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Custody Service Global Market Report 2024

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    Report

  • 175 Pages
  • February 2024
  • Region: Global
  • The Business Research Company
  • ID: 5734930
The custody service market size has grown strongly in recent years. It will grow from $41.57 billion in 2023 to $45.39 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. The growth observed in the historical period can be attributed to the globalization of financial markets, the ascent of institutional investors, the emphasis on regulatory compliance and risk management, the escalating complexity of financial instruments, and a heightened focus on investor protection.

The custody service market size is expected to see strong growth in the next few years. It will grow to $63.06 billion in 2028 at a compound annual growth rate (CAGR) of 8.6%. The anticipated growth in the forecast period can be attributed to the inclusion of alternative investments and diverse asset classes, the impact of global regulatory changes and compliance requirements, the evolution of risk management practices, the integration of environmental, social, and governance (ESG) factors, and the shifts in investor preferences and industry trends. Major trends expected in the forecast period encompass the tokenization of traditional assets, the implementation of cross-border custody solutions, the expansion of insurance coverage, integration with the decentralized finance (DeFi) ecosystem, and a focus on scalability and automation.

Automation and standardization play pivotal roles in propelling the growth of the custody service market. The custody services industry is actively leveraging technology to enhance efficiency, with a focus on automating and standardizing core custody services and operations. This strategic approach results in heightened visibility, increased productivity through operational efficiency, cost reductions for customers, improved service quality, and the ability for custodians to respond promptly to future needs. The forecast period suggests a shift from the asset-centric model towards a more data-centric, open platform method. This transition enables custodians to access a diverse range of available services. An illustrative example includes the implementation of automated reporting systems that provide daily reports encompassing exceptions, securities available for loan, securities on loan, cash collateral valuation, daily mark-to-market information, and margin calls. Thus, the incorporation of automation and standardization is poised to be a significant driver for the growth of the custody service market.

The anticipated growth of the custody services market is further driven by the expanding financial markets. Globalization of financial markets, indicating the interconnectedness and interdependence of financial systems globally, underscores the critical role of custody services in safeguarding and efficiently managing financial assets such as stocks, bonds, and securities. For instance, in 2021, the EU international trade in goods and services as a percentage of GDP rebounded to levels exceeding those before the COVID-19 pandemic, with a 9% increase in both imports and exports as a percentage of GDP. This resurgence was notably contributed to by the United States and China, accounting for about one quarter of global growth in 2021. Hence, the increasing financial markets globally are instrumental in driving the custody service market.

A key factor hindering the growth of the custody service market is the intensified competition within the industry. The custody services market is characterized by high competition, with numerous banks offering custody services alongside other banking services on various scales – global, regional, or local. Particularly, price competition exerts significant pressure on banks globally, making it challenging for many custodians to keep up with high volumes while offering competitive prices. Traditional players in securities services face increasing competition from central securities depositories (CSD), central counterparty clearing houses (CCP), and outsourced service providers. Fund services professionals are responding to this competition by developing new and targeted offerings. Therefore, the heightened competition from diverse sources is expected to pose challenges to the growth of the custody service market.

The emergence of digital asset custody platforms is gaining traction in the custody services market. Companies in the global custody service market are increasingly directing their efforts towards digital asset custody, emphasizing enhanced security and operational efficiency. A case in point is the launch of BNY Mellon's Digital Asset Custody platform in the U.S. in 2022. This platform enables clients to securely hold and transfer bitcoin and ether, bridging the gap between digital and traditional asset custody. Major companies in the custody service market are innovating by developing advanced digital asset custody platforms to cater to larger customer bases, drive sales, and increase revenue. These platforms provide secure storage of cryptographic keys needed to verify ownership and facilitate asset transfers, utilizing advanced security technologies such as multi-party computation. For instance, in October 2022, BNY Mellon launched its New Digital Asset Custody Platform, reflecting the company's commitment to meeting customer demand for a reliable source for both traditional and digital asset servicing. This platform marks BNY Mellon's foray into the evolving digital asset industry, embracing cutting-edge technology and collaborating with fintech partners.

