Digital Investment - Estonia

Estonia

Highlights

Total transaction value in the Digital Investment market is projected to reach US$135.10m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 6.10% resulting in a projected total amount of US$181.60m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$135.10m 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 Estonia has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Estonian customers have shown a strong preference for digital investment platforms, which offer convenience, accessibility, and a wide range of investment options. The younger generation, in particular, has embraced digital investing as a way to grow their wealth and achieve financial independence. Additionally, the country's high level of digital literacy and tech-savvy population has contributed to the popularity of digital investment platforms.

Trends in the market: One major trend in the Estonian Digital Investment market is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios based on individual customer preferences and risk tolerance. Robo-advisors have gained traction in Estonia due to their low fees, ease of use, and ability to provide personalized investment advice. As a result, traditional investment advisors are facing increased competition from these digital platforms. Another trend in the market is the growing interest in sustainable and socially responsible investing. Estonian investors are becoming more conscious of the environmental and social impact of their investments and are seeking out opportunities to align their portfolios with their values. Digital investment platforms have responded to this demand by offering a wide range of sustainable investment options, such as renewable energy projects and companies with strong environmental and social governance practices.

Local special circumstances: Estonia's unique position as a digital society has played a significant role in the development of its Digital Investment market. The country has a highly advanced digital infrastructure, with widespread internet access and a government that actively promotes digital innovation. This has created a favorable environment for the growth of digital investment platforms, as customers feel confident in the security and reliability of online transactions. Additionally, Estonia's small size and close-knit business community have allowed digital investment platforms to quickly gain traction and establish themselves in the market. The country's entrepreneurial spirit and supportive startup ecosystem have also fostered the growth of innovative digital investment solutions.

Underlying macroeconomic factors: Estonia's strong economic performance and stable political environment have provided a solid foundation for the growth of the Digital Investment market. The country has experienced steady economic growth in recent years, driven by sectors such as information technology, e-commerce, and financial services. This has created a favorable investment climate and increased disposable income, allowing more individuals to participate in the digital investment market. Furthermore, Estonia's membership in the European Union has facilitated cross-border investment opportunities and access to a larger market. This has attracted international digital investment platforms to enter the Estonian market, further diversifying the options available to local investors. In conclusion, the Digital Investment market in Estonia is experiencing rapid growth due to customer preferences for digital platforms, the rise of robo-advisors, and the increasing interest in sustainable investing. Estonia's digital society, supportive business environment, and strong macroeconomic factors have all contributed to the development of a thriving digital investment market in the country.

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.