Asset Servicing Global Market Opportunities And Strategies To 2031

This report describes and explains the asset servicing market and covers 2016-2021, termed the historic period, and 2021-2026 termed the forecast period, along with further forecasts for the period 2026-2031. The report evaluates the market across each region and for the major economies within each region.

The global asset servicing market reached a value of nearly $1,031.1 billion in 2021, having grown at a compound annual growth rate (CAGR) of 6.2% since 2016. The market is expected to grow from $1,031.1 billion in 2021 to $1,682.1 billion at a rate of 10.3%. The market is then expected to grow at a CAGR of 9.4% from 2026 and reach $$2,630.6 billion in 2031.

Growth in the historic period resulted from a rise in the number of high net worth individuals, digitization, and economic growth in emerging markets. The market was restrained by rising cybercrime risk, stringent regulations, and effect of covid-19 on companies.

Going forward, increasing retiree population, increasing wealth of high net worth individuals, rising demand for alternative investments, rising ETFs, rising urbanization, and increasing investments. Factors that could hinder the growth of the asset servicing market in the future include increasing fintech firms.

The asset servicing market is segmented by service into fund services, custody and accounting, outsourcing services, securities lending. The custody and accounting market was the largest segment of the asset servicing market segmented by service, accounting for 69.22% of the total in 2021. Going forward, the securities lending segment is expected to be the fastest growing segment in the asset servicing market segmented by service, at a CAGR of 13.79% during 2021-2026.

The asset servicing market is segmented by end-user into capital markets and wealth management firms. The capital markets market was the largest segment of the asset servicing market segmented by end-user, accounting for 74.6% of the total in 2021. Going forward, the wealth management firms segment is expected to be the fastest growing segment in the asset servicing market segmented by end-user, at a CAGR of 12.5% during 2021-2026.

The asset servicing market is segmented by enterprise size into large enterprises and medium and small enterprises. The large enterprises market was the largest segment of the asset servicing market segmented by enterprise size, accounting for 82.6% of the total in 2021. Going forward, the large enterprises segment is expected to be the fastest growing segment in the asset servicing market segmented by enterprise size, at a CAGR of 10.5% during 2021-2026.

North America was the largest region in the asset servicing market, accounting for 51.5% of the total in 2021. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the asset servicing market will be Western Europe, and, Asia-Pacific where growth will be at CAGRs of 11.5% and 11.4% respectively. These will be followed by Africa, and, North America where the markets are expected to grow at CAGRs of 10.3% and 9.6% respectively.

The global asset servicing market is consolidated with small number of large players dominating the market. The top ten competitors in the market made up to 2.30% of the total market in 2021. State Street Corporation was the largest competitor with 0.53% share of the market, followed by BlackRock with 0.47%, The Bank of New York Mellon with 0.38%, Northern Trust with 0.36%, HSBC with 0.15%, JPMorgan Chase with 0.13%, Citi Private Bank with 0.11%, BNP Paribas with 0.08%, UBS Group with 0.06%, and Crédit Agricole S.A. (CACEIS) with 0.04%.

The top opportunities in the asset servicing market segmented by service will arise in the custody and accounting market segment, which will gain $393.1 billion of global annual sales by 2026. The top opportunities in the asset servicing market segmented by end-user will arise in the capital markets market segment, which will gain $440.0 billion of global annual sales by 2026. The top opportunities in the asset servicing market segmented by enterprise will arise in the large enterprises market segment, which will gain $549.0 billion of global annual sales by 2026. The asset servicing market size will gain the most in the USA at $247.2 billion.

Market-trend-based strategies for the asset servicing market include focus on cloud-based platforms, focus on artificial intelligence (AI) applications, focus on robotic process automation, focus on big data analytics, focus on application programming interfaces (APIs) and focus on blockchain integration.

Player-adopted strategies in the asset servicing market include focus on investing in new product launches, geographical expansions and strategic collaborations and partnerships to strengthen product offerings and technological advancements.

To take advantage of the opportunities, the publisher recommends the asset servicing companies to focus on robotic process automation, invest in cloud-based platforms, focus on application programming interfaces (APIs), use big data analytics, integrate artificial intelligence in asset servicing, use blockchain technology, expand in emerging economies, offer competitive prices, continue to use B2B promotions and target fast-growing end-users.