In January 2021, U.S. Bank, a financial institution based in the U.S., acquired the debt servicing and securities custody services client portfolio of MUFG Union Bank for an undisclosed amount. This strategic acquisition complements U.S. Bank's portfolio, enhancing its ability to serve customers effectively. MUFG Union Bank, a full-service bank based in the U.S., had been offering debt servicing and securities custody services.

Major companies operating in the custody service market report are JPMorgan Chase & Co., HSBC Holdings PLC, Citigroup Inc., Wells Fargo & Company, BNP Paribas, UBS AG, State Bank of India, Groupe Caisse d'Épargne, Deutsche Bank AG, HDFC Bank Ltd., ICICI Bank Ltd., The Bank of New York Mellon Corporation, DBS Bank Ltd., Commerzbank AG, State Street Bank and Trust Company, Northern Trust Corporation, Hang Seng Bank Limited, Kotak Mahindra Bank Limited, Standard Chartered PLC, Yes Bank Ltd., Societe Generale Securities Services GmbH, Stock Holding Corporation of India Ltd., Julius Baer Group AG, Brown Shipley & Co. Limited, RBC Investor & Treasury Services, Edelweiss Custodial Services Ltd., Orbis Financial Corporation Ltd., Axis Bank Ltd., Brown Brothers Harriman & Co., Infrastructure Leasing & Financial Services Ltd.

North America was the largest region in the custody service market in 2023. Western Europe was the second largest market in the custody service market report. The regions covered in the custody service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the custody service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary services provided by custody services include core custody services, ancillary services, core depository services, and various administrative services. Core custody service providers play a role in settling trades, investing cash balances upon request, collecting income, executing corporate activities, pricing securities positions, and aiding in record-keeping and reporting. These services are available for equity, fixed income, alternative assets, and other asset types.

The custody service market research report is one of a series of new reports that provides custody service market statistics, including global market size, regional shares, competitors with custody service market share, detailed custody service market segments, market trends and opportunities, and any further data you may need to thrive in the custody service industry. This custody service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The custody service market consists of revenues earned by entities by providing services such as settlement, safekeeping, and reporting of customers' marketable securities and cash. Securities lending can allow a customer to make additional income on custody assets by loaning securities to approved borrowers on a short-term basis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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Table of Contents

