The global robo-advisors market size is estimated to reach USD 5,401.19 billion by 2028, registering a CAGR of 18.6% over the forecast period, according to a new report by Million Insights. The cost-effective investment advisory and more accessibility is the key driver for the market. In addition, the augmented use of technology by advisors for advice and execution drives the industry growth. However, the lack of investment choice is the major restraint for the market. The COVID-19 pandemic had a positive impact on the market.
The industry had witnessed considerable growth due to the increased adoption of robo advisors for efficient wealth and asset management in a large volatile market during the pandemic. Most of the investors took benefit of investment opportunities that occurred during the pandemic. The competencies of robo advisors to reduce illogical behavior and poor & spontaneous decision-making during a critical time like the COVID-19 pandemic remarkably contributes to the market development.
The automated online portfolio management services segment accounted for the maximum revenue share in 2020. The automated online portfolio management services help customers with an investment strategy that has the potential to grow. Moreover, these services help the customers reach their goals with a diversified portfolio that stays aligned with their preferred risk tolerance. Thus, its demand is high and contributes more to the market revenue.
The report “Robo-Advisors Market Size, Share & Trends Analysis Report By Type (Automated Online Portfolio Management Services, Financial Advisory Services), By Region (APAC, North America), And Segment Forecasts, 2021 - 2028” is available now to Million Insights.
Million Insights has segmented the global robo-advisors market on the basis of type and region: