Wealth Management - India

India

Assets under Management in the Wealth Management market are projected to reach €494.10bn in 2024.
Financial Advisory dominates the market with a projected market volume of €356.80bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.28%, resulting in a market volume of €526.50bn by 2029.

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

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Analyst Opinion

The Wealth Management market in India has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to the development of the Wealth Management market in India.

Customer preferences: Indian customers have shown a growing interest in wealth management services due to several factors. Firstly, the increasing disposable income among the middle class has led to a greater need for professional financial advice to manage their wealth effectively. Secondly, the desire to diversify investment portfolios and seek higher returns has driven individuals to seek the expertise of wealth managers. Lastly, the growing awareness about the importance of financial planning and the need for long-term wealth preservation has also contributed to the demand for wealth management services in India.

Trends in the market: One of the key trends in the Wealth Management market in India is the shift towards digital platforms. Increasing internet penetration and smartphone usage have made it easier for customers to access wealth management services online. This trend has led to the emergence of digital wealth management platforms, which offer convenience, transparency, and personalized investment advice to customers. Additionally, there has been a rise in the popularity of robo-advisors, which use algorithms to provide automated investment recommendations based on customers' risk profiles and financial goals. Another trend in the market is the focus on holistic financial planning. Wealth management firms in India are increasingly offering a wide range of services beyond traditional investment advice, including tax planning, estate planning, insurance, and retirement planning. This shift towards comprehensive financial planning is driven by the recognition that customers' financial goals and needs are interconnected and require a holistic approach.

Local special circumstances: India's large population and growing middle class present a significant opportunity for the Wealth Management market. The increasing affluence of the middle class, coupled with the rising number of high-net-worth individuals, has created a sizable customer base for wealth management services. Moreover, the cultural preference for saving and investing for the future has further fueled the demand for wealth management services in India.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Wealth Management market in India. The country's strong economic growth, supported by factors such as demographic dividend, urbanization, and government initiatives to promote financial inclusion, has created a conducive environment for wealth creation. Additionally, the liberalization of the financial sector and the introduction of regulatory reforms have improved the transparency and accountability of wealth management services, boosting customer confidence. In conclusion, the Wealth Management market in India is experiencing robust growth due to customer preferences for professional financial advice, the shift towards digital platforms, the focus on holistic financial planning, the country's large population and growing middle class, and the underlying macroeconomic factors. As the market continues to evolve, wealth management firms in India will need to adapt to changing customer needs and preferences, embrace digital technologies, and provide comprehensive financial planning solutions to stay competitive.

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).