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Asset Management Market Report: Trends, Forecast and Competitive Analysis to 2030

September 2024 | 150 pages | ID: ABDD2BEE90C7EN
Lucintel

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Asset Management Trends and Forecast

The future of the global asset management market looks promising with opportunities in the infrastructure asset management, enterprise asset management, healthcare asset management, and aviation asset management markets. The global asset management market is expected to grow with a CAGR of 11.5% from 2024 to 2030. The major drivers for this market are the swift evolution of the digital landscape, the growing adoption of cloud-based it asset management solutions, and the rising need for asset tracking.

Lucintel forecasts that solution will remain the larger segment over the forecast period due to its 2D code-reading capabilities, long-term reliability, and multiple code-reading abilities.

Within this market, aviation will remain the largest segment due to escalating demand for airborne freight and in-flight passenger transportation.

North America will remain the largest segment over the forecast period due to the rising adoption of interconnected, intelligent, and secure technologies for asset-centric applications.

Emerging Trends in the Asset Management Market

It is a significant moment for the investment market of asset management. This time we will get to see new trends which are driven by technology, investor preferences and regulations that have been changing over time. These trends have influenced investing practices, operations and even how markets work. Awareness of these emerging trends is important for asset managers in order to remain relevant in the market and address changing client requirements.
  • Going Digital: Currently, digital transformation is taking place in the Asset Management market through the integration of technologies like artificial intelligence (AI), machine learning as well as big data analytics. These technologies improve investment decisions, enhance risk management and increase efficiency of business processes. Similarly, digital making it easy to access their services while at the same time reducing on cost effectiveness has significantly helped asset management services become better accessible plus efficient. This development promotes innovation by offering opportunities for personalized customer-centric solutions based on data among asset management companies.
  • Investing Sustainably: In addition, sustainable investment based on environmental, social and corporate governance (ESG) is fast becoming a major aspect of focus in this area. Investors today prefer investments that match with what they believe in and make a positive contribution to society or environment too. Therefore sustainable strategies are increasingly being integrated into assets plans for their clients by respective firms concerned with this setting up such products that are environmentally sensitive as well as ethical in nature so as to meet the demand from these potential investors but also appeal them more than all others which would be provided within financial markets; they change industry dynamics putting sustainability at fore front thus influencing areas where money should be directed when choosing portfolios or making any other investments related decisions.
  • Increased Emphasis on Managing Risk: Similarly, there has been an intense focus on managing risks within different forms of institutionalized management including asset management because now firms have taken up more sophisticated tools and methodologies to help hedge against these risks. This includes the use of advanced analytics, scenario analysis and stress testing to better understand and manage potential risks. Increasing intricacy of financial markets coupled with economic uncertainties has led to this kind of development that prompts asset managers in enhancing their risk frameworks as well as ensuring that investment strategies become more resilient.
  • Regulatory Transformations and Adhering: In relation to the asset management market, regulatory changes are one of the biggest trends which have a major impact on it because they influence how this sector operates and what all its participants need in terms of being compliant with new rules & regulations. These also encompass such areas like reporting standards, transparency but most important is investor protection (Bodie, Kane & Marcus 2010). This means that asset managers must come up with systems which will be able to facilitate compliance so as not find themselves on wrong side while operating within jurisdictions whereby some requirements are binding for example Edwards Benjamin. Consequently, greater accountability through regulatory reforms has resulted into much transparent market place thus directly affecting how investment managers work.
The discussed trends have had a great impact on the industry due to recent developments taking place in the asset management space. Digital transformation, sustainable investing, risk management improvement and regulatory compliance as well as the trend of alternative investment have led to innovation and changes. What asset managers do is influenced by these trends which in turn shape how they invest or go about their operations. However, this diversification of opportunities has made it necessary for asset managers to be more flexible in order to meet the changing needs of clients so as to remain competitive in a dynamic environment.

