Pension Fund Management Software Global Market Report 2024

The pension fund management software market has grown strongly in recent years. It will grow from $5.34 billion in 2023 to $5.85 billion in 2024 at a compound annual growth rate (CAGR) of 9.6%. The expansion observed in the historical period can be linked to several factors, including the increasing regulatory compliance requirements, heightened intricacies in fund management, the necessity for improved accuracy and precision, the growing demand for transparent reporting, and a notable shift towards digital transformation initiatives. These elements collectively contributed to the growth experienced during that timeframe.

The pension fund management software market is expected to see strong growth in the next few years. It will grow to $8.21 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. The anticipated growth in the forecast period can be ascribed to several key factors, notably the ongoing evolution of regulations, a heightened emphasis on robust risk management practices, a rising demand for comprehensive analytics and insights, the continual increase in global pension fund assets, and a concentrated focus on cost efficiency and operational excellence. These factors are expected to drive growth during this period.

The upsurge in investments within pension fund schemes stands as a significant catalyst fueling the growth trajectory of the pension fund management software market moving forward. These schemes, earmarked to accumulate funds for employee pensions upon retirement, drive the adoption of pension fund management software. This software aids in tracking and managing pension fund outcomes, streamlining processes for employers and ensuring benefits for employees. A notable example comes from Statistics Canada's March 2023 data, revealing a 2.3% increase in the value of pension scheme assets from $2.079 billion to $2.129 billion between the second and third quarters of 2022. Such substantial investments are expected to propel the pension fund management market.

The imposition of stringent regulations in pension administration plays a pivotal role in fostering the growth of the pension fund management software market. These rigorous regulations, characterized by their precision and stringent standards, are designed to ensure adherence to defined norms in pension management. The demands for accurate benefit disbursements, contribution computations, and filing obligations necessitate software solutions that streamline processes and minimize errors. An instance of such stringent regulatory moves can be seen in October 2023, where the Department of Labor proposed rule changes under ERISA to define investment advice fiduciaries, particularly through modifications to PTE 2020-02. This amendment illustrates the evolving landscape of regulations driving the pension fund management software market.

Product innovation emerges as a prominent trend gaining traction within the pension fund management software market. Major industry players are focused on developing platforms that enhance the efficiency of pension fund management across various applications and amid corporate mergers. An illustration is Smart Pension Ltd.'s January 2022 launch of Keystone, a robust technology platform facilitating the creation of workplace pension schemes. Keystone's versatility enables seamless integration with diverse financial services, retirement software, payroll, and HR administration systems. This agile and cloud-native platform expedites major data migrations, allowing for rapid consolidation and M&A initiatives, transforming a process that once took years into a matter of weeks or days.

Notable financial and pension fund companies are integrating innovative software solutions equipped with advanced tools and self-service features to manage assets and oversee pension schemes, members, and employers efficiently. An example lies in University Pension Plan's selection of Vitech's V3locity in October 2022. This cloud-native administration, engagement, and analytics solution streamlines pension administration tasks, providing employers and members secure access to information through a user-centric self-service solution called V3locity Digital. This trend signifies a paradigm shift towards modernized and integrated pension administration solutions.

In December 2022, Lumera, a Sweden-based pension funds software company acquired AxyWare for an undisclosed amount. The acquisition expanded Lumera’s footprint in the Dutch life and pensions market. AxyWare is a Netherlands-based pension fund management software provider.

Major companies operating in the pension fund management software market report are Workday Inc., Vitech Systems Group, Sagitec Solutions Private Limited, Visma Group, Lynchval Systems Worldwide Inc., Acquila Business Consulting LLP, LifeWorks Inc., Heywood Limited., The Civica Group, Oracle Corporation, SAP SE, LRS Retirement Solutions, Morneau Shepell Inc., Version Systems Pvt. Ltd., Exaxe Limited, Akridata Technologies Inc., Asset Management Systems Inc., Avaloq Holding AG, Backstop Solutions Inc., Calypso Technology Partners L.P., Cognizant Technology Solutions Corporation, DST Global Solutions LLC, Finastra Americas Corporation, Frontario Inc., Linedata Services S.A., Lumata Decision Ltd., Man AHL Holdings Ltd., Mercer LLC, Morningstar Inc., Pershing LLC, Princeton Financial Systems LLC, SS&C Technologies Holdings Inc., Thomson Reuters Corporation.

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

The primary deployment modes for pension fund management software encompass cloud-based, hybrid, and on-premise solutions. Cloud deployment involves utilizing diverse cloud-based hosting models such as Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). These modes cater to varying enterprise sizes, including small and medium-sized firms along with larger enterprises, accessible through Android, web-based interfaces, and iPhone applications. The software's end users span across banking, credit unions, and various financial institutions, utilizing its functionalities for effective pension fund management.

The pension fund management software market research report provides pension fund management software market statistics, including pension fund management software industry global market size, regional shares, competitors with a pension fund management software market share, detailed pension fund management software market segments, market trends and opportunities, and any further data you may need to thrive in the pension fund management software industry. This pension fund management software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The pension fund management software market consists of sales of claim settlement, pension calculation, and pension-related transactions software. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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