Digital Investment - Portugal

Portugal

Highlights

Total transaction value in the Digital Investment market is projected to reach US$5.44bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 1.93% resulting in a projected total amount of US$5.98bn by 2029.
Neobrokers dominates the market with a projected total transaction value of US$4.47bn 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 Portugal is experiencing significant growth and development.

Customer preferences: Portuguese customers are increasingly turning to digital investment platforms due to their convenience and accessibility. These platforms allow customers to easily manage their investments online, eliminating the need for traditional brokerages or financial advisors. Additionally, digital investment platforms often offer lower fees and minimum investment requirements, making them more attractive to a wider range of customers.

Trends in the market: One major trend in the Portuguese Digital Investment market is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios for customers. Robo-advisors are gaining popularity in Portugal due to their low costs and ability to provide personalized investment advice based on individual risk profiles and financial goals. Another trend is the increasing adoption of mobile investment apps, which allow customers to manage their investments on the go. These apps provide real-time market data, investment recommendations, and the ability to execute trades directly from a smartphone or tablet.

Local special circumstances: Portugal has a relatively small population compared to other European countries, which presents both challenges and opportunities for the Digital Investment market. On one hand, the smaller market size may limit the number of potential customers for digital investment platforms. However, it also means that there is less competition in the market, allowing digital investment platforms to establish a strong presence and build customer loyalty. Additionally, Portugal has a high smartphone penetration rate, which makes it an ideal market for mobile investment apps.

Underlying macroeconomic factors: The growth of the Digital Investment market in Portugal can be attributed to several underlying macroeconomic factors. Firstly, the country's improving economic conditions and rising disposable incomes have led to an increased interest in investing. As more Portuguese individuals and households look to grow their wealth, digital investment platforms provide a convenient and affordable way to do so. Secondly, the low interest rate environment in Portugal has made traditional savings accounts less attractive, prompting individuals to seek alternative investment options. Lastly, Portugal's aging population and the need for retirement planning have also contributed to the growth of the Digital Investment market, as individuals look for ways to secure their financial future. In conclusion, the Digital Investment market in Portugal is experiencing significant growth and development, driven by customer preferences for convenience and accessibility, as well as the rise of robo-advisors and mobile investment apps. The country's small market size presents both challenges and opportunities, while underlying macroeconomic factors such as improving economic conditions, low interest rates, and the need for retirement planning have also contributed to the market's growth.

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.