Recent Developments in the Asset Management Market

New technology, changing investor preferences, and shifting regulations have brought significant changes to the asset management industry. Subsequent developments are altering the industry through better investment strategies, more efficient operations and an increased focus on sustainability. These modifications are part of a wider trend towards increasingly sophisticated, transparent and client focused asset management practices.
  • Digital Transformation: The asset management industry has embraced digital transformation with open arms by incorporating technologies such as artificial intelligence (AI), machine learning and big data analytics amongst others. These innovations improve investment decision making processes, facilitate risk management activities while also streamlining operations. Moreover, digital platforms make asset management services easily accessible and personalized. This shift has seen higher operational efficiency levels, greater accuracy during processing alongside more client engagement procedures in the course of asset management.
  • Focus on Sustainable Investing: Sustainable investing is gaining momentum whereby asset managers integrate Environmental, Social, & Governance (ESG) factors into their investment approaches. This represents a growing interest among investors who prefer investments that align with their values or contribute to positive social as well as environmental outcomes. Thus sustainable investing reshapes the market by emphasizing long-term value creation along ethical lines which affects portfolio construction strategies thereby resulting in new product development for investing purposes.
  • Regulatory Changes: Regulations continue to impact significantly on asset managers where compliance requirements have led to change in investment practice as well as reporting standards. Regulatory updates pertaining transparency issues, investor protection concerns plus data privacy issues are shaping how firms execute their mandate as asset managers. Consequently there is greater accountability under this regulatory adjustments since it necessitates strict operational standards prompting firms to adapt their plans and systems accordingly so that they can be able cater for emerging regulatory demands.
  • Rise of Passive Investment Strategies: Notably the rise of passive strategies including index funds and exchange traded funds (ETFs) has been a significant development in the asset management market. In particular, investors are increasingly preferring lower-cost passively managed products compared to traditional active ones. This trend is motivated by cost effectiveness and transparency needs. As such, portfolio dynamics as well as competition have been influenced by asset managers who are now offering more passive investment products.
Recent developments in the asset management market including digital transformation, focus on sustainable investing, regulatory changes, rise of passive strategies and increased use of data analytics are changing the industry configuration. These adjustments improve investment strategies, increase operational efficiency while accommodating evolving investor preferences. Hence there is higher transparency among these service providers enabling them to be more innovative towards their clients by becoming more transparent which will position them well against future challenges and opportunities.

Strategic Growth Opportunities for Asset Management Market

There are several strategic growth opportunities in the asset management market and for key applications. These opportunities change to meet investor needs, technological changes and emerging trends in the markets. This means that those managers who understand such growth areas will be able to take advantage of any new business idea as well as contribute towards the advancement of this sector.
  • Digital Investment Platforms: The expansion of digital investment platforms is a huge chance for asset managers to spread their tentacles while improving on customer experience by these entities. These platforms manage investments with simple interfaces and provide customized advice based on data analytics. Fintech solutions are helping make asset management services more inclusive for a wider audience including young generation who are tech-savvy, hence propelling market expansion.
  • Sustainable Investment Products: There is an increasing need for sustainable investment products that incorporate ESG criteria. Sustainable investment products can be created by developing and offering investment solutions that align with environmental and social goals. For example, funds could be established for renewable energy sources, social impact or corporate governance purposes. Asset managers have a chance to position themselves differently as there is an increased emphasis on sustainability hence attracting new types of investors who put social responsibility first.
  • Alternative Investments: This has led to the rise of alternative investments like real estate, private equity and hedge funds among others which provides opportunity for diversification by portfolio managers seeking non-traditional assets in demand from investors today. Alternatives offer prospects of higher returns and attractive investing options since they appeal to those who seek diversification outside traditional types of holdings seen in the public financial markets space. Therefore, they should develop various alternative products meant to meet investors’ demands.
  • Data-Driven Insights: Asset managers may benefit from using data analytics and artificial intelligence tools to facilitate them gain insights about market trends as well as investors’ behaviors. By adopting data-driven approaches, investment decision-making among others can be improved upon, performance tracking improved and even personalized investment strategies are developed. Accordingly, this trend is fostering innovation and creating room for asset managers to provide better customized solutions through which investments can be made more effectively.
Strategic opportunities for growth in the asset management market such as digital investment platforms, sustainable products, alternative investments, data driven insights and emerging markets expansion highlight the changing landscape of the industry. These opportunities are influenced by technology innovations, shifts in investor preferences and evolving market trends. This enables them improve their offerings or get into new ventures and therefore contribute towards the overall advancement of this sector as an addition to meeting the changing needs of customers that come with time.

Asset Management Market Driver and Challenges

There are various drivers and challenges which impact the asset management market, including technological advancements, economic factors, and regulatory changes. Knowing these drivers and challenges will help a company in maneuvering through the market while identifying opportunities for growth. The main drivers include technology innovation, changing investor preferences, increased sustainability focus.

