Digital Investment - Australia

Australia

Highlights

Total transaction value in the Digital Investment market is projected to reach US$15.07bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 4.26% resulting in a projected total amount of US$18.57bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$9.96bn in 2024.
The highest cumulated transaction value is reached United States (US$1.78tn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Investment market in Australia has been experiencing significant growth in recent years.

Customer preferences: Customers in Australia are increasingly turning to digital investment platforms due to their convenience and accessibility. With the rise of smartphones and internet penetration, investors are now able to manage their investments anytime and anywhere. This has led to a shift away from traditional investment methods towards digital platforms.

Trends in the market: One of the key trends in the digital investment market in Australia is the rise of robo-advisors. These automated platforms use algorithms to provide investment advice and manage portfolios on behalf of investors. Robo-advisors have gained popularity due to their low fees and ability to provide personalized investment strategies based on individual risk profiles. This trend is expected to continue as more investors recognize the benefits of using robo-advisors. Another trend in the market is the increasing popularity of peer-to-peer lending platforms. These platforms connect borrowers with individual lenders, bypassing traditional financial institutions. Peer-to-peer lending offers investors the opportunity to earn higher returns compared to traditional savings accounts or bonds. This trend is driven by the low interest rate environment in Australia, which has led investors to seek alternative investment options.

Local special circumstances: Australia has a highly regulated financial services industry, which has helped to build trust and confidence in digital investment platforms. The Australian Securities and Investments Commission (ASIC) closely monitors and regulates the activities of digital investment providers to ensure the protection of investors. This regulatory framework has helped to create a favorable environment for the growth of the digital investment market in Australia.

Underlying macroeconomic factors: Australia's strong economy and high levels of financial literacy have also contributed to the growth of the digital investment market. The country has a well-developed financial services sector and a large pool of potential investors. Additionally, the low interest rate environment in Australia has made traditional investment options less attractive, leading investors to explore alternative options such as digital investment platforms. In conclusion, the digital investment market in Australia is experiencing significant growth due to customer preferences for convenience and accessibility, the rise of robo-advisors and peer-to-peer lending platforms, the favorable regulatory environment, and underlying macroeconomic factors such as a strong economy and low interest rates.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us 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 relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.