Wealth Management - Iceland

Iceland

In Iceland, the Assets under Management in the Wealth Management market are expected to reach US$34.07bn in 2024.
Financial Advisory dominates this market segment with a projected market volume of US$33.90bn in 2024.
It is anticipated that the Assets under Management will experience an annual growth rate (CAGR 2024-2028) of 0.94%, which would result in a market volume of US$35.37bn by 2028.
Iceland's wealth management market is experiencing a surge in demand as high-net-worth individuals seek to diversify their portfolios amidst global economic uncertainties.

Key regions: United States, United Kingdom, Germany, Hong Kong, Singapore

Market

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Analyst Opinion

The Wealth Management market in Iceland has been experiencing significant growth and development in recent years. Customer preferences in the Wealth Management market in Iceland have been shifting towards more personalized and tailored investment strategies.

Clients are increasingly seeking customized solutions that align with their individual financial goals and risk tolerance. This trend is in line with global market preferences, as investors are becoming more sophisticated and demanding in their investment choices. Trends in the Wealth Management market in Iceland reflect the country's strong economic performance and favorable investment climate.

Iceland has a well-developed financial sector with a high level of sophistication, which attracts both domestic and international investors. The market is characterized by a wide range of investment options, including stocks, bonds, mutual funds, and real estate. Additionally, the growing popularity of sustainable and socially responsible investing is also influencing the market, as clients are increasingly seeking investment opportunities that align with their values.

Local special circumstances in the Wealth Management market in Iceland include the country's small population size and high income levels. With a population of just over 360,000 people, the market is relatively small compared to other countries. However, the high income levels in Iceland mean that there is a significant amount of wealth to be managed.

This presents both opportunities and challenges for wealth management firms operating in the country. On one hand, the small population size means that firms need to focus on attracting and retaining high net worth individuals to sustain their business. On the other hand, the high income levels provide a strong customer base for wealth management services.

Underlying macroeconomic factors have also contributed to the growth of the Wealth Management market in Iceland. The country has a strong and stable economy, with low unemployment rates and high GDP per capita. Additionally, Iceland has a favorable business environment, with a well-regulated financial sector and a high level of transparency.

These factors have attracted both domestic and international investors to the country, driving the growth of the Wealth Management market. In conclusion, the Wealth Management market in Iceland is experiencing significant growth and development, driven by shifting customer preferences, favorable market trends, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, wealth management firms in Iceland will need to adapt to meet the changing needs and preferences of their clients.

Methodology

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).