The factors responsible for driving the asset management market include:

1. Technological Innovation: Technological innovation is one of the major reasons why asset management market is driven as far as AI, machine learning and data analytics have begun to transform investment strategies and operational processes. These technologies improve decision-making process support risk management and facilitate efficiency. Digital tools’ incorporation into platforms drive change towards creativity by asset managers where they can provide individualized responses based on information.

2. Evolving Investor Preferences: Changes in investors’ preferences are impacting developments taking place within Asset Management markets where sustainable investing and low cost passive strategies are becoming common themes. Investors nowadays want their investments to be in line with their values with transparency being important too. This has led investment managers incorporating ESG screening into their investment strategy as well as increasing passive products. It is transforming investment practices while influencing on many other aspects of this market.

3. Increased Focus on Sustainability: The significance of sustainability has grown in importance for firms that operate in Asset Management Market making it a key driver of this industry whereby investors and asset owners consider environmental social governance (ESG) factors as part of their selection process. This trend shows a desire for socially responsible investments aimed at creating long-term value by doing what it says on the tin or delivering financial gains without harming society or any stakeholders associated with business operations involved in running companies. The ways asset managers can develop sustainable investments products or use ESG criteria within them pushes forward some parts of the market; affects investment decisions.

Challenges in the asset management market are:

1. Regulatory Compliance: One of the biggest challenges in asset management market is regulatory compliance, which influences how businesses invest as well as their reporting obligations. There are several issues that the firms have to go through when it comes to regulation such as transparency, investor protection and data privacy which may be difficult and costly. In order for asset managers to comply with these regulatory changes they must adjust their processes thus affecting operational practice and market dynamics.

2. Market Volatility: Fluctuations in financial markets due to different factors can affect investment performance and client portfolios making it difficult for asset managers to manage risk. To maintain performance levels and meet clients’ expectations, asset managers have to respond promptly by managing the changing conditions of the market. Risk mitigating strategies should be put in place by these companies so that effects of volatility do not interfere with their value driven investment styles.

The driving forces and challenges that shape the industry landscape include technological innovation, evolving investor preferences, increased focus on sustainability, regulatory compliance and market volatility. These factors influence investment strategies operational practices as well as market dynamics. Therefore, addressing these drivers and challenges will be essential for AMs to navigate this rapidly-evolving financial environment, identify opportunities and remain competitive.

List of Asset Management Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies asset management companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the asset management companies profiled in this report include-
  • ABB
  • Adobe Systems
  • Brookfield Asset Management
  • Honeywell International
  • IBM
  • Oracle
  • Rockwell Automation
  • Siemens
  • WSP
  • Zebra Technologies
Asset Management by Segment

The study includes a forecast for the global asset management by component, asset type, function, application, and region.

Asset Management Market by Component [Analysis by Value from 2018 to 2030]:
  • Solution
  • Service
Asset Management Market by Asset Type [Analysis by Value from 2018 to 2030]:
  • Digital Assets
  • Returnable Transport Assets
  • In-Transit Assets
  • Manufacturing Assets
  • Personnel/ Staff
Asset Management Market by Function [Analysis by Value from 2018 to 2030]:
  • Location & Movement Tracking
  • Check In/ Check Out
  • Repair & Maintenance
  • Others
Asset Management Market by Application [Analysis by Value from 2018 to 2030]:
  • Infrastructure Asset Management
  • Enterprise Asset Management
  • Healthcare Asset Management
  • Aviation Asset Management
  • Others
Asset Management Market by Region [Analysis by Value from 2018 to 2030]:
  • North America
  • Europe
  • Asia Pacific
  • The Rest of the World
Country Wise Outlook for the Asset Management Market

