Investment Banking & Securities Intermediation in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 52315Revenue
$392.8bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
391k
Businesses
30,790
Wages
$XXX.Xbn
Investment Banking & Securities Intermediation in the US industry analysis
Strong returns in various financial markets and increased trading volumes have benefited businesses in the industry. Companies provide underwriting, brokering and market-making services for different financial instruments, including bonds, stocks and derivatives. Businesses benefited from improving macroeconomic conditions and interest rates remaining below historical averages. Overall, revenue has been growing at a CAGR of 5.6% over the past five years and is expected to total $392.8 billion in 2024, when revenue will increase by an estimated 0.9%.
Trends and Insights
- Volatility in financial markets primarily stems from investor uncertainty. Increased volatility in financial markets because of the pandemic has led to increased trading and investment-grade debt activity for companies.
- Debt underwriting’s share of industry revenue has increased. Investment banks serve as the middlemen between companies looking to raise funds by securitizing a company’s ownership or debt to be traded to investors in exchange for capital.
- Brokerages are in proximity to large population regions. The size of the population affects the size of the retail market.
- Economies of scale are essential. Investment banking and securities intermediators with the best and most cost-effective technological networks are more competitive.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 5.6 % over the past five years, to reach an estimated $392.8bn in 2024.
Trends and Insights
The monetary response to the pandemic
- Financial markets went into turmoil at the onset of the pandemic in early 2020. Both the equities and bond markets reacted negatively to the spread of the virus. On the one hand, investors sold their equities, causing the S&P 500 to plummet. On the other hand, the world faced a liquidity crisis as demand for the dollar increased exuberantly.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Investor uncertainty will persist for the next few years
- Inflation is still too high and the Federal Reserve is determined to keep rates high in order to combat inflation. The Fed has paused rate hikes, but uncertainty looms over the markets and investors. This increased investor uncertainty will create higher volatility, increasing the potential for value-added opportunities and returns.
Biggest companies in the Investment Banking & Securities Intermediation in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Morgan Stanley | 37,937.7 | 13,216.1 | 34.8 | |
Jpmorgan Chase & Co | 36,389.6 | 21,049.8 | 57.8 | |
Bank Of America Corporation | 33,927.6 | 10,800.0 | 31.8 |
To view the market share and analysis for all 12 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Trading and related services, Brokering and dealing services for derivative contracts and Underwriting, brokering and dealing services (debt). Trading and related services is the largest segment of the Investment Banking & Securities Intermediation in the US.
Trends and Insights
Debt shines in economic downturns
- Investment banks offer companies looking to raise capital through debt markets. Investment banks help corporations and governments issue debt instruments like investment-grade and high-yield debt, bank loans and bridge loans.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Investment Banking & Securities Dealing in the US
- Securities Brokering in the US
- Venture Capital & Principal Trading in the US
- Financial Planning & Advice in the US
International industries
- Global Investment Banking & Brokerage
- Investment Banking and Securities Brokerage in Australia
- Financial Asset Broking Services in New Zealand
- Security & Commodity Contracts Brokerage in the UK
- Securities Brokerage and Transaction Services in China
Table of Contents
About this industry
Industry definition
This industry is composed of companies and individuals that provide a range of securities services, including investment banking, brokering and broker-dealer trading services. They also offer banking and wealth management services and engage in proprietary trading (trading their own capital for a profit) to varying degrees. Investment banking services include securities underwriting and corporate financial services, while trading services include market making and broker-dealer services.
What's included in this industry?
Commodity contracts dealingCommodity contracts options dealing Futures commodity contracts dealing Foreign currency exchange dealing Commodity contracts brokerageCommodity contracts options brokerageFutures commodity contracts brokerageCompanies
Morgan StanleyJpmorgan Chase & CoBank Of America CorporationPurchase this report to view all 12 major companies in this industry.
Related Terms
ASSETS UNDER MANAGEMENT (AUM)FINANCIAL ASSETSCOMMODITIES CONTRACTSEXCHANGE-TRADED FUNDS (ETFS)OVER-THE-COUNTER (OTC)Industry Code
NAICS 523130 - Investment Banking & Securities Intermediation in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Volatility in financial markets primarily stems from investor uncertainty. Increased volatility in financial markets because of the pandemic has led to increased trading and ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Debt underwriting’s share of industry revenue has increased. Investment banks serve as the middlemen between companies looking to raise funds by securitizing a company’s owne...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Brokerages are in proximity to large population regions. The size of the population affects the size of the retail market.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Economies of scale are essential. Investment banking and securities intermediators with the best and most cost-effective technological networks are more competitive.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies adapted to higher interest rates and less liquidity. After nearly 15 years of quantities easing, the Federal Reserve is reducing its balance sheet to help con...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Morgan Stanley's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Jpmorgan Chase & Co's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bank Of America Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 9 additional companies
Detailed analysis
- Description and key data for Morgan Stanley, and factors influencing its performance in the industry
- Description and key data for Jpmorgan Chase & Co, and factors influencing its performance in the industry
- Description and key data for Bank Of America Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for 9 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry is subject to heavy but steady regulation. The entire financial sector is still feeling the effects of the Great Financial Crisis.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Investment advisers and managers are compensated well. Wages are high because of the service-based nature of operations and the necessity for highly educated employees.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Investment Banking & Securities Intermediation in the US industry in United States in 2024?
The market size of the Investment Banking & Securities Intermediation in the US industry in United States is $392.8bn in 2024.
How many businesses are there in the Investment Banking & Securities Intermediation in the US industry in 2024?
There are 30,790 businesses in the Investment Banking & Securities Intermediation in the US industry in United States, which has declined at a CAGR of 0.9 % between 2019 and 2024.
Has the Investment Banking & Securities Intermediation in the US industry in United States grown or declined over the past 5 years?
The market size of the Investment Banking & Securities Intermediation in the US industry in United States has been growing at a CAGR of 5.6 % between 2019 and 2024.
What is the forecast growth of the Investment Banking & Securities Intermediation in the US industry in United States over the next 5 years?
Over the next five years, the Investment Banking & Securities Intermediation in the US industry in United States is expected to grow.
What are the biggest companies in the Investment Banking & Securities Intermediation in the US market in United States?
The biggest companies operating in the Investment Banking & Securities Intermediation market in United States are Morgan Stanley, Jpmorgan Chase & Co and Bank Of America Corporation
What does the Investment Banking & Securities Intermediation in the US in United States include?
Commodity contracts dealing and Commodity contracts options dealing are part of the Investment Banking & Securities Intermediation in the US industry.
Which companies have the highest market share in the Investment Banking & Securities Intermediation in the US in United States?
The company holding the most market share in United States is Morgan Stanley.
How competitive is the Investment Banking & Securities Intermediation in the US industry in United States?
The level of competition is high and increasing in the Investment Banking & Securities Intermediation in the US industry in United States.
