Global robo advisor market value is predicted to reach $2.4 trillion in less than five years, according to data compiled by BuyShares. The expansion represents a compound annual growth rate of 26%, with today’s global robo picture weighing in at $987 billion.
Low fees, small opening balance requirements and an easy-to-use interface have fueled the growth of robo advisor platforms, according to the report. “They are an excellent option for entry-level advisors.”
“The market volume increased by 230% in the last three years,” the report added.
The small opening balance requirements also mean smaller average AUM per account. In 2020, the average AUM per user was just $4,398 and it’s expected to rise to $5,700 by 2024. The global number of robo advisor users is expected to rise from 224 million today to 436 million by the end of 2024.