Investment Banking Market Size
| 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 Market Trends
2019 - The Year of Mega Deals yet with Lesser M&A Volume
During 2019, M&A volume has struggled due to worldwide economic and political uncertainties. Among all regions, the overall volume of the deals has witnessed an y-o-y decline of 0.5% in 2019. Americas (United States, Canada, Latin America) is the only region to have an increase in volume by 9.9% over those of 2018 reaching 2.16 Trillion USD with 11,511 deals.
Yet again, this year has witnessed mega deals ( deal size above 10 Billion USD) with a total of 1.27 Trillion USD deals making up 31% of the total volume of 2019 recording the highest percentage of mega deals ever in a year. 70% of mega deals in 2019 were announced in the first half of 2019 whereas the second half lost the momentum recording only 380.7 Billion USD mega deals.
Insights on IPOs in 2019 Worldwide
2019 is the year when Saudi Aramco IPO happened finally in Q4 boosting the IPO volume in the year-end. Saudi Aramco IPO raised a total of 26.5 Billion USD to become the largest IPO ever beating Alibaba's record of 25 Billion USD listing in September 2014.
In EMEA region, privatization trends have helped to boost the IPO proceeds for the year 2019. In the Asia-Pacific region, the secondary listing volume hit the jackpot in 2019 when 8 Chinese companies that are originally listed in Hong Kong have raised 11.7 billion USD. A total of 68.8 Billion USD has been raised via 381 IPOs in the year 2019 globally.
Investment Banking Industry Overview
The report includes an overview of not only the largest investment bankers by revenue earned, but also major boutique banks categorized by size, region, and industry focus operating in the market studied. In revenue terms, the industry seems to be a fragmented market and the largest player being J.P. Morgan as of December 2019, with a market share of 8.9%. But in terms of the assets under management (AUM) it is more like an oligopoly with a clear demarcation of top 3 players from that of others. Currently, some of the major players dominating the market studied, in terms of market share are presented here.
Investment Banking Market Leaders
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J.P. Morgan Chase & Co.
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Goldman Sachs Group Inc
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Morgan Stanley
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BofA Securities Inc.
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Citi Group Inc
*Disclaimer: Major Players sorted in no particular order
Investment Banking Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Market
- 1.2 Market Definition
2. RESEARCH METHODOLOGY
- 2.1 Study Deliverables
- 2.2 Study Assumptions
- 2.3 Analysis Methodology
- 2.4 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Overview
- 4.1.1 A Brief on Investment Banking - Structure, Key Functions and Activities
- 4.1.2 Categorization of Investment Banks by Deal Size, Status, Region and Industry Focus
- 4.1.3 Historical Performance of Investment Banks Across the Globe
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4.2 Regulatory Landscape in the Investment Banking Industry
- 4.2.1 Regulations Impacting the Investment Banking Industry Before 2008 Financial Crisis
- 4.2.2 Regulations Impacting the Investment Banking Industry After 2008 Financial Crisis
- 4.2.3 Initiatives towards Strengthening Risk Culture in Investment Banks
- 4.2.4 Impact of Regulations on ROE of Investment Banks, By Business Lines
- 4.2.5 Impact of Regulations on Operations and Business Models of Investment Banks
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4.3 Current and Potential Challenges to the Investment Banking Industry
- 4.3.1 Impact of Tough Regulations on Business Behaviour
- 4.3.2 Constraints due to an Ever-changing Banking Ecosystem
- 4.4 Implications of Increasing Fintech Adoption on the Investment Banking Industry
- 4.5 Major Deals & Latest Trends in the Investment Banking Industry
- 4.6 Market Drivers
- 4.7 Market Restraints
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4.8 Porter's Five Forces Analysis
- 4.8.1 Threat of New Entrants
- 4.8.2 Bargaining Power of Buyers/Consumers
- 4.8.3 Bargaining Power of Suppliers
- 4.8.4 Threat of Substitute Products
- 4.8.5 Intensity of Competitive Rivalry
- 4.9 PESTLE Analysis
5. MARKET SEGMENTATION AND ANALYSIS
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5.1 By Product Types
- 5.1.1 Mergers & Acquisitions
- 5.1.2 Debt Capital Markets
- 5.1.3 Equity Capital Markets
- 5.1.4 Syndicated Loans and Others
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5.2 By Geography
- 5.2.1 Americas
- 5.2.1.1 United States
- 5.2.1.2 Canada
- 5.2.1.3 Latin America
- 5.2.2 EMEA
- 5.2.2.1 Europe
- 5.2.2.2 Russia
- 5.2.2.3 United Kingdom
- 5.2.2.4 Middle East & Africa
- 5.2.3 Asia
- 5.2.3.1 Japan
- 5.2.3.2 China
- 5.2.3.3 Others
- 5.2.4 Australasia
- 5.2.4.1 Australia
- 5.2.4.2 New Zealand & Others
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (Market Concentration and Major Players)
- 6.2 Mergers & Acquisitions
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6.3 Company Profiles
- 6.3.1 J.P. Morgan Chase & Co.
