Market Insights Financial Corporate Finance

Investment Banking - United Kingdom

United Kingdom

The revenue in the Investment Banking market is projected to reach €7.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.78% resulting in a projected total amount of €7.59bn by 2029.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (€120.70bn in 2024).

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Investment Banking market in United Kingdom is experiencing a significant shift in customer preferences, leading to notable trends and developments in the industry.

Customer preferences: Customers in the United Kingdom are increasingly seeking personalized and innovative investment banking services. They are looking for tailored financial solutions that cater to their specific needs and goals. As a result, there is a growing demand for digital platforms that offer convenient access to a wide range of investment products and services. Additionally, customers are placing a greater emphasis on transparency, ethical practices, and sustainability in their investment decisions.

Trends in the market: One prominent trend in the United Kingdom's Investment Banking market is the rise of fintech companies offering alternative investment options and disrupting traditional banking models. These fintech firms are leveraging technology to provide more efficient and cost-effective investment solutions, attracting a new generation of tech-savvy investors. Moreover, there is a noticeable increase in cross-border investment activities, with UK-based investment banks expanding their presence in global markets and attracting foreign investors.

Local special circumstances: The United Kingdom's position as a global financial hub, particularly in cities like London, plays a crucial role in shaping the local investment banking landscape. The presence of top-tier financial institutions, a skilled workforce, and a robust regulatory framework contributes to the attractiveness of the UK market for both domestic and international investors. Furthermore, the country's strong network of professional services firms and access to capital markets further enhance its appeal as a key player in the global investment banking sector.

Underlying macroeconomic factors: The evolving macroeconomic environment, including factors such as Brexit and economic uncertainties, has had a significant impact on the Investment Banking market in the United Kingdom. The changing regulatory landscape, shifting trade dynamics, and fluctuating interest rates are creating both challenges and opportunities for market players. Additionally, the ongoing digital transformation and increasing competition are driving investment banks to adapt their business models and strategies to stay competitive in the rapidly changing market environment.

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.