Robo Advisory Services Market Research Report By Investment Type (Discretionary, Non-Discretionary), By Target Audience (Individual Investors, Financial Advisors, Institutions), By Advisory Model (Goal-Based, Risk-Based, Hybrid), By Service Offering (Portfolio Management, Financial Planning, Tax Optimization, Estate Planning), By Technology Platform (Online, Mobile, Hybrid) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Robo Advisory Services Market Overview

The Robo Advisory Services Market Size was estimated at 10.83 (USD Billion) in 2022.The Robo Advisory Services Market Industry is expected to grow from 14.52(USD Billion) in 2023 to 202.6 (USD Billion) by 2032. The Robo Advisory Services Market CAGR (growth rate) is expected to be around 34.03% during the forecast period (2024 - 2032).

Key Robo Advisory Services Market Trends Highlighted

Key market drivers for Robo Advisory Services include increasing financial awareness, a growing middle class, and advancements in technology. The rise of digital platforms and the adoption of artificial intelligence (AI) and machine learning (ML) algorithms have made robo-advisory services more accessible and efficient. Moreover, the demand for personalized financial advice and low-cost investment options is propelling market growth. Opportunities for growth in the Robo Advisory Services market lie in the expansion of target markets, particularly in developing countries where financial literacy and access to financial services are limited. Additionally, the integration of robo-advisory services with other financial products and platforms, such as banking and wealth management, offers cross-selling opportunities and enhanced customer engagement. Recent trends in the Robo Advisory Services market indicate a shift towards hybrid models that combine automated advice with human interaction. This approach provides a more comprehensive and personalized user experience, catering to the needs of both tech-savvy and traditional investors. Furthermore, the adoption of AI and ML technologies has led to improved portfolio optimization, risk assessment, and personalized recommendations. The market is also witnessing a growing focus on ESG (environmental, social, and governance) investing as investors seek to align their investments with their values and impact the world positively.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Robo Advisory Services Market Drivers

Increasing Demand for Personalized Financial Advice

A key element contributing to the increase in the Global Robo Advisory Services Market Industry is the rising need for personal financial advisory. It is common for conventional financial advisors to be short on both time and means to cater to individualized advice for all their clients. However, robo-advisors are ready to offer the most efficient, customized advice for every client individually. This is a big positive side for investors who want a bit more of a personal touch when it comes to their finances.

Rising Popularity of Digital Wealth Management

The rising popularity of digital wealth management is another factor driving the growth of the Global Robo Advisory Services Market Industry. Digital wealth management platforms allow investors to manage their investments online, which is more convenient and cost-effective than traditional wealth management services. Robo advisors are often integrated with digital wealth management platforms, which makes it easy for investors to access personalized financial advice and manage their investments in one place.

Growing Adoption of Artificial Intelligence (AI) and Machine Learning (ML)

The growing adoption of AI and ML is also driving the growth of the Global Robo Advisory Services Market Industry. AI and ML can be used to automate many of the tasks that are involved in providing financial advice, which makes it more efficient and cost-effective. Robo advisors are increasingly using AI and ML to provide more personalized and accurate advice to their clients.

Robo Advisory Services Market Segment Insights:

Robo Advisory Services Market Investment Type Insights

The Robo Advisory Services Market can be segmented based on investment type into discretionary and non-discretionary. Discretionary robo-advisors provide personalized investment advice and recommendations, but the final investment decisions are made by the investor. Non-discretionary robo-advisors, on the other hand, make investment decisions on behalf of the investor based on predefined algorithms and risk tolerance. The discretionary Robo Advisory Services Market segment is expected to witness substantial growth in revenue in 2023 and beyond, reaching a projected valuation of USD 50.3 billion by 2024. This growth is attributed to the increasing demand for personalized investment advice and the growing popularity of self-directed investing platforms. Investors seek customized guidance to navigate complex financial markets, leading to the adoption of discretionary robo-advisors. In contrast, the non-discretionary Robo Advisory Services Market segment is anticipated to maintain a steady growth trajectory, with an estimated revenue of USD 35.2 billion in 2024. The segment's growth is driven by the increasing demand for automated investment solutions and the desire for investors to delegate investment decisions to algorithms. Non-discretionary robo-advisors offer convenience and low-cost investment options, appealing to a broader range of investors. The growth of both discretionary and non-discretionary Robo Advisory Services Market segments is influenced by factors such as technological advancements, the increasing adoption of digital wealth management platforms, and the rising number of affluent and millennial investors. These segments offer varying levels of control and customization, catering to different investor preferences and risk appetites, and are poised to drive the overall growth of the global Robo Advisory Services Market in the coming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Robo Advisory Services Market Target Audience Insights

The target audience for Robo Advisory Services Market is segmented into individual investors, financial advisors, and institutions. Individual investors are the primary target audience, accounting for the majority of the market share. The growing number of self-directed investors and the increasing popularity of online investing platforms are driving the growth in this segment. Financial advisors are also increasingly adopting robo-advisory services to enhance their client offerings and streamline their operations. Institutions, such as pension funds and endowments, are also exploring robo-advisory services as a cost-effective and efficient way to manage their investment portfolios.

Robo Advisory Services Market Advisory Model Insights

The Global Robo Advisory Services Market segmentation by Advisory Model comprises Goal-Based, Risk-Based, and Hybrid models. Among these, the Goal-Based model dominated the market in 2023, accounting for nearly half of the Global Robo Advisory Services Market revenue. This model assists investors in defining their financial goals and creating personalized investment portfolios aligned with those goals. The Risk-Based model, which tailors portfolios based on investors' risk tolerance, is anticipated to witness significant growth during the forecast period. Hybrid models, combining elements of both Goal-Based and Risk-Based models, offer a comprehensive approach and are gaining traction in the market. These models provide investors with a customizable and tailored investment experience, driving the growth of the Robo Advisory Services Market.

Robo Advisory Services Market Service Offering Insights

Robo advisory services offer a range of services to meet diverse financial needs. Portfolio management, a core service, involves managing and optimizing investment portfolios based on individual risk tolerance and financial goals. Financial planning encompasses comprehensive advice on wealth management, retirement planning, and insurance. Tax optimization strategies aim to minimize tax liabilities through effective tax planning and investment strategies. Estate planning services guide individuals in preserving and distributing wealth across generations, ensuring the smooth transfer of assets.The portfolio management segment held the largest revenue share in 2023, accounting for approximately 62.3% of the global Robo advisory services market. The growing demand for personalized and automated investment management is a key driver of this segment's growth. The financial planning segment is projected to exhibit significant growth in the coming years, driven by the increasing need for comprehensive financial guidance and the rising popularity of holistic wealth management solutions.

Robo Advisory Services Market Technology Platform Insights

The Global Robo Advisory Services Market segmentation by Technology Platform includes Online, Mobile, and Hybrid. Online platforms dominated the market in 2023, accounting for over 60% of the Global Robo Advisory Services Market revenue. The convenience and accessibility of online platforms make them the preferred choice for investors seeking automated investment management services. Mobile platforms are also gaining traction, particularly among younger and tech-savvy investors. The growing adoption of smartphones and the increasing availability of mobile-optimized Robo Advisory Services platforms are driving the growth of this segment. Hybrid platforms, which combine the features of both online and mobile platforms, offer a comprehensive solution for investors seeking a seamless and personalized investing experience. The Global Robo Advisory Services Market data shows that the Online segment is expected to maintain its dominance throughout the forecast period, with a projected market share of over 55% in 2032. The Mobile segment is anticipated to witness significant growth, with a CAGR of over 35% during the same period. The Hybrid segment is also expected to grow steadily, capturing a market share of over 10% by 2032. The growth of the Robo Advisory Services market is attributed to the increasing demand for automated and personalized investment solutions, the rising adoption of digital technologies, and the growing awareness of financial planning among investors.

