USD 3.75 billion
Wealth Management Market Size, Share, Growth Analysis, By Business Model(Human Advisory, Robo Advisory (Direct Plan-Based/Goal-Based, Comprehensive Wealth Advisory), Hybrid Advisory), By Provider(FinTech Advisors, Banks, Traditional Wealth Managers, and Others), By End User(Retail, High Net Worth Individuals (HNIs)), By Region(North America, Europe, Asia-Pacific, Latin America), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2090 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
120
|Figures:
77
Wealth Management Market Insights
Wealth Management Market size was valued at USD 3.75 billion in 2022 and is poised to grow from USD 4.27 billion in 2023 to USD 12.07 billion by 2031, growing at a CAGR of 13.9% in the forecast period (2024-2031).
To meet the demands of wealthy clients, wealth management is an investment advising service that combines financial counselling and investments. In general, it offers a customized plan under the portfolio of wealth services. It also includes retirement planning, accounting and tax services, estate and legal planning, and strategies to reach certain financial goals over time. These services are primarily provided to high-net-worth individuals (HNIs), who have a dedicated wealth manager assigned to them who makes suggestions for investors' fund allocation. Strong demand for alternative assets like intellectual property and private equity is what propels the global wealth management market.
In addition, the emergence of technology-driven businesses known as FinTechs has radically disrupted the global wealth management market. As mentioned earlier, the industry is on the rise due to the numerous advantages associated with wealth management such as helping in coming up with financial strategies, alleviation of financial worries, and the increasing popularity of technological offerings. However, the growth of the market is constrained by several factors which include; lack of pricing openness, high-cost structures and strict laws and regulations governing the operations of wealth management firms. On the other hand, most of the high net worth and ultra-high net worth individuals still have a certain threshold value below which they will not venture on their own, for this reason, developing economies present wealth management businesses with great opportunities for expanding their product offerings.
US Wealth Management Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Robo Advisory
Fastest Growth
Robo Advisory
Growth Rate
13.9% CAGR
Global Wealth Management Market ($ Bn)
Country Share by North America (%)
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Wealth Management Market Segmental Analysis
Global Wealth Management Market is segmented by Business Model, Provider, End User, and region. Based on Business Model, the market can be segmented into Human Advisory, Robo Advisory (Direct Plan-Based/Goal-Based, Comprehensive Wealth Advisory), Hybrid Advisory. Based on Provider, the market is segmented into FinTech Advisors, Banks, Traditional Wealth Managers, Others. Based on End User, the market is segmented into Retail, High Net Worth Individuals (HNIs). Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Wealth Management Market Analysis by Business Model
The global wealth management market is categorized into human advisory, robo advisory, and hybrid advisory, with human advisory holding the largest share and continuing to dominate. Current innovations in human advisory emphasize personalized financial strategies, utilizing AI and data analytics to strengthen client relationships. This model thrives due to its ability to provide tailored advice, foster trust, and address clients' specific needs, resulting in a loyal customer base built over time. By combining human expertise with advanced technology, human advisory firms can offer a unique blend of personalization and insights, ensuring they remain competitive and relevant in the evolving financial landscape.
Hybrid Advisory is set to be the fastest-growing segment in the global wealth management market, offering a unique combination of personalized human guidance and advanced technology. This model appeals to clients seeking a cost-effective alternative to traditional advisory services while retaining essential human interaction. As more investors prioritize flexibility and customized solutions, Hybrid Advisory effectively leverages digital tools to enhance the availability and efficiency of wealth management services. This approach not only streamlines operations but also attracts a broader audience, particularly younger investors looking for innovative and adaptable financial solutions that meet their evolving needs.
Wealth Management Market Analysis by Provider
Despite their traditional roots, established wealth managers actively integrate technology to enhance client experiences through personalized services like financial planning and investment management. Their longstanding presence in the global wealth management market has fostered significant client confidence, which, coupled with extensive industry knowledge, positions them as leaders in the field. By leveraging advanced tools and analytics, these firms can offer tailored solutions that meet the unique needs of affluent clients. This combination of experience and innovation enables them to provide comprehensive and valuable services, ensuring they remain competitive in an evolving landscape. As they adapt to new technologies, these wealth managers continue to build on their legacy of trust and expertise.
Banks are likely to emerge as the most rapidly growing segments in the global wealth management market on account of their vast clientele and built-up confidence. They are increasingly using technology to improve service provision, making it possible for them to offer smooth and personalized investment services. Furthermore, banks have the upper hand. The confluence of investment, banking, and insurance services is possible in these institutions. As there are gaps in wealth management which demand holistic solutions from clients of wealth management firms, banks are in a firm position to provide these solutions and expand into new territories that allow for younger investors.
Global Wealth Management Market By Business Model (%)
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Wealth Management Market Regional Insights
North America leads the global wealth management market due to the developed financial system of the country, high number of rich individuals and availability of different types of investments. This region is also characterized by the growth of technology in wealth management, which allows wealth managers to serve their clients better using digital platforms. In addition, the ecosystem is made up of various dominant financial institutions and in turn makes the investors more optimistic due to the presence of regulatory policies. The growing demand for holistic wealth management solutions, including retirement planning and estate management, is fueling market growth. Additionally, an increasing focus on sustainable investing among North American investors aligns with broader societal trends, further solidifying the region's leading position in the market.
