Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$38.40tn in 2024.
Financial Advisory dominates the market with a projected market volume of US$38.15tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.03%, resulting in a market volume of US$42.46tn by 2029.

Definition:

Wealth management is a service provided by financial institutions, such as banks or investment firms, to help individuals manage their money and investments. The goal of wealth management is to help people grow and protect their wealth over time, by creating personalized investment plans that consider their financial goals, risk tolerance, and overall financial situation. This goal ultimately emphasizes wealth creation through wealth preservation.

Structure:

The Wealth Management market consists of two different segments, Financial Advisory and Digital Investment. Financial Advisory covers traditional financial advisory services and provides a broader look into the revenue generated by this offering. Digital Investment contains automated investment services (Robo-Advisors) and online trading services (Neobrokers) that go beyond the means of traditional financial advisory services.

Additional information:

The market comprises of revenues, number of advisors, average revenue per advisor, assets under management (AUM), users, average revenue per user, and average AUM per user. Revenues are generated through the financial advisory services offered by the financial institutions within the Wealth Management market space. The market only displays B2C revenues and users for the above-mentioned segments and subsegments; B2B and B2G revenues are not included. Additional definitions for each segment can be found on the respective segment pages.
Market numbers for Digital Investment are also featured among our digital markets, namely in the Digital Investment segment of the Fintech market.
Key players in the market include financial institutions such as BlackRock, Vanguard Group, Fidelity Investments, State Street Global, and J.P. Morgan Chase & Co.

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Traditional & Digital Wealth Management (non-automated & automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
Digital Investment, incl. Robo-advisors and Neobrokers
Full-Service Products for Investing and Trading
Retail/Non-Professional Investors

Commercial Assets or Assets Under Custody
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Full-Service Products for Insurance and Lending

The Wealth Management market in Central & Western Europe has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Central & Western Europe have shifted towards more personalized and holistic wealth management services.

Clients are increasingly seeking tailored solutions that address their unique financial goals and objectives. They value a comprehensive approach that encompasses investment management, financial planning, and estate planning. This shift in customer preferences has led to an increased demand for wealth management services that offer a high level of customization and expertise.

Trends in the market have also contributed to the growth of the Wealth Management industry in Central & Western Europe. One notable trend is the rise of digital wealth management platforms, also known as robo-advisors. These platforms leverage technology and algorithms to provide automated investment advice and portfolio management services.

They offer a cost-effective and convenient alternative to traditional wealth management services, attracting a younger generation of investors who are comfortable with digital solutions. The increasing adoption of robo-advisors has expanded the reach of wealth management services and democratized access to investment advice. Another trend in the market is the growing focus on sustainable investing.

Central & Western Europe has been at the forefront of the sustainable investing movement, with a strong emphasis on environmental, social, and governance (ESG) factors. Clients are increasingly interested in aligning their investments with their values and seeking wealth management services that integrate sustainability considerations into the investment process. This trend has led to the development of specialized ESG-focused wealth management offerings and the incorporation of ESG criteria into traditional investment strategies.

Local special circumstances in Central & Western Europe have also played a role in the growth of the Wealth Management market. The region has a high concentration of high-net-worth individuals and ultra-high-net-worth individuals, who require sophisticated wealth management services to preserve and grow their wealth. Additionally, Central & Western Europe has a well-developed financial services industry with a strong regulatory framework, which instills confidence in clients and attracts wealth management providers.

Underlying macroeconomic factors have further contributed to the growth of the Wealth Management market in Central & Western Europe. The region has experienced stable economic growth, low interest rates, and favorable investment conditions, which have increased the demand for wealth management services. Moreover, the ongoing demographic shift, characterized by an aging population and intergenerational wealth transfer, has created opportunities for wealth management providers to cater to the needs of different client segments.

In conclusion, the Wealth Management market in Central & Western Europe is developing rapidly due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards personalized and holistic wealth management services, the rise of digital platforms and sustainable investing, the concentration of high-net-worth individuals, and favorable economic conditions have all contributed to the growth of the market. As the industry continues to evolve, wealth management providers in Central & Western Europe will need to adapt to meet the evolving needs and preferences of their clients.

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.