Robo-advisory Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Robo-advisory Services Market is segmented as Type of Services (Investment Advisor, Wealth Management, Retirement Planning, Tax-loss Harvesting), and Geography.

Robo-advisory Services Industry Overview

Robo Advisory Services Market Size
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 40.3 %

Major Players


*Disclaimer: Major Players sorted in no particular order


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Robo-advisory Services Market Analysis

The Robo-advisory Services Market is expected to register a CAGR of approximately 40.3% during the forecast period (2021-2026). The rapid digitization of the BFSI industry has accelerated the growth of digital investments in which the Robo-advisors are playing a major role. The Robo-advisory services are beneficial majorly for passive investors who do not prefer personal monitoring of their portfolio development.

  • Rapid automation of processes and businesses across end-user industries is acting as a major catalyst for the adoption of Robo-advisory services. These services eliminate human labor, as the online platforms offer the same services at a fraction of the cost. Also, the services are available 24/7 as long as the user has an Internet connection.
  • Several emerging economies are stimulating the regional players to enhance their testing and research of Robo-advisory services. These initiatives are further expected to act as a catalyst for market growth. For instance, Saudi Arabia's Capital Market Authority (CMA) approved Wahed Capital and Haseed Investing Company to test its Robo-advisory services. This was done as part of the country's strategy to encourage the use of financial technology in the Arab economy.
  • Further, amidst the global coronavirus outbreak, lockdown, and market uncertainty, a surge in B2B Robo-advisors, Digital investing, financial advice and portfolio management is witnessed globally. Several companies have reported an increase in digital investing activities by the investors in the first quarter of 2020 as compared to 2019. For instance, Betterment LLC reported an increase in the number of account openings by 25%, while Wealthfront Inc. reported an approximately 68% rise in digital investing activities since the market downturn.

Robo-advisory Services Industry Segments

Robo-advisory services are digital services, including automated, algorithm-driven financial planning services with little to no human supervision. A Robo-advisor collects financial information from the clients, such as their current financial situation and future financial goals through an online survey. The Robo-advisor then aggregates the collected data and uses it to offer advice and automatically invest client assets. The Robo-advisory services provide services like easy account setup, robust goal planning, account services, portfolio management, and security features, along with continuous customer service at low fees.

By Type of Services
Investment Advisors
Wealth Management
Retirement Planning
Tax-loss Harvesting
North America
Rest of the World

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Robo-advisory Services Market Trends

This section covers the major market trends shaping the Robo-advisory Services Market according to our research experts:

Investment Advisory Expected to Gain Maximum Traction

  • Robo-advisory services majorly include investment advisory services related to the personal finance of individuals. Robo-advisors are rapidly filling the gaps created by human investment advisors, such as capability, capacity, and cost, majorly due to the increase in the adoption of digitization across the investment industry, coupled with the adoption of AI in robotics.
  • FinTechs across the world rely upon both technology and personal advisory. They are rapidly creating robo-advisory services by adopting technologies such as AI and ML, which will offer accurate and transparent advisory services to the retail investors, which will further prevent them from making inaccurate investment decisions.
  • In July 2019, Voya Financial launched a platform, which is a hybrid robo-advisor, designed to help its advisors become more efficient and be able to better communicate with the broker-dealer. The firm’s hybrid model will have an advantage because it’s not a direct-to-consumer.
Robo Advisory Services Market trends

North America Expected to Dominate the Market

  • The North America region is expected to dominate the market owing to the presence of several market players in the region, such as Betterment LLC, Charles Schwab & Co., Inc., Wealthfront Inc., and Vanguard Group, amongst others. Also, the region has leaded other regions in terms of technological advancement and the robotics industry.
  • The company's major financial institutions are making product innovations and developments to leverage the first-mover advantage and gain maximum market traction. For instance, in January 2020, Citigroup unveiled a new digital Robo-advisor, which will provide free services to the Citi's Priority customers who hold at least USD 50,000 in deposits or investments at the bank.
  • Several financial institutions are still in the development phase to innovate and develop highly advanced platforms offering robo-advisory services to their customers. For instance, the Vanguard Group plans to launch a Robo-advisory service, which the company claims is expected to eliminate human advisory.
  • Goldman Sachs is planning to launch digital wealth management services for customers with lesser investments, ranging from as low as USD 5,000 in 2020. Such initiatives and investments by companies in the region are expected to boost the market's dominance in the forecast period.
Robo Advisory Services Market growth rate

