Financial Advisory Global Market Opportunities and Strategies to 2032

This report describes and explains the financial advisory market and covers 2017-2022, termed the historic period, and 2022-2027, 2032F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global financial advisory market reached a value of nearly $197.45 billion in 2022, having grown at a compound annual growth rate (CAGR) of 3.8% since 2017. The market is expected to grow from $197.45 billion in 2022 to $245.29 billion in 2027 at a rate of 4.4%. The market is then expected to grow at a CAGR of 5.5% from 2027 and reach $320.12 billion in 2032.

Growth in the historic period resulted from the strong economic growth in emerging markets, rise in the number of SMEs (small and medium-sized enterprises), rise in globalization and cross-border payments and rise in high-net-worth individuals. Factors that negatively affected growth in the historic period was rise in cyber security concerns.

Going forward, the increasing digital platforms, the rising government support, the increasing financial literacy and the rising penetration of e-commerce will drive the growth. Factors that could hinder the growth of the financial advisory market in the future include low-profit margins.

The financial advisory market is segmented by type into corporate finance, accounting advisory, tax advisory, transaction services, risk management and other types. The corporate finance market was the largest segment of the financial advisory market segmented by type, accounting for 29.5% or $58.20 billion of the total in 2022. Going forward, the risk management segment is expected to be the fastest growing segment in the financial advisory market segmented by type, at a CAGR of 5.5% during 2022-2027.

The financial advisory market is segmented by organization size into large enterprises and small and medium-sized enterprises. The large enterprises market was the largest segment of the financial advisory market segmented by organization size, accounting for 60.7% or $119.81 billion of the total in 2022. Going forward, the small and medium-sized enterprises segment is expected to be the fastest growing segment in the financial advisory market segmented by organization size, at a CAGR of 4.7% during 2022-2027.

The financial advisory market is segmented by industry vertical into banking, financial services and insurance (BFSI), IT and telecom, manufacturing, retail and e-commerce, government, healthcare and other industry verticals. The banking, financial services and insurance (BFSI) market was the largest segment of the financial advisory market segmented by industry vertical, accounting for 31.8% or $62.85 billion of the total in 2022. Going forward, the retail and e-commerce segment is expected to be the fastest growing segment in the financial advisory market segmented by component, at a CAGR of 6.0% during 2022-2027.

Western Europe was the largest region in the financial advisory market, accounting for 37.6% or $74.26 billion of the total in 2022. It was followed by North America, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the financial advisory market will be Middle East and South America where growth will be at CAGRs of 9.9% and 9.7% respectively. These will be followed by Africa and Asia Pacific where the markets are expected to grow at CAGRs of 6.7% and 6.4% respectively.

The global financial advisory market is fairly fragmented, with a few large players operating in the market. The top ten competitors in the market made up to 17.4% of the total market in 2022. Prominent players are acquiring the services of other companies and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing their services. KPMG International Cooperative was the largest competitor with a 4.4% share of the market, followed by PricewaterhouseCoopers International Limited (PwCIL) with 2.5%, Deloitte Group with 2.1%, Morgan Stanley with 1.5%, JPMorgan Chase & Co with 1.2%, Wells Fargo & Co with 1.2%, Boston Consulting Group with 1.2%, Goldman Sachs Group Inc with 1.2%, Ernst & Young Global Limited with 1.1% and Mckinsey & company with 0.9%.

The top opportunities in the financial advisory market segmented by type will arise in the corporate finance segment, which will gain $16.08 billion of global annual sales by 2027. The top opportunities in the financial advisory market segmented by organization size will arise in the large enterprises segment, which will gain $28.01 billion of global annual sales by 2027. The top opportunities in the financial advisory market segmented by industry vertical will arise in the banking, financial services and insurance (BFSI) segment, which will gain $16.91 billion of global annual sales by 2027. The financial advisory market size will gain the most in the UK at $7.90 billion.

Market-trend-based strategies for the financial advisory market include AI-powered assistants for financial advisers, focus on advancements in technology, virtual video studios for financial advisors, alternative investment integrations and streamlined access, focus on WealthTech collaboration and regulatory innovation and focus on cloud-based platforms.

Player-adopted strategies in the financial advisory market include focus on launching new practices to better serve the customers and industry, focus on strategic partnerships and collaborations to create new financial solutions and to create effective market investment opportunities and focus on business expansion through mergers and acquisitions.

To take advantage of the opportunities, the analyst recommends the financial advisory companies to focus on AI-powered assistants for financial advisers, focus on advancements in technology, focus on virtual video studios for financial advisors, focus on alternative investment integrations and streamlined access, focus on cloud-based platforms, focus on fast-growing service types, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and focus on fast-growing industry verticals.