1. Executive Summary2. Custody Service Market Characteristics3. Custody Service Market Trends and Strategies
4. Custody Service Market - Macro Economic Scenario
4.1. Impact of High Inflation on the Market
4.2. Ukraine-Russia War Impact on the Market
4.3. COVID-19 Impact on the Market
5. Global Custody Service Market Size and Growth
5.1. Global Custody Service Market Drivers and Restraints
5.1.1. Drivers of the Market
5.1.2. Restraints of the Market
5.2. Global Custody Service Historic Market Size and Growth, 2018-2023, Value ($ Billion)
5.3. Global Custody Service Forecast Market Size and Growth, 2023-2028, 2033F, Value ($ Billion)
6. Custody Service Market Segmentation
6.1. Global Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
  • Core custody services
  • Ancillary services
  • Core depository services
  • Other Administrative Services
6.2. Global Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
  • Equity
  • Fixed Income
  • Alternative Assets
  • Other Types
7. Custody Service Market Regional and Country Analysis
7.1. Global Custody Service Market, Split by Region, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
7.2. Global Custody Service Market, Split by Country, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8. Asia-Pacific Custody Service Market
8.1. Asia-Pacific Custody Service Market Overview
Region Information, Impact of COVID-19, Market Information, Background Information, Government Initiatives, Regulations, Regulatory Bodies, Major Associations, Taxes Levied, Corporate Tax Structure, Investments, Major Companies
8.2. Asia-Pacific Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8.3. Asia-Pacific Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
9. China Custody Service Market
9.1. China Custody Service Market Overview
9.2. China Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion
9.3. China Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion
10. India Custody Service Market
10.1. India Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
10.2. India Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
11. Japan Custody Service Market
11.1. Japan Custody Service Market Overview
11.2. Japan Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
11.3. Japan Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
12. Australia Custody Service Market
12.1. Australia Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
12.2. Australia Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
13. Indonesia Custody Service Market
13.1. Indonesia Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
13.2. Indonesia Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
14. South Korea Custody Service Market
14.1. South Korea Custody Service Market Overview
14.2. South Korea Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
14.3. South Korea Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
15. Western Europe Custody Service Market
15.1. Western Europe Custody Service Market Overview
15.2. Western Europe Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
15.3. Western Europe Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
16. UK Custody Service Market
16.1. UK Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
16.2. UK Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
17. Germany Custody Service Market
17.1. Germany Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
17.2. Germany Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
18. France Custody Service Market
18.1. France Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
18.2. France Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
19. Italy Custody Service Market
19.1. Italy Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
19.2. Italy Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
20. Spain Custody Service Market
20.1. Spain Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
20.2. Spain Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
21. Eastern Europe Custody Service Market
21.1. Eastern Europe Custody Service Market Overview
21.2. Eastern Europe Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
21.3. Eastern Europe Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
22. Russia Custody Service Market
22.1. Russia Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
22.2. Russia Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
23. North America Custody Service Market
23.1. North America Custody Service Market Overview
23.2. North America Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
23.3. North America Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
24. USA Custody Service Market
24.1. USA Custody Service Market Overview
24.2. USA Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
24.3. USA Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
25. Canada Custody Service Market
25.1. Canada Custody Service Market Overview
25.2. Canada Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
25.3. Canada Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
26. South America Custody Service Market
26.1. South America Custody Service Market Overview
26.2. South America Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
26.3. South America Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
27. Brazil Custody Service Market
27.1. Brazil Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
27.2. Brazil Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
28. Middle East Custody Service Market
28.1. Middle East Custody Service Market Overview
28.2. Middle East Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
28.3. Middle East Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
29. Africa Custody Service Market
29.1. Africa Custody Service Market Overview
29.2. Africa Custody Service Market, Segmentation by Service, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
29.3. Africa Custody Service Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
30. Custody Service Market Competitive Landscape and Company Profiles
30.1. Custody Service Market Competitive Landscape
30.2. Custody Service Market Company Profiles
30.2.1. JPMorgan Chase & Co.
30.2.1.1. Overview
30.2.1.2. Products and Services
30.2.1.3. Strategy
30.2.1.4. Financial Performance
30.2.2. HSBC Holdings plc
30.2.2.1. Overview
30.2.2.2. Products and Services
30.2.2.3. Strategy
30.2.2.4. Financial Performance
30.2.3. Citigroup Inc.
30.2.3.1. Overview
30.2.3.2. Products and Services
30.2.3.3. Strategy
30.2.3.4. Financial Performance
30.2.4. Wells Fargo & Company
30.2.4.1. Overview
30.2.4.2. Products and Services
30.2.4.3. Strategy
30.2.4.4. Financial Performance
30.2.5. BNP Paribas
30.2.5.1. Overview
30.2.5.2. Products and Services
30.2.5.3. Strategy
30.2.5.4. Financial Performance
31. Custody Service Market Other Major and Innovative Companies
31.1. UBS AG
31.2. State Bank of India
31.3. Groupe Caisse d'Épargne
31.4. Deutsche Bank AG
31.5. HDFC Bank Ltd.
31.6. ICICI Bank Ltd.
31.7. The Bank of New York Mellon Corporation
31.8. DBS Bank Ltd.
31.9. Commerzbank AG
31.10. State Street Bank and Trust Company
31.11. Northern Trust Corporation
31.12. Hang Seng Bank Limited
31.13. Kotak Mahindra Bank Limited
31.14. Standard Chartered plc
31.15. Yes Bank Ltd.
32. Global Custody Service Market Competitive Benchmarking33. Global Custody Service Market Competitive Dashboard34. Key Mergers and Acquisitions in the Custody Service Market
35. Custody Service Market Future Outlook and Potential Analysis
35.1 Custody Service Market in 2028 - Countries Offering Most New Opportunities
35.2 Custody Service Market in 2028 - Segments Offering Most New Opportunities
35.3 Custody Service Market in 2028 - Growth Strategies
35.3.1 Market Trend-based Strategies
35.3.2 Competitor Strategies
36. Appendix
36.1. Abbreviations
36.2. Currencies
36.3. Historic and Forecast Inflation Rates
36.4. Research Inquiries
36.5. About the Analyst
36.6. Copyright and Disclaimer

