How Has the Investment Banking Market Evolved Historically and What is its Current Size
The investment banking market has seen considerable growth due to a variety of factors.
• The investment banking industry has witnessed robust growth over the past few years. The industry, which is predicted to be worth $139.86 billion in 2024, is forecasted to expand to $151.01 billion in 2025, with an 8.0% compound annual growth rate (CAGR). Historically, this growth has been influenced by factors such as geopolitical stability and instability, industry amalgamation, loosening of financial regulations, the growth of derivatives markets, and the rise of private equity.
What are the Forecasted Growth and Key Factors of the Investment Banking Market?
The investment banking market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the investment banking market is projected to witness robust expansion in the upcoming years, escalating to $203.65 billion in 2029 with a compound annual growth rate (CAGR) of 7.8%.
The anticipated growth during the forecast period is driven by factors such as sustainable finance and ESG integration, resilience planning and risk management, services related to digital assets and cryptocurrencies, focus on infrastructure investments, and ongoing private equity activities. Key trends for the period in question include the integration of technology, embracing digital currencies and collaborating with fintech, adoption of flexible work structures, exploring alternative capital raising approaches, and the use of data analytics and artificial intelligence.
What Key Factors and Trends are Driving the Growth of the Investment Banking Market?
The anticipated growth of the global economy is projected to fuel the growth of the investment banking sector. An economic expansion, marked by a consistent rise in economic activities such as an increase in GDP, improved employment rates, a surge in consumer spending, and boosted business confidence, is what this term means. This economic growth enhances the requirement for financial services like M&A, fundraising, and advisory services, which are all fundamental to investment banks. For example, the World Bank, an international financial organization based in the U.S., foresees a 1.7% growth in the global economy in 2023, followed by a further 2.7% rise in 2024. Hence, this global economic expansion is the driver behind the positive trend in the investment banking market.
How Is the Investment Banking Market segmented?
The investment banking market covered in this report is segmented –
1) By Type: Mergers And Acquisitions Advisory, Financial Sponsor Or Syndicated Loans, Equity Capital markets Underwriting, Debt Capital markets Underwriting
2) By Enterprise Size: Large Enterprises, Medium And Small Enterprises
3) By End-Use Industry: Financial Services, Retail And Wholesale, Information Technology, Manufacturing, Healthcare, Construction, Other End-Use Industries
Subsegments:
1) By Mergers And Acquisitions Advisory: Buy-Side Advisory, Sell-Side Advisory, Merger Integration Services
2) By Financial Sponsor Or Syndicated Loans: Leveraged Buyout Financing, Acquisition Financing, Refinancing Solutions
3) By Equity Capital markets Underwriting: Initial Public Offerings (IPOs), Follow-On Offerings, Private Placements
4) By Debt Capital markets Underwriting: Corporate Bonds, High-Yield Debt, Structured Finance Products
Pre-Book The Investment Banking Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What New Trends Are Influencing the Investment Banking
Global investment banks are transitioning towards business ventures that require less regulatory capital. Key players in the global investment banking scene, including Barclays, Deutsche Bank, and Credit Suisse, have publicly stated their intent to transition from traditional underwriting business, pivoting towards areas such as advising on mergers and acquisitions and fundraising. This strategic shift is largely a response to regulatory alterations that have rendered some areas of investment banking more costly than others. Despite the regulatory restrictions constricting the scope of certain banks, leading them to specialization, some firms, like Citibank and JPMorgan, have managed to continue providing a full suite of investment banking services.
Who Are the Key Players in the Investment Banking Market?
Major companies operating in the investment banking market include:
• JPMorgan Chase & Co.
• Bank of America Corporation
• HSBC Holdings plc
• Citigroup Inc.
• Wells Fargo & Company
• Morgan Stanley
• BNP Paribas SA
• Goldman Sachs Group Inc.
• UBS Group AG
• Barclays plc
• Deutsche Bank AG
• Credit Suisse Group AG
• Mizuho Financial Group Inc.
• Raymond James Financial Inc.
• Nomura Holdings Inc.
• Jefferies Financial Group Inc.
• Stifel Financial Corp.
• Lazard Ltd.
• Evercore Inc.
• RBC Capital Markets
• Houlihan Lokey Inc.
• Cowen Inc.
• Piper Sandler Companies
• William Blair & Company LLC
• PJT Partners Inc.
• Moelis & Company
• Perella Weinberg Partners LP
• Greenhill & Co. Inc.
• Centerview Partners LLC
• Rothschild & Co.
What Is The Most Dominant Region In The Investment Banking Market?
North America was the largest region in the investment banking market in 2024. 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, Middle East, Africa.
