The global asset management market size reached USD 505.98 billion in 2023 and is predicted to cross around USD 10,478.93 billion by 2033, at a CAGR of 35.4% from 2024 to 2033.
The asset management market encompasses a wide range of services, including the planning, acquisition, oversight, and disposition of various types of assets with the goal of maximizing returns and minimizing risks. Asset management is the process of purchasing, selling, and managing investments with certain risk tolerances to build wealth over time. Asset managers, sometimes known as portfolio managers or financial counselors, serve a variety of clients, including governments, corporations, and institutional investors. Their goal is to increase the value of an investment portfolio while retaining an acceptable degree of risk.
Asset managers have a fiduciary duty to act in their client’s best interests and make decisions on their behalf in good faith. They choose investments, including equities, bonds, real estate, commodities, alternative investments, and mutual funds. Asset management might entail conducting extensive studies utilizing both macro and microanalytical methods to meet the client’s financial objectives.
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Asset Management Market Key Insights
- North America dominated the asset management market with the largest revenue share of 39.14 % in 2023
- By component, the solution segment generated more than 57% of revenue share in 2023.
- By asset type, the digital assets segment captured the largest revenue share of 25.8% in 2023.
- By application, the aviation segment held more than 82% of the revenue share in 2023.
U.S. Asset Management Market Size and Forecast
The U.S. asset management market size was valued at USD 138.89 billion in 2023 and is expected to surpass around USD 3,034.44 billion by 2033 with a significant CAGR of 36.1% from 2024 to 2033.
North America dominated the asset management market in 2023. The asset management sector in North America comprises a wide range of businesses, investors, and regulatory frameworks, and it plays a major role in the national economy. In this industry, the US is the leader with several well-known asset management companies. The landscape is changing because of new laws, shifting investor preferences, and technological improvements.
Exchange-traded funds (ETFs), a kind of passive investment, are becoming more and more popular and are posing a threat to traditional active management. For businesses to stay competitive in a digitalized market, technological advancements in artificial intelligence, machine learning, and big data analytics are revolutionizing investment processes and enhancing risk management, portfolio creation, and client experiences.
Asia Pacific is observed to grow at a fastest rate during the forecast period. Many countries in the APAC region, particularly China and India, are experiencing rapid economic growth. This economic expansion is leading to an increase in personal and corporate wealth, which in turn boosts the demand for asset management services.
Countries like China are opening up their financial markets to foreign investors, which is drawing significant interest from global asset managers. There is a growing emphasis on ESG criteria in investment decisions in the APAC region. Investors are increasingly looking for sustainable and socially responsible investment opportunities, which is shaping the asset management landscape.
Asset Management Market Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 505.98 Billion |
| Market Size in 2024 | USD 685.09 Billion |
| Market Size by 2033 | USD 10,478.93 Billion |
| Growth Rate from 2024 to 2033 | CAGR of 35.4% |
| Largest Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | By Component, By Asset Type, and By Application |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Asset Management Market Segments Outlook
Component Outlook
The solution segment dominated the asset management market in 2023. Asset tracking, which gives real-time information on the location, state, and upkeep of assets, is an essential component of asset management systems.
Software that is easy to use is necessary for effective operations. Software should be able to be customized and should work with current devices and technologies. Growth requires scalability, which should be simple to update. The answer ought to be solution-focused, offering features and assistance when required.
Asset Outlook
The digital assets segment dominated the asset management market in 2023. Organizations may benefit greatly from digital asset management (DAM) in many ways, such as better collaboration, more time and money savings, efficient rights management, effective analytics, and targeted marketing.
A centralized repository for digital assets is provided by DAM, fostering collaboration, guaranteeing legal compliance, and enabling rapid and effective searches. In addition, it provides sophisticated automation tools that guarantee legal rights and save licensing costs. Businesses may also use DAM to use consumer data for targeted marketing activities.
Application Outlook
The aviation segment dominated the asset management market in 2023. Cost savings, higher productivity, improved asset life, customer happiness, tracking assets and inventories, thorough reporting, efficient auditing, and adherence to legal requirements are just a few advantages of aviation asset management. In airport infrastructure, maintenance and repair operations (MRO) are essential since they save costs and avert equipment failures. Software for asset management facilitates the creation of adaptable operating plans and optimal results, and asset life monitoring informs managers when maintenance is necessary.
Better performance, scheduling, and on-time departures all contribute to a better customer experience. Maintaining inventory and asset records also aids in preventing theft and misplacement. Finally, asset availability and compliance with legal requirements are ensured by efficient audits made possible by asset management software. All things considered, asset management software is critical to the aviation industry’s ability to maximize operations and reduce maintenance costs.
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Asset Management Market Dynamics
Drivers
Technological advances
Machine learning, Artificial intelligence, and big data analytics are some of the technical innovations that are rapidly changing the asset management market. These technologies are enhancing operational effectiveness, enhancing investment choices, and offering customized customer experiences.
This shift improves risk management, portfolio performance, scalability, and agility in reaction to market conditions and investor preferences, allowing asset managers to be competitive in a digitalized environment.
Increase in business reliability
Regular asset assessment and review can assist in preventing operational breakdowns, unexpected repairs, and wasteful purchases. It guarantees the timely delivery of services and products to clients.
Risk assessment is critical in asset management because it ensures that firms are accountable to consumers, workers, vendors, and other stakeholders. It helps to prioritize assets based on their duties and eliminates all forms of risks, making the firm more efficient and dependable.
Restraint
Strict Regulations
Asset management includes adhering to standards governing safety, environmental protection, and asset disposal. Maintenance management software can help asset managers track rules, generate compliance reports, set digital signatures for approval, send compliance warnings, and keep compliance audit trails. Regulation tracking enables asset managers to stay updated about legislation and take the required procedures to comply.
Compliance reporting provides evidence that the organization is meeting regulations and requirements. Digital signatures are used to approve work order closing permissions and other regulatory compliance papers. Compliance alerts notify asset managers when regulations or standards are approaching or have been broken, allowing them to take appropriate action. Compliance audit trials provide precise evidence of compliance efforts.
Opportunity
AI in asset management
The AI revolution provides an opportunity for the asset management market to invest in and integrate AI into their operations, hence improving their three Ps approach. AI may boost productivity by increasing decision-making and operational efficiencies, creating personalized portfolios, and customizing client experiences.
It can also improve deal teams’ efficiency in private marketplaces, resulting in increased value creation. Asset managers should see these technological advancements as transformative instruments for their organizations.
Asset Management Market Companies
- IBM Corporation
- SAP SE
- Oracle Corporation
- Infor Inc.
- ABB Ltd.
- CGI Group Inc.
- Hitachi Ltd.
- Siemens AG
- Schneider Electric SE
- General Electric Company
- Cisco Systems Inc.
- Johnson Controls International plc
- Rockwell Automation Inc.
- Wipro Limited
- Honeywell International Inc.
Recent Developments:
- In April 2019, IBM Corporation revealed its partnership with Sund & Bælt Holding A/S to create AI-driven IoT solutions and extend its IBM Maximo offerings.
