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%.

Latest News

CFP Board floats new procedural rules around bankruptcy, misdemeanors
CFP Board floats new procedural rules around bankruptcy, misdemeanors

If approved, the proposed revisions would achieve outcomes similar to the existing process while reducing the burden of oversight.

What pre-retirees don't know about Social Security could be hurting them, says T. Rowe Price
What pre-retirees don't know about Social Security could be hurting them, says T. Rowe Price

Survey research reveals gaps in retirement savers' knowledge, pessimism around receiving benefits, and a lack of good options to solve looming solvency crisis.

Could active ETFs act as a client acquisition magnet?
Could active ETFs act as a client acquisition magnet?

Actively managed ETFs may offer an edge for advisors courting Gen X, millennial, and Gen Z investors, according to Capital Group.

Vanguard connected with Blackstone, Carlyle on potential private market tie-ups
Vanguard connected with Blackstone, Carlyle on potential private market tie-ups

The exploratory talks, reported by unnamed sources, speak to a larger trend of traditional asset managers wading further into the alternative assets space.

CEO rails against DEI rollbacks
CEO rails against DEI rollbacks

Claims of merit miss the point, according Stoy Hall.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve