Market Insights Financial Wealth Management

Digital Investment - Southern Europe

Southern Europe

In 2024, the Digital Investment market in Southern Europe is projected to reach a total transaction value of US$99.65bn.
Looking ahead, this market is expected to exhibit a compound annual growth rate (CAGR 2024-2027) of 4.62%.
This growth trajectory is anticipated to result in a projected total transaction value of US$114.10bn by 2027.
When it comes to market dominance, Neobrokers are expected to take the lead, with a projected total transaction value of US$65.98bn in 2024.
However, it is worth noting that the highest cumulated transaction value is anticipated to be reached United States, with a staggering US$1,782,000.00m in 2024.
In Southern Europe, Spain is experiencing a surge in digital investment as the government focuses on promoting innovation and technology.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Digital Investment market in Southern Europe is experiencing significant growth and development. Customer preferences in the region are shifting towards digital investment platforms due to their convenience and accessibility.

Investors are increasingly looking for online platforms that offer a wide range of investment options and tools, allowing them to manage their portfolios easily. This preference for digital investment is driven by the desire for greater control and transparency over their investments, as well as the ability to access real-time market information. Trends in the market show that digital investment platforms are expanding their services to cater to the growing demand.

Many platforms are now offering robo-advisory services, which use algorithms to provide personalized investment advice and portfolio management. This trend is particularly popular among younger investors who are more comfortable with technology and prefer a hands-off approach to investing. Additionally, social trading platforms are gaining traction, allowing investors to follow and copy the trades of successful traders, creating a sense of community and collaboration within the digital investment space.

Local special circumstances in Southern Europe also contribute to the growth of the Digital Investment market. The region has a high smartphone penetration rate, with a large portion of the population using mobile devices for various activities, including financial transactions. This mobile-first approach has created an environment conducive to the adoption of digital investment platforms, as investors can easily access and manage their portfolios on the go.

Furthermore, the region has a strong entrepreneurial culture and a growing number of startups, which has led to increased interest in alternative investment options such as crowdfunding and peer-to-peer lending. Underlying macroeconomic factors also play a role in the development of the Digital Investment market in Southern Europe. The region has experienced economic challenges in recent years, with low interest rates and volatile stock markets.

As a result, investors are seeking alternative investment opportunities that offer potentially higher returns. Digital investment platforms provide access to a wide range of investment options, including stocks, bonds, and alternative assets, allowing investors to diversify their portfolios and potentially mitigate risk. Additionally, the low-cost nature of digital investment platforms appeals to cost-conscious investors who are looking to maximize their returns.

In conclusion, the Digital Investment market in Southern Europe is growing rapidly due to customer preferences for convenience and transparency, as well as the expansion of digital investment platforms to cater to these preferences. Local special circumstances such as high smartphone penetration and a strong entrepreneurial culture contribute to the growth, while underlying macroeconomic factors such as low interest rates and volatile stock markets drive the demand for alternative investment options.

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.