Global Robo Advisory Market Size, Forecast, and Trend Highlights Over 2025-2037
Robo Advisory Market size was valued at USD 8.7 billion in 2024 and is projected to reach USD 270 billion by the end of 2037, rising at a CAGR of 30% during the forecast period, i.e., 2025-2037. In 2025, the industry size of robo advisory is estimated at USD 10.9 billion.
The market is mainly driven by its cost-effectiveness and accessibility to traditional financial advisory services. Robo advisors offer cost-effective alternatives, lower fees, and reduced minimum investment thresholds compared to traditional wealth management options, making them appealing to a broader range of consumers. This affordability encourages individuals to opt for automated investment strategies by choosing personalized financial planning services that were previously expensive due to high advisory fees. The automated nature of these platforms reduces operational costs, which are often passed on to clients in the form of lower fees. As consumers become increasingly price-sensitive, the demand for more affordable investment solutions continues to drive growth in this space.
Robo Advisory Sector: Growth Drivers and Challenges
Growth Drivers
- Digitalization of financial services: The rise of digital finance, especially with 72% of global financial institutions in 2024 prioritizing digital transformation, supports the growth of robo-advisors as demand for streamlined and tech-enabled financial services rises. In 2023, digital banking activity reached approximately 3.5 billion active users globally, a trend paralleled in robo-advisory services, which use similar digital infrastructure. These digitalization trends enable optimized processing and fast access in developed markets, encouraging demand for automated financial systems. Additionally, governmental backing for digital finance in the UK boosts this digital change.
- Rising demand for low-cost financial solutions: There is a growing global shift toward adopting more affordable financial solutions, as evidenced by a 14% reduction in service fees across digital financial platforms between 2022 and 2024. Moreover, rising inflation rates in emerging countries have significantly increased the demand for affordable advisory services as they process sensitive client information, making them susceptible to cybersecurity threats. These cybersecurity threats escalated by 22% between 2022 and 2023. In response, countries such as the U.S. and Singapore have introduced dedicated cybersecurity regulations tailored to safeguard digital financial services and reinforce consumer trust.
Major Technological Innovations in the Robo Advisory Market
The global market is undergoing significant changes, driven by the integration of advanced technologies like AI, blockchain, and ML. These technologies enhance the capabilities of robo advisors, providing personalized, efficient, and secure financial services. The table below highlights the current technology trends and their impact on various industries.
|
Technology |
Adoption Level |
Impact |
|
AI Integration |
Implemented by 97% of major U.S. banks |
Improved capabilities in trading and investments |
|
ML |
Adopted by 82% of digital advisory platforms |
Achieved a 7% boost in portfolio performance |
|
Natural Language Processing |
Implemented by a significant majority |
Elevated user satisfaction by 27% |
|
Blockchain Implementation |
Used by 58% of financial institutions globally |
Lowered transaction costs by 62% since 2018 |
|
Cloud-Based Infrastructure |
Projected 85% adoption by 2025 |
Streamlined operations in embedded finance |
AI & ML Trends in the Global Robo Advisory Market
AI and ML are transforming the market by personalized investment strategies and operational efficiency. These technologies analyze large datasets to deliver tailored financial advice, improving client satisfaction and retention. Additionally, AI/ML accelerates product development by simulating market scenarios, allowing faster strategy testing and quicker market entry. Overall, these tools enhance service delivery, adaptability, and competitiveness in a fast-changing financial landscape.
|
Company |
Integration of AI & ML |
Outcome |
|
Betterment |
AI for personalized investment plans |
17% increase in client retention |
|
Wealthfront |
Implemented ML for tax-loss harvesting |
12% enhancement in after-tax returns |
|
Vanguard Personal Advisor Services |
Integrated AI with human advisors for a hybrid advisory model |
23% reduction in operational costs |
|
Charles Schwab Intelligent Portfolios |
Used AI for automatic portfolio rebalancing and risk assessment |
28% faster response to market volatility |
|
SoFi Invest |
Combined AI chatbots for customer service and financial planning |
32% improvement in customer query resolution |
|
Acorns |
Leveraged ML to assess spending habits and automate micro-investing |
41% increase in user engagement |
|
Ellevest |
AI to align investment options based on gender-specific goals |
53% growth in female client base over two years |
|
Stash |
Used AI for customized educational content |
36% boost in user financial literacy scores |
Challenges
- Data security and privacy concerns: As robo-advisors handle large sets of sensitive personal and financial data, they become key targets for cyberattacks and data breaches. Thus, ensuring robust cybersecurity measures is important to maintain user trust and comply with rising strict data protection regulations worldwide. Any breach in these systems can not only lead to major financial losses to users but also spoil the reputation of robo-advisory platforms, potentially hampering market growth. The challenge is further doubled by the changing nature of cyber threats, which requires continuous investment in advanced security technologies and strict governance frameworks.
Robo Advisory Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
30% |
|
Base Year Market Size (2024) |
USD 8.7 billion |
|
Forecast Year Market Size (2037) |
USD 270 billion |
|
Regional Scope |
|
Robo Advisory Segmentation
Service Type (Direct Plan-Based/Goal-Based, Comprehensive Wealth Advisory)
The direct plan-based or goal-based services are predicted to capture a 62% share by the end of 2037, due to their rising demand for personalized, outcome-oriented investment strategies. These services help users plan for specific goals such as retirement, education, or home buying, making financial planning more structured and intuitive. The lower costs as compared to traditional advisors served through digital platforms are the primary factors encouraging consumers to invest in these strategies. Furthermore, increased financial awareness among Gen Z and next-gen individuals has increased adoption.
