Investment Banking - South America

South America

The revenue in the Investment Banking market is projected to reach US$56.64bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2028) of 2.17% resulting in a projected total amount of US$61.72bn by 2028.

Key regions: Germany, Brazil, France, United States, United Kingdom

Market

Region

Region comparison

Currency

Analyst Opinion

The Investment Banking market in South America has been experiencing significant growth and development in recent years.

Customer preferences: Investors in South America are increasingly looking for more diverse and sophisticated investment opportunities, moving away from traditional options towards more complex financial products offered by investment banks. This shift in preferences is being driven by a growing appetite for higher returns and a desire to diversify portfolios in a rapidly changing global market.

Trends in the market: In Brazil, one of the largest economies in South America, there has been a notable increase in mergers and acquisitions activity, driving demand for investment banking services. This trend can be attributed to the country's economic reforms, which have created a more favorable business environment and attracted foreign investors looking to capitalize on opportunities in the market.

Local special circumstances: Argentina, another key player in the South American Investment Banking market, has been experiencing volatility in its economy, leading to fluctuations in investor confidence. This has resulted in a more cautious approach to investment banking activities in the country, with investors seeking guidance and expertise from local banks to navigate the uncertain economic landscape.

Underlying macroeconomic factors: The overall growth of the Investment Banking market in South America can be attributed to several macroeconomic factors, including increasing foreign direct investment, improvements in regulatory frameworks, and a growing middle class with disposable income to invest. These factors have created a conducive environment for investment banks to expand their services and cater to a broader range of clients in the region.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.