Asset Management Statistics 2024: Global Insights, Regional Growth, and Technological Shifts
Barry Elad
Updated · Dec 03, 2024
The asset management industry has experienced tremendous growth over the past few decades, transforming how wealth is managed globally. In 2024, the industry is navigating through a period marked by significant innovations, increasing market complexities, and a growing emphasis on sustainability. Whether you’re an institutional investor, a private client, or a financial advisor, understanding the latest trends and developments in the asset management space is crucial. As we explore the landscape of 2024, we’ll dive deep into market sizes, key trends, and emerging forces shaping the future of asset management.
Editor’s Choice: Key Industry Trends and Milestones
- Global assets under management (AUM) reached an estimated $153 trillion in 2023, showing a 7% growth from 2022.
- The United States continues to dominate the asset management industry, with 55% of the global AUM, followed by Europe with 30%.
- Sustainable investment funds surged by 22% in 2023, reflecting increasing investor demand for ESG (Environmental, Social, Governance) focused portfolios.
- The rise of passive investing continues, with ETFs (Exchange-Traded Funds) now making up 35% of the total market share in managed assets.
- Artificial Intelligence (AI) and machine learning are playing a significant role in predictive analytics and risk management, with 40% of asset managers adopting AI-driven tools in their decision-making processes.
- Private equity and alternative assets have grown by 10% year-on-year, fueled by institutional investors seeking higher returns amid low-interest-rate environments.
- Digital transformation in asset management has seen 80% of firms incorporate cloud technology to streamline operations and improve data management.
Asset Management Market Size and Trends
- The global asset management market is projected to reach $155 trillion by the end of 2024, continuing its upward trajectory with a CAGR (Compound Annual Growth Rate) of 6.5% from 2020.
- North America leads the market, with over $50 trillion in AUM, while Asia-Pacific is the fastest-growing region, expecting 8% annual growth.
- In 2023, institutional clients—such as pension funds and sovereign wealth funds—accounted for 65% of the total AUM, while retail clients made up 35%.
- The alternative investment market grew significantly in 2023, reaching $13 trillion globally, driven by the increasing popularity of private equity and real estate funds.
- Sustainability-linked products have grown to represent 15% of the total asset management market, and this number is expected to reach 20% by 2025.
- Robo-advisory platforms have attracted significant interest, with assets under robo-management estimated at $4 trillion globally, reflecting a 24% increase from 2022.
- In the European Union, the focus on green finance initiatives is expected to drive more than $10 trillion of AUM into climate-aligned strategies by 2026.
| Metric | Value | Growth/Trend |
| Global Asset Management Market (2024 Projection) | $155 trillion | 6.5% CAGR (2020-2024) |
| North America AUM | $50 trillion | Leading region |
| Alternative Investment Market Size | $13 trillion | Growing interest in alternatives |
| Robo-Advisory AUM | $4 trillion | 24% growth from 2022 |
Market Concentration and Characteristics
- The top 10 global asset management firms control over $60 trillion in AUM, accounting for nearly 40% of the global market.
- BlackRock remains the world’s largest asset manager, overseeing more than $9.4 trillion in assets as of 2023, followed closely by Vanguard, managing $8 trillion.
- Boutique asset managers—those with specialized investment strategies—are seeing rising demand, particularly in areas like alternative assets and impact investing, which have experienced double-digit growth over the past three years.
- Mergers and acquisitions (M&A) within the asset management sector spiked in 2023, with $5 billion worth of deals, as firms sought to expand their capabilities in tech and ESG investing.
- Fee compression continues to affect traditional asset managers, with average fees dropping to 0.44% in 2023 from 0.50% in 2020 due to increased competition from passive and automated investment solutions.
- Active management has faced challenges, with only 35% of actively managed equity funds outperforming their benchmarks in 2023.
- The shift towards personalized portfolios, facilitated by AI-driven customization, is projected to reshape the asset management industry by 2025, allowing investors to create bespoke portfolios aligned with their values and financial goals.
Component Insights
- The software solutions segment in asset management is projected to grow at a CAGR of 12.8% between 2023 and 2027, reaching $15 billion in value by 2027, driven by the adoption of cloud-based platforms.
- Portfolio management tools are the fastest-growing component, contributing 35% of the software segment’s growth in 2023, as asset managers increasingly leverage data analytics to optimize portfolios.
- The demand for compliance and regulatory software surged by 20% in 2023, particularly in regions with strict regulatory frameworks like Europe and North America.
- Blockchain technology has gained traction, with 10% of global asset management firms utilizing blockchain for secure transaction processing, asset tokenization, and improving transparency.
