Wealth Management - Japan

Japan

Assets under Management in the Wealth Management market are projected to reach €5,804.00bn in 2024.
Financial Advisory dominates the market with a projected market volume of €5,747.00bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.07%, resulting in a market volume of €5,824.00bn by 2029.

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

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Analyst Opinion

The Wealth Management market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese investors have traditionally been risk-averse and have preferred to invest in low-risk assets such as government bonds and cash. However, there has been a shift in customer preferences towards higher-risk investments such as equities and alternative assets. This change in customer preferences can be attributed to several factors, including the low interest rate environment and the need for higher returns in a stagnant economy.

Trends in the market: One of the key trends in the Wealth Management market in Japan is the increasing demand for personalized and tailored investment solutions. Japanese investors are becoming more sophisticated and are seeking customized investment strategies that align with their individual financial goals and risk tolerance. This trend is driving the growth of wealth management firms that offer a wide range of investment products and services. Another trend in the market is the growing popularity of robo-advisors. Robo-advisors are digital platforms that use algorithms to provide automated investment advice and portfolio management services. These platforms are gaining traction in Japan due to their low fees and convenience. They appeal to tech-savvy investors who prefer a do-it-yourself approach to investing.

Local special circumstances: Japan has a rapidly aging population, which presents both challenges and opportunities for the Wealth Management market. On one hand, the aging population means that there is a growing need for retirement planning and wealth preservation services. On the other hand, the shrinking working-age population and low birth rate pose challenges for wealth managers in terms of attracting and retaining clients.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the Wealth Management market in Japan. The low interest rate environment has made traditional fixed-income investments less attractive, leading investors to seek higher returns in other asset classes. Additionally, the government's efforts to promote financial literacy and increase investment in the stock market have contributed to the growth of the wealth management industry. In conclusion, the Wealth Management market in Japan is experiencing growth due to changing customer preferences, including a shift towards higher-risk investments and a demand for personalized investment solutions. The market is also being driven by trends such as the increasing popularity of robo-advisors. Local special circumstances, such as Japan's aging population, present both challenges and opportunities for wealth managers. Underlying macroeconomic factors, such as the low interest rate environment and government initiatives, are also contributing to the growth of the market.

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).