The global AI in asset management market size reached USD 3.71 billion in 2023 and is predicted to surpass around USD 33.25 billion by 2033, at a solid CAGR of 24.52% from 2024 to 2033.
Key Points
- The North America AI in asset management market size reached USD 1.89 billion in 2023 and is expected to attain around USD 17.12 billion by 2033, poised to grow at a CAGR of 24.65% between 2024 and 2033.
- North America dominated the market with the largest revenue share of 51% in 2023.
- Asia Pacific is anticipated to showcase significant growth with the fastest CAGR in the market in the upcoming period.
- By technology, the machine learning segment has contributed more than 67% of revenue share in 2023.
- By technology, the NLP-natural language processing segment will grow at the fastest rate in the market over the forecast period.
- By application, the portfolio optimization segment has held a major revenue share of 28% in 2023.
- By application, the data analysis segment is predicted to witness prominent growth in the market over the forecasted period.
- By deployment mode, the on-premises segment has generated more than 56% of revenue share in 2023.
- By deployment mode, the cloud segment is anticipated to show the fastest growth in the market over the foreseeable period.
The AI in Asset Management market involves the application of artificial intelligence technologies such as machine learning and predictive analytics to enhance the management and performance of various assets. These assets can range from financial investments to physical infrastructure, optimizing decision-making processes through automation and data-driven insights.
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Growth Factors
The growth of AI in Asset Management is driven by increasing volumes of data, demand for real-time analytics, and the need for improved accuracy in forecasting and risk management. Advancements in AI algorithms and computing power also contribute to its growth, enabling more sophisticated analysis and decision-making capabilities.
Region Insights
The adoption of AI in Asset Management varies by region, with North America leading due to its mature financial markets and extensive investment in technology. Europe follows closely, driven by regulatory pressures and a focus on efficiency gains. Asia-Pacific is experiencing rapid adoption, propelled by digital transformation initiatives and the growth of financial markets in emerging economies.
AI in Asset Management Market Scope
| Report Coverage | Details |
| Market Size by 2033 | USD 33.25 Billion |
| Market Size in 2023 | USD 3.71 Billion |
| Market Size in 2024 | USD 4.62 Billion |
| Market Growth Rate from 2024 to 2033 | CAGR of 24.52% |
| Largest Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | Technology, Deployment Mode, Application, and Regions |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
AI in Asset Management Market Dynamics
Drivers
Key drivers include the quest for operational efficiency, regulatory compliance, and the pursuit of alpha (excess returns) in investment management. AI’s ability to analyze large datasets quickly and identify patterns that human analysts might miss is a significant driver. Moreover, the integration of AI with existing asset management systems enhances decision-making processes and reduces operational costs.
Opportunities
Opportunities in the AI in Asset Management market include the development of AI-powered robo-advisors, which offer personalized investment advice based on individual risk profiles. There’s also growth potential in AI-driven portfolio management tools, alternative data analysis, and predictive modeling for asset price movements. Additionally, expanding applications in wealth management and institutional investing present further growth avenues.
Challenges
Challenges include data privacy concerns and regulatory hurdles related to AI’s use in financial decision-making. The complexity of integrating AI into existing infrastructure and workflows poses implementation challenges. Furthermore, ensuring the reliability and interpretability of AI models remains critical to gaining trust of stakeholders. Addressing these challenges effectively will be crucial for sustained growth in the AI in Asset Management market.
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AI in Asset Management Market Companies
- Amazon Web Services, Inc.
- BlackRock, Inc.
- CapitalG
- Charles Schwab & Co., Inc
- Genpact
- Infosys Limited
- International Business Machines Corporation
- IPsoft Inc.
- Lexalytics
- Microsoft
- TABLEAU SOFTWARE, LLC
- Next IT Corp.
- S&P Global
- Salesforce, Inc.
Recent Developments
- In February 2023, Arcadis, a leading organization for natural and built assets, started a collaboration with digital technology provider Niricson. Niricson works in using robotics, computer vision, and acoustic technology combined with AI to provide predictive asset management and condition assessments for bridges and other concrete infrastructure.
- In March 2022, Energy technology company Baker Hughes collaborated with C3 AI, Accenture, and Microsoft on industrial asset management (IAM) solutions for clients in the energy and industrial sectors. This collaboration improves the safety, efficiency, and emissions profile of industrial machines, field equipment, and other assets.
Segments Covered in the Report
By Technology
- Machine Learning
- Natural Language Processing (NLP)
- Others
By Deployment Mode
- On-premises
- Cloud
By Application
- Portfolio Optimization
- Conversational Platform
- Risk & Compliance
- Data Analysis
- Process Automation
- Others
By Geography
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East & Africa
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