Financial Advisory - Europe | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$44.02tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.87%, resulting in a market volume of US$48.30tn by 2029.

Definition:

Financial advisory is the process of providing guidance and recommendations to clients regarding their financial decisions. Financial advisors use their expertise and knowledge to help clients make informed decisions about their investments, retirement planning, taxes, insurance, and other financial matters. The Financial Advisory segment encompasses the revenues generated by this service by both financial institutions and advisors, and includes the number of financial advisors, average revenue per advisor, and assets under management (AUM).

Traditional Wealth Management (non-automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
B2C & B2B Revenues
Full-Service Products for Insurance, Investing, Lending, and Trading

Commercial Assets or Assets Under Custody
Digital Wealth Management (automated wealth management services)
Digital Investment, incl. Robo-advisors and Neobrokers
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Retail/Non-Professional Investors

The Financial Advisory market in Europe is experiencing significant growth and development, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the Financial Advisory market are shifting towards more personalized and holistic services.

Clients are seeking comprehensive financial advice that takes into account their individual goals, risk tolerance, and financial situation. They are looking for advisors who can provide tailored solutions and help them navigate complex financial landscapes. This shift in customer preferences is driving the demand for sophisticated advisory services and specialized expertise.

One of the key trends in the European Financial Advisory market is the rise of digital platforms and robo-advisors. These platforms leverage technology and algorithms to provide automated investment advice and portfolio management. They offer cost-effective solutions and appeal to tech-savvy clients who prefer self-service options and digital interactions.

The increasing adoption of digital platforms is reshaping the competitive landscape and forcing traditional advisory firms to adapt and innovate. Another trend in the market is the growing focus on sustainable and socially responsible investing. European investors are increasingly conscious of environmental, social, and governance (ESG) factors and want their investments to align with their values.

This trend is driving the demand for ESG-focused advisory services and products. Financial advisors are integrating ESG considerations into their investment strategies and providing clients with sustainable investment options. Local special circumstances also play a significant role in shaping the Financial Advisory market in Europe.

Each country has its own regulatory framework and cultural preferences, which influence the dynamics of the market. For example, in countries with a strong savings culture, such as Germany, there is a high demand for investment advisory services. In contrast, countries with a more conservative approach to investing, like Italy, may have a lower demand for advisory services.

Underlying macroeconomic factors also impact the Financial Advisory market in Europe. Economic growth, interest rates, and market volatility can influence investor sentiment and demand for advisory services. In periods of economic uncertainty, investors may seek guidance from financial advisors to navigate market volatility and protect their wealth.

Conversely, during periods of economic expansion, investors may be more willing to take risks and seek opportunities for growth. Overall, the Financial Advisory market in Europe is evolving to meet the changing needs and preferences of clients. The rise of digital platforms, the focus on sustainable investing, and the influence of local special circumstances are shaping the market landscape.

Financial advisors need to adapt to these trends and leverage technology to deliver personalized and holistic services to 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.