Executive Summary

Custody Service Global Market Report 2024 provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on custody service market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

Reasons to Purchase

  • Gain a truly global perspective with the most comprehensive report available on this market covering 50+ geographies.
  • Understand how the market has been affected by the coronavirus and how it is responding as the impact of the virus abates.
  • Assess the Russia-Ukraine war’s impact on agriculture, energy and mineral commodity supply and its direct and indirect impact on the market.
  • Measure the impact of high global inflation on market growth.
  • Create regional and country strategies on the basis of local data and analysis.
  • Identify growth segments for investment.
  • Outperform competitors using forecast data and the drivers and trends shaping the market.
  • Understand customers based on the latest market shares.
  • Benchmark performance against key competitors.
  • Suitable for supporting your internal and external presentations with reliable high quality data and analysis.
  • Report will be updated with the latest data and delivered to you with an Excel data sheet for easy data extraction and analysis.
  • All data from the report will also be delivered in an excel dashboard format.
Description
Where is the largest and fastest growing market for custody service? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
  • The market characteristics section of the report defines and explains the market.
  • The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
  • The forecasts are made after considering the major factors currently impacting the market. These include:
  • The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
  • The impact of higher inflation in many countries and the resulting spike in interest rates.
  • The continued but declining impact of COVID-19 on supply chains and consumption patterns.
  • Market segmentations break down the market into sub markets.
  • The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
  • The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
  • The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Report Scope

Markets Covered:
1) By Service: Core custody services, Ancillary services, Core depository services, Other Administrative Services
2) By Type: Equity, Fixed Income, Alternative Assets, Other Types

Key Companies Mentioned: JPMorgan Chase & Co.; HSBC Holdings plc; Citigroup Inc.; Wells Fargo & Company; BNP Paribas

Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain

Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa

Time Series: Five years historic and ten years forecast

Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita

Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments

Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes

Delivery Format: PDF, Word and Excel Data Dashboard

Companies Mentioned

  • JPMorgan Chase & Co.
  • HSBC Holdings plc
  • Citigroup Inc.
  • Wells Fargo & Company
  • BNP Paribas
  • UBS AG
  • State Bank of India
  • Groupe Caisse d'Épargne
  • Deutsche Bank AG
  • HDFC Bank Ltd.
  • ICICI Bank Ltd.
  • The Bank of New York Mellon Corporation
  • DBS Bank Ltd.
  • Commerzbank AG
  • State Street Bank and Trust Company
  • Northern Trust Corporation
  • Hang Seng Bank Limited
  • Kotak Mahindra Bank Limited
  • Standard Chartered plc
  • Yes Bank Ltd.
  • Societe Generale Securities Services GmbH
  • Stock Holding Corporation of India Ltd.
  • Julius Baer Group AG
  • Brown Shipley & Co. Limited
  • RBC Investor & Treasury Services
  • Edelweiss Custodial Services Ltd.
  • Orbis Financial Corporation Ltd.
  • Axis Bank Ltd.
  • Brown Brothers Harriman & Co.
  • Infrastructure Leasing & Financial Services Ltd.

Methodology

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Table Information