Digital Investment - Germany

  • Germany
  • The projected total transaction value in the Digital Investment market in Germany is estimated to reach US$54.34bn by 2024.
  • This market is expected to demonstrate an annual growth rate (CAGR 2024-2027) of 3.93%, resulting in a projected total amount of US$61.00bn by 2027.
  • Among the various players in this market, Neobrokers are anticipated to dominate with a projected total transaction value of US$35.35bn by 2024.
  • It is worth noting that in the United States is expected to have the highest cumulated transaction value, reaching US$1,782,000.00m in 2024.
  • Germany's digital investment market is thriving, with a strong emphasis on sustainable and socially responsible investment strategies.

Key regions: Canada, United Kingdom, United States, United Arab Emirates, Europe

 
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Analyst Opinion

The Digital Investment market in Germany is experiencing significant growth and development. Customer preferences are shifting towards digital investment platforms, driven by convenience and accessibility.

This trend is further fueled by the local special circumstances and underlying macroeconomic factors in Germany. Customer preferences in the Digital Investment market in Germany are leaning towards online platforms. Investors are increasingly seeking convenience and ease of use when it comes to managing their investments.

Digital investment platforms provide a user-friendly interface and allow investors to access their portfolios anytime and anywhere. This shift in customer preferences is in line with the global trend of digitalization and the increasing reliance on technology in various aspects of life. One of the key trends in the Digital Investment market in Germany is the rise of robo-advisors.

These automated investment platforms use algorithms to provide personalized investment advice and manage portfolios on behalf of investors. Robo-advisors offer lower fees compared to traditional financial advisors, making them an attractive option for cost-conscious investors. The convenience and efficiency of robo-advisors are driving their adoption in Germany, as investors are increasingly turning to these platforms for their investment needs.

Another trend in the market is the growing popularity of socially responsible investing (SRI) in Germany. Investors are becoming more conscious of the environmental, social, and governance (ESG) impact of their investments. They are seeking investment opportunities that align with their values and contribute to a sustainable future.

Digital investment platforms are catering to this demand by offering SRI options and making it easier for investors to invest in companies that prioritize ESG factors. This trend is not unique to Germany but is observed worldwide as investors become more socially and environmentally conscious. Germany's local special circumstances also contribute to the development of the Digital Investment market.

The country has a strong economy and a high level of financial literacy among its population. This creates a favorable environment for digital investment platforms to thrive. Additionally, Germany has a large population of tech-savvy individuals who are comfortable using digital tools and platforms.

These factors make Germany an attractive market for digital investment providers, leading to increased competition and innovation in the industry. Underlying macroeconomic factors also play a role in the development of the Digital Investment market in Germany. The low-interest-rate environment in the country has made traditional savings accounts and fixed-income investments less attractive.

Investors are seeking alternative investment options that offer higher returns. Digital investment platforms provide access to a wide range of investment opportunities, including stocks, bonds, and alternative assets, which can potentially generate higher returns. This aligns with the changing investment landscape in Germany and the global search for yield in a low-interest-rate environment.

Overall, the Digital Investment market in Germany is experiencing growth and development driven by customer preferences, local special circumstances, and underlying macroeconomic factors. The shift towards online platforms, the rise of robo-advisors, the popularity of socially responsible investing, and the low-interest-rate environment are all contributing to the expansion of the market. As technology continues to advance and investors become more digitally savvy, the Digital Investment market in Germany is expected to further evolve and innovate.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Assets Under Management (AUM)
  • Revenue
  • Users
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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