Financial Advisory - Worldwide | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$159.50tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.24%, resulting in a market volume of US$178.10tn 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 Worldwide 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 personalized and holistic services that cater to individual needs.

Customers are seeking comprehensive financial advice and guidance, including investment planning, retirement planning, and estate planning. They are also demanding more transparent and fee-based services, as they become increasingly aware of the potential conflicts of interest in commission-based models. Additionally, customers are looking for digital solutions and online platforms that provide convenient access to financial advice and tools.

Trends in the Financial Advisory market are influenced by global and regional factors. One major trend is the rise of robo-advisors, which are automated investment platforms that use algorithms to provide financial advice. Robo-advisors offer low-cost and accessible investment solutions, making them attractive to younger and tech-savvy investors.

Another trend is the integration of technology in traditional advisory firms, enabling them to enhance their services and reach a wider customer base. Firms are using data analytics, artificial intelligence, and machine learning to analyze customer behavior, personalize recommendations, and improve investment strategies. Local special circumstances also play a role in shaping the Financial Advisory market in different countries and regions.

Regulatory changes and reforms are impacting the market dynamics, with governments introducing stricter regulations to protect investors and ensure transparency. For example, the implementation of the European Union's MiFID II directive has increased transparency and disclosure requirements for financial advisors operating in the region. Moreover, cultural and demographic factors influence customer preferences and the demand for financial advisory services.

In countries with aging populations, there is a growing need for retirement planning and wealth management services. Underlying macroeconomic factors contribute to the development of the Financial Advisory market. Economic growth, rising disposable incomes, and increasing wealth levels are driving the demand for financial advisory services.

As individuals accumulate wealth, they seek professional advice to manage and grow their assets. Furthermore, low interest rates and volatile financial markets create challenges for investors, leading them to seek guidance from financial advisors to navigate these complexities. Geopolitical events and market uncertainties also impact the market, as investors look for expert advice to mitigate risks and maximize returns.

In conclusion, the Financial Advisory market in Worldwide is witnessing growth and development due to evolving customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As customers demand personalized and holistic services, firms are adapting by incorporating technology and offering transparent and fee-based solutions. Regulatory changes, cultural factors, and economic conditions further shape the market dynamics, creating opportunities and challenges for financial advisors.

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.