Financial Advisory Market Report 2025

The financial advisory market size has grown steadily in recent years. It will grow from $209.38 billion in 2024 to $218.96 billion in 2025 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to economic conditions, demographic trends, market volatility, globalization, increasing wealth levels.

The financial advisory market size is expected to see strong growth in the next few years. It will grow to $273.67 billion in 2029 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to evolving regulatory landscape, sustainable and ESG investing, retirement planning services, personalization and customization, fintech collaboration. Major trends in the forecast period include digital transformation, technological advancements, growing emphasis on ESG investments, rise of robo-advisors, personalized financial planning.

The increase in high-net-worth individuals (HNWI) is anticipated to drive the growth of the financial advisory market in the coming years. An individual is classified as a high-net-worth individual (HNWI) if they possess liquid assets of at least USD 1 million. Those with high net worth often seek the assistance of financial advisors to optimize their wealth and explore additional advantages and opportunities. For example, in June 2024, the World Wealth Report 2024 published by Capgemini, a France-based information technology company, indicated that the HNWI population rose by 5.1%, reversing the declines of 3.6% and 3.3% observed in 2022. Therefore, the growth of high-net-worth individuals (HNWI) is fueling the expansion of the financial advisory market.

The anticipated surge in demand for alternative investments is poised to drive the expansion of the financial advisory market in the coming years. Alternative investments encompass non-traditional opportunities that extend beyond conventional asset classes such as stocks, bonds, and cash. In the realm of alternative investments, financial advisors play a pivotal role, serving as invaluable guides through the intricate and often opaque landscape of assets such as hedge funds, private equity, real estate, and commodities. For instance, in September 2023, Forbes, a US-based global media company, reported that as of 2022, financial advisors allocate 14.5% of clients' portfolios to alternative investments, marking an increase from 10.5% in 2021. Projections suggest that allocations to alternative investments are expected to rise further, reaching 17.5% by the year 2024. Consequently, the growing demand for alternative investments stands as a driving force behind the growth of the financial advisory market.

The financial advisory market is witnessing a significant trend towards technological innovations. Major companies in this sector are actively embracing new technologies to maintain and strengthen their positions. As an illustration, in March 2022, SRG Financial Advisors, a US-based holistic financial planning firm, introduced the 'Mile Marker Digital Vault Technology' in collaboration with FutureVault, a Canada-based provider of secure document exchange and digital vault solutions. The SRG team is initiating several next-generation process and technology changes for their clients, with Marker Vault being the first of these innovations. The primary goal of this technology is to enhance clients' asset management and financial planning experiences while optimizing operations, allowing clients to focus on their priorities. FutureVault provides SRG Financial Advisors and its clients with a secure, shared platform that facilitates more efficient management of information and documents, leading to a significant streamlining of interactions between the two parties.

In the financial advisory market, major companies are directing their efforts toward developing innovative solutions, and one such trend is the integration of virtual video studios. A virtual video studio refers to a digital or computer-generated environment that replicates the appearance and functionality of a physical video production studio. As an example, in February 2023, Merrill, a US-based investment management company, unveiled 'Merrill Video Pro'. This virtual video studio is tailored for financial advisors, providing them with the tools to create content and engage with clients and prospects on a broader scale. Merrill Video Pro empowers advisors to produce videos using a growing library of customizable content, covering topics such as managing retirement goals, implementing wealth transfer strategies, navigating markets during challenging times, and more. These customized videos can be effortlessly shared via email, LinkedIn, advisor websites, and seamlessly integrated into events and seminars.

In April 2022, Goldman Sachs, a prominent US-based investment banking company, completed the acquisition of NN Investment Partners for approximately $1.9 billion. The primary objective behind this strategic move is to enhance Goldman's capabilities in sustainable investment practices and expand its footprint in asset management across Europe. NN Investment Partners, based in the Netherlands, is an asset management company offering a range of financial advisory services.

Major companies operating in the financial advisory market include JP Morgan Chase & Co., Bank of America Corporation, Wells Fargo & Co, Accenture plc, Morgan Stanley, PricewaterhouseCoopers International Limited (PwCIL, Goldman Sachs Group Inc., Ernst & Young Global Limited, UBS Group AG, KPMG International Limited, Deloitte Touche Tohmatsu Ltd., Credit Suisse Group AG, Charles Schwab Corporation, Ameriprise Financial Inc., Edward D. Jones & Co., L.P., Boston Consulting Group, RWBaird, Mercer, Protiviti Consulting Pvt. Ltd., Fisher Investments, Alvarez & Marsal Holdings, LLC, Luther King Capital Management, Heritage Investment Group, Eubel Brady & Suttman, Dana Investment Advisors Inc., Leavell Investment Management, Janney Montgomery Scott LLC, LPL Financial, Merrill Lynch Wealth Management, Northwestern Mutual Wealth Management Company, Raymond James Financial Inc., RBC Wealth Management, Stifel Financial Corp., Vanguard Group.

Asia-Pacific was the largest region in the financial advisory market in 2024. The regions covered in the financial advisory market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the financial advisory market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Financial advisory involves providing financial advice or assistance to clients in exchange for payment. Financial advisors offer various services, including estate planning, tax preparation, and investment management, with the goal of helping individuals or organizations create long-term strategies for wealth building and risk management.

The primary types of financial advisory services encompass corporate finance, accounting advisory, tax advisory, transaction services, risk management, and others. These services are offered to a diverse range of clients, including large enterprises as well as small and medium-sized enterprises (SMEs). Corporate finance advisory involves providing expert guidance, support, counsel, and solutions related to significant financial activities. These financial advisory services are utilized by various industry verticals, including but not limited to BFSI (Banking, Financial Services, and Insurance), IT and telecom, manufacturing, retail and e-commerce, the public sector, healthcare, and others. Corporate finance advisory plays a critical role in helping organizations navigate complex financial decisions and optimize their financial strategies.

The financial advisory market research report is one of a series of new reports that provides financial advisory market statistics, including financial advisory industry global market size, regional shares, competitors with a financial advisory market share, detailed financial advisory market segments, market trends and opportunities, and any further data you may need to thrive in the financial advisory industry. This financial advisory 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 financial advisory market includes revenues earned by entities by providing financial operations services including accounts outsourcing, payroll services, and fund management. 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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