investment & Securities, to LS Securities Co. to increase its competitiveness and brand recognition.
• In May 2024, ten years after withdrawing from the domestic brokerage services market, Woori Financial firm Inc., the fourth-largest financial services firm in South Korea, acquired Korea Foss Securities Co., opening the door for its reintroduction.
• In December 2023, the 10th-major brokerage company in India, Sharekhan Ltd., was purchased by Mirae Asset Financial Group to expand its footprint in the Southeast Asian countries, which is one of the fast-growing markets in the world in the post-China era.

Fact.MR provides detailed information about the price points of key players in the investment banking & brokerage market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Investment Banking & Brokerage Market Research

• By Product & Service :

  • Trading & Related Services
  • Corporate Finance Services
  • Underwriting Services (Debt)
  • M&A Fees
  • Underwriting Services (Equity)
  • Other Financial Advisory Services

• By Major Market :

  • Financial Companies
  • Energy & Power Companies
  • Industrial Companies
  • High Technology Companies
  • Healthcare Companies
  • Others

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa