Beneath the staggering $14.2 billion valuation of the global equity research industry lies a tale of dramatic transformation, marked by technological upheaval, shifting regional power, and a relentless redefinition of value in the age of data.
Key Takeaways
- The global equity research market size was valued at USD 14.2 billion in 2023 and is projected to grow at a CAGR of 7.8% from 2024 to 2030
- U.S. equity research spending by buy-side firms reached $5.6 billion in 2022, marking a 4% increase from 2021
- Asia-Pacific equity research market accounted for 28% of global revenue in 2023, driven by rising institutional investments in India and China
- Worldwide equity research analyst platforms market hit $950 million in 2023
- There were approximately 12,500 equity research analysts employed globally in 2023, down 18% from 2015 peak
- U.S. sell-side equity research headcount dropped to 4,200 analysts in 2023 from 6,800 in 2016
- Global equity research sell-side revenue totaled $8.7 billion in 2023
- Top 5 investment banks generated 52% of global sell-side equity research revenue in 2023 at $4.5 billion
- Average profit margin for independent equity research firms was 22% in 2023
- Sell-side firms issued 450,000 equity research reports globally in 2023
- U.S. large-cap stocks covered by average 28 analysts, small-cap by 2.1 in 2023
- Technology sector received 22% of all equity research coverage globally in 2023
- Equity research industry AI adoption rate reached 68% by 2023, with NLP tools in 45% workflows
- 72% of equity analysts use machine learning for alpha generation in 2023 surveys
- ESG integration in 92% of equity research reports issued in 2023, up from 45% in 2019
The equity research industry is evolving globally with growth in Asia but pressures in Europe.
Coverage & Sectors
- Sell-side firms issued 450,000 equity research reports globally in 2023
- U.S. large-cap stocks covered by average 28 analysts, small-cap by 2.1 in 2023
- Technology sector received 22% of all equity research coverage globally in 2023
- European small and mid-cap coverage dropped 35% to 4,500 stocks since MiFID II in 2023
- Buy-side covers 15% fewer stocks internally vs. relying on sell-side in 2023 survey
- Healthcare/biotech sector analyst coverage grew 14% to 3,200 stocks in 2023
- Asia ex-Japan equity universe of 8,500 stocks, average coverage 4.8 analysts, 2023
- 62% of Russell 3000 stocks had no analyst coverage in 2023
- Financials sector holds 18% of global equity research reports issued in 2023
- Independent analysts cover 1,200 small-caps neglected by sell-side in 2023
- Consumer discretionary coverage surged 20% amid e-commerce boom to 2,100 firms 2023
- U.K. equity market coverage ratio fell to 65% of listed stocks in 2023
- Energy sector coverage halved to 900 stocks since 2014 oil crash, 2023 data
- Emerging markets stocks average 3.2 analysts vs. 12 for developed markets in 2023
- 75% of equity research focuses on top 1,000 global stocks by market cap 2023
- Utilities sector saw stable coverage of 650 firms globally in 2023
- India NSE-listed stocks average coverage 7.5 analysts, up from 4.2 in 2019, 2023
- Real estate/REITs coverage grew 11% to 1,100 entities in 2023
- Aerospace/defense minimal coverage at 1.8 analysts per stock average 2023
- Australian ASX 200 stocks average 9 analysts, small caps 1.2 in 2023
- Communication services post-AT&T split coverage up 16% to 850 in 2023
- Canadian TSX venture stocks 88% uncovered by analysts in 2023
- Materials sector 12% of reports, focusing 1,400 mining firms 2023
- Brazil B3 equities average 5.3 analysts, improved from 3.8 in 2020, 2023
- Industrials coverage steady at 2,500 stocks globally despite M&A 2023
- Consumer staples defensive coverage 1,050 firms, 9% report share 2023
- 42% of global IPOs received analyst coverage within 90 days in 2023
- Semiconductors sub-sector hyper-covered at 45 analysts average top 10 chips 2023
- Africa listed equities average 1.1 analyst coverage, 2023 JSE data
- AI/ML firms saw 300% coverage increase to 450 stocks in 2023
Coverage & Sectors Interpretation
The market's research spotlight is glaringly narrow, lavishing attention on a few tech and financial giants while leaving swathes of the investing universe—like 62% of Russell 3000 stocks—in the analytical dark, a disparity only slightly brightened by independent firms picking up a few of the neglected small-cap crumbs.
