Financial Advisory Services Market Size - By Service Type (Investment Advisory, Tax Planning, Financial Planning, Risk Management, Business & Corporate Finance, Wealth Management), Asset Class, Organization Size, End User & Global Forecast, 2023 – 2032
Published Date: March - 2025 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationFinancial Advisory Services Market Size
Financial Advisory Services Market was valued at USD 85.1 billion in 2022 and is expected to register a CAGR of more than 5.5% from 2023 to 2032. Increased investments in AI are strongly fueling the growth of the market. AI solutions provide advanced data analysis, predictive analytics, and customized financial insights. These solutions simplify advisory operations, allowing more precise risk estimation, customized investment plans, and automated portfolio management.
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For instance, in September 2023, Research & Ranking introduced AI-based financial mentors, Vasu and Vidya, with an objective of democratizing finance by simplifying intricate ideas for more people. Employing AI, the business is looking to advance financial literacy in India as a whole, making complex financial concepts more understandable and accessible to people looking for full-fledged financial education.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Financial Advisory Services Market Size in 2022 | USD 85.1 Billion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 5.5% |
| 2032 Value Projection | USD 146.8 Billion |
| Historical Data for | 2018 to 2022 |
| No. of Pages | 261 |
| Tables, Charts & Figures | 348 |
| Segments covered | Service Type, Asset Class, Organization Size, End User, and Region |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
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The world-wide migration of financial advisory firms to online platforms is increasing the size of the financial advisory services market. Greater accessibility via online platforms provides greater outreach, better client engagement, and cost-efficient services. This attracts the notice of new customers and increases the overall efficiency & reach of financial advisory services, fueling market growth. For example, in February 2023, Wells Fargo introduced the LifeSync digital platform (available only to wealth and investment management customers), which provides real-time goal monitoring, financial metric tracking, customized content, and direct access to financial advisors. The integrated platform empowers customers with customized insights, improving financial management and enabling easy communication with the advisors.
Maintaining consistently high levels of service for various clients and generating superior investment returns in fluctuating market conditions is not easy. It demands constant watchfulness, market savvy, and responding to changing financial environments. It gives rise to the challenge of maintaining excellence and delivering consistent returns on various investment portfolios in the face of fluctuating market conditions and client expectations.
COVID-19 Impact
The pandemic of COVID-19 had a negative impact on the market of financial advisory services. Volatility in the market, economic uncertainty, and job losses led to cautious spending habits, which affected investments. Lockdowns restricted face-to-face client meetings, which disrupted client-advisor relations. The market experienced lower revenues since clients reduced discretionary spending, which caused advisory fee decline. Generally, economic pressure brought about by the pandemic and market unpredictability slowed market performance in financial advisory services
Financial Advisory Services Market Trends
Personalization of financial advisory services means a move towards creating bespoke financial solutions. Customers want customized advice suited to their specific financial objectives, risk appetite, and taste. Financial planners use fact-based information and technology to develop customized investment plans, providing a more targeted solution. This development allows services to be exactly suited to each client's individual scenario, enhancing satisfaction, participation, and the efficacy of financial planning.
The increasing use of robo-advisors is an indication of growing dependence on algorithm-based advisory services in the financial sector. Robo-advisors utilize algorithms to provide computerized & inexpensive investment advice, asset allocation, and portfolio management. This phenomenon is suited to technology-savvy investors in need of inexpensive solutions. It offers effective & affordable investment advice and streamlines the investment process. It is also appealing to a wider segment and is changing the way financial advisory services are delivered.
Financial Advisory Services Market Analysis
Get to know more about the prime segments driving this market
In terms of service type, the investment advisory segment will experience 5% CAGR over the forecast period, attributable to the changing investor needs coupled with a dynamic industry environment. Growing complexity in investment alternatives as well as the changing financial markets fuel the call for specialized counsel. Investors are looking for customized solutions for their portfolio, retirement, and risk management. The increased demand for differentiated & diversified investment plans and higher returns in a rapidly changing market is driving segment growth.
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By organization size, the market size of the large enterprises segment of financial advisory services was greater than USD 45 billion as of 2022. Larger companies with massive market presence and varied financial needs are more interested in availing specialized financial advisory services to ensure maximum cash flow, risk mitigation, and strategies for financial development, driving growth in the segment. For example, in September 2023, Morgan Stanley rolled out an AI assistant to help financial advisers and their back-office teams. The technology will provide cognitive help, using AI to automate processes, enhance decision-making, and optimize the overall operational efficiency of the market. Search for region specific data?
North America financial advisory services market accounted for 40% of the revenue share in 2022. The region hosts many high-net-worth individuals and corporations with intricate financial needs, which drives the demand for sophisticated financial advice & investment strategies. For instance, in April 2023, Kroll launched a property insurance valuation platform to help clients better navigate economic volatility. The platform helps clients navigate economic volatility by delivering comprehensive, timely, and expert-driven insights for property insurance valuation.
Financial Advisory Services Market Share
Major companies operating in the financial advisory services industry are
- Ameriprise Financial
- Bank of America Merrill Lynch
- BlackRock
- Charles Schwab
- Citigroup Inc.
- Goldman Sachs
- JPMorgan Chase & Co.
- Morgan Stanley
- UBS Group AG
- Wells Fargo Advisors
Morgan Stanley and UBS Group AG are dominant in financial advisory services due to their extensive global presence, robust financial expertise, and comprehensive service offerings. Both firms possess a strong track record in investment banking, wealth management, and strategic advisory services, attracting clients through their established reputations, innovative solutions, and a vast network of skilled professionals, securing their positions as industry leaders.
Financial Advisory Services Industry News
- In October 2023, Unchained, a Bitcoin financial service provider, launched the service, Sound Advisory. This platform offers registered investment advisor services specifically tailored for those looking to integrate Bitcoin investments, providing expert guidance and strategies for incorporating cryptocurrency into their investment portfolios.
The financial advisory services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments
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Market, By Service Type
- Investment advisory
- Tax planning
- Financial planning
- Risk management
- Business & corporate finance
- Wealth management
- Others
Market, By Asset Class
- Equities
- Fixed income
- Real estate
- Alternative investments
- Commodities
- Others
Market, By Organization Size
- SMEs
- Large enterprises
Market, By End User
- Healthcare
- E-commerce & retail
- BFSI
- IT & telecom
- Manufacturing
- Transportation & logistics
- Others
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordics
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- South Africa
- Saudi Arabia
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