Market Insights Financial Corporate Finance

Investment Banking - Australia

Australia

In Australia, the projected revenue in the Investment Banking market market is estimated to reach AUD US$4.43bn by 2024.
This sector is expected to exhibit a compound annual growth rate (CAGR 2024-2028) of -8.10%, resulting in a projected total amount of AUD US$3.16bn by 2028.
When compared globally, it is worth noting that the United States holds the highest revenue in this market segment, with a projected amount of US$119.10bn in 2024.
Australia's investment banking sector is experiencing a surge in M&A activity, driven by strong deal flow from domestic companies seeking growth opportunities.

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Analyst Opinion

The Investment Banking market in Australia has been experiencing significant growth and development in recent years.Customer preferences in the Investment Banking market in Australia are shifting towards more personalized and tech-savvy services.

Clients are increasingly seeking tailored financial solutions that cater to their specific needs and preferences. Additionally, there is a growing demand for digital platforms and mobile applications that provide convenient access to investment opportunities and real-time market updates.Trends in the market indicate a rise in mergers and acquisitions, as well as an increase in capital raising activities.

Australian companies are looking to expand their operations both domestically and internationally, driving the need for investment banking services to facilitate these transactions. Moreover, there is a growing interest in sustainable and socially responsible investing, with more emphasis being placed on environmental, social, and governance (ESG) factors in investment decisions.Local special circumstances in Australia, such as the country's strong regulatory environment and stable economic conditions, have contributed to the growth of the Investment Banking market.

The presence of a well-established financial system and a skilled workforce has also bolstered the industry's development. Additionally, Australia's strategic location in the Asia-Pacific region has positioned it as a key player in the global investment banking landscape.Underlying macroeconomic factors, such as steady GDP growth, low inflation rates, and a resilient banking sector, have provided a favorable environment for the growth of the Investment Banking market in Australia.

The country's robust economic fundamentals and sound regulatory framework have instilled confidence among investors and businesses, driving increased activity in the investment banking sector. Additionally, Australia's strong trade relationships with key markets worldwide have further supported the expansion of the industry.

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.