The global investment banking trading services market size reached US$ 370.6 Billion in 2023. Looking forward, the publisher expects the market to reach US$ 681.0 Billion by 2032, exhibiting a growth rate (CAGR) of 6.99% during 2023-2032. The increasing globalization of financial markets and the inflating demand for innovative financial products and services, driven by evolving market conditions and regulatory requirements are primarily propelling the growth of the market.
investment banking industry includes about 3,000 companies with a combined annual revenue of about US$ 140 Billion. The 50 largest firms generate more than 90% of the industry's revenue. However, the investment banking industry has not fully recovered from the aftermath of the 2008 financial crisis. In order to tackle this, various fintech markets globally are evolving at a faster pace disrupting the end-to-end investment banking value chain. They are also integrating blockchain to change the face of cross-border lending activity, which is anticipated to offer lucrative growth opportunities to the overall market in the coming years.
Moreover, in these developing countries, the economy is rising at a faster rate and business activities are expanding. For instance, in 2019, Saudi Aramco, a big oil company, went public for the first time in the last quarter of the year. Saudi Aramco IPO raised a total of US$ 26.5 Billion to become the largest IPO ever beating Alibaba's record of US$ 25 Billion listing in September 2014. Similarly, in 2019, eight Chinese companies that were already listed in Hong Kong raised US$ 11.7 Billion by listing again in the Asia-Pacific region. Globally, a total of US$ 68.8 Billion was raised through 381 IPOs in 2019. Such activities are creating a huge demand for investment banking & trading services to keep up with the growing environment.
Rising integration with AI and ML
The integration of next-generation technologies, including artificial intelligence (AI) with the financial sector is creating a positive outlook for the investment banking trading services market. Customers are now able to organize their financial affairs with the help of chatbots, while banks use machine learning (ML) algorithms to spot patterns in cybercrime.
Various rapidly advancing AI technologies are influencing the banking sector, prompting enterprises to increase their investments in AI to fully leverage its capabilities. Moreover, AI can help find and stop fraud by monitoring transactions, looking for patterns and suspicious behavior, and informing the authorities. Detecting fraud is among the best uses of AI in Investment Banking.
In line with this, Deloitte predicts that the top 14 global investment banks can boost their front-office productivity by as much as 27%-35% by using generative AI. This would result in additional revenue of US $3.5 Million per front-office employee by 2026. Furthermore, various blue chip financial companies, including J.P. Morgan, are using AI for payment validation screening and to automatically show insights to clients, such as cashflow analysis, when they need it. Such innovations in technology are anticipated to create a positive outlook for the investment banking trading services market in the coming years.
With the increasing cross-border sales across all the major verticals, such as aerospace and defense, healthcare, manufacturing, consumer goods and retail, and government and public,
trade management market solutions are gaining popularity. One of the primary reasons for the growth of trade management solutions is the rising challenge faced by enterprises in managing their complex trade processes. Different countries have laid down different rules and regulations on international trade, increasing the pressure on businesses. Trade management solutions are easy to manage and ensure enterprises optimize their trade process and comply with the changing rules and regulations about trade.
Investment banking trading services play a crucial role in the Banking, Financial Services, and Insurance (BFSI) sector. These services are utilized for various purposes, including trading securities, advisory services, asset management, cross-border transactions, and research and analysis. Moreover, the increasing cases of cyber threats and data breaches are also bolstering the adoption of investment banking trading services in the BFSI sector.
For instance, in January 2017, a data breach involving a third-party vendor resulted in the theft of personal data belonging to some of Morgan Stanley's corporate clients, as confirmed by the company. The stolen data included social security numbers, and unauthorized access was gained by hackers. The enhancement of business environments and the growth in financial activity in emerging economies such as India and Singapore are expected to present opportunities for the industry to expand.
The United States leads the market with the highest revenue. Investment banks generally support significant, complex financial transactions. If the investment banker's client is considering an acquisition, merger, or sale, they might offer guidance on how much a firm is worth and the best way to organize a deal. They help sell securities, mergers, acquisitions, reorganizations, and broker trades for both institutions and individual investors, in addition to underwriting new debt and equity securities for all kinds of firms.
Furthermore, the presence of large financial firms in the region is also contributing to the market growth. For instance, in October 2022, J.P. Morgan, the largest merchant acquirer in the world by volume of transactions, expanded its Merchant Services capabilities in Asia Pacific (APAC). This move was made to provide corporate clients with the full range of its payment services in a region where retail e-commerce sales are the highest in the world.
2. What is the expected growth rate of the global investment banking trading services market during 2024-2032?
3. What are the key factors driving the global investment banking trading services market?
4. What has been the impact of COVID-19 on the global investment banking trading services market?
5. What is the breakup of the global investment banking trading services market based on the service type?
6. What is the breakup of the global investment banking trading services market based on the industry vertical?
7. What are the key regions in the global investment banking trading services market?
8. Who are the key players/companies in the global investment banking trading services market?
Global Investment Banking Trading Services Market Analysis:
- Major Market Drivers: The expanding banking, financial, service, and insurance (BFSI) sector and the inflating need for advisory and consultancy services across several industrial verticals to expand their business projects and portfolios are primarily driving the market growth.