Business Model (Hybrid Robo Advisors, Pure Robo Advisors)
The hybrid robo advisors segment is anticipated to hold a 35% share during the forecast period as it combines automated investment solutions with access to human financial advisors, which provides a balanced strategy. This model is helpful to users who seek both digital convenience and personalized human guidance. The growth is also fueled by surging demand for a tailored financial approach amidst market volatility. It also attracts high-net-worth individuals looking for more nuanced portfolio management. As trust and complexity needs rise, hybrid models offer a scalable yet personalized solution, fueling their expansion in the market.
Our in-depth analysis of the robo advisory market includes the following segments:
|
Segment |
Subsegments |
|
Service Type |
|
|
Business Model |
|
|
End user |
|
|
Provider |
|
Vishnu Nair
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Robo Advisory Industry - Regional Synopsis
North America Market Analysis
North America is expected to dominate the global market with a 40% share by the end of 2037, due to the high financial literacy among individuals and demand for optimized investment planning tools. Initiatives, including the U.S. Affordable Connectivity Program, improve access to online financial services for underserved populations. In 2023, over 2 million households gained access to robo advisory platforms via federal broadband projects, up from 1.8 million in 2021, prioritizing the impact of increased funding efforts.
The U.S. robo advisory market is expanding rapidly due to the presence of a tech-savvy population favoring digital investment tools. The widespread internet access and mobile connectivity have simplified user engagement across age groups and income levels. All financial firms are integrating AI and automation to offer low-cost, personalized portfolio management at affordable costs. In 2024, the U.S. Infrastructure Investment and Jobs Act allocation of $65 billion for broadband development, including $42.45 billion for equitable access, plays a crucial role in widening the scope and reach of digital financial services. Additionally, the Affordable Connectivity Initiative offers subsidies to low-income households, including $30 monthly discounts on internet services and $100 discounts on devices, thus promoting digital inclusion. These programs collectively drive a more connected population by utilizing digital financial tools.
Asia Pacific Market Analysis
The robo advisory market in Asia Pacific is predicted to hold a notable share due to rising internet penetration and increasing digital financial literacy. As younger investors seek convenience and control, AI-driven platforms offer real-time, cost-effective wealth management. Governments across the region are promoting fintech adoption through innovation-friendly policies. This is fostering a competitive landscape with both global and homegrown robo advisors entering the scene.
The robo advisory market in China is growing fast due to a huge population, rapid urbanization, and a strong push towards digitalization. The government's focus on integrating AI into finance has accelerated the use of Robo Advisory Services. As young investors prefer low-cost digital tools that offer fast and easy access to financial planning, local fintech companies such as Ant Financial are leading the way with user-friendly platforms. This shift is making digital investment services more popular across all age groups. New regulations in China allow digital platforms to offer more services while protecting users. The push for digital inclusion in rural areas is also bringing more people online. As a result, more citizens are turning to automated tools to manage their money.
Companies Dominating the Robo Advisory Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global robo advisory market is highly competitive, fueled by AI and fintech innovation. Leaders like Betterment, Vanguard, and Scalable Capital stand out through hybrid models and personalization. In Asia-Pacific, firms like StashAway and Kuvera grow rapidly via mobile-first strategies and bank partnerships. Traditional institutions are also adopting robo tech to stay relevant. Key trends include niche targeting, market consolidation, and global expansion through API-driven and AI-enhanced platforms.
|
Company Name |
Country of Origin |
Estimated Market Share (%) |
|
Vanguard Personal Advisor Services |
USA |
18% |
|
Charles Schwab Intelligent Portfolios |
USA |
17% |
|
Betterment LLC |
USA |
12% |
|
Wealthfront Inc. |
USA |
8% |
|
Scalable Capital GmbH |
Germany |
5% |
|
Nutmeg Saving and Investment Ltd |
UK (Europe) |
xx% |
|
Moneyfarm |
Italy |
xx% |
|
StashAway |
Singapore/Malaysia |
xx% |
|
Raiz Invest Limited |
Australia |
xx% |
|
Samsung Securities Robo Advisor |
South Korea |
xx% |
|
Kuvera.in |
India |
xx% |
|
5paisa Capital Ltd. |
India |
xx% |
|
Rakuten Securities |
Japan |
xx% |
|
SBI Smart Advisor (SBI Securities) |
Japan |
xx% |
|
Monex Robo Advisor (Monex Group) |
Japan |
xx% |
Given below are the areas covered for each company in the market:
Recent Developments
- In May 2025, Vanguard launched its first generative AI tool, Client-Ready Article Summaries, to help financial advisors create personalized, efficient client communications. The tool customizes market summaries based on client knowledge, investment stage, and tone, including required disclosures. This innovation is designed to improve advisor-client engagement, boosting satisfaction and retention, while streamlining operations and enhancing service quality.
- In February 2024, StashAway announced its expansion into the Middle East, beginning with the UAE, marking its first major step outside Asia. The move is part of its broader strategy to scale globally and diversify its investor base.
- Report ID: 2231
- Published Date: Jun 04, 2025
- Report Format: PDF, PPT
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