Investment Banking - Asia

Asia

The revenue in the Investment Banking market is projected to reach US$42.02bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2028) of -2.91% resulting in a projected total amount of US$37.34bn by 2028.

Key regions: India, South Korea, United Kingdom, Singapore, France

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the dynamic landscape of the Asian financial markets, the Investment Banking sector is witnessing significant developments and trends.

Customer preferences: Asian investors are increasingly seeking diverse investment opportunities beyond traditional options, such as equities and real estate. They are showing a growing appetite for alternative investments like private equity, venture capital, and hedge funds. This shift in preferences is being driven by the potential for higher returns and portfolio diversification offered by these alternative assets.

Trends in the market: In Japan, the Investment Banking market is experiencing a surge in mergers and acquisitions (M&A) activities, particularly in the technology and healthcare sectors. Japanese companies are looking to expand their global footprint through strategic acquisitions, driving demand for investment banking services such as advisory and capital raising.

Local special circumstances: China's Investment Banking market is characterized by the rapid growth of domestic investment banks challenging the dominance of international players. With the government's push for financial market liberalization and the Belt and Road Initiative driving cross-border investments, Chinese investment banks are capitalizing on these opportunities to expand their market share both domestically and internationally.

Underlying macroeconomic factors: The low interest rate environment across Asia is fueling demand for investment banking services as companies look to capitalize on cheap funding for expansion and strategic initiatives. Additionally, the region's strong economic growth, particularly in emerging markets like India and Southeast Asia, is attracting foreign investments and driving capital market activities, further boosting the Investment Banking sector.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to 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 particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.