Digital Investment - Singapore

Singapore

Highlights

Total transaction value in the Digital Investment market is projected to reach US$1.49bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 7.36% resulting in a projected total amount of US$2.12bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$1.49bn 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 Singapore has been experiencing significant growth in recent years.

Customer preferences: Singaporean customers have shown a strong interest in digital investment platforms due to their convenience and accessibility. Many customers prefer the ease of managing their investments online, as it allows them to monitor their portfolios and make transactions at any time and from anywhere. Additionally, digital investment platforms often offer a wide range of investment options, allowing customers to diversify their portfolios and potentially achieve higher returns.

Trends in the market: One major trend in the Singaporean Digital Investment market is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage portfolios for customers based on their risk tolerance and investment goals. Robo-advisors have gained popularity in Singapore due to their low fees and ability to provide personalized investment advice. Many customers appreciate the simplicity and transparency of robo-advisors, making them a preferred choice for digital investing. Another trend in the market is the increasing integration of artificial intelligence (AI) and machine learning in digital investment platforms. AI-powered platforms can analyze large amounts of data and make investment recommendations based on historical trends and market conditions. This technology allows for more accurate predictions and can help customers make informed investment decisions. Singaporean customers are embracing this trend as they seek to maximize their investment returns and stay ahead of market trends.

Local special circumstances: Singapore's strong financial sector and supportive regulatory environment have contributed to the growth of the Digital Investment market. The government has implemented initiatives to promote fintech innovation and attract investment in the sector. Additionally, Singapore's reputation as a global financial hub has helped to build trust and credibility in digital investment platforms. Customers feel confident in using these platforms as they are backed by Singapore's robust regulatory framework.

Underlying macroeconomic factors: The growth of the Digital Investment market in Singapore can also be attributed to favorable macroeconomic factors. Singapore has a high level of internet penetration and a tech-savvy population, which has facilitated the adoption of digital investment platforms. Additionally, the country has a strong culture of saving and investing, with many Singaporeans seeking ways to grow their wealth. The low interest rate environment has also incentivized customers to explore alternative investment options, such as digital investing, in order to achieve higher returns. In conclusion, the Digital Investment market in Singapore is experiencing significant growth driven by customer preferences for convenience and accessibility, as well as trends such as the rise of robo-advisors and the integration of AI. Singapore's supportive regulatory environment and strong financial sector have also contributed to the market's development. Favorable macroeconomic factors, including high internet penetration and a culture of saving and investing, have further fueled 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.