Investment Banking

Global Investment Banking Market to Reach US$92.2 Billion by 2030

The global market for Investment Banking estimated at US$79.8 Billion in the year 2024, is expected to reach US$92.2 Billion by 2030, growing at a CAGR of 2.4% over the analysis period 2024-2030. Mergers & acquisitions advisory, one of the segments analyzed in the report, is expected to record a 3.3% CAGR and reach US$22.8 Billion by the end of the analysis period. Growth in the Equity capital market segment is estimated at 3.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$21.7 Billion While China is Forecast to Grow at 4.9% CAGR

The Investment Banking market in the U.S. is estimated at US$21.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$17.8 Billion by the year 2030 trailing a CAGR of 4.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 0.9% and 1.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.3% CAGR.

Investment Banking – Key Trends & Market Drivers Summarized

Investment banking remains a cornerstone of the global financial system, facilitating capital formation, mergers and acquisitions (M&A), and complex financial transactions across industries. With an ever-evolving economic landscape, investment banks play a critical role in advising corporations, governments, and institutional investors on raising capital, restructuring businesses, and executing strategic deals. The industry is heavily influenced by macroeconomic factors, regulatory changes, and technological advancements, all of which shape the services and operational strategies of investment banks. As financial markets continue to globalize and digitize, investment banking firms are adapting to new market dynamics, focusing on data-driven decision-making, automation, and risk management to maintain competitive advantage.

How Is Technology Reshaping Investment Banking Services?

The investment banking industry is undergoing a rapid technological transformation, significantly enhancing operational efficiency and client engagement. One of the most prominent innovations is artificial intelligence (AI) and machine learning (ML), which are increasingly being used for data analytics, risk assessment, and algorithmic trading. AI-powered predictive analytics enable investment banks to identify market trends, assess credit risk, and optimize trading strategies with greater accuracy, reducing human error and improving decision-making.

Another key technological shift is the rise of blockchain and decentralized finance (DeFi) solutions. Investment banks are exploring blockchain technology for faster and more secure cross-border transactions, smart contract execution, and fraud prevention. By leveraging tokenization of assets, financial institutions can create digital representations of securities, improving liquidity and accessibility for a broader range of investors. Additionally, the adoption of robo-advisory services and automated trading platforms is enhancing efficiency in wealth management and institutional trading, offering clients real-time portfolio optimization and investment recommendations.

Cybersecurity has also become a critical focus for investment banks, given the rising threat of cyberattacks on financial institutions. Firms are investing in advanced encryption protocols, biometric authentication, and AI-driven fraud detection systems to safeguard sensitive financial data and maintain regulatory compliance. Moreover, cloud computing and big data analytics are revolutionizing investment banking workflows, enabling firms to process vast amounts of financial information, streamline operations, and provide personalized investment solutions to clients.

What Market Trends Are Driving the Evolution of Investment Banking?

Several key trends are reshaping the investment banking landscape, influencing strategies and service offerings. One of the most notable trends is the growth of sustainable finance and Environmental, Social, and Governance (ESG) investing. With increasing regulatory and investor pressure to address climate change and corporate responsibility, investment banks are prioritizing green finance initiatives, such as green bonds, ESG-focused M&A, and impact investing. Many firms are incorporating ESG criteria into their risk assessments, advisory services, and capital-raising strategies to align with the shifting preferences of institutional investors and policymakers.

Another major trend is the rise of private capital markets and alternative investments. Traditional equity and debt markets are facing competition from private equity (PE), venture capital (VC), and hedge funds, which are increasingly attracting capital from institutional investors and high-net-worth individuals. Investment banks are expanding their advisory services to cater to private market transactions, facilitating direct investments, private placements, and structured financing deals for growth-stage companies and startups.

Globalization continues to influence investment banking, with cross-border M&A activity on the rise. Emerging markets, particularly in Asia-Pacific, the Middle East, and Africa, are witnessing increased investment banking activity as multinational corporations seek expansion opportunities in high-growth economies. Additionally, de-SPAC (Special Purpose Acquisition Companies) transactions and alternative deal structures have gained traction, offering innovative ways for companies to go public without traditional IPOs. The shifting regulatory landscape, particularly in the U.S. and Europe, is also shaping how investment banks approach capital markets and corporate finance transactions.

What Is Driving the Growth of the Investment Banking Industry?

The growth in the investment banking industry is driven by several factors, including strong corporate dealmaking, technological advancements, and the evolving financial needs of businesses and investors. A key driver is the resurgence of M&A activity, fueled by corporate restructuring, industry consolidation, and increased private equity involvement. As companies seek strategic partnerships, market expansion, and operational synergies, investment banks play a pivotal role in structuring, negotiating, and financing these high-value transactions.

The expanding digital economy and fintech sector are also accelerating investment banking growth. The rise of fintech startups and digital-first financial services has created opportunities for investment banks to provide capital-raising advisory, underwriting services, and strategic partnerships to technology-driven firms. Furthermore, the increasing adoption of digital payment solutions, cryptocurrency investments, and decentralized finance (DeFi) is prompting investment banks to explore new financial instruments and investment opportunities.

Another crucial factor is the rising demand for wealth management and capital markets advisory services. With growing global wealth, investment banks are expanding their private banking and asset management divisions to cater to ultra-high-net-worth individuals and institutional investors seeking diversified portfolios and alternative investment strategies. Additionally, the low-interest-rate environment and access to cheap capital in many economies have encouraged debt financing and leveraged buyouts (LBOs), further driving demand for investment banking services.

The integration of AI, big data, and automation in financial analysis and trading is also fueling industry expansion, allowing investment banks to enhance market intelligence, optimize trade execution, and improve regulatory compliance. Lastly, emerging markets and frontier economies present significant growth opportunities, as governments and corporations in developing regions seek access to international capital markets, infrastructure financing, and foreign direct investment (FDI), reinforcing the indispensable role of investment banks in global financial markets.

SCOPE OF STUDY:

The report analyzes the Investment Banking market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Service (Mergers & acquisitions advisory, Equity capital market, Debt capital market, Corporate finance advisory, Asset management, Wealth management, Others); Organization Size (SMEs, Large enterprises); End-Use (Corporations, Governments, High net worth individuals, Retail investors, Others)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 43 Featured) -

• Bank of America Securities
• Barclays
• BMO Capital Markets
• BNP Paribas
• Cantor Fitzgerald
• Citigroup
• Credit Suisse
• Deutsche Bank
• Evercore
• Goldman Sachs
• Greenhill & Co.
• Houlihan Lokey
• HSBC Holdings plc
• Jefferies Financial Group
• JPMorgan Chase
• Lazard
• Macquarie Group
• Mizuho Financial Group
• Moelis & Company
• Morgan Stanley
• Nomura Holdings
• Perella Weinberg Partners
• Piper Sandler
• RBC Capital Markets
• Rothschild & Co
• Scotiabank
• Société Générale
• TD Securities
• UBS Group AG
• Wells Fargo & Co.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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