Recent years have witnessed a surge in the use of robo-advisors as an appealing alternative to conventional investing.
These online platforms gained massive popularity among investors, mostly because of their lower saving entry points and cheaper fees.
Although the coronavirus outbreak has affected the market, the global robo-advisors industry is still expected to maintain its growth this year. According to data gathered by InsideBitcoins, the United States, as the leading robo-advisors market globally, is set to reach over $1trn value in 2020, growing by 40% year-on-year.
The noticeable rising trend of the US robo-advisors segment is forecast to continue in the following years, with the market value reaching $1.5trn by 2023.
Market value enlarged 5.5 times since 2017
A typical robo-advisor collects information from clients through an online survey and uses the data to provide automated, algorithm-driven financial planning services with little to no human supervision. These investing platforms also offer easy account setup, portfolio management, and customer services. Furthermore, they require small opening balances, from as little as $10 and charge low fees, around 0.25% a year.
Recent years have witnessed a rapid growth of the robo-advisors market in the United States, as the first country to introduce the automated financial advisors. In 2017, the total assets under management in the US amounted to $191.6bn, revealed the Statista data. In the next two years, this value jumped almost four times, reaching $757.1bn in 2019.
Statistics show the US robo-advisors segment is set to reach $1.06trn this year, or almost 75% of the global robo-advisors market value. With $700bn less than the US market, China ranked as the second-largest robo-advisors industry in the world. The UK and Germany follow with $24bn and $13bn, respectively.
The average assets per user in the US robo-advisors segment have also increased trough years, growing from $38,817 in 2017 to $99,135 in 2020. By the end of 2021, this amount is expected to touch nearly $103,000.
The number of users to grow 54% year-on-year and hit 70.5m
As the leading robo-advisors industry, the United States is the base for some of the largest players on the market across the globe, such as are Wealthfront, Betterment, Nutmeg, Personal Capital, The Vanguard Group and the FutureAdvisor.
Over the years, their services have become appealing to investors across the world, causing a surge in the number of users in the robo-advisors segment.
In the last three years, the number of investors using robo-advisor financial planning services all around the world grew by almost 5.5 times, reaching 70.5m in 2020. Statistics show this number is set to double in the following years, reaching 147m by 2023.