Executive Summary
The global investment banking market was valued at approximately USD 103.23 billion in 2024 and is forecast to grow at a CAGR of about 7.55% to USD 183.28 billion by 2032, driven by digitalization, ESG advisory demand, and rising deal activity in emerging markets, particularly Asia Pacific [1]. Major banks—including Goldman Sachs, JPMorgan Chase, Morgan Stanley, Bank of America, and Citi—dominate global market share, while Asia-Pacific is growing fastest in percentage terms despite lagging in absolute fee pools [1][2]. In 2025, increased volumes in equities trading, IPOs, and M&A have helped lift revenues, though global fees fell slightly in early-2025 relative to the prior year, especially in the Americas [2][3][4].
Analysis
The primary report from Fortune Business Insights paints a broadly bullish long-term view for the investment banking sector: expecting nearly an 80% total growth from 2025 to 2032, with strong tailwinds from AI, automation, blockchain, sustainability finance, and expanding activity in emerging markets like India [1]. Key revenue streams—M&A advisory, debt and equity underwriting, capital markets, trading and brokerage—are expected to all contribute to the expansion, but the competitive pressures from boutique advisors and fintechs are flagged as risk factors [1].
Meanwhile, more near-term metrics suggest some unevenness. According to LSEG data, global investment banking fees dropped 1% year-over-year in the first half of 2025 to about USD 60.5 billion, led by a 5% decline in the Americas (to USD 31.9 billion), even as Asia-Pacific (excluding Japan) saw a 27% increase to USD 11.9 billion [2]. Advisory/M&A fees were flat, underwriting rose modestly, and syndicated lending fell roughly 10% from a year prior [2].
Revenue trends by product in full-year 2025 are generally positive. S&P Global data forecasts overall investment banking revenues for large banks to rise about 10% in 2025 over 2024, led by equities trading (+15%), advisory/origination (+8%), and FICC revenues (+8-9%) [3]. But projections for 2026 suggest a plateauing or modest decline in some lines, especially equities trading [3]. Banks’ expense pressures—including from investment in AI, recruitment and compensation, inflation, and regulatory/compliance costs—are increasingly binding, shaping net margins and priorities [4][5].
Strategic implications are that leading global banks are consolidating power, especially those with scale, technology competence, global reach, and ESG legitimacy. Regional players in Asia Pacific have rising opportunity but need to scale execution and advisory capabilities. Boutique firms remain threats, particularly in specialized sectors. Open questions include the sustainability of fee levels in underwriting and M&A, how regulation and monetary policy shocks will affect deal pipelines, and whether AI investments will deliver sustained productivity gains rather than just cost burdens.
Supporting Evidence
- Global investment banking market was valued at USD 103.23 billion in 2024, projected to grow to USD 183.28 billion by 2032 (CAGR ~7.55%) [1].
- North America led with ~USD 41.91 billion in market size in 2024; Europe expected at ~USD 33.94 billion in 2025; Asia Pacific at ~USD 23.99 billion in 2025 [1].
- Global investment banking fees dropped 1% in H1 2025 to ~USD 60.5 billion; Americas down ~5%; Asia-Pacific ex-Japan up ~27% [2].
- Product-line performance: equities trading revenue in 2025 expected +15%; advisory/origination ~+8%; FICC also ~+8+% growth [3].
- Banks face rising expenses: JPMorgan expects its 2026 expenses to reach ~USD 105 billion, driven by growth-/volume-related spending, AI, marketing, branch expansion, and compensation [5].
- M&A deal volume rebounded: Goldman Sachs has advised on over USD 1 trillion in activity in 2025, including a 40% jump in deals led by financial sponsors; globally, 63 “mega-deals” (US$10 billion+) were announced in 2025 [6].
Sources
- [1] www.fortunebusinessinsights.com (Fortune Business Insights) — October 27, 2025
- [2] www.investmentexecutive.com (Investment Executive (LSEG Data & Analytics)) — circa mid-2025
- [3] www.spglobal.com (S&P Global) — 09 December 2025
- [4] www.reuters.com (Reuters) — 09 December 2025
- [5] www.ft.com (Financial Times) — 09 December 2025
- [6] www.reuters.com (Reuters) — 09 December 2025