Asset Servicing Market Report 2025

The asset servicing market size has grown strongly in recent years. It will grow from $1.33 trillion in 2024 to $1.43 trillion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to client-centric solutions, market volatility and economic shifts, demand for specialized services, globalization of markets.

The asset servicing market size is expected to see strong growth in the next few years. It will grow to $1.89 trillion in 2029 at a compound annual growth rate (CAGR) of 7.2%. The growth in the forecast period can be attributed to adaptation to market volatility, client-centric solutions, risk management and cybersecurity, global economic trends, ESG (environmental, social, governance) integration. Major trends in the forecast period include transition to digital services, regulatory changes, globalization and market expansion, demand for ESG (environmental, social, governance) integration, cost efficiency and operational streamlining.

The growing population of retirees is anticipated to drive the expansion of the asset servicing market in the coming years. The retiree population consists of individuals aged 65 and older. Asset servicing providers play a crucial role in assisting retirees with managing their assets and investments to ensure they have sufficient income for their retirement. For example, the United States Census Bureau, a US government agency, projects that the number of people aged 65 and over will reach 80.8 million by 2040 and 94.7 million by 2060. Therefore, the rising retiree population is contributing to the growth of the asset servicing market.

Globalization serves as a significant catalyst for the growth of the asset servicing industry. A study on global asset servicing indicates that nearly 60% of asset services in Assets Under Administration (AUA) and Assets Under Contract (AUC) expect globalization to be a strong driver of market growth during the forecast period. Companies operating in the asset servicing sector are primarily focusing on the APAC markets and other emerging economies. Thus, globalization offers substantial opportunities for the expansion and development of the asset servicing market in the forecast period.

Leading companies in the asset servicing market are innovating by developing advanced products that incorporate technologies like autonomous asset management to enhance customer satisfaction and loyalty. Autonomous asset management involves utilizing artificial intelligence (AI) and machine learning (ML) technologies to automate investment decision-making and portfolio management. For example, in March 2024, Imrandd, a UK-based consultancy, launched ALERT, an AI-driven asset management software. ALERT leverages AI to monitor assets, forecast potential threats, and deliver actionable insights. Aimed at reducing inspection time and costs, ALERT provides real-time asset monitoring, predictive analytics, and a user-friendly dashboard. Imrandd's commitment to innovation has resulted in this pioneering software, which seeks to enhance asset performance and promote a safer, more sustainable future.

Robotic process automation (RPA) is a significant trend influencing the growth of the asset servicing market. RPA has the potential to reduce workforce numbers by 60-70% in the asset servicing industry while achieving cost savings of approximately 30-40%. RPA refers to a suite of software tools, commonly known as bots or robots, that automate repetitive or routine business processes currently handled by transaction processing teams or service centers. RPA can take over manual tasks involved in asset servicing, such as reconciliation, trade processing, and regulatory reporting, significantly decreasing the time required and improving cost-efficiency. For instance, the ANZ Banking Group was among the first to embrace RPA extensively, automating its HR, finance, and technology processes in its Bengaluru hub and creating thousands of bots.

In August 2023, Lansdowne Partners, a UK-based asset management company, acquired CRUX Asset Management for $1.1 billion. This acquisition enhances Lansdowne's UCITS capabilities and market positioning, offering CRUX access to Lansdowne's operational infrastructure and equity expertise. CRUX Asset Management, based in the UK, is an active equity investment manager catering to institutional and retail clients.

Major companies operating in the asset servicing market include JPMorgan Chase & Co., Wells Fargo Asset Management, Citigroup Inc., HSBC Holdings plc, Morgan Stanley Wealth Management, The Goldman Sachs Group Inc., UBS Group AG, Fidelity Personal and Workplace Advisors LLC, PNC Financial Services Group Inc., Charles Schwab Corporation, National Australia Bank Limited, BlackRock Inc., Mellon Investments Corporation, The Bank of New York Mellon Corporation, Ameriprise Financial Inc., State Street Corporation, Raymond James Financial Inc., Franklin Resources Inc., Northern Trust Corporation, Invesco Ltd., TD Ameritrade Investment Management LLC, Broadridge Financial Solutions Inc., CACEIS Bank S.A., Pictet Group, T. Rowe Price Investment Services Inc., BNP Paribas Securities Services, SimCrop A/S, Clearstream Banking S.A., United States National Bank.

North America was the largest region in the asset servicing market in 2024. Western Europe was the second largest region in the global asset management market share. The regions covered in the asset servicing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the asset servicing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Asset servicing encompasses a variety of financial services offered to institutional investors, asset managers, and other organizations engaged in capital management and investment. These services aid in the management, operation, and administration of investment assets.

The primary services provided in asset servicing include fund services, custody and accounting, outsourcing services, and securities lending. Securities lending is a process where shares of stock, commodities, derivative contracts, or other securities are lent to other investors or firms. Borrowers typically provide collateral in the form of cash, other assets, or a letter of credit when seeking a security loan. These services are extended to large enterprises, medium-sized and small enterprises, capital markets, as well as wealth management firms.

The asset servicing research report is one of a series of new reports that provides asset servicing statistics, including asset servicing industry global market size, regional shares, competitors with asset servicing shares, detailed asset servicing segments, market trends and opportunities, and any further data you may need to thrive in the asset servicing industry. This asset servicing research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The asset servicing market consists of revenues earned by entities by providing administration services through a central securities depository (CSD) or custodian in connection with the custody and/or safekeeping of financial instruments (e.g., the processing of corporate events or the handling of taxes) on a fee or commission basis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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