Market Insights Financial Corporate Finance

Investment Banking - G7

The revenue in the Investment Banking market is projected to reach US$185.90bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.73% resulting in a projected total amount of US$202.50bn 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

The Investment Banking market in G7 countries is experiencing a shift in customer preferences, trends, and local special circumstances.

Customer preferences: Customers in G7 countries are increasingly seeking personalized and tailored investment banking services to meet their specific financial goals and risk appetites. This demand for customization is driving investment banks to innovate and offer a wide range of products and services to cater to individual client needs.

Trends in the market: In the United States, the Investment Banking market is witnessing a surge in mergers and acquisitions activity, driven by favorable economic conditions and low-interest rates. This trend is leading to an increased demand for advisory services from investment banks to facilitate strategic deals and transactions.In the United Kingdom, Brexit uncertainty has created challenges and opportunities for the Investment Banking sector. Investment banks are adapting their strategies to navigate the changing regulatory landscape and are exploring new markets to offset potential risks associated with the UK's exit from the European Union.

Local special circumstances: In Japan, the Investment Banking market is characterized by a strong focus on technological innovation and digitalization. Japanese investment banks are leveraging advanced technologies such as artificial intelligence and blockchain to enhance efficiency, improve customer experience, and stay competitive in the market.

Underlying macroeconomic factors: The economic stability and growth prospects of G7 countries play a significant role in shaping the Investment Banking market. Factors such as interest rates, inflation, GDP growth, and regulatory environment influence the overall performance and profitability of investment banks in these advanced economies. Adapting to changing macroeconomic conditions is crucial for investment banks to sustain growth and remain resilient in the face of market uncertainties.

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.