Robo-advisory Services Market Competitor Analysis

The competitive landscape of the Robo-advisory Services Market is consolidated owing to the presence of major players like Betterment LLC, Wealthfront Inc, The Vanguard Group, amongst others holding the majority of the market share. These market players are making product innovations to capture maximum market share globally. Also, the government of several economies is stimulating smaller vendors to enter the market with innovative products or by forming strategic collaborations.

  • May 2020 - UOBAM launches Robo-advisory services, UOBAM Invest, providing customized investment portfolios online to help companies meet their investment goals. Corporate investors with a minimum investment of RM 500,000 will be able to utilize UOBAM Invest.
  • February 2020 - Grab Holdings acquired Bento Invest, a Singapore-based Robo-advisory start-up, that will offer the company’s clients retail wealth management solutions. The aim of the acquisition is to tap the underbanked population in Southeast Asia that do not have access to investment tools easily or might find it expensive even if they do.

Robo-advisory Services Market Top Players

  1. Betterment LLC

  2. Wealthfront Corporation

  3. The Vanguard Group, Inc.

  4. Charles Schwab & Co., Inc.

  5. BlackRock, Inc.(FutureAdvisor)

*Disclaimer: Major Players sorted in no particular order

Betterment LLC, Wealthfront Corporation, The Vanguard Group, Inc, Charles Schwab & Co., Inc., BlackRock, Inc.(FutureAdvisor)

Robo-advisory Services Market Report - Table of Contents


    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Digitization of the BFSI Industry

      2. 4.2.2 Cost-efficiency in Managing Personal Finance

    3. 4.3 Market Restraints

      1. 4.3.1 Lack of Human Expertise and Empathy

      2. 4.3.2 Nascency of the Technology

    4. 4.4 Industry Attractiveness - Porters 5 Force Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Analysis of Impact of Covid-19 on the Market


    1. 5.1 By Type of Services

      1. 5.1.1 Investment Advisors

      2. 5.1.2 Wealth Management

      3. 5.1.3 Retirement Planning

      4. 5.1.4 Tax-loss Harvesting

    2. 5.2 Geography

      1. 5.2.1 North America

      2. 5.2.2 Europe

      3. 5.2.3 Asia-Pacific

      4. 5.2.4 Rest of the World


    1. 6.1 Company Profiles

      1. 6.1.1 Betterment LLC

      2. 6.1.2 Wealthfront Corporation

      3. 6.1.3 The Vanguard Group, Inc.

      4. 6.1.4 Charles Schwab & Co., Inc.

      5. 6.1.5 BlackRock, Inc. (FutureAdvisor)

      6. 6.1.6 FMR LLC (Fidelity Go)

      7. 6.1.7 Roboadviso

      8. 6.1.8 M1 Holdings Inc.

    2. *List Not Exhaustive


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Robo-advisory Services Market Research FAQs

The Robo-advisory Services Market is studied from 2018 - 2028.

The Robo-advisory Services Market is growing at a CAGR of 40.3% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

Betterment LLC, Wealthfront Corporation, The Vanguard Group, Inc., Charles Schwab & Co., Inc., BlackRock, Inc.(FutureAdvisor) are the major companies operating in Robo-advisory Services Market.

Robo-advisory Services Industry Reports

In-depth industry statistics and market share insights of the Robo-advisory Services sector for 2020, 2021, and 2022. The Robo-advisory Services research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Robo-advisory Services report PDF.

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