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Wealth Management Market Research Report - Size, Share, Growth, Trends, COVID-19 Impact Analysis - Industry Forecast (2022 to 2027)

Wealth Management Market Size (2022-2027)

The global wealth management market size is estimated to be valued at USD 1.30 trillion to reach USD 3.54 trillion recordings a CAGR of 10.9% from 2022 to 2027. 

Wealth is more than money. Managing wealth in an appropriate way can be used as a tool that assists in reaching our goals. Wealth management services are offered to customers globally and aid to decrease manual processes, developing investment decisions, error reduction, and limiting risks. Wealth management is a growth industry but is witnessing a set of increasing disturbances.

MARKET DRIVERS

Factors that drive the wealth management market include quick demand for substitute investments like intellectual property, hedge funds, private equity, commodities. Introducing financial technology and prominent advantages provided by wealth management like helping in removing financial stress and the creation of financial plans majorly contribute to wealth management. 

A number of companies are working to upgrade their trading platform services for creating an accessible and dependable platform providing approval for local markets along with a variety of trading ideas. 

Key players invest more to upgrade new technologies to advance energy-efficient transportation and spur their customer bases globally. Global growth in escalation is forcing an end of accomodating budget policy, with follow-on effects in the stock market. 

Rising urbanization and growth in per capita income drive the wealth management market. The increasing number of rich middle-class people and rising disposable income create numerous growth opportunities in the market. The mounting digitization and accumulating competition from fintech and immediate influx of foreign wealth management, and providers have caused domestic companies to concentrate on roughly 1/5th of HNIs residing in rural areas. 

MARKET RESTRAINTS

However, strict regulatory concerns with the resistance for approving the technology act as a major hindrance to the market growth. 

Segmentation Analysis

Wealth Management Market - By Advisory Model:

  • Human advisory
  • Robo advisory
  • Hybrid advisory

The human advisory model led the wealth management market in 2022. The segment accounts for more than 59.0% of revenue share during the foretold period. Ascribed to security issues, human advisory sustains as first significance for certain HNWIs. Furthermore, human advisory services assist in establishing relationships with clients and security issues. 

In addition, tendencies are changing consistently and clients have started choosing the hybrid advisory model instead of the human advisory model.

However, the robot advisory segment is scheduled to record the quickest CAGR rate during the foretold period. Robo advisors are inclined to be highly appropriate, efficacy, and more acquirable compared to other models. Different models like quick change in market dynamics, developing client needs, magnifying competition create new opportunities for the Robo advisory model. The segment is appearing as a commercial substitute for some investors in the retail sector due to diverse advantages it provides like low-cost fee structure, easy to use, and low to zero account minimums.

Wealth Management Market - By Business Function:

  • Financial advice management
  • Portfolio, accounting, and trading management
  • Performance management
  • Risk and compliance management
  • Reporting
  • Others (billing and benchmarking)

Wealth Management Market - By Deployment Model:

  • Cloud

  • On-premises

The cloud deployment segment heads the wealth management market in 2022 and the segment accounts for more than 56.2% of revenue share. Cloud deployment provides advantages like decreased operating costs. Moreover, cloud-based is more beneficial as it delivers smooth access data incorporated with flexible payment options and is experienced to spike the segment growth.

Wealth Management Market - By End-User:

  • Bank

  • Investment management firms

  • Trading and exchange firms

  • Brokerage firms

  • Others (asset management firms, and custody and compliance providers)

By end-user, the banks segment dominates the market with the highest share with 29.0% and more. Banks play a crucial role in managing the rising benefits and wealth of individuals.

The trading and exchange firms segment is estimated to record the quickest CAGR over the foreseen period. The swift emergence in the technological capabilities of wealth management solutions opens new doors for adopting wealth management software for trading and exchange purposes.

Regional Analysis

North America dominated the wealth management market share during the foreseen period. Growth in the region owes to a large number of high-net-worth independents and rising contest amid banks like Morgan Stanley, PBS, and Bank of America Corporation providing the best possible service to clients. 

In the U.S., both equity and mutual holdings rank ahead of the deposit market as investment vehicles for household wealth. 

The  European market for wealth management is expected to observe a quick growth during the foreseen period. The high net worth individual population and wealth have extended at a faster rate. 

The UK's wealth management sector has witnessed considerable growth in belongings in recent years. The U.K is the second-largest wealth management globally have considerably closed the gap with Switzerland, a global leader. 

For example, a core banking provider solutions, Objectway S.p.A circulated the procurement of Die Software Peter Fitzon GmbH (DSW), in August 2022. The company strengthens its portfolio in wealth and asset management. 

However, Asia-Pacific is projected to grow at the highest CAGR of 12.5% from 2022 to 2027. 

The Indian wealth management is scheduled to grow with a CAGR of 11.5% during the foreseen period. The growth in India owes to the surging adoption of new tools by individuals in managing their finances. 

The wealth management market in Thailand is expected to upgrade swiftly and energetically opposite to conditions of continuously rising household wealth and expansion of potential HNW and HNW investors.  

