Digital Investment - United Kingdom

United Kingdom

Highlights

Total transaction value in the Digital Investment market is projected to reach US$72.56bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 3.17% resulting in a projected total amount of US$84.83bn by 2029.
Neobrokers dominates the market with a projected total transaction value of US$46.33bn 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 United Kingdom has been experiencing significant growth in recent years.

Customer preferences: Customers in the United Kingdom have shown a strong preference for digital investment platforms due to their convenience and accessibility. With the advancement of technology, investors are increasingly turning to online platforms to manage their investments. These platforms offer a wide range of investment options, including stocks, bonds, and mutual funds, allowing investors to diversify their portfolios and make informed investment decisions. Additionally, digital investment platforms provide users with real-time market data and analysis, enabling them to stay updated on market trends and make timely investment decisions.

Trends in the market: One of the key trends in the digital investment market in the United Kingdom is the rise of robo-advisors. These automated investment platforms use algorithms to provide personalized investment advice and manage portfolios on behalf of investors. Robo-advisors have gained popularity among investors due to their low fees and ability to provide tailored investment strategies based on individual risk tolerance and financial goals. This trend is driven by the increasing demand for affordable and convenient investment solutions. Another trend in the market is the integration of artificial intelligence (AI) and machine learning (ML) technologies into digital investment platforms. These technologies enable platforms to analyze vast amounts of data and identify investment opportunities in real-time. AI and ML algorithms can also help investors in optimizing their portfolios and minimizing risks. This trend is driven by the growing need for sophisticated investment tools that can navigate complex market conditions.

Local special circumstances: The United Kingdom has a well-developed financial services sector, which has contributed to the growth of the digital investment market. The country's strong regulatory framework and investor protection laws have instilled confidence in investors, encouraging them to embrace digital investment platforms. Additionally, the presence of established financial institutions and fintech companies in the United Kingdom has created a competitive market environment, driving innovation and the development of new digital investment products and services.

Underlying macroeconomic factors: The growth of the digital investment market in the United Kingdom is also influenced by underlying macroeconomic factors. The country's stable economic conditions and low interest rates have made investing in financial markets an attractive option for individuals looking to grow their wealth. Furthermore, the increasing digital literacy among the population and the widespread adoption of smartphones and internet connectivity have facilitated the growth of the digital investment market. In conclusion, the Digital Investment market in United Kingdom has been experiencing significant growth due to customer preferences for convenience and accessibility, the rise of robo-advisors, the integration of AI and ML technologies, the well-developed financial services sector, stable macroeconomic conditions, and increasing digital literacy among the population. These factors have contributed to the increasing adoption of digital investment platforms in the United Kingdom, providing individuals with new opportunities to grow their wealth and make informed investment decisions.

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.