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

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

Financial Advisory Services Market Size

Financial Advisory Services Market size was valued at USD 85.1 billion in 2022 and is projected to grow at a CAGR of over 5.5% between 2023 and 2032. The rising investments in AI are significantly boosting the market growth. AI technologies enable sophisticated data analysis, predictive analytics, and personalized financial insights. These advancements streamline advisory processes, facilitating more accurate risk assessments, tailored investment strategies, and automated portfolio management.

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For instance, in September 2023, Research & Ranking launched AI-driven financial mentors, Vasu and Vidya, with the aim to democratize finance by simplifying complex concepts for a wider audience. Using AI, the company aims to enhance financial literacy across India, making intricate financial principles more accessible and understandable for individuals seeking comprehensive financial education.

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The global shift of financial advisory firms to digital channels is expanding the financial advisory services market. Increased accessibility through digital platforms offers wider outreach, improved client engagement, and cost-effective services. This garners the attention of new clients and enhances the overall efficiency & reach of financial advisory services, driving market growth. For instance, in February 2023, Wells Fargo launched the LifeSync digital platform (exclusive to wealth and investment management clients), which offers real-time goal tracking, financial metric monitoring, tailored content, and direct links to financial advisors. The comprehensive platform empowers clients with personalized insights, enhancing financial oversight and facilitating seamless communication with the advisors.

Achieving consistently high service levels for diverse clients and producing superior investment returns in varying market conditions can be challenging. This requires constant vigilance, market acumen, and adapting to dynamic financial landscapes. It leads to the challenge of sustaining excellence and ensuring consistent returns across diverse investment portfolios amidst the changing market conditions and client expectations.

COVID-19 Impact

The COVID-19 pandemic negatively affected the financial advisory services market. Market volatility, economic uncertainties, and job losses induced cautious spending, impacting investments. Lockdowns limited in-person client meetings, disrupting client-advisor relationships. The market saw reduced revenues as clients scaled back discretionary spending, leading to a decline in advisory fees. Overall, pandemic-induced economic strain and market unpredictability hindered market performance in financial advisory services

Financial Advisory Services Market Trends

Personalization in financial advisory services signifies a shift toward crafting individualized financial solutions. Clients seek tailored advice that aligns with their unique financial goals, risk tolerance, and preferences. Financial advisors employ data-driven insights and technology to create personalized investment strategies, offering a more focused approach. This trend ensures that services are precisely aligned with each client's specific circumstances, improving satisfaction, engagement, and the effectiveness of financial planning.

The rising adoption of robo-advisors reflects the increasing reliance on algorithm-driven advisory services in the financial market. Robo-advisors leverage algorithms to offer automated & cost-effective investment advice, asset allocation, and portfolio management. This trend caters to tech-savvy investors seeking low-cost solutions. It provides efficient & accessible investment guidance while simplifying the investment process. It also appeals to a broader demographic and is reshaping the delivery of financial advisory services.

Financial Advisory Services Market Analysis

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Based on service type, the investment advisory segment is set to witness 5% CAGR during the forecast period, due to the evolving investor needs as well as a shifting industry landscape. Increased complexities in investment options and the evolving financial markets drive the demand for specialized advice. Investors seek tailored guidance for their portfolios, retirement planning, and risk management. The rising demand for specialized & diversified investment strategies and the quest for higher returns in dynamic markets are propelling segment growth.

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Based on organization size, the financial advisory services market size of large enterprises segment held over USD 45 billion in 2022. With a substantial market presence and diverse financial requirements, larger enterprises are inclined toward seeking specialized financial advisory services to optimize cash flow, risk management, and financial growth strategies, fueling segment growth. For instance, in September 2023, Morgan Stanley launched an AI-powered assistant to aid financial advisers and their support teams. This technology will provide cognitive assistance, leveraging AI to streamline processes, improve decision-making, and enhance the overall operational efficiency within the market.  

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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  

Frequently Asked Questions (FAQ)

How big is financial advisory services market?

The market size of financial advisory services reached USD 85.1 billion in 2022 and is set to grow at a CAGR of over 5.5% between 2023 and 2032, favored by the rising investments in AI.

How are large enterprises influencing financial advisory services industry dynamics?

The large enterprises segment was valued at over USD 45 billion in 2022, as these organizations have a strong position and diverse financial requirements, thus seeking specialized financial advisory services to optimize cash flow, risk management, and financial growth strategies.

What factors are fueling the growth of North America financial advisory services market?

North America held a dominant market share of over 40% in 2022 and maintain the position as the region hosts a large number of high-net-worth individuals and corporations with intricate financial needs, which drives the demand for sophisticated financial advice & investment strategies.

Who are the main financial advisory service providers?

Ameriprise Financial, Bank of America Merrill Lynch, BlackRock, Charles Schwab, Citigroup Inc., Goldman Sachs, JPMorgan Chase & Co., Morgan Stanley, UBS Group AG, and Wells Fargo Advisors.