Market Insights Financial Corporate Finance

Investment Banking - Europe

Europe

The revenue in the Investment Banking market is projected to reach US$72.84bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.90% resulting in a projected total amount of US$76.18bn by 2029.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (US$130.10bn in 2024).

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the dynamic financial landscape of Europe, the Investment Banking market is experiencing notable trends and developments.

Customer preferences: Investors in Europe are increasingly seeking personalized and tailored investment banking services to meet their specific financial goals. They are inclined towards firms that offer a wide range of investment products and services, including advisory services, underwriting, and asset management, to diversify their portfolios and maximize returns.

Trends in the market: In countries like the United Kingdom, there is a growing trend towards sustainable and socially responsible investing within the investment banking sector. This shift is driven by increasing awareness of environmental, social, and governance (ESG) factors among investors, prompting investment banks to incorporate ESG criteria into their financial products and services.

Local special circumstances: In Germany, the Investment Banking market is influenced by the country's strong industrial base and export-oriented economy. This results in a focus on mergers and acquisitions (M&A) advisory services to facilitate cross-border transactions and strategic partnerships among German companies and international counterparts.

Underlying macroeconomic factors: The low interest rate environment in Europe, maintained by the European Central Bank's monetary policy, is encouraging investors to seek alternative investment opportunities through investment banks. Additionally, the ongoing digital transformation in the financial sector is driving investment banks to adopt innovative technologies to enhance operational efficiency and provide seamless digital platforms for clients.

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.