Across major global economies, the asset management market has undergone substantial changes as a result of technological advancements, changing investor preferences, and regulatory adjustments. Over recent years, it has become digitized, focused on sustainability, and adapted to new economic realities. These developments are consistent with a broader trend towards more effective use of capital and greater transparency in equity investing.
  • United States: The digitalization era has hit United States’ Asset Management market leading to modernized investment systems that employ AI (Artificial Intelligence) or ML (Machine Learning) for better strategy development as well as risk management. Furthermore, there is an increase in sustainable investments characterized by integration of ESG criteria within different company portfolios. The market dynamics have also shifted due to legislative amendments hence influencing various investment decisions as well as reporting methods.
  • China: China's economy is growing rapidly, making its investors more sophisticated thus contributing towards growth in China’s Asset Management market. On the other hand, fintech solutions enable people to access and manage their investments quicker than ever before. In addition to that we have seen occurrence of search for ESG related funds which signifies general green shift across the whole world nowadays. There are also regulatory reforms aimed at improving liquidity provision together with investor protection measures implemented by the government lately which affect asset management business in China generally.
  • Germany: Sustainable investment strategies are currently being integrated into German Asset Management market while compliance levels are increasing sharply throughout this industry too. By now German asset managers place great importance on ESG issues when making any kind of sustainable investment decisions. This also includes enhancing customer experience through advancement data analytics among other fintech innovations targeting investment operations efficiency enhancement techniques within such firms operating under Germany. Regulatory changes occasioned by the European Union directives have also come into play thus affecting market conditions for firms in these industries demanding them to re-align their operations and reporting efforts.
  • India: The growing middle class and increasing financial literacy are driving India’s Asset Management market towards growth. In addition, more digital investment platforms aimed at reaching broad scale of people are being built. Apart from that we can say that ESG investing is gaining traction as sustainability has become an important consideration by investors before making any investment decisions. At the same time, regulatory reforms in this sector have been necessitated to promote transparency within the market so as to protect its participants’ interests. These changes translate into shifts in asset management practices today.
  • Japan: In Japan, technological change and demographic shifts are transforming the Asset Management industry. The adoption of digital tools and platforms has improved investment management practices and customer relationships for asset owners. In addition to that many Japanese portfolio managers consider putting some emphasis on ESG factors while constructing stocks portfolios for their clients nowadays. Also, strategies have been made well-tailored so as to meet up with retirees and long-term investors given that Japanese population is getting older every year. Consequently, there followed adjustments to investment policies and compliance obligations due to regulatory updates performed recently.
Features of the Global Asset Management Market

Market Size Estimates: Asset management market size estimation in terms of value ($B).

Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.

Segmentation Analysis: Asset management market size by various segments, such as by component, asset type, function, application, and region in terms of value ($B).

Regional Analysis: Asset management market breakdown by North America, Europe, Asia Pacific, and Rest of the World.

Growth Opportunities: Analysis of growth opportunities in different components, asset types, functions, applications, and regions for the asset management market.

Strategic Analysis: This includes M&A, new product development, and competitive landscape of the asset management market.

Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.

FAQ

Q1. What is the growth forecast for asset management market?

Answer: The global asset management market is expected to grow with a CAGR of 11.5% from 2024 to 2030.

Q2. What are the major drivers influencing the growth of the asset management market?

Answer: The major drivers for this market are the swift evolution of the digital landscape, the growing adoption of cloud-based it asset management solutions and the rising need for asset tracking.

Q3. What are the major segments for asset management market?

Answer: The future of the asset management market looks promising with opportunities in the infrastructure asset management, enterprise asset management, healthcare asset management, and aviation asset management markets.

Q4. Who are the key asset management market companies?

Answer: Some of the key asset management companies are as follows:
  • ABB
  • Adobe Systems
  • Brookfield Asset Management
  • Honeywell International
  • IBM
  • Oracle
  • Rockwell Automation
  • Siemens
  • WSP
  • Zebra Technologies
Q5. Which asset management market segment will be the largest in future?

Answer: Lucintel forecasts that solution will remain the larger segment over the forecast period due to its 2D code-reading capabilities, long-term reliability, and multiple code-reading abilities.

Q6. In asset management market, which region is expected to be the largest in next 5 years?

Answer: North America will remain the largest segment over the forecast period due to the rising adoption of interconnected, intelligent, and secure technologies for asset-centric applications.

Q.7 Do we receive customization in this report?

Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 11 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the asset management market by component (solution and service), asset type (digital assets, returnable transport assets, in-transit assets, manufacturing assets, and personnel/ staff), function (location & movement tracking, check in/ check out, repair & maintenance, and others), application (infrastructure asset management, enterprise asset management, healthcare asset management, aviation asset management, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?

Q.2. Which segments will grow at a faster pace and why?

Q.3. Which region will grow at a faster pace and why?

Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?

Q.5. What are the business risks and competitive threats in this market?

Q.6. What are the emerging trends in this market and the reasons behind them?

Q.7. What are some of the changing demands of customers in the market?