- Artificial Intelligence (AI) is now integrated into 45% of asset management software solutions, helping automate decision-making, risk management, and client reporting processes.
- The integration of cybersecurity solutions within asset management systems is critical, with 70% of firms increasing their cybersecurity budgets after witnessing a 15% rise in attempted data breaches in 2023.
- Client relationship management (CRM) tools have become indispensable, with 80% of asset managers using CRM systems to enhance client engagement and retention.
| Component | Value |
| Software Segment Growth (CAGR 2023-2027) | 12.8% |
| Portfolio Management Tools Share | 35% |
| Compliance & Regulatory Software Growth | 20% |
| Blockchain Adoption | 10% |
| AI in Software Solutions | 45% |
| Cybersecurity Budgets Increase | 70% |
| CRM System Adoption | 80% |
Asset Type Insights
- Equities remain the most dominant asset type, making up 45% of global AUM in 2023, although fixed-income assets have grown steadily, representing 30% of portfolios globally.
- Real estate investments experienced an 8% increase in 2023, reaching $12 trillion in AUM, with a focus on green buildings and sustainable real estate developments.
- Private equity continues to expand, with $8 trillion in assets under management by the end of 2023, marking a 10% year-on-year growth, primarily driven by institutional investors seeking higher returns.
- Commodities as an asset class saw a resurgence in 2023, with a 12% increase in AUM, as investors sought hedges against inflation through investments in gold and energy resources.
- Infrastructure investments are expected to grow at a CAGR of 7% from 2023 to 2028, reaching $10 trillion, with significant interest in renewable energy and public-private partnerships.
- Hedge funds saw a moderate recovery in 2023, growing by 5%, reaching $4 trillion in AUM, as risk appetite among wealthy investors returned after pandemic-driven market volatility.
- The rise of ESG-aligned assets continues, with ESG-focused portfolios comprising $35 trillion globally in 2023, expected to surpass $50 trillion by 2025 as investors increasingly prioritize sustainability.
| Asset Type | AUM | Growth/Trend |
| Equities | 45% | Dominant asset type |
| Fixed Income | 30% | Steady growth |
| Commodities | 12% | Inflation hedge |
Function Insights
- Risk management functions within asset management have become increasingly automated, with 60% of firms using AI to predict and mitigate potential risks across portfolios.
- The role of asset allocation has been enhanced by advanced analytics tools, enabling 75% of asset managers to adopt a dynamic approach to allocation based on real-time market data.
- Liquidity management has gained prominence, with 20% of institutional investors prioritizing liquidity as a key function, particularly in volatile markets.
- Client reporting and communication functions have evolved, with 85% of asset managers implementing digital tools to provide real-time reporting and enhanced client transparency.
- Risk-adjusted performance measurement, through tools like Sharpe ratios and Sortino ratios, is now used by 90% of asset managers to evaluate portfolio performance more accurately.
- The rise of automated portfolio rebalancing tools has transformed portfolio management, with 40% of portfolios being rebalanced through AI-driven solutions based on pre-set criteria.
- Investment research functions have seen significant automation, with 35% of research now conducted using AI-powered tools that can analyze large datasets to identify potential investment opportunities.
Application Insights
- Wealth management accounts for 50% of the total applications in asset management, with a growing demand for customized financial products tailored to individual client needs.
- Institutional asset management remains a significant segment, controlling over 60% of global AUM, with pension funds and insurance companies being the largest clients.
- Retail investment platforms have surged, with robo-advisors managing $4 trillion in assets as of 2023, marking a 15% increase in user adoption due to low fees and accessibility.
- Pension funds represent a major application within asset management, with $35 trillion in AUM, projected to grow by 4% annually over the next five years.
- Insurance companies manage approximately $20 trillion in assets globally, using asset management solutions to optimize long-term returns on policyholder premiums.
- Sovereign wealth funds account for $11 trillion in AUM as of 2023, with these state-owned investment funds increasingly investing in alternative assets and infrastructure projects.
- Family offices continue to grow in prominence, managing $6 trillion globally, with a focus on diversified investments across public and private markets, including venture capital and philanthropy.
Regional Insights
- North America remains the largest asset management market, holding over $60 trillion in AUM in 2023, with a forecasted growth of 5% annually through 2025.
- Europe follows closely with $45 trillion in AUM, with sustainable investments driving much of the growth. The EU Green Deal has accelerated the shift toward ESG-focused funds, representing 25% of total assets in Europe.
- Asia-Pacific is the fastest-growing region, with $30 trillion in AUM as of 2023. This region is expected to grow at a CAGR of 8% through 2027, driven by increasing wealth in countries like China, India, and Japan.
