Digital Investment - Iceland

Iceland

Highlights

Total transaction value in the Digital Investment market is projected to reach US$166.10m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 7.67% resulting in a projected total amount of US$240.40m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$166.10m 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 Iceland is experiencing significant growth and development due to several factors.

Customer preferences: Icelandic customers are increasingly turning to digital investment platforms for their investment needs. This shift in preference can be attributed to several factors. Firstly, digital investment platforms offer convenience and accessibility, allowing customers to manage their investments anytime, anywhere. This is particularly appealing to the tech-savvy Icelandic population, who are accustomed to using digital platforms for various aspects of their lives. Additionally, digital investment platforms often provide a wide range of investment options and tools, allowing customers to diversify their portfolios and make informed investment decisions.

Trends in the market: One of the key trends in the digital investment market in Iceland is the rise of robo-advisors. These automated investment platforms use algorithms to provide personalized investment advice and manage portfolios on behalf of customers. Robo-advisors have gained popularity in Iceland due to their low fees, transparency, and ease of use. They appeal to both experienced investors looking for a hands-off approach and novice investors who may lack the knowledge and confidence to make investment decisions on their own. Another trend in the market is the increasing demand for sustainable and socially responsible investments. Icelandic customers are becoming more conscious of the environmental and social impact of their investments and are seeking out digital investment platforms that offer sustainable investment options. This trend aligns with global movements towards responsible investing and reflects the values and priorities of the Icelandic population.

Local special circumstances: Iceland's small population and geographic isolation present unique challenges and opportunities for the digital investment market. With a population of just over 350,000, the market size is relatively small compared to larger countries. However, this also means that there is a close-knit community of investors and a high level of trust in local financial institutions. Digital investment platforms that can tap into this trust and provide personalized services tailored to the Icelandic market have the potential to thrive.

Underlying macroeconomic factors: The strong performance of the Icelandic economy in recent years has also contributed to the growth of the digital investment market. Iceland has experienced robust economic growth, low unemployment rates, and stable inflation, creating a favorable environment for investment. Additionally, the government has implemented policies to attract foreign investment and promote entrepreneurship, further stimulating the investment landscape. These macroeconomic factors have increased disposable income and investment opportunities for Icelandic customers, driving the demand for digital investment platforms. In conclusion, the Digital Investment market in Iceland is growing rapidly due to customer preferences for convenience and accessibility, the rise of robo-advisors, and the increasing demand for sustainable investments. The small population and unique circumstances of Iceland present both challenges and opportunities for digital investment platforms. The strong macroeconomic factors, including a thriving economy and government support for investment, 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.