The latest report by IMARC Group, titled “Robo Advisory Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028”, offers a comprehensive analysis of the industry, which comprises insights on the market. The global robo advisory market share size reached US$ 7.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 35.6 Billion by 2028, exhibiting a growth rate (CAGR) of 28.4% during 2023-2028.

Factors Affecting the Growth of the Global Robo Advisory Industry:

• Increasing Demand for Low Cost Investments:

The increasing demand for low-cost investment solutions is a critical driver of the robo-advisory market. Robo-advisors typically charge lower fees than traditional financial advisors, making them an attractive option for cost-conscious investors, particularly those with smaller investment amounts. This affordability stems from the automated nature of the service, which reduces the need for expensive human labor and overhead costs. Additionally, the minimum investment requirements are often lower, breaking down barriers to entry for new or less affluent investors. This democratization of financial advice and management caters to a growing segment of the population seeking to optimize their investments without substantial fees.

• Regulatory Support:

Regulatory support and increasing consumer trust are also significant factors driving the growth of the robo-advisory market. Regulatory bodies in various countries have started recognizing and framing guidelines for robo-advisors, which adds legitimacy and encourages consumer confidence. This regulatory clarity helps ensure the security and reliability of robo-advisory services. Furthermore, as more consumers become familiar with digital financial services, trust in automated investment advice is growing. The transparency and compliance with financial regulations offered by these platforms enhance their credibility. As trust builds, more investors are likely to adopt robo-advisory services, contributing to market growth.

• Advancements in Technology:

The robo-advisory market is significantly propelled by continuous technological advancements. This encompasses the development of sophisticated algorithms, enhanced data analytics capabilities, and the integration of artificial intelligence and machine learning. These technologies enable robo-advisors to offer personalized investment advice and portfolio management at a fraction of the cost of traditional human advisors. They analyze vast amounts of market data, identifying trends and making predictions more efficiently, which enhances decision-making accuracy. The ease of access through digital platforms also appeals to tech-savvy consumers, especially millennials, who prefer online services. Moreover, these advancements contribute to reducing operational costs, making robo-advisory services more affordable and accessible to a broader audience.

For an in-depth analysis, you can request the sample copy of the report: https://www.imarcgroup.com/robo-advisory-market/requestsample

Leading Companies Operating in the Robo Advisory Industry:

• Betterment
• Ellevest
• Fincite Gmbh
• Ginmon Vermögensverwaltung GmbH
• SigFig Wealth Management LLC
• SoFi Technologies Inc.
• The Charles Schwab Corporation
• The Vanguard Group Inc.
• Wealthfront Corporation
• Wealthify Limited (Aviva plc)

Robo Advisory Market Report Segmentation:

By Business Mode: 

• Pure Robo Advisors
• Hybrid Robo Advisors

Hybrid robo advisors holds the largest market share as they combine automated algorithms with human guidance, providing clients with a personalized and tailored financial advisory experience.

By Service Type:

• Direct Plan-Based/Goal-Based
• Comprehensive Wealth Advisory

Comprehensive wealth advisory holds the largest market share as they offer personalized financial planning and investment strategies tailored to each client's unique financial goals, risk tolerance, and time horizon.

By Provider:

• Fintech Robo Advisors
• Banks
• Traditional Wealth Managers
• Others

Fintech robo advisors dominate the market as they offer intuitive, user-friendly platforms and mobile apps that make it easy for clients to access and manage their investments, appealing to a broad user base. 

By End User:

• Retail Investor
• High Net Worth Individuals (HNIs)

High net worth individuals account for the majority of market share as they have substantial financial resources and investments, making them a primary target for robo-advisors.

By Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

North America leads the market as the region saw the emergence of early robo-advisory startups and established companies that introduced automated investment platforms to the market.

Robo Advisory Market Trends:

Many robo-advisory platforms are adopting a hybrid approach that combines automated investment algorithms with access to human advisors. This trend offers investors the best of both worlds, combining the efficiency of automation with the personalized touch of human advice. Besides, robo-advisory platforms are focusing on greater customization and personalization to tailor investment portfolios to individual investor goals, risk tolerance, and values. Advanced algorithms are being used to create more personalized asset allocations. Moreover, tax-efficient investing is becoming a key consideration for investors. Robo-advisors are offering tax-loss harvesting and tax optimization strategies to minimize tax liabilities for investors.

Browse Full Report with TOC & List of Figure: https://www.imarcgroup.com/robo-advisory-market

Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.

About Us
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

Contact Us:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No:(D) +91 120 433 0800
United States: +1-631-791-1145 | United Kingdom: +44-753-713-2163