Wealth Management Market Characteristics
The wealth management market consists of sales of wealth management services by entities (organizations, sole traders and partnerships) that plan, advise on and manage various kinds of assets. This market covers financial and investment advice, retirement planning and legal or estate planning but excludes accounting and tax services. The market size is the revenues generated from the fees and commissions levied on the assets being managed. It does not include the value of investments held or the amount of money invested in a given year, net or gross. This market includes the custodian charges of the firms as well as any other fees. Margins or service charges but excludes brokerage fees levied on securities transactions unless they are included within the service fees or commissions.
Competitive Landscape of the Wealth Management Market
Major players in the global wealth management market include Wells Fargo, BlackRock, Bank of America, Morgan Stanley, JP Morgan Asset Management, Industrial and Commercial Bank of China, Allianz Group, UBS, and State Street Global Advisors.
Wealth Management Market Size
The wealth management market size is expected to reach above $1.4 trillion by 2022, significantly growing at a CAGR of around 3.4% during the forecast period. The growth in the wealth management market is due to increasing demand for professional wealth management services and recovery post financial crisis.
However, the market for wealth management is expected to face certain restraints from several factors such as increasing digitization and use of traditional methods.
Wealth Management Market Segmentation
The global wealth management market is further segmented based on type and geography.
By Type - The wealth management market is segmented into portfolio management, funds, trusts, and other financial vehicles, investment advice, among these segments, the portfolio management market accounts for the largest share in the global wealth management market.
By Geography - The global wealth management is segmented into North America, South America, Asia-Pacific, Eastern Europe, Western Europe, Middle East and Africa. Among these regions, the North America wealth management market accounts the largest share in the global wealth management market.
Trends in the Wealth Management Market
Growing popularity of automated advice, wealth management companies investing in big data analytics, fintechs offering wealth management services, are the major trends witnessed in the global Wealth Management market.
Potential Opportunities in the Wealth Management Market
With increase increasing government initiatives, increasing wealth in developing countries, emerging markets growth, the scope and potential for the global Wealth Management market is expected to significantly rise in the forecast period.