Q.8. What are the new developments in the market? Which companies are leading these developments?

Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?

Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?

Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?

For any questions related to Asset Management Market, Asset Management Market Size, Asset Management Market Growth, Asset Management Market Analysis, Asset Management Market Report, Asset Management Market Share, Asset Management Market Trends, Asset Management Market Forecast, Asset Management Companies, write Lucintel analyst at email: [email protected]. We will be glad to get back to you soon.

Market Report
1. EXECUTIVE SUMMARY

2. GLOBAL ASSET MANAGEMENT MARKET : MARKET DYNAMICS

2.1: Introduction, Background, and Classifications
2.2: Supply Chain
2.3: Industry Drivers and Challenges

3. MARKET TRENDS AND FORECAST ANALYSIS FROM 2018 TO 2030

3.1. Macroeconomic Trends (2018-2023) and Forecast (2024-2030)
3.2. Global Asset Management Market Trends (2018-2023) and Forecast (2024-2030)
3.3: Global Asset Management Market by Component
  3.3.1: Solution
  3.3.2: Service
3.4: Global Asset Management Market by Asset Type
  3.4.1: Digital Assets
  3.4.2: Returnable Transport Assets
  3.4.3: In-transit Assets
  3.4.4: Manufacturing Assets
  3.4.5: Personnel/ Staff
3.5: Global Asset Management Market by Function
  3.5.1: Location & Movement Tracking
  3.5.2: Check In/ Check Out
  3.5.3: Repair & Maintenance
  3.5.4: Others
3.6: Global Asset Management Market by Application
  3.6.1: Infrastructure Asset Management
  3.6.2: Enterprise Asset Management
  3.6.3: Healthcare Asset Management
  3.6.4: Aviation Asset Management
  3.6.5: Others

4. MARKET TRENDS AND FORECAST ANALYSIS BY REGION FROM 2018 TO 2030

4.1: Global Asset Management Market by Region
4.2: North American Asset Management Market
  4.2.1: North American Asset Management Market by Component: Solution and Service
  4.2.2: North American Asset Management Market by Application: Infrastructure Asset Management, Enterprise Asset Management, Healthcare Asset Management, Aviation Asset Management, and Others
4.3: European Asset Management Market
  4.3.1: European Asset Management Market by Component: Solution and Service
  4.3.2: European Asset Management Market by Application: Infrastructure Asset Management, Enterprise Asset Management, Healthcare Asset Management, Aviation Asset Management, and Others
4.4: APAC Asset Management Market
  4.4.1: APAC Asset Management Market by Component: Solution and Service
  4.4.2: APAC Asset Management Market by Application: Infrastructure Asset Management, Enterprise Asset Management, Healthcare Asset Management, Aviation Asset Management, and Others
4.5: ROW Asset Management Market
  4.5.1: ROW Asset Management Market by Component: Solution and Service
  4.5.2: ROW Asset Management Market by Application: Infrastructure Asset Management, Enterprise Asset Management, Healthcare Asset Management, Aviation Asset Management, and Others

5. COMPETITOR ANALYSIS

5.1: Product Portfolio Analysis
5.2: Operational Integration
5.3: Porter’s Five Forces Analysis

6. GROWTH OPPORTUNITIES AND STRATEGIC ANALYSIS

6.1: Growth Opportunity Analysis
  6.1.1: Growth Opportunities for the Global Asset Management Market by Component
  6.1.2: Growth Opportunities for the Global Asset Management Market by Asset Type
  6.1.3: Growth Opportunities for the Global Asset Management Market by Function
  6.1.4: Growth Opportunities for the Global Asset Management Market by Application
  6.1.5: Growth Opportunities for the Global Asset Management Market by Region
6.2: Emerging Trends in the Global Asset Management Market
6.3: Strategic Analysis
  6.3.1: New Product Development
  6.3.2: Capacity Expansion of the Global Asset Management Market
  6.3.3: Mergers, Acquisitions, and Joint Ventures in the Global Asset Management Market
  6.3.4: Certification and Licensing

7. COMPANY PROFILES OF LEADING PLAYERS

7.1: ABB
7.2: Adobe Systems
7.3: Brookfield Asset Management
7.4: Honeywell International
7.5: IBM
7.6: Oracle
7.7: Rockwell Automation
7.8: Siemens
7.9: WSP
7.10: Zebra Technologies


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