Europe is becoming the most lucrative region in the wealth management market, and this can be attributed to increasing incomes, a larger population of affluent individuals and growing preference for tailored investment services. The distinct economic structure of the region encourages competition among wealth managers who are re-inventing their services in response to the changing habits of their clients, especially with regards to sustainable investment and technology-based services. Additionally, regulatory changes are enhancing transparency and promoting client-centric services. As investors in Europe are looking for customized approaches to deal with the existing economic and political scenarios, the wealth management sector is changing at a high rate which is a good foretell signal for Europe’s growth in the years.
Global Wealth Management Market By Geography
- Largest
- Fastest
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Wealth Management Market Dynamics
Wealth Management Market Drivers
Increasing Affluence of Individuals
- The growth rate of the wealth management market is also influenced by the increase in global high net worth (HNW) population. There comes a stage in a person’s life when due to wealth accumulation he seeks advanced financial support to manage the wealth. This trend forces wealth managers to provide customized solutions, which in turn leads to competitive and innovative growth of the industry.
Demand for Digital Solutions
- The increasing attraction for digitized services in wealth management is reshaping the industry. Most of the clients want easy-to-use and easy-to-access self-service platforms for the management of their investments. Wealth managers are embracing different technologies including robo-advisors, mobile applications, and others improving service delivery for better customer engagement which in turn captures more investors.
Restraints
Regulatory Challenges
- Regulatory issues serve as a major constraint on the global wealth management market. Financial institutions must deal with many compliance requirements, operationalizing which may be costly and inefficient. Additionally, tight regulations are also a limitation on inventive practices thereby causing difficulties for wealth managers in responding to the evolution in the market with speed.
Economic Uncertainty
- Economic unpredictability, marked by ever-changing markets and international conflicts, hinders expansion in the wealth management sector. Investors tend to become more risk-averse in tough environments resulting in a decrease in appetite for investment products and service provision. Such a strategy may limit the revenue generated by wealth managers since there would be very few clients willing to obtain their services.
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Wealth Management Market Competitive Landscape
The global wealth management market has both emerging fintech players and affords great scope for the presence of traditional banks. Major players in this market include JPMorgan Chase, Goldman Sachs, UBS, Morgan Stanley, which are all encyclopedic in the wealth management services provided. In addition, investment firms such as Betterment and Wealthfront are leading a transformation in the sector, due to their state-of-the-art digital platforms. The presence of such environment leads to the Competition whereby there is a need for the firms to improve the services as well as implement technological approaches to match the changing demands and tastes of the clients.
Wealth Management Market Top Player’s Company Profiles
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Barclays Wealth Management
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BlackRock Wealth Management
- Citigroup Wealth Management
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Credit Suisse Wealth Management
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Deutsche Bank Wealth Management
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Fidelity Wealth Management
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Goldman Sachs Wealth Management
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HSBC Wealth Management
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J.P. Morgan Wealth Management
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Julius Baer Wealth Management
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Merrill Lynch Wealth Management
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Morgan Stanley Wealth Management
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Northern Trust Wealth Management
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Pictet Wealth Management
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UBS Wealth Management
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Vanguard Wealth Management
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Wells Fargo Wealth Management
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Zurich Wealth Management
Wealth Management Market Recent Developments
- In September 2023, as part of the company's strategy to improve how they engage with customers and ease how they invest, JPMorgan Chase has unveiled a new digital wealth management platform. The platform adds new AI-powered tools to offer individualized investment insights, thus meeting the needs of the modern, technology-oriented investor and enhancing the overall client experience.
- In August 2023, UBS Group AG broadened its scope of wealth management services through the acquisition of a sustainable investment solutions boutique. This is to enable UBS to incorporate the growing investment case for stewardship and ESG positioning into its offerings, and in turn, claim its place at the top of the sustainable wealth management market.
- In October 2023, HSBC Private Banking recently announced the launch of a new range of digital tools designed to address the issues surrounding client onboarding. Such tools utilize automation and artificial intelligence in order to shorten the time taken and improve adherence to regulations, thereby enhancing the level of service expected from the affluent clientele in today’s market.
Wealth Management Key Market Trends
- Growing Demand for Sustainable Investments: One of the major trends in the global wealth management market is the growing appetite of investors for more sustainable and responsible investments. The clients are more focused on the Environmental, Social and Governance (ESG) factors which compel wealth managers to deploy green investments into the portfolios. These investments target the audience who are socially responsible and want adequate returns after investing.
- Digital Transformation in Wealth Management: The global wealth management market is experiencing transformation as cloud-native technologies are becoming widely accepted. Application development and deployment industries are deploying ever more microservices, containers, and serverless computing by those businesses. This development enhances scalability, reduces time to deploy application and systems, and facilitates the connectivity between the hybrid system servers, all of which help in bringing the market growth.
Wealth Management Market SkyQuest Analysis
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, in conclusion, the global wealth management market is likely to exhibit notable growth due to the rising income levels of individuals and increase in segments such as customized financial solutions. As wealth managers continue to evolve, embracing technologies and changing customers’ behaviors, segments such as hybrid advisory are emerging. Even though there are still issues such as economic uncertainty and regulatory barriers, there are plenty of possibilities for those companies willing to take the risk and pursue green investment. It can be observed that the competitive environment within the market is changing, with both legacy players as well as fintechs trying to offer better services to different classes of high-net-worth individuals, which will influence how wealth management is practiced in the future.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 3.75 billion |
| Market size value in 2031 | USD 12.07 billion |
| Growth Rate | 13.9% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Wealth Management Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Wealth Management Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Wealth Management 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 Wealth Management 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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Wealth Management Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Wealth Management 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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