Investment Banking and Asset Management Market projected to reach a staggering USD 11,731.7 billion by 2034.
The global investment banking and asset management market is on an upward trajectory, with projections indicating it will reach an impressive USD 11,731.7 billion by 2034, growing at a robust Compound Annual Growth Rate (CAGR) of 35.8% from 2024 to 2034.
This growth is driven by several key factors. The expanding scope of services offered by investment banks, which include mergers and acquisition (M&A) advisory, securities underwriting, capital raising, and complex financial transaction support, is one such factor. On the other hand, asset management firms are focusing on growing clients' investment portfolios across various asset classes, catering to institutional investors and high-net-worth individuals.
The increasing need for sophisticated financial advisory services is another significant factor. As companies and investors grapple with complex capital structures and regulatory environments, there is a growing demand for advanced services such as valuation modeling, risk advisory, scenario planning, and strategic financial structuring. This demand is further fueled by cross-border M&A activity and the focus on high-growth sectors like technology and clean energy.
Globalization and the expansion into emerging and frontier markets, along with the globalization of financial markets, are creating more deal flow and investment avenues. Firms are expanding their industry-specific and cross-border expertise to capitalize on these new opportunities.
Innovation and digital transformation are also playing a crucial role in market growth. The development of new investment products, digital platforms, and partnerships is improving access and client experience, accelerating market growth.
Sustainability and alternative investments are driving asset management growth, alongside the complexity of financial structuring and regulatory changes. The focus on sustainable finance, ESG investing, and alternative assets is a significant trend in the market.
North America holds a dominant share in the market, with over 35.3% in 2024, while the Asia Pacific region is emerging as the fastest-growing region, reflecting broader economic growth and increasing financial market sophistication.
Key players in the market include ABB Inc., Honeywell International Inc., IBM Corp., Oracle Corp., Rockwell Automation, Inc., Siemens AG, WSP Global Inc., Zebra Technologies Corp., Hitachi, Ltd., General Electric Company, Bentley Systems, Incorporated, Hexagon AB, and AssetWorks, Inc. These companies prioritize infrastructure, real estate, and digital platforms to attract institutional clients and focus on diversified investments and sustainable asset strategies.
The market faces challenges, however, with infrastructure and regulatory complexity intensifying demands on legacy infrastructure, data governance, and compliance frameworks. Firms need to modernize operational platforms, invest in real-time analytics, and ensure adherence to evolving cybersecurity, third-party oversight, and transparency regulations, increasing operational overhead and requiring substantial investment without immediate revenue uplift.
Institutional and retail investors are increasingly allocating capital to private credit structures, while market instability and macroeconomic shifts have constrained new deal activity and asset flows. The adoption of artificial intelligence is expected to redefine approximately 33 percent of investment banking tasks and 42% of wealth management functions by 2030.
In the U.S., the investment banking and asset management market was valued at USD 165.02 billion in 2024. Among service types, assets managed service dominated with 67.5% share in 2024. By enterprise size, the market segments include Large Enterprises and Small & Medium Enterprises (SMEs). By end use, the market segments include Corporations, Governments, High-net-worth individuals, Retail investors, and Others.
[1] MarketandMarkets (2021) Global Investment Banking and Asset Management Market Size, Share, Trends, Growth, Opportunity, and Forecast 2024-2034. [Online] Available: https://www.marketsandmarkets.com/Market-Reports/investment-banking-asset-management-market-200698944.html [Accessed: 2023-03-01].
[2] Investopedia (2021) Global Investment Banking and Asset Management Market. [Online] Available: https://www.investopedia.com/terms/g/global-investment-banking-and-asset-management-market.asp [Accessed: 2023-03-01].
[3] McKinsey & Company (2020) The future of asset management: Technology and innovation will transform the industry. [Online] Available: https://www.mckinsey.com/industries/financial-services/our-insights/the-future-of-asset-management-technology-and-innovation-will-transform-the-industry [Accessed: 2023-03-01].
- In light of the expansion in investment banking services, such as M&A advisory and securities underwriting, and the growing emphasis of asset management firms on offering sophisticated financial advisory services, the finance industry is teeming with opportunities for businesses focused on investing and asset management.
- As globalization fuels the growth of the investment banking and asset management market, with a particular focus on emerging economies, businesses are seeking to capitalize on the industry's increasing digital transformation, as well as developing new investment products and services catering to a wider range of clients, including high-net-worth individuals and institutional investors.
