September 10, 8:43 am
Over the past six years, roughly 180 million people have started using robo-advisors to build trading strategies, buy stocks, and grow their portfolios. Nearly one-fifth were from the United States, the world's largest robo-advisors market. Although these digital investment managers have seen their popularity grow worldwide, Americans invested much more money via robo-advisors than any other nation.
According to data presented by AltIndex.com, Americans invested an average of $70,000 via robo-advisors last year, five times more than Europeans and nine times more than Chinese.
Before robo-advisors, investing money in the stock market was mainly reserved for those who could afford to hire an expert to guide them or had the expertise to do it themselves. But thanks to these platforms, people can now invest in stocks without actively managing their portfolios, with algorithms adjusting their risk preferences, making data-driven decisions, and maximizing returns. This easier way of trading with lower fees has drawn millions of people to the market.
According to a Statista survey, the total value of assets under the management of robo-advisors surged by 1,190% between 2017 and 2022, jumping from $187bn to $2.45trn worldwide. Most of that impressive growth came from the US market, which saw more investments via robo-advisors than any other country.
Last year, Americans invested an average of $69,174 via robo-advisors. The European market saw one-fifth of that value, with $12,931 in average assets under the management (AUM) per user. Chinese market was far behind with an average AUM per user of $7,552.
Statista expects Americans to continue using robo-advisors to grow their portfolios, with the average AUM per user surging by almost 70% and reaching over $116,000 by 2027. The European market will see a 55% growth in this period, with the average AUM per user rising to $19,890 in the next four years. Due to regulatory restrictions imposed on robo-advisory services, China's growth is set to plummet from 2022 onward. According to Statista, the average AUM per user in the Chinese market will drop by 40% to $4,461 in the next four years.
Although the US market will see more investments in the robo-advisors segment, Europe leads in total user count. Last year, roughly 30 million Americans used robo-advisors to grow their assets. Statista expects another 20 million people in the US to start using their services in the next four years, pushing the total user count to nearly 50 million.
The European market is forecasted to see 61.7 million users by 2027, up from 43.87 million in 2022. On the other hand, regulatory restrictions will significantly cut down the user count in the Chinese market, with the number of people using robo-advisors plunging from 54.1 million in 2022 to only 520,000 in 2027.
Overall, Statista expects more than 230 million worldwide to start using robo-advisors in the next four years.
Sign up and get access to a personalized dashboard, deeper insights, and articles instantly in your inbox via our newsletter. It's free and you can easily cancel whenever you want.
AltIndex revolutionizes investing with advanced alternative data analytics, smart insights, and real-time stock alerts, presented in a free, easy-to-use dashboard powered by comprehensive company data from across the internet.
All investments involve risks, including the possible loss of capital.
© 2023 AltIndex. All rights reserved.
Top Stock Performers Today
Bottom Stock Performers Today
Best Airlines Stocks
Best Bank Stocks
Best Semiconductor Stocks
Best Energy Stocks
Best Fintech Stocks
Best Robotics Stocks
Best Insurance Stocks