Wealth Management - United States

Assets under Management in the Wealth Management market are projected to reach US$88.42tn in 2024.
Financial Advisory dominates the market with a projected market volume of US$86.63tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.82%, resulting in a market volume of US$101.60tn 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 United States has experienced significant growth and development in recent years. Customer preferences in the Wealth Management market in United States have shifted towards more personalized and customized services.

Clients are increasingly seeking tailored investment strategies that align with their individual financial goals and risk tolerance. This trend is driven by the growing awareness among clients about the importance of long-term financial planning and the need for professional advice to navigate the complexities of the investment landscape. Additionally, clients are demanding more transparency and accountability from wealth management firms, leading to a greater emphasis on fee structures and performance reporting.

One of the key trends in the Wealth Management market in United States is the rise of digital platforms and robo-advisors. These technology-driven solutions have gained popularity among younger investors who prefer a more streamlined and accessible approach to wealth management. Robo-advisors offer low-cost investment options and use algorithms to provide automated financial advice, making them an attractive option for cost-conscious investors.

Traditional wealth management firms are also embracing digital platforms to enhance their service offerings and cater to the evolving needs of their clients. Another trend in the Wealth Management market in United States is the increasing focus on sustainable and socially responsible investing. Clients are placing greater importance on environmental, social, and governance (ESG) factors when making investment decisions.

This trend is driven by a growing awareness of the impact that companies and industries can have on the environment and society. Wealth management firms are responding to this demand by incorporating ESG considerations into their investment strategies and offering specialized ESG investment products. Local special circumstances in the Wealth Management market in United States include the highly competitive landscape and regulatory environment.

The United States has a large number of wealth management firms, ranging from large multinational banks to boutique advisory firms. This intense competition has led to a focus on differentiation and innovation in service offerings. Additionally, wealth management firms in the United States are subject to strict regulatory requirements, aimed at protecting investors and maintaining the integrity of the financial markets.

Compliance with these regulations adds an additional layer of complexity to the operations of wealth management firms. Underlying macroeconomic factors that have contributed to the development of the Wealth Management market in United States include a strong economy, favorable interest rate environment, and demographic shifts. The United States has experienced a period of economic growth, which has resulted in increased wealth accumulation and a greater demand for wealth management services.

Additionally, low interest rates have made traditional fixed-income investments less attractive, leading investors to seek alternative investment options. Lastly, the aging population in the United States has created a need for retirement planning and wealth management services to ensure financial security in later years.

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.