Robo Advisory Global Market Opportunities and Strategies to 2034

This report describes and explains the robo advisory market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global robo advisory market reached a value of nearly $10.84 billion in 2024, having grown at a compound annual growth rate (CAGR) of 32.51% since 2019. The market is expected to grow from $10.84 billion in 2024 to $42.06 billion in 2029 at a rate of 31.15%. The market is then expected to grow at a CAGR of 29.63% from 2029 and reach $154.0 billion in 2034.

Growth in the historic period resulted from advancements in artificial intelligence and machine learning, rising adoption of digital financial platforms, expansion of the financial services sector and growing awareness of investment and financial planning. Factors that negatively affected growth in the historic period was data security and privacy concerns and limited product scope and customization.

Going forward, increasing penetration of smartphones, increasing demand for personalized and goal-based investment strategies, surge in demand for ESG (environmental, social, governance) and sustainable investing options and growing demand for cost-effective investment solutions will drive the growth. Factors that could hinder the growth of the robo advisory market in the future include lack of human interaction and trust issues, regulatory and compliance challenges and trade war and tariffs.

North America was the largest region in the robo advisory market, accounting for 47.37% or $5.13 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the robo advisory market will be Asia Pacific and Eastern Europe where growth will be at CAGRs of 36.90% and 34.75% respectively. These will be followed by Western Europe and Middle East where the markets are expected to grow at CAGRs of 32.78% and 32.46% respectively.

The global robo advisory market is concentrated, with large players operating in the market. The top ten competitors in the market made up to 49.69% of the total market in 2024. The Charles Schwab Corporation was the largest competitor with a 21.65% share of the market, followed by The Vanguard Group, Inc. with 9.50%, Fidelity Management & Research Company (FMR LLC) with 6.03%, Empower Personal Wealth (Personal Capital Corporation) with 2.86%, Betterment Holdings Inc with 2.40%, SoFi Investment with 1.89%, Wealthfront Inc. with 1.70%, BlackRock Inc. with 1.45%, M1 Finance with 1.28% and Acorns Grow Incorporated with 0.92%.

The robo advisory market is segmented by service type into direct plan based/goal based and comprehensive wealth advisory. The direct plan based/goal-based market was the largest segment of the robo advisory market segmented by service type, accounting for 61.14% or $6.62 billion of the total in 2024. Going forward, the comprehensive wealth advisory segment is expected to be the fastest growing segment in the robo advisory market segmented by service type, at a CAGR of 33.94% during 2024-2029.

The robo advisory market is segmented by business model into pure robo advisors and hybrid robo advisors. The hybrid robo advisors market was the largest segment of the robo advisory market segmented by business model, accounting for 64.20% or $6.96 billion of the total in 2024. Going forward, the hybrid robo advisors segment is expected to be the fastest growing segment in the robo advisory market segmented by business model, at a CAGR of 32.82% during 2024-2029.

The robo advisory market is segmented by end-user into retail investors, high net worth individuals and other end users. The high net worth individuals market was the largest segment of the robo advisory market segmented by end-user, accounting for 52.89% or $5.73 billion of the total in 2024. Going forward, the high net worth individuals segment is expected to be the fastest growing segment in the robo advisory market segmented by end-user, at a CAGR of 32.81% during 2024-2029.

The robo advisory market is segmented by provider into fintech robo advisors, banks, traditional wealth managers and other providers. The fintech robo advisors market was the largest segment of the robo advisory market segmented by provider, accounting for 45.11% or $4.89 billion of the total in 2024. Going forward, the traditional wealth managers segment is expected to be the fastest growing segment in the robo advisory market segmented by provider, at a CAGR of 35.76% during 2024-2029.

The top opportunities in the robo advisory market segmented by service type will arise in the direct plan-based/goal-based segment, which will gain $17.27 billion of global annual sales by 2029. The top opportunities in the robo advisory market segmented by provider will arise in the fintech robo advisors segment, which will gain $14.29 billion of global annual sales by 2029. The top opportunities in the robo advisory market segmented by end user will arise in the high net worth individuals segment, which will gain $17.96 billion of global annual sales by 2029. The top opportunities in the robo advisory market segmented by business model will arise in the hybrid robo advisors segment, which will gain $21.81 billion of global annual sales by 2029. The robo advisory market size will gain the most in the USA at $10.24 billion.

Market-trend-based strategies for the robo advisory market include focus on advancing hybrid wealth management models, focus on expanding their service ecosystems through integrated digital wealth platforms, focus on democratizing access to sophisticated investment strategies by integrating alternative assets, sustainable funds, and personalized financial planning and focus on integrating digital assets into automated investment platforms.

Player-adopted strategies in the robo advisory market include focus on expanding its operational capabilities through new launches, focus on enhancing operational capabilities through business restructurings and focus on expanding business operations through strategic acquisitions.

To take advantage of the opportunities, the analyst recommends the robo advisory market companies to focus on advancing hybrid advisory models to expand personalized wealth management, focus on building integrated digital wealth ecosystems to attract high-value clients, focus on expanding inclusive ai-driven wealth platforms to broaden market reach, focus on expanding comprehensive wealth advisory to capture the fastest-growing segment, focus on scaling hybrid robo advisory models to capture the largest and fastest-growing segment, focus on expanding omnichannel distribution to increase platform reach, focus on expanding omnichannel distribution to increase platform reach, focus on capturing growth in the traditional wealth managers segment, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, continue to use b2b promotions, focus on strengthening people strategies for high net worth clients.