Wealth management market could more than double to $3.4T during this decade

Wealth management market could more than double to $3.4T during this decade
Report suggests a 10.7% CAGR but is it good or bad news for traditional wealth managers?
OCT 23, 2023

The global wealth management market is set for exponential growth through the rest of the decade according to a new report.

Allied Analytics says that the market was worth $1.25 trillion in 2020 and is set to more than double to $3.4 trillion with a 10.7% compound annual growth rate from 2021 to 2030.

North America held the highest market share in terms of revenue in 2020, accounting for more than half of the global wealth management market and is expected to maintain its lead by 2030 thanks to the high level of high-net-worth individuals and competition among big banks.

Among the key drivers are the strong demand for alternative assets which is forecast to surge over the next few years, the growth of fintech, and the impact that wealth management has on reducing financial stress and improving financial plans.

Digitization and wealth technology, plus the untapped potential of emerging markets are also conducive to growth.

However, the report also highlights some factors that may limit growth including regulation, pricing transparency concerns, and high fees.

TRADITIONAL WEALTH INDUSTRY

The report states that the human advisory model account for three-quarters of the global wealth management market in 2020 and is expected to maintain its dominance for the rest of the decade, but robo-advisors are set for a CAGR of more than 26% from 2021-2030.

Traditional wealth managers had two-thirds of the market in 2020 and are also set to maintain their position through 2030, but fintech is forecast to grow at a CAGR of almost 17%.

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