- 6.3.2 Goldman Sachs Group Inc
- 6.3.3 Morgan Stanley
- 6.3.4 BofA Securities Inc.
- 6.3.5 Citi Group Inc
- 6.3.6 Barclays Investment Bank
- 6.3.7 Credit Suisse Group AG
- 6.3.8 Deutsche Bank AG
- 6.3.9 Wells Fargo & Company
- 6.3.10 RBC Capital Markets
- 6.3.11 Jefferies Group LLC
- 6.3.12 The Blackstone Group Inc
- 6.3.13 Cowen Inc*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityInvestment 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 | Americas | United States |
| Canada | ||
| Latin America | ||
| By Geography | EMEA | Europe |
| Russia | ||
| United Kingdom | ||
| Middle East & Africa | ||
| By Geography | Asia | Japan |
| China | ||
| Others | ||
| By Geography | Australasia | Australia |
| New Zealand & Others |
Investment Banking Market Research 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.
Which is the fastest growing region in Investment Banking Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Investment Banking Market?
In 2024, the North America accounts for the largest market share in Investment Banking Market.
What years does this Investment Banking Market cover?
The report covers the Investment Banking Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Investment Banking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which Segment is leading the Investment Banking Market?
The Mergers and Acquisition Segment is leading the Investment Banking Market.
Investment Banking Industry Report
The global investment banking market is projected to experience significant growth in the coming years. This growth is driven by factors such as global economic growth, increasing market activity, technological advancements, and growing demand for services like capital raising, mergers and acquisitions, and financial advisory. However, the market also faces challenges such as regulatory constraints, compliance requirements, intense competition, and market saturation.
The market is segmented based on type, enterprise size, and region. Key segments include mergers and acquisitions and syndicated loans. While North America currently holds the highest market share, the Asia-Pacific region is expected to witness rapid growth. The market is characterized by key trends such as a growing emphasis on technology and digital transformation, an increasing focus on sustainable and responsible investment practices, and a rise in cross-border transactions and international expansion.
The global investment banking industry overview highlights the importance of industry trends and market trends in shaping the future of the sector. According to Mordor Intelligence™ Industry Reports, the investment banking market share, size, and revenue growth rate are significant, with a market forecast outlook that suggests continued expansion. A sample of this industry analysis is available as a free report PDF download.
In addition to the growth rate, the industry analysis provides valuable insights into the industry outlook and industry reports. The industry research covers various aspects of the market, including industry sales, industry size, and industry statistics. Market data and market forecast information are crucial for understanding the market growth and market leaders.
The market overview and market outlook sections of the report provide a comprehensive view of the market predictions and market review. Market segmentation and market value are also discussed in detail, offering a clear picture of the different segments and their contributions to the overall market.
For those interested in further details, the report example and report PDF offer in-depth analysis and industry information. Research companies play a vital role in providing accurate and up-to-date market data, helping stakeholders make informed decisions.
