Wealth Management Market Opportunities and Strategies to 2033

This report describes and explains the wealth management market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global wealth management market reached a value of nearly $1.8 trillion in 2023, having grown at a compound annual growth rate (CAGR) of 11.69% since 2018. The market is expected to grow from $1.8 trillion in 2023 to $2.5 trillion in 2028 at a rate of 7.03%. The market is then expected to grow at a CAGR of 6.94% from 2028 and reach $3.5 trillion in 2033.

Growth in the historic period resulted from the increased internet penetration, rise in the number of high net worth individuals, increasing investments and rising government support. Factors that negatively affected growth in the historic period include rising cyber crime risk, pressure on fees and increasing fintech firms.

Going forward, the rising demand for alternative investments, strong economic growth in emerging markets, increasing digitization, increasing retiree population, rising urbanization and increasing wealth of high net worth individuals will drive the market. Factors that could hinder the growth of the wealth management market in the future include wide range of services offered by asset managers, passive investments and stringent regulations.

The wealth management market is segmented by type of asset class of asset class into equities, fixed income, alternative assets and others. The fixed income market was the largest segment of the wealth management market segmented by type of asset class of asset class, accounting for 64.43% or $1.16 trillion of the total in 2023. Going forward, the alternative assets and others segment is expected to be the fastest growing segment in the wealth management market segmented by type of asset class of asset class, at a CAGR of 10.41% during 2023-2028.

The wealth management market is segmented by type of wealth manager into private banks, investment managers, full-service wealth managers, stockbrokers, and other type of wealth manager. The private banks market was the largest segment of the wealth management market segmented by type of wealth manager, accounting for 38.94% or $707.13 billion of the total in 2023. Going forward, the investment managers segment is expected to be the fastest growing segment in the wealth management market segmented by type of wealth manager, at a CAGR of 7.77% during 2023-2028.

The wealth management market is segmented by enterprise size into large enterprises and medium and small enterprises. The large enterprises market was the largest segment of the wealth management market segmented by enterprise size, accounting for 61.72% or $1.12 billion of the total in 2023. Going forward, the large enterprises segment is expected to be the fastest growing segment in the wealth management market segmented by enterprise size, at a CAGR of 7.16% during 2023-2028.

The wealth management market is segmented by advisory mode into human advisory, robo advisory and hybrid advisory. The human advisory market was the largest segment of the wealth management market segmented by advisory mode, accounting for 96.98% or $1.76 trillion of the total in 2023. Going forward, the robo advisory segment is expected to be the fastest growing segment in the wealth management market segmented by advisory mode, at a CAGR of 18.82% during 2023-2028.

North America was the largest region in the wealth management market, accounting for 51.63% or $937.45 billion of the total in 2023. It was followed by Western Europe, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the wealth management market will be South America and Asia-Pacific, where growth will be at CAGRs of 18.43% and 10.52% respectively. These will be followed by Africa and the Middle East, where the markets are expected to grow at CAGRs of 9.34% and 9.30% respectively.

The global wealth management market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 12.93% of the total market in 2023. Industrial and Commercial Bank of China was the largest competitor with a 2.72% share of the market, followed by CNP Assurances S.A. with 1.50%, Japan Post Group with 1.49%, Morgan Stanley with 1.45%, UBS Group AG with 1.17%, JPMorgan Chase & Co. with 1.09%, BlackRock Inc with 0.98%, Great-West Lifeco Inc. with 0.96%, Wells Fargo & Company with 0.81% and The Goldman Sachs Group, Inc. with 0.76%.

The top opportunities in the wealth management market segmented by type of asset class of asset class will arise in the fixed income segment, which will gain $451.18 billion of global annual sales by 2028. The top opportunities in the wealth management market by type of wealth manager will arise in the private banks segment, which will gain $260.56 billion of global annual sales by 2028. The top opportunities in the wealth management market by enterprise size will arise in the large enterprises segment, which will gain $463.34 billion of global annual sales by 2028. The top opportunities in the wealth management market by enterprise size will arise in the human advisory segment, which will gain $668.05 billion of global annual sales by 2028. The wealth management market size will gain the most in the USA at $170.26 billion.

Market-trend-based strategies for the wealth management market include focus on developing innovative wealth management platforms to enhance client engagement and experience, launching new technology solutions to transform small and mid-sized registered investment advisors, launching new enterprise resource planning (ERP) platforms for family office wealth management, blending traditional and modern investment strategies, developing new artificial intelligence (AI) tools that enhance efficiency in financial advisory meetings and integration of life insurance and financial planning tools.

Player-adopted strategies in the wealth management market include focus on strengthening wealth management services and investment product portfolio through strategic collaborations, technological advancements for strengthening business operations in the rapidly growing private wealth management market and focus on new launches of wealth management platforms.

To take advantage of the opportunities, the analyst recommends the wealth management companies to focus on innovative digital solutions, focus on streamlining technology solutions, focus on developing ERP solutions for family offices, focus on integrating traditional and modern investment strategies, focus on implementing Ai tools for financial advisory efficiency, focus on integrating life insurance with financial planning tools, focus on alternative assets segment, focus on investment managers segment, focus on large enterprises segment, focus on robo advisory segment, expand in emerging markets, focus on expanding distribution channels, focus on developing competitive pricing strategies, continue to use B2B promotions, focus on building strategic partnerships and focus on strengthening client relationships.