The global wealthtech solution market is projected to expand significantly, increasing from US$ 54.62 million in 2021 to US$ 137.44 million by 2028. This growth represents a compound annual growth rate (CAGR) of 14.1% during the period from 2021 to 2028.
WealthTech solutions play a crucial role in helping clients meet their financial goals. These solutions provide numerous advantages, including enhanced portfolio management, improved asset liquidity, greater cost transparency, and superior customer service. Such benefits are driving the rising demand for WealthTech solutions. Furthermore, these tools are employed for various purposes, including wealth planning management, process digitization and outsourcing automation, retirement savings, digital customer relationship management, and thorough financial data analysis. WealthTech products facilitate strategic planning for integrated employer stock modeling, cash flow management, advanced tax planning, estate planning, and legacy planning. Collectively, these features contribute to the robust growth of the wealthtech solution market.
The surge in automation adoption across various sectors is a significant factor propelling the wealthtech solution market's expansion. By leveraging WealthTech solutions, both small consulting firms and large banks can better understand the evolving demands of a new generation of clients, who seek technology-driven financial solutions, automatic portfolio rebalancing, and efficient portfolio construction. Key players in the WealthTech sector are dedicated to transforming the industry by identifying and addressing inefficiencies within the financial services value chain. However, the market's growth faces challenges due to the high costs associated with WealthTech solutions and a general lack of financial investment expertise, processes, resources, methodologies, and funding.
The wealthtech solution market is categorized by components into solutions and services. In 2020, the solutions segment dominated the market, holding a larger share. When segmented by end user, the market includes banks, wealth management firms, and other entities, with wealth management firms capturing the largest market share in 2020. Additionally, the market is divided by organization size into large enterprises and small to medium-sized enterprises, with large enterprises also accounting for a significant market share in 2020. Regarding deployment mode, the market is split between cloud-based and on-premises solutions, with the cloud-based segment leading in market share in 2020. Geographically, the market is divided into regions including North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with North America holding a substantial share of the global market in 2020.
According to the latest report from the World Health Organization (WHO), countries such as the US, India, Spain, Austria, France, Germany, UK, Switzerland, Turkey, Brazil, Iran, and China have been severely impacted by the COVID-19 pandemic. The crisis has disrupted industries globally, leading to a significant downturn in the economy, which was particularly pronounced in 2020 and has continued into 2021. The pandemic has caused major disruptions in key industries such as food and beverage, healthcare, energy and power, electronics and semiconductors, petroleum, and chemicals. The decline in these industrial activities has adversely affected the growth of the global WealthTech solution market, as these sectors are vital sources of supply and demand for WealthTech products and services.
The overall size of the wealthtech solution market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the wealthtech solution market across all segments. Additionally, primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the wealthtech solution market.
Several prominent companies are active in the wealthtech solution market, including FinMason, Inc., aixigo AG, InvestCloud, Inc., WealthTechs Inc., Valuefy Solutions Private Limited, 3rd-eyes analytics AG, BlackRock, Inc., Synechron, Wealthfront Inc., and InvestSuite.