- China‘s asset management market saw significant expansion, growing by 10% in 2023, with $12 trillion in AUM. The country’s regulatory reforms and the rise of middle-class investors are key growth drivers.
- Latin America‘s asset management industry reached $2.5 trillion in AUM in 2023, with Brazil and Mexico being the largest markets, benefiting from infrastructure investments and pension fund reforms.
- Middle East and Africa witnessed growth with $1.8 trillion in AUM, largely driven by sovereign wealth funds in the Gulf Cooperation Council (GCC) region, with a focus on infrastructure and renewable energy projects.
- In 2024, global cross-border asset flows are projected to increase by 12%, with Europe and Asia expected to be the primary contributors as global investors seek diversification in emerging markets.
Technology and Innovation in Asset Management
- Artificial Intelligence (AI) is transforming asset management, with 45% of firms using AI-driven analytics for decision-making, portfolio management, and risk assessment.
- Blockchain technology is making waves in the industry, with 20% of global asset managers now incorporating blockchain for secure transactions and smart contracts, leading to improved transparency and reduced operational costs.
- Robo-advisors have captured the attention of younger, tech-savvy investors. By 2024, $5 trillion is expected to be under robo-advisory management, marking a 25% increase from 2023.
- Data analytics plays a crucial role in asset management, with 70% of firms using big data to enhance client insights and improve predictive market analysis.
- Machine learning algorithms are now being deployed by 30% of asset managers to optimize asset allocation and risk-adjusted returns.
- The adoption of cloud computing in asset management has soared, with 85% of firms moving their operations to the cloud to enhance scalability and cost-efficiency.
- The tokenization of assets, particularly in real estate and private equity, is gaining momentum. Tokenized assets are expected to represent $1 trillion by 2025, enabling fractional ownership and broadening access to illiquid assets.
Outlook for Alternative Asset Managers
- Private equity continues to thrive, with AUM in this segment expected to reach $9 trillion by the end of 2024, reflecting a 12% annual growth rate. Institutional investors are increasingly drawn to its potential for higher returns.
- Venture capital funds saw a 10% increase in 2023, with $1.2 trillion in AUM, as technology and biotech sectors remain attractive targets for investors.
- The hedge fund industry, while facing competition from passive strategies, still holds $4.5 trillion in assets, with performance-based fee structures expected to evolve to retain clients.
- Real assets, such as infrastructure and natural resources, are projected to grow by 8% annually through 2026, with investors seeking stable, inflation-resistant returns.
- Real estate investment managers reported $13 trillion in AUM in 2023, with demand for green buildings and sustainable developments expected to rise, particularly in urban areas.
- Private debt is becoming an increasingly popular alternative asset class, with $1.7 trillion under management in 2023, driven by institutional demand for higher yields in a low-interest-rate environment.
- Impact investing, which focuses on generating social and environmental benefits alongside financial returns, is expected to reach $2 trillion in AUM by 2025, as investors increasingly prioritize sustainability and ethical considerations.
Recent Developments
- BlackRock announced plans to acquire a $2 billion stake in a leading fintech firm, further integrating artificial intelligence into its investment management processes.
- Vanguard expanded its suite of ESG-focused funds in 2023, attracting $5 billion in new assets, reflecting a growing investor demand for socially responsible investments.
- Goldman Sachs launched its new private equity fund focused on renewable energy, raising $3 billion in 2023 to capitalize on the global shift toward clean energy.
- Fidelity Investments introduced a new AI-powered robo-advisor, which is expected to manage $50 billion by 2025, appealing to a new generation of investors seeking low-cost, tech-driven solutions.
- JP Morgan Asset Management launched a $10 billion infrastructure fund in 2023, aimed at developing sustainable energy projects in emerging markets.
- State Street Global Advisors completed its acquisition of a leading European asset manager, expanding its reach into the growing passive investing market in the region.
- In 2024, Morgan Stanley is expected to roll out blockchain-based asset management services, becoming the first major firm to fully integrate blockchain into its core operations.
Conclusion
The asset management industry in 2024 is poised for substantial growth, driven by technological innovation, evolving investor preferences, and the expansion of alternative investments. As AI, blockchain, and ESG investments reshape the landscape, asset managers will need to stay agile and adapt to these emerging trends. The global market is expected to continue expanding, offering both opportunities and challenges. Firms that embrace digital transformation, prioritize sustainability, and offer customized solutions will be best positioned to thrive in the years ahead. Investors, whether institutional or retail, are likely to benefit from a more dynamic and transparent asset management ecosystem.
Sources
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
