Robo-Advisors - Worldwide | Statista Market Forecast (2024)

FAQs

What is the Outlook for robo-advisors globally? ›

The Robo Advisor Market grew from USD 6.36 billion in 2023 to USD 8.01 billion in 2024. It is expected to continue growing at a CAGR of 26.71%, reaching USD 33.38 billion by 2030.

Do robo-advisors outperform the S&P 500? Robo-advisors can outperform the S&P 500 or they can underperform it. It depends on the timing and what they have you invested in. Many robo-advisors will put a percentage of your portfolio in an index fund or a variety of funds intended to track the S&P 500.

The assets under management in the Robo-Advisors market in the United States are projected to reach US$1,459.00bn in 2024. This market segment is expected to show an annual growth rate of 7.75% from 2024 to 2027, resulting in a projected total amount of US$1,825.00bn by 2027.

In next decade the robo advisor market is expected to significantly grow and challenge traditional investment advisors. Investment profiles may become more personalized but still focus on ETFs and mutual funds.

The global robo advisory market size was valued at USD 6.50 billion in 2023. The market is projected to grow from USD 8.39 billion in 2024 to USD 69.32 billion by 2032, exhibiting a CAGR of 30.2% during the forecast period.

Global Robo Advisory Market size was valued at USD 4.13 billion in 2021 and is poised to grow from USD 5.22 billion in 2022 to USD 41.83 billion by 2030, growing at a CAGR of 29.7% in the forecast period (2023-2030).

But depending on the asset class mix and the particular index funds selected, a robo-advisor may underperform or outperform a broad equity index like the S&P 500.

Robo-advisor performance is one way to understand the value of digital advice. Learn how fees, enhanced features, and investment options can also be key considerations. Five-year returns from most robo-advisors range from 2%–5% per year.

Robo-advisors in the U.S. have faced three main challenges: high client acquisition costs, ongoing costs of servicing clients, and low revenue yield on client assets.

Limited Flexibility. Most robo-advisors won't be able to help you if you want to sell call options on an existing portfolio or buy individual stocks. There are sound investment strategies that go beyond an investing algorithm.

What country has the greatest number of robo-advisors? ›

Over the past six years, roughly 180 million people have started using robo-advisors to build trading strategies, buy stocks, and grow their portfolios. Nearly one-fifth were from the United States, the world's largest robo-advisors market.

While a robo-advisor can be efficient in managing your investing decisions, a human advisor may be best for more complex decisions like helping you choose the right student loan repayment plan or comparing compensation packages for a new job. Cost: If cost is a factor, robo-advisors typically win out here.

The Robo Advisor Market grew from USD 6.36 billion in 2023 to USD 8.01 billion in 2024. It is expected to continue growing at a CAGR of 26.71%, reaching USD 33.38 billion by 2030.

No, robo-advisors will not replace financial advisors.

Target Demographic

For robo-advisors, these include Millennial and Generation Z investors who are technology-savvy and still accumulating their investable assets.

Robotics is a fast-growing industry. According to a study by Zion Market Research, the industrial robotics market is projected to reach $81.4 billion by 2028. This figure is a significant increase from its $41.7 billion valuation in 2021 [1].

ROBO 12 Month Forecast

Based on 79 Wall Street analysts offering 12 month price targets to ROBO holdings in the last 3 months. The average price target is $62.82 with a high forecast of $71.57 and a low forecast of $52.44. The average price target represents a 21.54% change from the last price of $51.69.