Dublin, May 27, 2024 (GLOBE NEWSWIRE) -- The "Financial Advisory Global Market Report 2024" has been added to ResearchAndMarkets.com's offering.
The financial advisory market size has grown steadily in recent years, growing from $206.76 billion in 2023 to $215.92 billion in 2024 at a compound annual growth rate (CAGR) of 4.4%.
The financial advisory market is forecast to grow to $261.95 billion in 2028 at a compound annual growth rate (CAGR) of 5%.
The anticipated growth in the forecast period can be attributed to factors such as the evolving regulatory landscape, the increasing emphasis on sustainable and ESG (Environmental, Social, Governance) investing, the demand for retirement planning services, a focus on personalization and customization in financial services, and collaborative efforts with fintech companies. Major trends expected in the forecast period include ongoing digital transformation, technological advancements in the financial industry, a growing emphasis on ESG investments, the rise of robo-advisors, and an increased focus on personalized financial planning services.
The surge in high-net-worth individuals (HNWI) is anticipated to propel the expansion of the financial advisory market in the foreseeable future. Individuals with liquid assets of at least USD 1 million fall under the category of high-net-worth individuals (HNWI). Those with substantial HNWI often seek the assistance of financial advisors to effectively manage their wealth, unlocking additional advantages and opportunities. For instance, in December 2022, as per the World Wealth Report 2022 presented by Capgemini, a France-based information technology company, the global count of HNWIs witnessed a 7.8% increase, reaching $22,459 billion in 2021 from $20,838 billion in 2020. Moreover, in 2021, North America maintained its dominant position with a 13.2% growth in HNWI population and a 13.8% increase in wealth. Consequently, the upsurge in high-net-worth individuals (HNWI) stands as a driving force behind the growth of the financial advisory market.
The anticipated surge in demand for alternative investments is poised to drive the expansion of the financial advisory market in the coming years. Alternative investments encompass non-traditional opportunities that extend beyond conventional asset classes such as stocks, bonds, and cash. In the realm of alternative investments, financial advisors play a pivotal role, serving as invaluable guides through the intricate and often opaque landscape of assets such as hedge funds, private equity, real estate, and commodities. For instance, in September 2023, Forbes, a US-based global media company, reported that as of 2022, financial advisors allocate 14.5% of clients' portfolios to alternative investments, marking an increase from 10.5% in 2021. Projections suggest that allocations to alternative investments are expected to rise further, reaching 17.5% by the year 2024. Consequently, the growing demand for alternative investments stands as a driving force behind the growth of the financial advisory market.
The financial advisory market is witnessing a significant trend towards technological innovations. Major companies in this sector are actively embracing new technologies to maintain and strengthen their positions. As an illustration, in March 2022, SRG Financial Advisors, a US-based holistic financial planning firm, introduced the 'Mile Marker Digital Vault Technology' in collaboration with FutureVault, a Canada-based provider of secure document exchange and digital vault solutions. The SRG team is initiating several next-generation process and technology changes for their clients, with Marker Vault being the first of these innovations. The primary goal of this technology is to enhance clients' asset management and financial planning experiences while optimizing operations, allowing clients to focus on their priorities. FutureVault provides SRG Financial Advisors and its clients with a secure, shared platform that facilitates more efficient management of information and documents, leading to a significant streamlining of interactions between the two parties.
In the financial advisory market, major companies are directing their efforts toward developing innovative solutions, and one such trend is the integration of virtual video studios. A virtual video studio refers to a digital or computer-generated environment that replicates the appearance and functionality of a physical video production studio. As an example, in February 2023, Merrill, a US-based investment management company, unveiled 'Merrill Video Pro'. This virtual video studio is tailored for financial advisors, providing them with the tools to create content and engage with clients and prospects on a broader scale. Merrill Video Pro empowers advisors to produce videos using a growing library of customizable content, covering topics such as managing retirement goals, implementing wealth transfer strategies, navigating markets during challenging times, and more. These customized videos can be effortlessly shared via email, LinkedIn, advisor websites, and seamlessly integrated into events and seminars.
In April 2022, Goldman Sachs, a prominent US-based investment banking company, completed the acquisition of NN Investment Partners for approximately $1.9 billion. The primary objective behind this strategic move is to enhance Goldman's capabilities in sustainable investment practices and expand its footprint in asset management across Europe. NN Investment Partners, based in the Netherlands, is an asset management company offering a range of financial advisory services.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Report Scope
Markets Covered:
- By Type: Corporate Finance; Accounting Advisory; Tax Advisory; Transaction Services; Risk Management; Other Types
- By Organization Size: Large Enterprises; Small and Medium-Sized Enterprises
- By Industry Vertical: Banking, Financial Services and Insurance (BFSI); IT and Telecom; Manufacturing; Retail and E-Commerce; Public Sector; Healthcare; Other Industry Verticals
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments
Companies Profiled:
- JP Morgan Chase
- Bank of America
- Wells Fargo
- Accenture
- Morgan Stanley
- PricewaterhouseCoopers
- Goldman Sachs Group
- Ernst & Young Global
- UBS Group
- KPMG International
- Deloitte Touche Tohmatsu
- Credit Suisse Group
- Charles Schwab
- Ameriprise Financial
- Edward D. Jones & Co.
- Boston Consulting Group
- BCG Group
- McKinsey & Company
- Booz Allen Hamilton
- RWBaird
- Oliver Wyman
- Mercer
- Protiviti Consulting
- Fisher Investments
- Alvarez & Marsal Holdings
- Luther King Capital Management
- Heritage Investment Group
- Eubel Brady & Suttman
- Dana Investment Advisors
- Leavell Investment Management
- Janney Montgomery Scott
- LPL Financial
- Merrill Lynch Wealth Management
- Northwestern Mutual Wealth Management Company
- Raymond James Financial
- RBC Wealth Management
- Stifel Financial Corp.
- Vanguard Group
For more information about this report visit https://www.researchandmarkets.com/r/k3x99
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