Robo Advisory Services Market Regional Insights

The regional segmentation of the Robo Advisory Services Market showcases significant variations in market size and growth potential across different regions. North America is expected to dominate the market, accounting for a sizable share of the global revenue in 2023. The region's advanced financial infrastructure, high adoption of technology, and presence of major players contribute to its dominance. Europe follows as the second-largest market, driven by increasing awareness and regulatory support for robo-advisors. APAC is anticipated to witness substantial growth in the coming years, owing to rising disposable income, a growing middle-class population, and increasing smartphone penetration. South America and MEA represent emerging markets with potential for growth as financial inclusion initiatives and digital adoption gain traction.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Robo Advisory Services Market Key Players And Competitive Insights:

Major players in Robo Advisory Services Market industry are continuously innovating and expanding their product offerings to gain a competitive edge. Leading Robo Advisory Services Market players are investing heavily in research and development to introduce advanced features and capabilities. Partnerships and collaborations are also becoming increasingly common in the Robo Advisory Services Market space as companies seek to combine their strengths and accelerate development. The Robo Advisory Services Market landscape is expected to remain highly dynamic, with new entrants and disruptive technologies constantly emerging. Betterment is a leading Robo Advisory Services Market player with a strong focus on providing personalized financial advice and investment management services. The company offers a range of portfolios tailored to different risk appetites and investment goals. Betterment uses advanced algorithms and machine learning to analyze customer data and make investment recommendations. The company also provides tax-loss harvesting and automatic rebalancing services. Wealthfront is another major competitor in the Robo Advisory Services Market. The company offers a unique approach to investing, which combines automated investment management with personalized financial planning. Wealthfront's platform provides users with access to a range of investment options, including stocks, bonds, and ETFs. The company also offers tax-optimized investing and retirement planning services.

Key Companies in the Robo Advisory Services Market Include:

• Ally Invest


• Vanguard Digital Advisor


• Schwab Intelligent Portfolios


• M1 Finance


• Wealthfront


• Stash


• Robinhood


• Personal Capital


• Betterment


• Acorns


• Merrill Edge Guidenewe


• SoFi Invest

Robo Advisory Services Market Industry Developments

The Robo Advisory Services Market is projected to reach USD 202.6 billion by 2032, exhibiting a CAGR of 34.03% during the forecast period (2024-2032). The increasing adoption of digital wealth management platforms, rising disposable income, and growing awareness about financial planning are major factors driving the market growth. Recent developments include the launch of new robo-advisory platforms by traditional financial institutions and fintech startups. For instance, in 2023, Goldman Sachs launched its robo-advisory platform, Marcus Invest, while JPMorgan Chase introduced its own platform, You Invest. These platforms offer automated investment management services, personalized financial advice, and low fees, making them appealing to a wider range of investors. Moreover, the integration of artificial intelligence (AI) and machine learning (ML) technologies is enhancing the capabilities of robo-advisors. AI-powered algorithms can analyze vast amounts of data to provide personalized investment recommendations, optimize portfolio performance, and manage risk more effectively. ML algorithms are also being used to improve customer service and provide real-time support.

Robo Advisory Services Market Segmentation Insights

Robo Advisory Services Market Investment Type Outlook

• Discretionary


• Non-Discretionary

Robo Advisory Services Market Target Audience Outlook

• Individual Investors


• Financial Advisors


• Institutions

Robo Advisory Services Market Advisory Model Outlook

• Goal-Based


• Risk-Based


• Hybrid

Robo Advisory Services Market Service Offering Outlook

• Portfolio Management


• Financial Planning


• Tax Optimization


• Estate Planning

Robo Advisory Services Market Technology Platform Outlook

• Online


• Mobile


• Hybrid

Robo Advisory Services Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa