Asset Management Market Expected to Reach $8280.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Asset Management Market," The asset management market was valued at $376.82 billion in 2022, and is estimated to reach $8280.7 billion by 2032, growing at a CAGR of 36.5% from 2023 to 2032.

Asset management solutions encompass a range of management related services provided by investment firms and professionals to assist individuals and organizations in managing their investment portfolios. These solutions involve the strategic allocation of funds across various asset classes, such as stocks, bonds, real estate, and commodities, with the aim of achieving optimal returns while considering risk tolerance and investment objectives. In addition, asset management solutions help companies maximize the utilization of their assets by providing real-time insights into their availability, location, and condition. This information allows businesses to optimize asset allocation, schedule maintenance activities, and identify underutilized or idle assets that can be redeployed or sold, leading to cost savings, and increased operational efficiency.

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in April 2023, Aegon Asset Management partnered with Lakemore Partners Ltd. and its group entities, a leading private credit investment firm primarily investing in super-majority control collateralized loan obligation (CLO) equity. The agreement aims to expand Aegon AM's leading credit capabilities through the growth of its US CLO platform. Simultaneously, the partnership grows Lakemore's repertoire of top-tier institutional clients. Similarly, in June 2023, Baloise Asset Management extended its partnership with SimCorp to provide front-to-back software-as-a-service (SaaS) and data management services.  Therefore, such strategies are expected to boost the growth of the asset management market size in the upcoming years.

On the basis of application, the aviation asset management segment is the highest growing segment in 2022. This is due to the increased demand for aircraft and aviation assets that is being driven by rising demand for air travel, particularly in developing countries. This opens up chances for aviation asset management firms to acquire, manage, and lease assets in order to fulfill rising demand. However, enterprise asset management is predicted to be the fastest-growing segment during the forecast period. This is attributed to the fact that By implementing enterprise asset management (EAM) systems, organizations can track and maintain their assets more effectively, resulting in improved reliability, reduced downtime, and increased productivity.

Based on region, North America attained the highest growth in 2022. This is attributed to the fact that asset management firms in North America assist individuals, organizations, and institutions in managing their financial investments. These organizations provide portfolio management, financial planning, and investment advising services to clients in order to assist them to optimize their investment strategy, maximizing returns, and limiting risk, which is expected to see significant growth in the coming years.

However, Asia-Pacific is projected to be the fastest-growing segment during the forecast period. This is attributed to the fact that Asia-Pacific region is experiencing a significant increase in wealth and savings, driven by economic expansion, rising salaries, and an expanding middle class. As individuals and households develop money, there is a greater demand for professional asset management services to help them preserve and expand their holdings. Furthermore, the Asia-Pacific region's growing middle class is creating a sizable market for asset management.  

Many investors suffered significant losses, resulting in increased risk aversion and a drop in demand for asset management services. In addition, digital asset management organizations faced operational issues as a result of movement limitations and social distancing tactics. The transition to remote working arrangements necessitated quick changes to technology infrastructure and communication networks. While some businesses were able to adapt rapidly, others struggled to maintain efficient operations and client service.

Furthermore, the pandemic also brought to light the significance of risk management and resilience in the asset management industry. Firms had to reconsider their investment strategy and portfolios in light of the fast-shifting market conditions. The emphasis moved to recognizing and controlling market volatility, liquidity restrictions, and counterparty exposures.  Moreover, the pandemic increased the asset wealth management industry's adoption of digital transformation strategies. Firms needed to use technology to improve operational efficiency, client engagement, and remote cooperation. This asset management market trends toward digitalization and automation is expected to have a long-term impact on the sector, resulting in enhanced efficiency and cost savings in the long run. Therefore, the COVID-19 has a moderate impact on the asset management market growth.

Key Findings of the Study

• By component, the solution segment led the asset management market analysis in terms of revenue in 2022.
• By asset type, the digital asset segment accounted for the highest asset management market share in 2022.
• By function, the location and movement tracking segment accounted for the highest asset management market share in 2022
• By application, the aviation asset management segment accounted for the highest asset management market share in 2022.
• By region, North America generated the highest revenue in 2022.

The report analyzes the profiles of key players operating in the asset management market such as ABB, BlackRock, Inc., Charles Schwab Investment Management, Inc., FMR LLC., IBM Corporation, J.P. Morgan Chase & Co., Morgan Stanley, Oracle Corporation., Rockwell Automation Inc., and SAP SE. These players have adopted various strategies to increase their market penetration and strengthen their position in the asset management market.