Digital Investment - Central & Western Europe

Central & Western Europe

Highlights

Total transaction value in the Digital Investment market is projected to reach US$253.50bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 2.71% resulting in a projected total amount of US$289.80bn by 2029.
Neobrokers dominates the market with a projected total transaction value of US$173.80bn 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 Central & Western Europe is experiencing significant growth and development, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in Central & Western Europe are increasingly turning to digital investment platforms due to their convenience, accessibility, and cost-effectiveness. These platforms offer a wide range of investment options and tools, allowing customers to easily manage their portfolios and make informed investment decisions. Additionally, digital investment platforms provide a user-friendly interface and personalized recommendations, which resonate well with tech-savvy customers in the region.

Trends in the market: One of the key trends in the Digital Investment market in Central & Western Europe is the rise of robo-advisors. These automated investment platforms leverage algorithms and artificial intelligence to provide personalized investment advice and manage portfolios on behalf of customers. Robo-advisors have gained popularity due to their low fees, transparency, and ability to cater to individual investment goals and risk tolerance. This trend is driven by the increasing demand for simplified investment solutions and the desire for greater control over investment decisions. Another trend in the market is the integration of social and community features into digital investment platforms. Customers in Central & Western Europe value peer recommendations and social interaction, and digital investment platforms are incorporating these elements to enhance the user experience. This includes features such as social investing, where customers can follow and replicate the investment strategies of successful investors, as well as online communities where users can share investment ideas and insights. These social features not only provide customers with additional resources and information but also foster a sense of community and collaboration.

Local special circumstances: Central & Western Europe has a well-developed financial infrastructure and a high level of digital literacy among its population. This creates a favorable environment for the growth of the Digital Investment market. Additionally, the region has a large number of tech-savvy millennials who are increasingly entering the investment market. These young investors are more inclined towards digital solutions and are driving the adoption of digital investment platforms.

Underlying macroeconomic factors: The Digital Investment market in Central & Western Europe is also influenced by underlying macroeconomic factors. The region has a stable and growing economy, which provides a favorable investment climate. Additionally, low interest rates and the availability of investment opportunities in sectors such as technology and renewable energy are attracting investors to the market. Furthermore, the increasing focus on sustainable and socially responsible investments is driving the demand for digital investment platforms that offer these options. In conclusion, the Digital Investment market in Central & Western Europe is experiencing rapid growth and development due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The rise of robo-advisors and the integration of social features are key trends in the market, driven by the demand for simplified investment solutions and the desire for social interaction. The region's well-developed financial infrastructure, high digital literacy, and favorable macroeconomic conditions further contribute to the growth of the market.

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.