Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$98.26tn in 2024.
Financial Advisory dominates the market with a projected market volume of US$96.44tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.78%, resulting in a market volume of US$112.70tn 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 North America is experiencing significant growth and development. Customer preferences in the region are shifting towards more personalized and tailored wealth management services.

This trend is driven by several factors, including the increasing wealth of individuals in North America, the growing complexity of financial markets, and the desire for a more holistic approach to wealth management. Customer preferences in North America are increasingly focused on personalized and tailored wealth management services. Clients are seeking advisors who can provide customized investment strategies and financial planning solutions that align with their individual goals and risk tolerance.

This shift in preferences is driven by the increasing wealth of individuals in North America, as well as the growing complexity of financial markets. The wealth of individuals in North America has been steadily increasing over the years. As a result, there is a greater demand for wealth management services that can help individuals effectively manage and grow their wealth.

Clients are looking for advisors who can provide them with personalized investment advice and strategies to maximize their returns. In addition to the increasing wealth of individuals, the growing complexity of financial markets is also driving the shift towards personalized wealth management services. The financial markets have become more globalized and interconnected, making it more challenging for individuals to navigate and make informed investment decisions.

Clients are seeking advisors who can provide them with expert knowledge and insights to help them navigate these complex markets. Another factor driving the shift towards personalized wealth management services is the desire for a more holistic approach to wealth management. Clients are looking for advisors who can provide them with comprehensive financial planning solutions that go beyond just investment management.

They want advisors who can help them with retirement planning, estate planning, tax optimization, and other aspects of their financial lives. In addition to these customer preferences, there are also local special circumstances in North America that are shaping the development of the Wealth Management market. For example, the regulatory environment in the region is becoming more stringent, with increased scrutiny on financial advisors and their practices.

This has led to a greater emphasis on transparency, compliance, and fiduciary responsibility in the industry. Furthermore, the competitive landscape in North America is also evolving, with new entrants and digital disruptors entering the market. Traditional wealth management firms are facing increased competition from robo-advisors and other technology-driven platforms that offer low-cost and automated investment solutions.

This is forcing traditional firms to adapt and innovate in order to remain competitive. Underlying macroeconomic factors are also playing a role in the development of the Wealth Management market in North America. Factors such as economic growth, interest rates, and market volatility can impact the demand for wealth management services.

For example, during periods of economic growth and low interest rates, individuals may have more disposable income to invest and may seek out wealth management services to help them make the most of their money. Overall, the Wealth Management market in North America is experiencing significant growth and development. Customer preferences are shifting towards more personalized and tailored wealth management services, driven by factors such as increasing wealth, the complexity of financial markets, and the desire for a holistic approach to wealth management.

These trends, along with local special circumstances and underlying macroeconomic factors, are shaping the development of the market in the region.

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.