- Key Market Trends: Ongoing business expansions, extensive engagement in complex organizational activities, and the massive need for consultancy services and M&As are some of the significant key trends driving the growth of the market.
- Geographical Landscape: According to the report, North America currently dominates the global market. This can be attributed to the presence of large investment banking firms in the region, such as JP Morgan Chase & Co.
- Competitive Landscape: Some of the leading players in the global investment banking trading services market include, Bank of America Corporation, Barclays Bank PLC, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs, JP Morgan Chase & Co., Morgan Stanley, UBS Group AG and Wells Fargo & Company, among many others.
- Challenges and Opportunities: Challenges in the investment banking trading services market include increasing regulatory scrutiny, cybersecurity risks, and competition from non-traditional financial firms. However, the growing demand for sustainable and socially responsible investing presents a new avenue for growth in the market.
Global Investment Banking Trading Services Market Trends:
Increase in Need for Capital Requirements & Business Expansion among Firms
Several enterprises operating at a large-scale & medium scale generally require capital for the expansion of existing business in terms of size and operations. In addition to this, investment banking & trading services help these firms raise funds and play a vital role in the launch of initial public offerings (IPOs) to meet their needs of capital requirements & business expansion. Capital requirements by both large-scale & medium-scale firms are becoming a major driving factor for the investment banking & trading services market. Moreover, capital raising, proprietary trading, and deal underwriting are some of the core activities typically carried out by investment banks. The U.S.investment banking industry includes about 3,000 companies with a combined annual revenue of about US$ 140 Billion. The 50 largest firms generate more than 90% of the industry's revenue. However, the investment banking industry has not fully recovered from the aftermath of the 2008 financial crisis. In order to tackle this, various fintech markets globally are evolving at a faster pace disrupting the end-to-end investment banking value chain. They are also integrating blockchain to change the face of cross-border lending activity, which is anticipated to offer lucrative growth opportunities to the overall market in the coming years.
Untapped Potential of Emerging Economies
Emerging economies offer significant opportunities for investment banking & trading service providers to expand their offerings as financial activities are increasingly rising in developing countries. Moreover, the government authorities and private players of various nations are extensively investing in the digital transformation of the financial sector. Additionally, the adoption of new technologies, such as artificial intelligence, Big Data, machine learning, & chatbots, especially among countries such as Australia, China, India, Singapore, and South Korea are expected to create potential for the investment banking & trading services market in the coming years.Moreover, in these developing countries, the economy is rising at a faster rate and business activities are expanding. For instance, in 2019, Saudi Aramco, a big oil company, went public for the first time in the last quarter of the year. Saudi Aramco IPO raised a total of US$ 26.5 Billion to become the largest IPO ever beating Alibaba's record of US$ 25 Billion listing in September 2014. Similarly, in 2019, eight Chinese companies that were already listed in Hong Kong raised US$ 11.7 Billion by listing again in the Asia-Pacific region. Globally, a total of US$ 68.8 Billion was raised through 381 IPOs in 2019. Such activities are creating a huge demand for investment banking & trading services to keep up with the growing environment.
Rising integration with AI and ML
The integration of next-generation technologies, including artificial intelligence (AI) with the financial sector is creating a positive outlook for the investment banking trading services market. Customers are now able to organize their financial affairs with the help of chatbots, while banks use machine learning (ML) algorithms to spot patterns in cybercrime.
Various rapidly advancing AI technologies are influencing the banking sector, prompting enterprises to increase their investments in AI to fully leverage its capabilities. Moreover, AI can help find and stop fraud by monitoring transactions, looking for patterns and suspicious behavior, and informing the authorities. Detecting fraud is among the best uses of AI in Investment Banking.
In line with this, Deloitte predicts that the top 14 global investment banks can boost their front-office productivity by as much as 27%-35% by using generative AI. This would result in additional revenue of US $3.5 Million per front-office employee by 2026. Furthermore, various blue chip financial companies, including J.P. Morgan, are using AI for payment validation screening and to automatically show insights to clients, such as cashflow analysis, when they need it. Such innovations in technology are anticipated to create a positive outlook for the investment banking trading services market in the coming years.
