Market Insights Financial Wealth Management

Digital Investment - Luxembourg

Luxembourg

Total transaction value in the Digital Investment market is projected to reach US$294.50m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 6.72% resulting in a projected total amount of US$407.60m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$294.50m in 2024.
The highest cumulated transaction value is reached in the United States (US$1,782,000.00m in 2024).

Key regions: United Arab Emirates, Switzerland, Singapore, United Kingdom, Europe

Market

Region

Region comparison

Currency

Analyst Opinion

The Digital Investment market in Luxembourg is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in Luxembourg are increasingly turning to digital investment platforms for their investment needs. This is driven by the convenience and accessibility offered by these platforms, allowing investors to manage their portfolios from anywhere at any time. Additionally, digital investment platforms often provide a wider range of investment options and lower fees compared to traditional investment firms.

Trends in the market: One of the major trends in the digital investment market in Luxembourg is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios based on customers' risk profiles and investment goals. Robo-advisors have gained popularity due to their low fees and ability to provide personalized investment advice without the need for human financial advisors. This trend is expected to continue as more investors recognize the benefits of robo-advisors. Another trend in the market is the increasing adoption of sustainable and socially responsible investing. Investors in Luxembourg are becoming more conscious of the environmental and social impact of their investments, and are seeking digital investment platforms that offer sustainable investment options. This trend is driven by a growing awareness of environmental and social issues, as well as regulatory initiatives promoting sustainable finance.

Local special circumstances: Luxembourg is known for its strong financial services sector and favorable regulatory environment. The country has a long history of attracting international investors and financial institutions, and this reputation extends to the digital investment market. The presence of established financial institutions and regulatory frameworks that support innovation and investor protection has created a conducive environment for the growth of digital investment platforms in Luxembourg.

Underlying macroeconomic factors: The growth of the digital investment market in Luxembourg is also influenced by macroeconomic factors. Luxembourg has a high GDP per capita and a stable economy, which provides a favorable environment for investment. Additionally, the country's strong financial services sector and its position as a global hub for asset management attract both domestic and international investors. These factors contribute to the overall growth and development of the digital investment market in Luxembourg.

Methodology

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.