Latin America's market growth depends on the rising number of nuclear families and ideal shifts in the millennial's lifestyles. The awareness and exposure escalate the demand for wealth management development. 

The wealth management market in the Middle East and Africa region is estimated to recapture its historic share of the market. 

BNP Paribas Wealth Management has dedicated itself to protecting wealth, and advancing it. The region's wealth management market is opting for advice integrated with digital investment channels.

Top key players Wealth Management Market
1. Bank of America Corporation
2. BNP Paribas
3. Charles Schwab & Co., Inc.
4. Citigroup Inc.
5. CREDIT SUISSE GROUP AG
6. Goldman Sachs
7. JPMorgan Chase & Co.
8. Julius Baer Group
9. Morgan Stanley
10. UBS  
 
COVID-19 Impact On Wealth Management Market

The quick emergence of the novel coronavirus (COVID-19) harmed the world wealth management market. Due to the drooping economy, in the global financial services, the market has experienced an adverse effect. The COVID-19 pandemic crisis has affected both the investors and wealth management organizations and investors have witnessed a direct effect on their existing portfolios. 

Over the last two years, wealth managers have had to adapt to a new, and digital-focused way of organizing business with their clients due to COVID-19. Due to the continuous COVID-19 pandemic, the shift to digital channels, consolidation within the industry, and ESG considerations. Moreover, due to the COVID-19 epidemic, millions of people have been unable to acquire prominent financial and investment advice. 

Recent Market Developments

  • On February 28, 2022, UBS wealth management restructures a unit for ultra-rich clients.
  • On March 23, 2022, Bank of America broadcasted new secured credit offerings and digital resources in helping entrepreneurs to start and develop their businesses.

Chapter 1.Global Wealth Management Market – Scope & Methodology

1.1. Market Segmentation

1.2. Assumptionsa

1.3. Research Methodology

1.4. Primary Sources

1.5. Secondary Sources

Chapter 2.Global Wealth Management Market – Executive Summary

2.1. Market Size & Forecast – (2021 – 2027) ($M/$Bn)

2.2. Key Trends & Insights

2.3. COVID-19 Impact Analysis

       2.3.1. Impact during 2022 - 2027

       2.3.2. Impact on Supply – Demand

Chapter 3.Global Wealth Management Market – Competition Scenario

3.1. Market Share Analysis

3.2. Product Benchmarking

3.3. Competitive Strategy & Development Scenario

3.4. Competitive Pricing Analysis

3.5. Supplier - Distributor Analysis

Chapter 4.Global Wealth Management Market Entry Scenario

4.1. Case Studies – Start-up/Thriving Companies

4.2. Regulatory Scenario - By Region

4.3 Customer Analysis

4.4. Porters Five Force Model

       4.4.1. Bargaining Power of Suppliers

       4.4.2. Bargaining Powers of Customers

       4.4.3. Threat of New Entrants

       4.4.4. Rivalry among Existing Players

       4.4.5. Threat of Substitutes

Chapter 5.Global Wealth Management Market - Landscape

5.1. Value Chain Analysis – Key Stakeholders Impact Analysis

5.2. Market Drivers

5.3. Market Restraints/Challenges

5.4. Market Opportunities

Chapter 6.Global Wealth Management Market – By Advisory Model

6.1. Human advisory

6.2. Robo advisory

6.3.Hybrid advisory

Chapter 7.Global Wealth Management Market – By Business Function

7.1. Financial advice management

7.2. Portfolio, accounting, and trading management

7.3. Performance management

7.4. Risk and compliance management

7.4. Reporting

7.4. Others (billing and benchmarking)

Chapter 8.Global Wealth Management Market – By Deployment Model

8.1. Cloud

8.2. On-premises

Chapter 9.Global Wealth Management Market – By End-User

9.1. Bank

9.2. Investment management firms

9.2. Trading and exchange firms

9.2. Brokerage firms

Chapter 10.Global Wealth Management Market, By Geography - Market Size, Forecast, Trends & Insights

10.1. North America

       10.1.1. U.S.A

       10.1.2. Canada

       10.1.3. Mexico

10.2. Europe

       10.2.1. Italy

       10.2.2. Spain

       10.2.3. Russia

       10.2.4. Germany

       10.2.5. UK

       10.2.6. France

       10.2.7. Rest of Europe

10.3. Asia Pacific

       10.3.1. Japan

       10.3.2. South Korea

       10.3.3. China

       10.3.4. India

       10.3.5. Australia & New Zealand

       10.3.6. Rest of Asia-Pacific

10.4. Rest of the World

       10.4.1. Middle East

       10.4.2. Africa

       10.4.3. South America

Chapter 11.Global Wealth Management Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)

11.1. Company 1

11.2. Company 2

11.3. Company 3

11.4. Company 4

11.5 Company 5

11.6. Company 6

11.7. Company 7

11.8. Company 8

11.9. Company 9

11.10. Company 10

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