Summary
Major companies in the investment banking market include Barclays, JP Morgan, Goldman Sachs, Bank of America Merrill Lynch, and Morgan Stanley.
The global investment banking market grew from $153.49 billion in 2022 to $166.62 billion in 2023 at a compound annual growth rate (CAGR) of 8.6%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The investment banking market is expected to grow to $221.78 billion in 2027 at a CAGR of 7.4%.
The investment banking market consists of revenues earned by entities by undertaking capital risk in the process of underwriting securities.The market size is the revenues generated from the fees and commissions levied on the services provided.
This market excludes companies acting as agents and/or brokers between buyers and sellers of securities and commodities.These establishments primarily underwrite, originate, and/or maintain markets for issue of securities as well as offering other corporate finance services.
The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
Investment banking is the subset of a bank or financial institution that provides financial consultancy services, including underwriting (capital raising) and mergers and acquisitions (M&A) advisory services to governments, corporations, and institutions.
North America was the largest region in the investment banking market in 2022.Asia-Pacific was the second-largest region in the investment banking market.
The regions covered in the investment banking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The main types of investment banking are mergers and acquisitions advisory, financial sponsor/syndicated loans, equity capital markets underwriting, and debt capital markets underwriting.M&A consultants are concerned with giving advise to buy-side and sell-side businesses on their mergers and acquisitions, but they also carry out market research and assist businesses in raising finance for M&A.
It is employed in large enterprises, medium and small enterprises and used by financial services, retail and wholesale, information technology, manufacturing, healthcare, construction, and other end-use industries.
Investment banks across the globe are moving towards businesses requiring less regulatory capital.In this regard, major investment banks from around the world, such as Barclays, Deutsche Bank, and Credit Suisse, have announced their plans to move from traditional underwriting businesses to other activities such as mergers and acquisitions advisory and fundraising.
This shift is primarily due to regulatory changes that made some investment banking activities more expensive than others. Although the regulations have restricted the range of some banks, forcing them to specialize, some investment bankers, such as Citibank and JPMorgan, have continued to offer a complete range of investment banking services.
Investment banking is focusing on mergers and acquisitions to expand its product offerings and increase its share in the market.Large investment banking firms are acquiring boutique firms (small firms that are specialised in various fields) that cater to specific industries such as technology, health care, the financial sector, the media, and entertainment.
The presence of a large number of small firms focusing on niche markets is offering significant opportunities for larger investment banking firms. This is driving the M&A activity in the investment banking industry.
The countries covered in the investment banking market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, and Vietnam.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The investment banking market research report is one of a series of new reports that provides investment banking market statistics, including investment banking industry global market size, regional shares, competitors with a investment banking market share, detailed investment banking market segments, market trends and opportunities, and any further data you may need to thrive in the investment banking industry. This investment banking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
