Investment Banking Market
Report ID: SQMIG40J2009
Report ID: SQMIG40J2009
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Report ID:
SQMIG40J2009 |
Region:
Global |
Published Date: January, 2026
Pages:
178
|Tables:
66
|Figures:
68
Global Investment Banking Market size was valued at USD 111.0 billion in 2024 and is poised to grow from USD 119.88 billion in 2025 to USD 221.89 billion by 2033, growing at a CAGR of 8.0% during the forecast period (2026-2033).
All around the globe, the investment banking industry is considered the foundation of finance. For a long time, investment banking was to be a base institution for trading, capital raising, mergers and acquisitions, and providing strategic counsel to corporations, governments, and institutions. This market, however, is influenced by interest rate movements, macroeconomic conditions, and present happenings worldwide. Competitors like Goldman Sachs, JPMorgan Chase, Morgan Stanley, Barclays, and Bank of America Merrill Lynch, use their global reach, improved data analysis, and diversified portfolios to propel themselves forward.
The global investment banking industry has been more directly impacted by shifts in monetary policy, interest rate expectations, and geopolitical uncertainty rather than trade policy changes alone. While periods of easing inflation and pauses in interest-rate hikes have briefly improved investor sentiment, capital markets have remained uneven and selective. Volatility in equity and debt markets, coupled with cautious corporate balance sheets, has continued to delay large underwriting activity and restrained deal execution, preventing sustained and broad-based recovery across capital markets.
Investment has fallen sharply, especially for equity underwriting and mergers and acquisitions. According to Report by Dealogic, in April 2025, there was indeed a drop in M&A activity over the last twenty years. However, deal-making and investor confidence are still highly curtailed by the ongoing ambiguity related to trade rules, greatly affecting the long-term prospects of global business.
Is Generative AI Becoming a Competitive Differentiator for Global Banks?
The global investment banking market outlook is currently undergoing some sort of transformation because of generative AI. This goal has been improved; the other means are making decisions, optimizing processes, and creating new formats for interaction with clients. In simpler terms, automated processes-from financial modeling to pitchbook production to market analysis-are reducing the man hours needed for these processes and consequently increasing efficiencies. Now bankers can focus on strategic advice. Insights from gargantuan data sets are also gleaned more rapidly, eventually enhancing their risk assessments and deal sourcing. Generative AI makes customer interaction more personalized and provides customizable reporting mechanisms and offerings. Adoption of AI is fast turning out to be a core competitive advantage for banks that seek to innovate and grow, and everything from data governance to regulatory concerns is inherent to the technology.
Market snapshot - 2026-2033
Global Market Size
USD 110.12 Billion
Largest Segment
Financial Services
Fastest Growth
Healthcare
Growth Rate
7.55% CAGR
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Global Investment Banking Market is segmented by Type, End User, Enterprise Size and region. Based on Type, the market is segmented into Mergers & Acquisitions Advisory, Financial Sponsor/Syndicated Loans, Equity Capital Markets Underwriting and Debt Capital Markets Underwriting. Based on End User, the market is segmented into Individuals and Corporate Institutions. Based on Enterprise Size, the market is segmented into Large Enterprises and Small and Medium-Sized Enterprise (SMEs). Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Why Do Investment Banks Rely Heavily on M&A Advisory Revenues?
As per the 2025 investment banking market analysis, the mergers & acquisitions segment the market. Continued business interest in international transactions, market consolidation, and strategic growth were major forces. Companies within the technology, healthcare, energy, and industrial sectors were all eager to grow, find new skills, and enter new markets. M&A had achieved further status as a major income provider when investment banks profited from heavy advisory work on these large, complex deals that commanded huge fees.
However, the equity capital markets segment is anticipated to have the highest investment banking market share. Skyrocketing IPOs, an extremely favorable market view, and fresh interest in growth stocks, shall fuel this surge. Increased listings from technology companies and new-age issuers have birthed growth in ECM. The past gives it momentum, and the funding requirement for expansion and innovation is further entrenching its position as a key growth engine for investment banks.
Why Does the Financial Services Sector Lead Investment Banking Activity?
