Global Investment Banking and Trading Services Market Grows Steadily at a CAGR of 5.60%

Introduction

Investment banking offers financial consulting services to people and companies, including capital raising. By offering underwriting services and managing transactions like securities trading for both fixed income and equities, mergers and acquisitions (M&A), market-making, and other activities, investment banking and trading services, which have expanded to become one of the major sectors of the financial services industry, support businesses, institutions, and governments. The main goal of investment banking is to raise money for other companies, governments, and organizations.

Market Dynamics

Growing Demand for Capital Requirements and Business Expansion Drives the Global Market

Most large and medium-sized businesses need capital to expand their current and future operations. Additionally, these businesses depend on investment banking and trading services to raise capital and conduct initial public offerings (IPOs) to meet their capital and business expansion needs. Investment banking also helps businesses with limited access to capital by preparing a bond offering, merger negotiations, or establishing a private placement of bonds for their operational needs. As a result, large and medium-sized businesses are increasingly driving the market due to their capital needs.

Untapped Potential of Emerging Economies Creates Tremendous Opportunities

There are many opportunities for investment banking and trading service providers to diversify their product offerings as financial activity in emerging economies continues to rise. The adoption of new technologies like artificial intelligence, Big Data, machine learning, and chatbots, as well as the rapid growth of domestic businesses, particularly in countries like India, China, Singapore, and South Korea, are expected to create the potential for the investment banking market in the upcoming years. Due to these factors, there is a massive demand for investment banking and trading services to keep up with the environment's rapid change.

Regional Analysis

North America is the most significant shareholder in the global investment banking and trading services market and is expected to grow at a CAGR of 5.8% during the forecast period. One of the factors influencing the expansion of the regional market for investment banking and trading services is the demand for instant trade transactions, secure banking solutions, and goods and services. The rise in partnerships between international businesses and regulatory bodies for expanding business globally, as well as the increased awareness of investment banking and merger and acquisition solutions among traders, are additional significant factors influencing the growth of the investment banking and trading services market in this region. Many banks and financial institutions have adopted modern technologies, and medium and large-sized businesses in the United States frequently use investment banking.

Europe region is expected to grow at a CAGR of 9.8%, generating USD 181.16 billion during the forecast period. The surge in small and medium-sized businesses entering international trade and the increase in trade volume from this region are significant drivers of the growth of the trading services and investment banking market. Additionally, by incorporating consistent regulation and additional investment to ensure rapid deployment of competitive technology, the European Union states have sped up the journey of investment banks' technology transformation.

Key Highlights

• The global investment banking and trading services market was valued at USD 325.98 billion in 2021. It is projected to reach USD 668.10 billion by 2030, growing at a CAGR of 8.3% during the forecast period (2022–2030).
• Based on service type, the global investment banking and trading services market is bifurcated into trading and related services, equity underwriting/debt underwriting, financial advisory, and others. The trading and related services segment is the highest contributor to the market and is expected to grow at a CAGR of 7.1% during the forecast period.
• Based on industry vertical, the global investment banking and trading services market is bifurcated into BFSI, energy and utilities, IT and telecom, healthcare, manufacturing, retail and consumer goods, media and entertainment, and others. The BFSI segment owns the highest market share and is expected to grow at a CAGR of 6.7% during the forecast period.

• North America is the most significant shareholder in the global investment banking and trading services market and is expected to grow at a CAGR of 5.8% during the forecast period.

Competitive Players

Competitive Players

The global investment banking and trading services market’s major key players are Bank of America Corporation, CREDIT SUISSE GROUP AG, Barclays, Citigroup Inc., Deutsche Bank AG, Goldman Sachs, HSBC Group, JPMorgan Chase & Co., Morgan Stanley, UBS, and Wells Fargo.

Recent Developments

Market News

• In September 2022, The JPMorgan Chase & Co. business unit Morgan Health recently announced a USD 20 million strategic investment in LetsGetChecked to support the expansion of convenient and cost-effective at-home medical services. LetsGetChecked provides medical tools that make it simple and effective for patients to manage their health from home.
• In September 2022, Visual Structuring, a brand-new tool for options price discovery and trade idea generation still subject to patent, was launched by Goldman Sachs and is accessible through Goldman Sachs Marquee.

Segmentation

Global Investment Banking and Trading Services Market: Segmentation

By Service Type

• Trading and Related Services
• Equity Underwriting/Debt Underwriting
• Financial advisory
• Others

By Deployment

• BFSI, Healthcare
• Manufacturing
• Energy and Utilities
• IT and Telecom
• Retail and Consumer Goods
• Media and Entertainment
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA