$2.92T Global Wealth Management Industry by 2029: Report

Demographic changes, among other factors, are expected to propel the global wealth management market to $2.92 trillion, up from $1.85 trillion, over the next five years, representing an average compound annual growth rate of 8%, according to a new report.

According to ResearchAndMarkets.com, the expansion is being fueled by several factors “reshaping the industry,” including demographic transitions, including an increasing number of ultra-high-net-worth investors, intergenerational wealth transfer, and technological advances, which will offset headwinds from regulatory obstacles and cybersecurity concerns.

The company predicts that robo-advisors will grow in popularity because of their low cost and digital-native appeal, which it said is particularly valued by millennials and Generation Z.

While wirehouses continue to be the leading channel, the research predicts that registered investment advisory firms will rise due to demand for fiduciary advice and customized service.

“Wealth management remains a sector with enduring growth potential, driven by growing household and entrepreneurial wealth, underfunded retirement savings, over-reliance on non-financial assets, individual responsibility for retirement, and intergenerational wealth transfer,” the company said in the report.

Other growth drivers include current “trends” including environmental, social, and governance investing, and RIA consolidation.

The adoption of technologies such as artificial intelligence, blockchain, and big data will help to fuel growth, while digitization and automation will increase efficiency and attract more investors, the report added.