As per the 2025 investment banking market forecast, the sector continues to be ruled by financial services. Capital allocation and risk management services and M&A advice are regularly sought after by banks, insurance companies, and asset managers. This diversified clientele results in increased transaction and advisory activity because each client presents unique combinations of financial needs and varying degrees of financial stress. By 2025, it is estimated that this sector will represent 37% of the market.
On the other hand, in the coming years, the healthcare sector is expected to be among the rapidly growing sectors. Increased investor interest has led to increased M&A and funding for biotech projects as well as IPO activity. This growth is related to the innovation within the sector, changes in regulations, and increased capital requirements of the life sciences industry.
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What Drives Strong Advisory and Underwriting Activity in North America?
As per the investment banking market regional forecast, investment banking activity continues to boom in geographies such as North America, where robust capital markets also account for an increase in M&A and underwriting activity expected. Significant cross-border corporate advisory revenues have been driven by a couple of strategic agreements transacted in the technology, healthcare, energy, and financial services industries. Leading U.S. banks spearheaded cross-border deals with European and Asian businesses, and the strengthening state of the equity market contributed to the resuscitation of secondary offerings and IPO pipelines.
U.S. Investment Banking Market
The U.S. investment banking landscape is and will remain the largest and most powerful market. There is a growth of M&A activity due to reduced interest rate volatility that opened the floodgates to large corporate and private equity-type transactions. This scenario gave rise to advisory fees flowing from the activities surrounding consolidation in technology platforms, acquisitions in healthcare, and energy transition projects. On the other hand, American banks took advantage of the spike in ECM issuance, with IPOs from companies working in tech and AI.
Canada Investment Banking Market
Mid-market M&A and cross-border deals, particularly those in the energy, mining, infrastructure, and financial services sectors, form the backbone of investment banking in Canada. Canadian companies were active in asset optimization and consolidation, even while foreign buyers continued in natural resources and renewables. Focusing on advisory mandates and equity raisings related to energy transition initiatives, investment banks were able to generate steady fee income despite relatively smaller deal sizes compared to the U.S. investment banking market trends.
How Is Europe Repositioning Its Investment Banking Landscape?
Cross-border M&A, restructuring, and strategic consolidation gradually began to distinguish between the European investment banking sector. Financial services, industries, and the energy transition continued to deliver some of the most significant income streams, even though stock was an increasingly selective issue. Increased macroeconomic stability kept transaction confidence reasonably high. With this development, it brought European banks and international investment houses to collaborate more on multinational advising mandates to partly offset declining volumes of local deals in Europe.
UK Investment Banking Market
Well-established international financial infrastructure seals the United Kingdom's position as Europe's leading investment banking region. Advice on financial services industry consolidations, global infrastructure financing initiatives, and cross-border mergers and acquisitions was provided by both UK and foreign banks. Despite growing competition from other financial centers, London still managed to attract foreign listings and private equity exit opportunities, along with consulting work from both U.S. and European entities.
France Investment Banking Market
Transaction-specific and domestic consolidation significantly influence France's investment banking market. Technology, healthcare, energy, and defense transactions all add value to advisory work conducted. To finance growth and sustainability goals, companies in France increasingly resort to equity and hybrid instruments. Steady growth was further fueled by the active involvement of both domestic banks and international investments in privatizations and M&A advisory deals.
Germany Investment Banking Market
Germany is mainly the window of Europe as an investment banking hub with international transactions and changes in the industries. The banks advised about restructuring and M&A with automotive, manufacturing, and technology, which had almost all been experiencing pressure from electrification and digitization. Even with extremely low deal activity across the rest of Europe, Germany's strong Mittelstand sector kept demand alive for advisory services, and both equity and loan offerings were helping to bolster companies' financial positions.
What Fuels Rising M&A and IPO Activity Across Asia-Pacific?
Driven by rising mergers and acquisitions, government-led privatizations, and continued development of domestic capital markets, the Asia-Pacific region is emerging as one of the fastest-growing investment banking hubs globally. Strategic acquisitions and equity offerings by Asian corporations attracted significant investor interest, leading to increased advisory and underwriting mandates for investment banks. Large transactions across financial services, infrastructure, and technology sectors shaped regional activity, while improving macroeconomic conditions and regulatory support helped restore investor confidence, enabling a gradual recovery in IPO activity across major regional exchanges.
