Global Investment Banking Market is valued at USD 98.57 Billion in 2021 and expected to reach USD 171.29 Billion by 2027 with a CAGR of 9.6% over the forecast period.
Global Investment Banking Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2027– Increasing demand of initial public offerings (IPOs) and rising investments in fintech by investment banks are the significant factors which are driving the growth of the Global Investment Banking Market.
Investment banking is a special segment of banking operation that helps individuals or organizations raise capital and provide financial consultancy services to them. They act as intermediaries between security issuers and investors and help new firms to go public. They either buy all the available shares at a price estimated by their experts and resell them to public or sell shares on behalf of issuers and take commission on each share. Investment banking serves many different purposes and business entities. It provides various types of financial services, such as proprietary trading or trading securities for their own accounts, mergers and acquisitions advisory which involve helping organizations. Investment banking also has role as a broker of financial adviser for large institutional clients such as pension funds. It helps corporation issue shares of stock in an IPO or an additional stock offering. They also arrange debt financing for corporations by finding large-scale investors for corporate bonds. The investment bank is responsible for examining for company’s financial statements for accuracy and publishing a prospectus that describes the offering in detail to investors before the securities are available for purchase. Investment banking has applications in corporations, pension funds, other financial institutions, government and hedge funds. The Dutch East India Company was the first company to issue bonds and shares of stock to the general public. It was also first publically traded company.
During COVID-19 pandemic, investment banking clients are affected by the economic downturn, owing to business interruptions. Corporate clients also experienced expenditure challenges. Also due to decline in asset prices and big spikes in redemptions have also impacted the investment banking market. The COVID-19 outbreak has shown a decline impact on the growth of global investment banking market.
The investment banking market is divided into type, end-user and regions & country level. Based on type, the investment banking market is divided into debt capital markets underwriting, mergers & acquisitions advisory, equity capital markets underwriting, syndicated loans and others. Based on end-user, the market is segmented into individuals and corporate institutions.
By Type:
By End-User:
The regions covered in investment banking market report are North America, Europe, Asia-Pacific, and Rest of the World. Based on country level, the market of investment banking is sub divided into U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, South East Asia, Middle East Asia (UAE, Saudi Arabia, Egypt) GCC, Africa, etc.
Some major key players for global investment banking market report covers prominent players like Barclays, JP Morgan, Bank of America Maril Lynch, Morgan Stanley, Goldman Sachs, Deutsche Bank, Credit Suisse, Jefferies LLC, Citi, BofA Securities, UBS, RBC Capital Markets, Wells Fargo Securities, Cowen lnc. and others.
News: Adriatic Bank Announced Launch of Investment Banking Division
June 3rd, 2021; Following the license granted by the Montenegro Security Exchange Commission to provide investment services and perform investing activities, Adriatic Bank has announced the anticipated opening of its investment banking division. Among the services offered in the new division: investment consulting, transferring of funds to a varied range of investment venues, executing trading orders on markets, investment portfolio management, and more.
Increasing demand of initial public offerings (IPOs) is one of the major factors driving the growth of global investment banking market. The investment bank serves as a sort of intermediary between corporations and investors through IPOs. In addition, rising investments in Fintech by investment banks is another major factor for the growth of the investment banking market. For instance, as per study 'The Pulse of Fintech 2019', the global Fintech investment in 2019 in H1’19 was $37.9billion across 962 deals with M&A size triples to 410.5 million in H1’19 from $36.5 million in 2018. Fintech improves the health and traditional financial institutions by enhancing performance and improving profitability in investment banking. In addition, increasing mega deals, capital rising for business expansions, technological advancement and increasing corporate Profit are some other factors fostering the growth of the investment banking market.
However higher capital charges, government regulations and rise in cyber-attacks may hamper the growth of the investment banking market. In spite of that, development in business environments and raise in financial activity in emerging countries can offer more opportunity for the further growth of global investment banking market.
North America is expected to dominate the global investment banking over the forecast period due to the presence of major players and extensive M&A activities in this region. Also according to a news in April 2021, Morgan Stanley’s investment bank is on highest profits since financial crisis. Spending on compensation in Morgan Stanley’s investment bank rose 72% in the first quarter of 2021. At Goldman Sachs, compensation per head raised 78% in the first quarter to $150k its highest level for 10 years.
Asia Pacific is expected to grow faster due to increasing mergers and acquisitions (M&A) activities and increasing PE (Private Equity) investments and increased demand of IPOs. For instance, according to Annual Deal tracker, M&A and private equity deal insights 2020, total M&A activities in 2017 was 413 and in 2018 it was 474 in volume which includes all domestic, cross border and internal mergers and restructuring activities in India. About 30% of the growth in domestic M&A values in 2019.
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
Report Analysis | Details |
---|---|
Historical data | 2015 - 2020 |
Forecast Period | 2021 - 2027 |
Market Size in 2020: | USD 98.57 Billion |
Base year considered | 2020 |
Forecast Period CAGR %: |
8.30 % |
Market Size Expected in 2027: | USD 171.29 Billion |
Tables, Charts & Figures: | 175 |
Pages | 200 |
Key Players/Companies | Barclays, JP Morgan, Bank of America Maril Lynch, Morgan Stanley, Goldman Sachs, Deutsche Bank, Credit Suisse, Jefferies LLC, Citi, BofA Securities, UBS, RBC Capital Markets, Wells Fargo Securities, Cowen lnc. and others |
Segments Covered | By Type, By End-User |
Regional Analysis | North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa |
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