Global Investing Banking Trading Services Industry Segmentation:
The publisher provides an analysis of the key trends in each segment of the global investment banking trading services market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on service type and industry vertical.Breakup by Service Type:
- Equity Underwriting and Debt Underwriting Services
- Trading and Related Services
- Financial Advisory
- Others
Trading and related services currently hold the majority of the total market share
With the increasing cross-border sales across all the major verticals, such as aerospace and defense, healthcare, manufacturing, consumer goods and retail, and government and public,
trade management market solutions are gaining popularity. One of the primary reasons for the growth of trade management solutions is the rising challenge faced by enterprises in managing their complex trade processes. Different countries have laid down different rules and regulations on international trade, increasing the pressure on businesses. Trade management solutions are easy to manage and ensure enterprises optimize their trade process and comply with the changing rules and regulations about trade.
Breakup by Industry Vertical:
- BFSI
- Healthcare
- Manufacturing
- Energy and Utilities
- IT and Telecom
- Retail and Consumer Goods
- Media and Entertainment
- Others
BFSI exhibits a clear dominance in the market
Investment banking trading services play a crucial role in the Banking, Financial Services, and Insurance (BFSI) sector. These services are utilized for various purposes, including trading securities, advisory services, asset management, cross-border transactions, and research and analysis. Moreover, the increasing cases of cyber threats and data breaches are also bolstering the adoption of investment banking trading services in the BFSI sector.
For instance, in January 2017, a data breach involving a third-party vendor resulted in the theft of personal data belonging to some of Morgan Stanley's corporate clients, as confirmed by the company. The stolen data included social security numbers, and unauthorized access was gained by hackers. The enhancement of business environments and the growth in financial activity in emerging economies such as India and Singapore are expected to present opportunities for the industry to expand.
Breakup 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 currently dominates the global market
The United States leads the market with the highest revenue. Investment banks generally support significant, complex financial transactions. If the investment banker's client is considering an acquisition, merger, or sale, they might offer guidance on how much a firm is worth and the best way to organize a deal. They help sell securities, mergers, acquisitions, reorganizations, and broker trades for both institutions and individual investors, in addition to underwriting new debt and equity securities for all kinds of firms.
Furthermore, the presence of large financial firms in the region is also contributing to the market growth. For instance, in October 2022, J.P. Morgan, the largest merchant acquirer in the world by volume of transactions, expanded its Merchant Services capabilities in Asia Pacific (APAC). This move was made to provide corporate clients with the full range of its payment services in a region where retail e-commerce sales are the highest in the world.
Competitive Landscape:
The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:- Bank of America Corporation
- Barclays Bank PLC
- Citigroup Inc.
- Credit Suisse Group AG
- Deutsche Bank AG
- Goldman Sachs
- JP Morgan Chase & Co.
- Morgan Stanley
- UBS Group AG
- Wells Fargo & Company
Global Investment Banking Trading Services Market News:
- April 2024: JPMorgan Chase announced a new organizational structure for its Global Banking (GB) business. The GB business now brings together the bank’s Commercial, Corporate and Investment Banking lines.
- April 2024: Saudi Arabia’s Riyad Bank is considering an initial public offering of its investment banking unit on the main market of the Saudi stock exchange, amid a surge in listings across the GCC on strong investor demand.
- April 2024: Natixis Corporate & Investment Banking (Natixis CIB) alongside three other international commercial banks has successfully closed the US$ 176.6 Million senior secured green financing for a c. 300 MW solar PV asset in Peru sponsored by Solarpack Corporación Tecnológica S.A.U. ("Solarpack"), a Spain-based global independent power producer. Natixis CIB acted as Joint Bookrunner, Joint Lead Arranger, Joint Green Loan Coordinator, and Administrative Agent.
Key Questions Answered in This Report
1. How big is the global investment banking trading services market?2. What is the expected growth rate of the global investment banking trading services market during 2024-2032?
3. What are the key factors driving the global investment banking trading services market?
4. What has been the impact of COVID-19 on the global investment banking trading services market?
5. What is the breakup of the global investment banking trading services market based on the service type?
6. What is the breakup of the global investment banking trading services market based on the industry vertical?
7. What are the key regions in the global investment banking trading services market?
8. Who are the key players/companies in the global investment banking trading services market?
Table of Contents
1 Preface3 Executive Summary10 Value Chain Analysis12 Price Analysis
2 Scope and Methodology
4 Introduction
5 Global Investment Banking Trading Services Market
6 Market Breakup by Service Type
7 Market Breakup by Industry Vertical
8 Market Breakup by Region
9 SWOT Analysis
11 Porters Five Forces Analysis
13 Competitive Landscape
List of Figures
List of Tables
Companies Mentioned
- Bank of America Corporation
- Barclays Bank PLC
- Citigroup Inc.
- Credit Suisse Group AG
- Deutsche Bank AG
- Goldman Sachs
- JPMorgan Chase & Co. Morgan Stanley
- UBS Group AG
- Wells Fargo & Company
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 145 |
| Published | August 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 370.6 Billion |
| Forecasted Market Value ( USD | $ 681 Billion |
| Compound Annual Growth Rate | 7.0% |
| Regions Covered | Global |
| No. of Companies Mentioned | 9 |
