Wealth Management - Australia

Australia

Assets under Management in the Wealth Management market are projected to reach €1,792.00bn in 2024.
Financial Advisory dominates the market with a projected market volume of €1,778.00bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.30%, resulting in a market volume of €1,819.00bn by 2029.

Key regions: United States, United Kingdom, Germany, Hong Kong, Singapore

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Analyst Opinion

The Wealth Management market in Australia has been experiencing significant growth in recent years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Wealth Management market in Australia have been shifting towards a greater focus on personalized and holistic financial advice.

Clients are increasingly seeking tailored solutions that address their specific needs and goals, rather than relying on generic investment products. This shift is driven by a growing awareness of the importance of financial planning and the desire for a more comprehensive approach to wealth management. Additionally, there is an increasing demand for sustainable and socially responsible investment options, reflecting the growing importance of environmental and social considerations in investment decision-making.

Trends in the market further contribute to the development of the Wealth Management industry in Australia. One notable trend is the rise of digital platforms and robo-advisors, which offer automated and algorithm-driven investment advice. These platforms provide a convenient and cost-effective alternative to traditional wealth management services, particularly for tech-savvy and cost-conscious investors.

Additionally, there is a growing emphasis on financial education and literacy, with an increasing number of individuals seeking to educate themselves about investment strategies and financial planning. This trend is driving the demand for educational resources, online courses, and workshops in the Wealth Management market. Local special circumstances also play a role in shaping the Wealth Management market in Australia.

The country has a highly developed financial services sector, with a strong regulatory framework and a stable economy. This provides a favorable environment for wealth management firms to operate and attract clients. Additionally, Australia has a large and aging population, which creates opportunities for wealth management firms to cater to the retirement planning and wealth transfer needs of individuals and families.

Furthermore, the country's proximity to the Asia-Pacific region positions it as a gateway for international investors looking to access the Australian market and diversify their portfolios. Underlying macroeconomic factors also contribute to the development of the Wealth Management market in Australia. The country has experienced a prolonged period of economic growth, which has resulted in increased wealth accumulation and disposable income for individuals.

This has created a larger pool of potential clients for wealth management firms. Additionally, Australia has a strong superannuation system, with compulsory employer contributions and tax incentives for retirement savings. This system provides a stable and reliable source of funds for wealth management firms, as individuals seek to grow and manage their retirement savings.

In conclusion, the Wealth Management market in Australia is developing due to shifting customer preferences towards personalized and holistic financial advice, the rise of digital platforms and robo-advisors, a growing emphasis on financial education and literacy, local special circumstances such as a developed financial services sector and an aging population, and underlying macroeconomic factors such as economic growth and a strong superannuation system. These factors collectively contribute to the growth and evolution of the Wealth Management industry in Australia.

Methodology

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).