Market Size of Investment Banking Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 2.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Investment Banking Market Analysis
The Investment Banking Market is expected to register a CAGR of 2.10% during the forecast period.
Investment banks act as intermediaries between an issuer of securities and the investing public, distributing an offering through their dealer networks or direct sales to clients. Capital raising, proprietary trading, and deal underwriting are some of the core activities typically carried out by investment banks.
The U.S. investment banking industry includes about 3,000 companies with combined annual revenue of about $140 billion. The 50 largest firms generate more than 90 percent of the industry's revenue.
Investment banking industry has not fully recovered from the aftermath of 2008 financial crisis. The post-crisis period has witnessed a flurry of constraints on the industry in the form of more stringent and intrusive regulations such as Pillar 3, meeting BCBS 239 in addition to IFRS 9 requirements and many other mandatory regulatory requirements which have been impacting the business behaviour as a whole.
Fintech markets globally are evolving on a faster pace disrupting the end-to-end investment banking value chain. Blockchain is rapidly changing the face of cross-border lending activity.
Investment Banking Industry Segmentation
An understanding of the present status of the global investment banking industry to deep-dive into regulatory landscape, along with detailed market segmentation, product types, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments.
| By Product Types | |
| Mergers & Acquisitions | |
| Debt Capital Markets | |
| Equity Capital Markets | |
| Syndicated Loans and Others |
| By Geography | ||||||
| ||||||
| ||||||
| ||||||
|
Investment Banking Market Size Summary
The investment banking industry serves as a crucial intermediary between securities issuers and the investing public, engaging in activities such as capital raising, proprietary trading, and deal underwriting. Despite its significant role, the industry has faced challenges in recovering from the 2008 financial crisis, with stringent regulations like Pillar 3 and IFRS 9 impacting its operations. The U.S. market is notably large, with thousands of companies generating substantial revenue, although a few major firms dominate the financial landscape. The rise of fintech and blockchain technology is disrupting traditional investment banking processes, particularly in areas like cross-border lending.
Globally, the investment banking sector has experienced fluctuations in deal volumes due to economic and political uncertainties, with the Americas showing a notable increase in deal activity. The year 2019 saw significant mega deals and the historic Saudi Aramco IPO, which set a record for the largest IPO ever. The EMEA region benefited from privatization trends, while the Asia-Pacific region saw a surge in secondary listings. The market is characterized by a mix of fragmented revenue distribution among major players like J.P. Morgan, Goldman Sachs, and Morgan Stanley, while asset management remains more concentrated among the top firms.
Investment Banking Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Market Overview
-
1.1.1 A Brief on Investment Banking - Structure, Key Functions and Activities
-
1.1.2 Categorization of Investment Banks by Deal Size, Status, Region and Industry Focus
-
1.1.3 Historical Performance of Investment Banks Across the Globe
-
-
1.2 Regulatory Landscape in the Investment Banking Industry
-
1.2.1 Regulations Impacting the Investment Banking Industry Before 2008 Financial Crisis
-
1.2.2 Regulations Impacting the Investment Banking Industry After 2008 Financial Crisis
-
1.2.3 Initiatives towards Strengthening Risk Culture in Investment Banks
-
1.2.4 Impact of Regulations on ROE of Investment Banks, By Business Lines
-
1.2.5 Impact of Regulations on Operations and Business Models of Investment Banks
-
-
1.3 Current and Potential Challenges to the Investment Banking Industry
-
1.3.1 Impact of Tough Regulations on Business Behaviour
-
1.3.2 Constraints due to an Ever-changing Banking Ecosystem
-
-
1.4 Implications of Increasing Fintech Adoption on the Investment Banking Industry
-
1.5 Major Deals & Latest Trends in the Investment Banking Industry
-
1.6 Market Drivers
-
1.7 Market Restraints
-
1.8 Porter's Five Forces Analysis
-
1.8.1 Threat of New Entrants
-
1.8.2 Bargaining Power of Buyers/Consumers
-
1.8.3 Bargaining Power of Suppliers
-
1.8.4 Threat of Substitute Products
-
1.8.5 Intensity of Competitive Rivalry
-
-
1.9 PESTLE Analysis
-
-
2. MARKET SEGMENTATION AND ANALYSIS
-
2.1 By Product Types
-
2.1.1 Mergers & Acquisitions
-
2.1.2 Debt Capital Markets
-
2.1.3 Equity Capital Markets
-
2.1.4 Syndicated Loans and Others
-
-
2.2 By Geography
-
2.2.1 Americas
-
2.2.1.1 United States
-
2.2.1.2 Canada
-
2.2.1.3 Latin America
-
-
2.2.2 EMEA
-
2.2.2.1 Europe
-
2.2.2.2 Russia
-
2.2.2.3 United Kingdom
-
2.2.2.4 Middle East & Africa
-
-
2.2.3 Asia
-
2.2.3.1 Japan
-
2.2.3.2 China
-
2.2.3.3 Others
-
-
2.2.4 Australasia
-
2.2.4.1 Australia
-
2.2.4.2 New Zealand & Others
-
-
-
Investment Banking Market Size FAQs
What is the current Investment Banking Market size?
The Investment Banking Market is projected to register a CAGR of 2.10% during the forecast period (2024-2029)
Who are the key players in Investment Banking Market?
J.P. Morgan Chase & Co., Goldman Sachs Group Inc, Morgan Stanley, BofA Securities Inc. and Citi Group Inc are the major companies operating in the Investment Banking Market.