China Investment Banking Market
The Chinese investment banking market penetration is supported by government funding. With a clear focus on technology, advanced manufacturing, and renewable energy, banks played major roles on both initial public offerings and secondary selling on the mainland markets. With state-owned firm transactions and restructuring remaining stable, advisory income was kept intact, although cross-border consulting remained fairly minimal.
Japan Investment Banking Market
Increased corporate governance and the relevant ignition enhanced by shareholder activism benefited Japan's investment banking market. Investment banks advised such huge corporations on management of buyouts, divestitures, and dissolution of cross-shareholdings. Seeking consulting service weren't halted because of outbound mergers and acquisitions from Japan, but revenues from capital markets remained stable through focused initial public offerings and stock offers.
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Investment Banking Market Drivers
Increased Activity in the Capital Markets and M&A
Innovation Development in the Finance and Emerging Markets
Investment Banking Market Restraints
Intricacy in Regulation and Costs of Compliance
Economic and Market Volatility
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With a focus, global investment banking market growth is growing significantly. A small number of people control much of the underwriting and advising revenues. The largest global banks are more significant as regards employing large-scale mergers and acquisitions as instruments for debt and equity deals. It is smaller and more specialized for companies that avail in competition for mid-market M&As as well as sector-specific advisory and restructuring services. Businesses are increasingly dependent on their ability to bring to bear global reach, industry knowledge, advanced technicality, and the capability to easily manage very complex cross-border transactions to distinguish themselves.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, there is a gradual growth of the global investment banking industry fueled by a renewed M&A action, buoyant capital market conditions, and increasing interest from emerging markets. Technological alternatives to service and product offerings are rapidly changing and applying the helix of the environment, social, and governance (ESG) parameters. However, revenues are still caught up with various regulations and economic fluctuations globally. Investment banks, therefore, will be best poised for long-term opportunities if they do well in their compliances, embrace digital changes, and focus on select industry sectors. The market is, therefore, resilient and moving toward more data-driven, sustainable, and globally integrated advisory models.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 111.0 billion |
| Market size value in 2033 | USD 221.89 billion |
| Growth Rate | 8.0% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Investment Banking Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Investment Banking Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Investment Banking Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Investment Banking Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Global Investment Banking Market size was valued at USD 110.12 Billion in 2025 and is poised to grow from USD 118.43 Billion in 2026 to USD 197.13 Billion by 2033, growing at a CAGR of 7.55% during the forecast period (2026-2033).
With a focus, global investment banking market growth is growing significantly. A small number of people control much of the underwriting and advising revenues. The largest global banks are more significant as regards employing large-scale mergers and acquisitions as instruments for debt and equity deals. It is smaller and more specialized for companies that avail in competition for mid-market M&As as well as sector-specific advisory and restructuring services. Businesses are increasingly dependent on their ability to bring to bear global reach, industry knowledge, advanced technicality, and the capability to easily manage very complex cross-border transactions to distinguish themselves. 'Goldman Sachs', 'JPMorgan Chase & Co.', 'Morgan Stanley', 'Bank of America', 'Citigroup', 'UBS', 'Deutsche Bank', 'Barclays', 'HSBC', 'Lazard', 'Evercore', 'Jefferies Financial Group', 'Moelis & Company'
The presence of demand for mergers, acquisitions, and capital-raising activities is the driver that pulls the investment banking industry. Despite being focused on technology, healthcare, energy, and financial services, businesses are still actively pursuing strategic growth, consolidation, and global expansion. A more positive market outlook with less volatility on interest rates set at the pace for the revival of M&A and major equity offerings. Therefore, strong underwriting and advising profits in international markets followed this.
Adoption of Advanced Analytics and AI: Investment banks are increasingly introducing advanced data analytics and artificial intelligence into major aspects of client consulting, financial modeling, due diligence, and deal sourcing. Such solutions reduce transaction turnaround time, give predictive insights, and lessen manual tasks. Those banks that can build AI applications at scale are gaining the competitive edge through greater productivity and deeper market intelligence while providing personalized customer solutions.
What Drives Strong Advisory and Underwriting Activity in North America?
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