Global Investment Banking Market Size to worth USD 394.21 Billion by 2033
According to a research report published by Spherical Insights & Consulting, the Global Investment Banking Market Size is Expected to Grow from USD 169.99 Billion in 2023 to USD 394.21 Billion by 2033, at a CAGR 8.78% during the forecast period 2023-2033.
Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global Investment Banking Market Size, Share, and COVID-19 Impact Analysis, By Type (Mergers and Acquisitions Advisory, Financial Sponsor/Syndicated Loans, Equity Capital Markets Underwriting, and Debt Capital Markets Underwriting), By End User (Individuals, Corporate Institutions), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.
The investment banking market is a segment of the financial services industry that assists businesses, governments, and other entities in raising capital. Investment banks serve as intermediaries between investors and issuers, offering services such as underwriting, mergers and acquisitions (M&A), and broker-dealer activities. This market is primarily influenced by several factors, including global economic growth, increasing demand for capital-raising activities like M&A, a growing need for expert financial advisory services due to complex regulations, advancements in technology that enable efficient transactions, and a rising trend toward digitalization within the financial sector. These elements contribute to heightened business activity and increased demand for investment banking services. However, the investment banking market also faces constraints from factors like stringent regulations, market volatility, and intense competition from non-traditional players such as fintech companies, economic uncertainties, geopolitical tensions, and complex compliance requirements. These challenges can limit profitability, hinder risk-taking, and affect the operational efficiency of investment banks.
The mergers and acquisitions advisory segment is predicted to hold the largest market share through the forecast period.
Based on the type, the investment banking market is classified into mergers & acquisitions advisory, financial sponsor/syndicated loans, equity capital markets underwriting, and debt capital markets underwriting. Among these, the mergers and acquisitions advisory segment is predicted to hold the largest market share through the forecast period. The increase in deal activity, driven by industry consolidation, strategic partnerships, and efforts to expand into new markets, is noteworthy. Investment banks offer specialized M&A advisory services that include identifying potential targets, conducting valuation analyses, performing due diligence, and structuring deals to ensure successful transactions. The rising demand for strategic guidance, access to capital, and expertise in navigating complex M&A processes is contributing to the growth of the M&A advisory segment.
The corporate institutions segment is anticipated to hold the highest market share during the projected timeframe.
Based on the end user, the investment banking market is divided into individuals and corporate institutions. Among these, the corporate institutions segment is anticipated to hold the highest market share during the projected timeframe. This segment's strong performance highlights the significant reliance of corporations on investment banking services for complex transactions, such as mergers, acquisitions, and capital-raising activities. These services are essential for navigating the intricate landscape of global finance, especially for companies looking to expand or streamline their operations.
North America is estimated to hold the largest share of the investment banking market over the forecast period.
North America is estimated to hold the largest share of the investment banking market over the forecast period. The North American investment banking market is primarily fueled by the strong presence of large multinational corporations and high levels of corporate activity, including mergers and acquisitions (M&A). The robust financial sectors in both the US and Canada, along with a developed technological infrastructure and access to major stock exchanges like the New York Stock Exchange, create substantial demand for capital raising, financial advisory, and IPO services offered by investment banks.
Asia Pacific is expected to grow the fastest during the forecast period. The Asia-Pacific investment banking market is influenced by several key factors. The adoption of blockchain technology, partnerships with fintech companies, and the use of advanced analytics are transforming the operations of investment banks. Additionally, tax reforms, trade agreements, and other policy changes can significantly impact deal structures and cross-border transactions. Political instability, trade tensions, and regional conflicts may also affect investment strategies and market sentiment. Moreover, the growth of emerging economies in Asia has led to increased domestic consumption and a rising demand for financial services.
Competitive Analysis
Major key players in the investment banking market include JPMorgan Chase & Co., Citigroup Inc., Goldman Sachs, BofA Securities, Morgan Stanley, UBS, Credit Suisse Group AG, Deutsche Bank AG, The Hongkong and Shanghai Banking Corporation Limited, and Barclays.
Key Target Audience
- Market Players
- Investors
- End-users
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
Recent Development
- In April 2024, AGL Credit Management LP (“AGL”), a leading corporate credit investment manager, entered into a Cooperation Agreement with Barclays Plc (“Barclays”), a global investment bank, to launch AGL Private Credit (“AGL PC”). This new platform will combine AGL's credit expertise with Barclays’ leveraged finance capabilities, focusing on directly originated senior secured loans to large corporate borrowers and capitalizing on opportunities in the private credit, syndicated loan, and high-yield bond markets.
Market Segment
This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the investment banking market based on the below-mentioned segments:
Global Investment Banking Market, By Type
- Mergers & Acquisitions Advisory
- Financial Sponsor/Syndicated Loans
- Equity Capital Markets Underwriting
- Debt Capital Markets Underwriting
Global Investment Banking Market, By End User
- Individuals
- Corporate Institutions
Global Investment Banking Market, By Regional Analysis
- North America
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- UAE
- Saudi Arabia
- Qatar
- South Africa
- Rest of the Middle East & Africa