Wealth Management Market Size to grow by USD 325.56 billion between 2023-2027
According to a research report “ Wealth Management Market” by Business Segment (Human advisory, Hybrid advisory, Robo advisory) End-user (Banks, Trading and exchange firms, Investment management firms, Brokerage firms, Others) Geography (North America, APAC, Europe, South America, Middle East and Africa)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 325.56 billion, at a CAGR of 7.02% during the forecast period. In recent years, the global population of High Net Worth Individuals (HNWIs) has experienced significant growth. Defined as individuals with a net worth of over USD1 million in liquid assets, HNWIs demand sophisticated financial services. These services include exclusive investment opportunities in esteemed private equity and hedge funds, as well as access to pre-IPO placements and pre-ICO sales. Given their substantial investment portfolios, HNWIs seek the expertise of skilled wealth managers and advisors. These professionals specialize in wealth management, estate planning, asset protection, and tax optimization strategies to effectively allocate and grow HNWIs' financial resources..
Browse market data tables, figures, and in-depth TOC on “Wealth Management Market” by Business Segment (Human advisory, Hybrid advisory, Robo advisory) End-user (Banks, Trading and exchange firms, Investment management firms, Brokerage firms, Others) Geography (North America, APAC, Europe, South America, Middle East and Africa) Global Forecast to 2027. Download Free Sample
By Business Segment, the Human advisory segment is projected to dominate the market size in 2024
In the realm of wealth management, human advisory services play a pivotal role in assisting individuals and organizations in making well-informed decisions regarding their financial affairs. These services offer personalized recommendations and expert guidance, taking into account an individual's financial objectives, risk tolerance, and current financial situation. Human advisors meticulously analyze factors such as income, expenses, assets, liabilities, and investment inclinations to provide customized advice and strategies to clients. Furthermore, they offer valuable insights into budgeting and expense tracking, enabling users to create budgets, categorize expenses, and monitor their spending habits. Human advisory also encompasses wealth management aspects, including investment options evaluation, asset allocation strategies, and risk analysis. Given the extensive benefits of human advisory services, their adoption is anticipated to surge in the wealth management market, thereby fueling the growth of this segment throughout the forecast period.
By End-user, Banks segment is expected to hold the largest market size for the year 2024
The banking sector held a commanding position in the global wealth management market in 2023, accounting for a significant market share. This dominance is projected to persist throughout the forecast period, driven by the burgeoning population of high net worth individuals (HNIs) and the escalating demand for wealth management solutions. Factors contributing to this trend include the proliferation of bank branches, particularly in emerging economies like China and India, and the expanding affluence of their populations. Services offered by banks encompass mutual funds, life insurance, and health insurance, among others. The banking sector's expansion into rural areas is further anticipated to fuel the demand for wealth management services during the forecast period.
North America is forecasted to hold the largest market size by region in 2024
As a seasoned virtual assistant, I am well-versed in the intricacies of the wealth management market. This sector entails the management and preservation of high net worth individuals' and institutions' assets. It encompasses financial planning, investment management, tax planning, and estate planning services. The market is characterized by increasing competition, regulatory compliance, and a growing emphasis on digital solutions. Effective wealth management strategies necessitate a deep understanding of market trends, risk management, and client needs.
The Wealth Management Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Wealth Management Market encompasses various players, including pension funds, insurance companies, trusts, and both traditional and digital wealth managers. Traditional wealth managers, such as banks, offer investment advisory, portfolio management, and asset management services to wealthy clients. However, the industry is evolving with the emergence of FinTech advisors, offering hybrid, robo, and human advisory services. Business models are digitalizing, streamlining processes, and offering personalized strategies for retirement planning and financial goal setting. Alternative assets, like private equity and real estate, are increasingly popular. Traditional wealth managers are adapting to stay competitive, integrating technology and offering specialized services. Pension funds and insurance companies manage large pools of assets and seek professional advice for optimal investment strategies. Trusts and high net worth individuals require personalized financial counselling to manage complex financial situations. Investment advisory services are essential for clients seeking expert guidance to grow and protect their wealth. Overall, the Wealth Management Market is transforming, with a focus on innovation, technology, and customized solutions for clients.
Market Research Overview
The Wealth Management market is undergoing a significant transformation as financial institutions embrace automation and digital channels to engage with clients. Smartphones, tablets, browsers, and IoT devices are becoming the preferred modes of interaction for investors, leading to an increase in cross-channel interactions. This shift towards digitalization is driving the demand for advanced portfolio management capabilities, data mining, investor education, and transparent pricing tactics. Financial assets such as derivatives, financial assets, and alternative investments are being managed through cloud-based solutions, AI applications, and big data solutions. The market is witnessing fierce competition among traditional wealth managers, banks, FinTech advisors, and hybrid advisory firms. Cyber risks are a major concern, with cyber security technology and data protection becoming essential for businesses. The Asia Pacific market is a major growth area, with emerging economies driving the demand for digitalized business operations and personalized strategy. Sovereign wealth funds, pension funds, insurance companies, trusts, and funds are increasingly turning to investment advisory, portfolio management, and asset management services. The robo advisory segment is gaining popularity due to its low-cost offerings and machine learning capabilities. The business model for wealth management is evolving, with a focus on digitalizing business processes, natural language processing, and chatbots. Alternative assets such as hedge funds, commodities, private equity, and real estate are also gaining traction. Virtual calls and retirement planning are becoming essential services for wealthy clients seeking financial counselling. Intellectual property and pricing transparency are key considerations for firms offering digitalized offerings.
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