Global Investment Banking Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Investment Banking Industry is segmented based on the type of product (Mergers & Acquisitions, Debt Capital Markets, Equity Capital Markets, Syndicated Loans, and Others) and by geography (Americas, EMEA, Asia, and Australasia). - Growth, Trends, and Forecast (2020-2025)

Investment Banking Industry Snapshot

Investment Banking Industry Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 2.1 %
Investment Banking Industry Key Players

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Market Overview

Investment banks act as intermediaries between an issuer of securities and the investing public, distributing an offering through their dealer networks or direct sales to clients. Capital raising, proprietary trading, and deal underwriting are some of the core activities typically carried out by investment banks. 

The U.S. investment banking industry includes about 3,000 companies with combined annual revenue of about $140 billion. The 50 largest firms generate more than 90 percent of the industry’s revenue.

Investment banking industry has not fully recovered from the aftermath of 2008 financial crisis. The post-crisis period has witnessed a flurry of constraints on the industry in the form of more stringent and intrusive regulations such as Pillar 3, meeting BCBS 239 in addition to IFRS 9 requirements and many other mandatory regulatory requirements which have been impacting the business behaviour as a whole. 

Fintech markets globally are evolving on a faster pace disrupting the end-to-end investment banking value chain. Blockchain is rapidly changing the face of cross-border lending activity. 

Scope of the Report

An understanding of the present status of the global investment banking industry to deep-dive into regulatory landscape, along with detailed market segmentation, product types, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments.

By Product Types
Mergers & Acquisitions
Debt Capital Markets
Equity Capital Markets
Syndicated Loans and Others
By Geography
Americas
United States
Canada
Latin America
EMEA
Europe
Russia
United Kingdom
Middle East & Africa
Asia
Japan
China
Others
Australasia
Australia
New Zealand & Others

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Key Market Trends

2019 - The Year of Mega Deals yet with Lesser M&A Volume

During 2019, M&A volume has struggled due to worldwide economic and political uncertainties. Among all regions, the overall volume of the deals has witnessed an y-o-y decline of 0.5% in 2019. Americas (United States, Canada, Latin America) is the only region to have an increase in volume by 9.9% over those of 2018 reaching 2.16 Trillion USD with 11,511 deals.   

Yet again, this year has witnessed mega deals ( deal size above 10 Billion USD) with a total of 1.27 Trillion USD deals making up 31% of the total volume of 2019 recording the highest percentage of mega deals ever in a year. 70% of mega deals in 2019 were announced in the first half of 2019 whereas the second half lost the momentum recording only 380.7 Billion USD mega deals.

Investment Banking Industry Key Trends

Insights on IPOs in 2019 Worldwide

2019 is the year when Saudi Aramco IPO happened finally in Q4 boosting the IPO volume in the year-end. Saudi Aramco IPO raised a total of 26.5 Billion USD to become the largest IPO ever beating Alibaba's record of 25 Billion USD listing in September 2014. 

In EMEA region, privatization trends have helped to boost the IPO proceeds for the year 2019. In the Asia-Pacific region, the secondary listing volume hit the jackpot in 2019 when 8 Chinese companies that are originally listed in Hong Kong have raised 11.7 billion USD. A total of 68.8 Billion USD has been raised via 381 IPOs in the year 2019 globally.

Investment Banking Industry Growth Rate

Competitive Landscape

The report includes an overview of not only the largest investment bankers by revenue earned, but also major boutique banks categorized by size, region, and industry focus operating in the market studied. In revenue terms, the industry seems to be a fragmented market and the largest player being J.P. Morgan as of December 2019, with a market share of 8.9%. But in terms of the assets under management (AUM) it is more like an oligopoly with a clear demarcation of top 3 players from that of others. Currently, some of the major players dominating the market studied, in terms of market share are presented here.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Market

    2. 1.2 Market Definition

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Study Deliverables

    2. 2.2 Study Assumptions

    3. 2.3 Analysis Methodology

    4. 2.4 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

      1. 4.1.1 A Brief on Investment Banking - Structure, Key Functions and Activities

      2. 4.1.2 Categorization of Investment Banks by Deal Size, Status, Region and Industry Focus

      3. 4.1.3 Historical Performance of Investment Banks Across the Globe

    2. 4.2 Regulatory Landscape in the Investment Banking Industry

      1. 4.2.1 Regulations Impacting the Investment Banking Industry Before 2008 Financial Crisis

      2. 4.2.2 Regulations Impacting the Investment Banking Industry After 2008 Financial Crisis

      3. 4.2.3 Initiatives towards Strengthening Risk Culture in Investment Banks

      4. 4.2.4 Impact of Regulations on ROE of Investment Banks, By Business Lines

      5. 4.2.5 Impact of Regulations on Operations and Business Models of Investment Banks

    3. 4.3 Current and Potential Challenges to the Investment Banking Industry

      1. 4.3.1 Impact of Tough Regulations on Business Behaviour

      2. 4.3.2 Constraints due to an Ever-changing Banking Ecosystem

    4. 4.4 Implications of Increasing Fintech Adoption on the Investment Banking Industry

    5. 4.5 Major Deals & Latest Trends in the Investment Banking Industry

    6. 4.6 Market Drivers

    7. 4.7 Market Restraints

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Threat of New Entrants

      2. 4.8.2 Bargaining Power of Buyers/Consumers

      3. 4.8.3 Bargaining Power of Suppliers

      4. 4.8.4 Threat of Substitute Products

      5. 4.8.5 Intensity of Competitive Rivalry

    9. 4.9 PESTLE Analysis

  5. 5. MARKET SEGMENTATION AND ANALYSIS

    1. 5.1 By Product Types

      1. 5.1.1 Mergers & Acquisitions

      2. 5.1.2 Debt Capital Markets

      3. 5.1.3 Equity Capital Markets

      4. 5.1.4 Syndicated Loans and Others

    2. 5.2 By Geography

      1. 5.2.1 Americas

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

        3. 5.2.1.3 Latin America

      2. 5.2.2 EMEA

        1. 5.2.2.1 Europe

        2. 5.2.2.2 Russia

        3. 5.2.2.3 United Kingdom

        4. 5.2.2.4 Middle East & Africa

      3. 5.2.3 Asia

        1. 5.2.3.1 Japan

        2. 5.2.3.2 China

        3. 5.2.3.3 Others

      4. 5.2.4 Australasia

        1. 5.2.4.1 Australia

        2. 5.2.4.2 New Zealand & Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Mergers & Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 J.P. Morgan Chase & Co.

      2. 6.3.2 Goldman Sachs Group Inc

      3. 6.3.3 Morgan Stanley

      4. 6.3.4 BofA Securities Inc.

      5. 6.3.5 Citi Group Inc

      6. 6.3.6 Barclays Investment Bank

      7. 6.3.7 Credit Suisse Group AG

      8. 6.3.8 Deutsche Bank AG

      9. 6.3.9 Wells Fargo & Company

      10. 6.3.10 RBC Capital Markets

      11. 6.3.11 Jefferies Group LLC

      12. 6.3.12 The Blackstone Group Inc

      13. 6.3.13 Cowen Inc*

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Investment Banking Market market is studied from 2016 - 2026.

The Investment Banking Market is growing at a CAGR of 2.1% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

J.P. Morgan Chase & Co., Goldman Sachs Group Inc, Morgan Stanley, BofA Securities Inc., Citi Group Inc are the major companies operating in Investment Banking Market.

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