According to a recent report published by Allied Market Research, titled, “Investment Banking & Trading Services Market by Service Type and Industry Vertical:  Opportunity Analysis and Industry Forecast, 2020-2027,” the global investment banking & trading services market size was valued at $267.86 billion in 2019, and is projected to reach $520.02 billion by 2027, growing at a CAGR of 5.8% from 2020 to 2027. 

Investment banks provide services to both security-issuing corporations and securities-buying investors. Rising equity capital & debt capital, insuring bonds, and engaging in proprietary trading are some of the major investment banking solutions in the market. Moreover, investment bankers provide additional data for positioning their securities in the open market for companies having an operation with lower capital. 

Factors, such as continuous improvement in business environment, surge in demand for fundamental advisory from corporate companies, and increase in need for capital requirements & business expansion among firms, are the major factors that drive the investment banking & trading services market growth. In addition, growth in mergers & acquisitions among banks & financial institutions across various regions and untapped potential of emerging economies are expected to provide lucrative opportunities for investment banking & trading services providers in the coming years.

On the basis of service type, the trading & related services segment dominated the investment banking & trading services market share in 2019, and is expected to be the highest contributor during the forecast period. In addition, demand for trading activities such as principal trading & market making and proprietary trading is gaining momentum among financial advisory firms, banks, insurance companies, and others. These factors, as a result driving this segment growth in the market.   

By region, the global investment banking & trading services market was dominated by North America in 2019, and is expected to maintain this trend during the forecast period. Massive presence of international investors, huge number of banks & financial institutions adopting advanced technologies, and investment banking have been widely used by medium & large-sized business in this region. However, Asia-Pacific is expected to grow at the fastest CAGR during the forecast period. Sharp rise in financial activities in the emerging economies and increased focus toward expanding business activities are the major growth factors in the region.  

The unprecedented economic & societal impacts and public health due to COVID-19 pandemic has a significant influence on investment banking & trading services, with massive rise in revenue growth. However, the global health crisis has intensified several forces that are creating challenges in the investment banking industry. In addition, pressure, liquidity stress, disruptive technologies, regulatory recalibration, and workforce & workplace evolution are some of the major factors hampering the market growth. Conversely, banks & financial institutions providing investment banking have various opportunities such as to redesign their service delivery in an existing business model and moving capacity & processes among various geographies & ecosystem partners in the post-pandemic scenario. 

Key findings of the study

• By service type, the trading & related services segment led the investment banking & trading services market size, in terms of revenue, in 2019.
• By industry vertical, the BFSI segment accounted for the highest investment banking & trading services market share in 2019. 
• By region, North America generated the highest revenue in 2019.

The key players profiled in the report are Investment Bank of America Corporation, Barclays, Citigroup, Inc., CREDIT SUISSE GROUP AG, Deutsche Bank AG, Goldman Sachs, JPMorgan Chase & Co., Morgan Stanley, UBS, and Wells Fargo. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.