Market Insights Financial Corporate Finance

Investment Banking - Southeast Asia

Southeast Asia

The projected revenue in the Investment Banking market in Southeast Asia is estimated to reach US$11.66bn by 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 2.59%, leading to a projected total amount of US$13.25bn by 2029.
When comparing globally, it is noteworthy that the United States generates the highest revenue, amounting to US$130.10bn in 2024.
In Southeast Asia's investment banking market, Singapore continues to dominate with its robust financial infrastructure and strong regulatory framework.

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Analyst Opinion

The Investment Banking market in Southeast Asia is witnessing a surge in activity driven by various factors.

Customer preferences: Investors in Southeast Asia are increasingly seeking diversified investment options to maximize returns and manage risks effectively. They are showing a growing interest in investment banking services that offer tailored solutions to meet their specific financial goals. Additionally, there is a rising demand for sustainable and socially responsible investment opportunities in the region.

Trends in the market: In Singapore, a key financial hub in Southeast Asia, the Investment Banking market is experiencing a shift towards digitalization and innovation. Fintech companies are disrupting traditional banking models, offering new ways to access and manage investments. This trend is reshaping the competitive landscape and pushing traditional investment banks to adapt and enhance their digital capabilities to stay relevant in the market.

Local special circumstances: Indonesia, with its large and growing population, presents unique opportunities for investment banking firms. The country's expanding middle class is driving demand for wealth management services and investment products. Moreover, the government's initiatives to improve infrastructure and attract foreign investments are creating a favorable environment for investment banking activities in Indonesia.

Underlying macroeconomic factors: The economic growth in Southeast Asia, fueled by factors such as increasing urbanization, rising disposable incomes, and favorable government policies, is boosting investment opportunities in the region. As the middle class expands and becomes more financially savvy, the demand for sophisticated investment products and advisory services is expected to grow. Additionally, the region's strategic location and growing integration into the global economy are attracting foreign investors, further stimulating the Investment Banking market in Southeast Asia.

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.