Employment Statistics
- Worldwide equity research analyst platforms market hit $950 million in 2023
- There were approximately 12,500 equity research analysts employed globally in 2023, down 18% from 2015 peak
- U.S. sell-side equity research headcount dropped to 4,200 analysts in 2023 from 6,800 in 2016
- Average tenure of equity research analysts is 3.2 years, with 25% turnover annually
- Women represent 32% of equity research analysts in the U.S. as of 2023, up from 22% in 2010
- Buy-side equity research teams average 15 analysts per firm in top 100 asset managers
- Asia hosts 35% of global equity research analysts, totaling 4,375 in 2023
- Entry-level equity research analyst salary in New York averaged $105,000 base + $70,000 bonus in 2023
- Europe equity research employment fell 22% to 2,800 analysts post-MiFID II in 2023
- 68% of equity research analysts hold CFA charter as of 2023 survey
- Independent equity research firms employ 1,200 analysts globally, up 15% since 2020
- Average age of sell-side equity analysts is 38 years, with 40% under 35 in 2023
- U.K. equity research jobs declined 30% to 650 positions in 2023
- 45% of equity research roles now require Python/R proficiency per 2023 recruiter survey
- Global equity research internship placements reached 2,500 in summer 2023
- Sell-side boutiques added 180 analysts in 2023, offsetting bulge bank cuts
- Diversity: 12% of senior equity research directors are women in U.S. 2023 data
- Indian equity research workforce totals 1,800 analysts, 20% growth since 2020
- Remote work adopted by 55% of equity research analysts post-2022
- Vice president level equity analysts earn median $250,000 total comp in London 2023
- 28% attrition rate among junior equity analysts in first 2 years, 2023 study
- Australia equity research analysts number 450, stable since 2020
- PhD holders comprise 8% of equity research workforce, mostly quants, 2023
- Canadian equity research headcount at 380 in 2023, down 5% YoY
- 62% of analysts work >50 hours/week, per 2023 Greenwich survey
- Brazil equity research employs 250 analysts, growth 12% in 2023
- Managing directors in equity research average 18 years experience, 2023 data
- 15% of equity research jobs outsourced to India/B Philippines in 2023
- U.S. equity research diversity: 18% underrepresented minorities in 2023
Employment Statistics Interpretation
The global equity research industry is paradoxically thriving financially at $950 million while dramatically shedding its human capital, as analyst headcount has plummeted 18% since 2015, roles increasingly demand tech skills over tenure, and the field remains a high-stress, high-turnover marathon where diversity progresses glacially despite the glaring need for varied perspectives.
Market Size & Growth
- The global equity research market size was valued at USD 14.2 billion in 2023 and is projected to grow at a CAGR of 7.8% from 2024 to 2030
- U.S. equity research spending by buy-side firms reached $5.6 billion in 2022, marking a 4% increase from 2021
- Asia-Pacific equity research market accounted for 28% of global revenue in 2023, driven by rising institutional investments in India and China
- European equity research industry generated €4.1 billion in 2022, with a forecasted CAGR of 5.2% through 2027
- MiFID II unbundling led to a 15% contraction in sell-side equity research budgets in Europe from 2018 to 2023
- Global equity research outsourcing market grew to $2.8 billion in 2023, up 12% YoY
- Buy-side equity research expenditure in North America hit $7.1 billion in 2023
- The equity research software market is expected to reach $1.9 billion by 2028 at a CAGR of 11.3%
- Sell-side equity research revenue in the U.S. declined 8% to $4.3 billion in 2022 post-MiFID II ripple effects
- Emerging markets equity research segment expanded 9.5% annually from 2020-2023
- Total global institutional equity research commissions paid were $11.4 billion in 2023
- Equity research market in India grew to INR 45 billion in FY2023 at 14% CAGR since 2019
- U.K. equity research production costs rose 6% to £1.2 billion in 2023 despite volume cuts
- Fintech-driven equity research market projected to hit $3.2 billion by 2027, CAGR 15%
- Global sell-side coverage universe shrank 12% from 2018-2023 to 18,000 stocks, impacting market size
- Equity research as a service (ERaaS) market valued at $1.1 billion in 2023, growing 18% YoY
- Australian equity research spend by super funds reached AUD 450 million in 2023
- Post-pandemic equity research market recovery saw 5.4% global growth in 2022
- Latin America equity research market size estimated at $850 million in 2023, CAGR 8.2%
- Cloud-based equity research platforms market to grow from $650 million in 2023 to $1.8 billion by 2030
- Sell-side equity research headcount reduction led to 10% market contraction in 2020-2022
- Middle East equity research market expanded to $420 million in 2023 amid IPO boom
- AI-integrated equity research tools market size reached $750 million in 2023
- Canadian equity research commissions totaled CAD 1.2 billion in 2023 for buy-side
- Equity research market fragmentation post-unbundling: top 10 firms hold 45% share in 2023
- Global ESG equity research segment valued at $2.3 billion in 2023, CAGR 22%
- U.S. bulge bracket banks' equity research revenue fell 11% to $2.8 billion in 2023
- Quant equity research market projected to $4.1 billion by 2028, CAGR 13.5%
- Africa equity research market nascent at $150 million in 2023, growth 25% CAGR expected
- Hybrid equity research models boosted market growth by 6.7% in 2023 globally
Market Size & Growth Interpretation
Despite the grim efficiency of regulations like MiFID II that decimated sell-side budgets and coverage, the relentless global demand for an investing edge has simply rerouted the money, fueling a boom in buy-side spending, outsourced research, and AI-powered tools that has the entire industry growing—just not in the traditional Wall Street way.
Revenue & Profitability
- Global equity research sell-side revenue totaled $8.7 billion in 2023
- Top 5 investment banks generated 52% of global sell-side equity research revenue in 2023 at $4.5 billion
- Average profit margin for independent equity research firms was 22% in 2023
- Buy-side research budgets allocated 40% to third-party equity research in 2023, totaling $4.6 billion globally
- U.S. equity research commissions revenue for brokers fell to $3.9 billion in 2023, down 7%
- European sell-side equity research profitability dropped to 12% EBITDA margin in 2023 post-unbundling
- Equity research revenue per analyst averaged $1.2 million in bulge brackets 2023
- Asia ex-Japan equity research firm revenues grew 16% to $1.8 billion in 2023
- MiFID II caused €1.1 billion revenue loss for EU equity research in 2018-2023 cumulative
- Boutique research firms' average revenue $45 million, 28% margins in 2023
- Global equity research trading commissions linked revenue $9.2 billion in 2023
- Indian broking firms' equity research revenue hit INR 12 billion in FY2023, up 25%
- U.K. investment banks equity research P&L contribution 8% of total in 2023 at £850 million
- ESG equity research services generated $650 million revenue for providers in 2023
- Sell-side cost-to-revenue ratio in equity research rose to 68% in 2023
- Quantamental equity research revenue streams up 32% to $1.4 billion globally 2023
- Australia equity research revenue for sell-side AUD 320 million in 2023
- Corporate access events tied to equity research generated $550 million in 2023
- Independent research providers' revenue per client averaged $2.1 million in 2023
- U.S. mid-cap equity research revenue $1.1 billion, 5% growth in 2023
- Post-2022 recovery: equity research EBITDA margins rebounded to 18% average 2023
- China onshore equity research revenue RMB 15 billion in 2023, CAGR 19%
- Broker-neutral equity research platforms revenue $280 million in 2023
- Latin America sell-side equity research revenue $420 million, flat in 2023
- AI tool licensing added $120 million to equity research revenues in 2023
- Canadian IIROC members' equity research revenue CAD 180 million 2023
- Equity research M&A advisory fees contributed $300 million to revenues 2023
- Top 20 sell-side firms captured 78% of equity research revenue share in 2023
- Global sell-side equity research fixed cost coverage ratio 1.45x in 2023
- Vice President-level contribution to equity research revenue 35% in teams, 2023 data
Revenue & Profitability Interpretation
While the equity research industry proclaims its global health with $8.7 billion in revenue, the underlying data reveals a brutal, Darwinian landscape where a handful of giants feast on over half the pie, regional fortunes wildly diverge, and relentless cost pressures squeeze all but the most nimble boutiques and quant shops.
Trends & Innovations
- Equity research industry AI adoption rate reached 68% by 2023, with NLP tools in 45% workflows
- 72% of equity analysts use machine learning for alpha generation in 2023 surveys
- ESG integration in 92% of equity research reports issued in 2023, up from 45% in 2019
- Alternative data usage by equity research rose to 61% in 2023 from 28% in 2020
- Cloud collaboration tools adopted by 85% of firms, cutting report production 25% time 2023
- Quantamental strategies now 38% of active equity research portfolios in 2023
- Crypto-linked equity coverage emerged in 15% of tech reports 2023
- Generative AI pilots in 32% of top-20 banks' equity research depts 2023
- Sustainable investing research demand up 55% YoY, driving 28% more hires 2023
- Robo-advisory equity research automation covers 22% portfolios 2023
- Big data analytics platforms used by 77% analysts for sentiment analysis 2023
- Hybrid virtual/physical NDRs (non-deal roadshows) 65% of events in 2023
- Decentralized finance (DeFi) equity exposure in 8% research models 2023
- Predictive analytics accuracy improved 18% with AI in equity forecasts 2023
- Tokenized assets research initiated by 12% firms in 2023 blockchain push
- Voice-of-client feedback loops automated in 41% buy-side research 2023
- Climate risk modeling standard in 56% equity research by 2023 TCFD rules
- Low-code platforms for custom research dashboards used by 29% teams 2023
- Metaverse/virtual reality for investor meetings trialed by 7% firms 2023
- Real-time collaboration via Slack/Teams in 94% workflows, boosting productivity 22% 2023
- Natural language generation (NLG) auto-writes 15% report sections 2023
- Supply chain analytics integrated in 34% industrials research 2023
- Quantum computing pilots for portfolio optimization in 2% advanced teams 2023
- Personalized research delivery via apps for 25% institutional clients 2023
- Behavioral finance factors now in 48% equity models post-2020 behavioral shift
- Drone/satellite data for agribusiness coverage up 40% usage 2023
- NFT/digital asset equity linkages researched by 5% specialist teams 2023
- Automated peer comps generation 67% faster with AI tools 2023 benchmarks
- Web3/decentralized research platforms launched by 4% independents 2023
- Forward-looking scenario analysis in 71% reports amid volatility 2023
Trends & Innovations Interpretation
Equity research has become a race to see who can teach their algorithms to sound the most human while actually covering the most esoteric assets, all delivered instantaneously through the cloud to clients who still, deep down, just want to know if the stock will go up.
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