Dublin, Feb. 05, 2025 (GLOBE NEWSWIRE) — The “United States Asset Management Market, By Region, Competition, Forecast and Opportunities, 2020-2030F” report has been added to ResearchAndMarkets.com’s offering.
The United States Asset Management Market was valued at USD 52.08 Trillion in 2024, and is expected to reach USD 134.67 Trillion by 2030, rising at a CAGR of 17.22%
The U.S. asset management industry is set for substantial growth, driven by increasing demand for services. As the number of businesses in the region rises, the need for effective asset management becomes more critical. This trend offers asset management firms significant opportunities to expand their operations and enter new, developing markets.
The expected growth of the asset management market is largely due to solutions that improve operational efficiency, optimize resource allocation, and enhance profitability, ultimately leading to a notable increase in return on investment (ROI). In 2024, the U.S. is experiencing a surge in institutional investments, with pension funds, sovereign wealth funds, and insurance companies significantly increasing their capital allocations to asset management firms. By 2023, institutional investors, including government pension funds and private endowments, were responsible for over USD55 trillion in assets under management (AUM).
In 2024, the U.S. government introduced more stringent fiduciary guidelines to ensure asset managers prioritize the best interests of their clients. These regulations, affecting both retail and institutional investment firms, aim to strengthen investor protections. By 2023, over 75% of U.S. asset managers had already embraced fiduciary practices, with another 25% expected to adopt these standards in 2024.
Technological Advancements in Investment Tools
AI-driven insights and data analytics help asset managers make more informed, data-backed decisions, enhancing portfolio performance and minimizing risks. Moreover, technological advancements have facilitated better risk management through predictive analytics and real-time data processing. These innovations have made asset management services more accessible to a broader population, not just high-net-worth individuals, but also retail investors who seek low-cost, high-quality investment management. As technology continues to advance, the asset management market is expected to grow rapidly, driving both institutional and individual investor participation.
Growing Interest in Sustainable and ESG Investing
Another key driver of the United States Asset Management Market is the rising interest in sustainable investing, particularly through Environmental, Social, and Governance (ESG) criteria. As awareness of climate change, social justice, and corporate responsibility grows, investors are increasingly looking to align their portfolios with ethical and sustainable principles. Asset managers are responding by creating ESG-focused investment products, such as mutual funds, ETFs, and private equity funds, that emphasize companies with strong ESG credentials.
Market Volatility and Economic Uncertainty
Market volatility and economic uncertainty are major challenges for asset management firms in the United States. Asset managers must contend with unpredictable market conditions, including stock market fluctuations, geopolitical tensions, inflationary pressures, and changing interest rates. Such volatility can impact investment returns, making it more difficult to meet clients’ expectations of consistent growth. In times of economic uncertainty, investors may pull out funds, demand higher returns, or become more risk-averse, requiring asset managers to adjust their strategies accordingly.
Rise of Passive Investment Strategies
One of the most significant trends in the United States Asset Management Market is the continued shift toward passive investment strategies. In recent years, passive investing, particularly through Exchange-Traded Funds (ETFs) and index funds, has gained substantial popularity due to its cost-effectiveness and simplicity. Passive funds aim to replicate the performance of a specific market index rather than trying to outperform it, typically resulting in lower management fees and fewer transaction costs.
Investors are increasingly recognizing the long-term performance potential of these strategies, particularly in an environment where active managers struggle to consistently beat the market. In addition, passive investing has seen rapid growth due to the increasing availability of diversified, low-cost options that cater to a wide range of investor preferences. As a result, many traditional asset managers are expanding their passive product offerings to meet this growing demand. The trend toward passive investing has reshaped the competitive landscape of the asset management industry, with firms needing to adapt to the growing preference for low-fee, passive investment solutions.
Integration of Environmental, Social, and Governance (ESG) Criteria
The integration of Environmental, Social, and Governance (ESG) factors into investment strategies is another prominent trend in the United States Asset Management Market. As investors become more conscious of the social and environmental impact of their investments, there has been a growing demand for ESG-focused funds. Asset managers are increasingly incorporating ESG criteria into their investment processes, selecting companies that adhere to high standards in areas such as sustainability, corporate governance, ethical practices, and social responsibility.
This trend is being driven by several factors, including consumer demand for socially responsible investing, pressure from institutional investors, and regulatory changes that require greater transparency on ESG practices. Moreover, studies have shown that companies with strong ESG performance tend to exhibit lower risk and superior long-term returns, making ESG investing appealing not only from an ethical standpoint but also from a financial perspective. In response, asset managers are launching a wide range of ESG-focused investment products, including mutual funds, ETFs, and private equity funds.
Segmental Insights
Client Type Insights
In the United States Asset Management Market, retail clients are leading in terms of growth and investment volume. Retail investors have become increasingly active participants due to the rise of online trading platforms, robo-advisors, and mobile apps, making investing more accessible and cost-effective. The growing trend of financial literacy and a shift toward self-directed investing have also contributed to this growth. Retail investors, including individuals and high-net-worth individuals (HNWIs), now have greater access to a wide variety of investment products such as ETFs, mutual funds, and alternative assets.
Additionally, the low-cost nature of passive investment strategies has made investing more attractive to retail clients. In contrast, while pension funds, insurance companies, and banks remain significant players due to their large capital bases, the volume of investments from retail clients is outpacing these institutional investors, driven by the increasing popularity of digital platforms and the democratization of investment tools.
Regional Insights
The Northeast region dominated the United States Asset Management Market due to its concentration of financial institutions, wealth management firms, and institutional investors. Cities like New York, Boston, and Philadelphia are major financial hubs, housing some of the largest asset management firms, investment banks, and pension funds. The region’s robust financial infrastructure and proximity to Wall Street make it a key player in the U.S. market.
Additionally, the high concentration of high-net-worth individuals (HNWIs) and institutional clients in this region drives significant demand for sophisticated investment products and wealth management services. The Northeast also benefits from a well-educated population, with many professionals in the finance and investment sectors, further enhancing its dominance. This region’s strong economic base, coupled with its leadership in financial technology and innovation, makes it the central hub for asset management in the U.S., attracting both retail and institutional investors seeking diversified investment opportunities.
Key Attributes:
Report Attribute | Details |
No. of Pages | 85 |
Forecast Period | 2024 – 2030 |
Estimated Market Value (USD) in 2024 | $52.08 Trillion |
Forecasted Market Value (USD) by 2030 | $134.67 Trillion |
Compound Annual Growth Rate | 17.2% |
Regions Covered | United States |
Key Market Players
- BlackRock, Inc.
- JPMorgan Chase & Co.
- Goldman Sachs & Co. LLC
- Fidelity Brokerage Services LLC
- The Bank of New York Mellon Corporation
- The Vanguard Group, Inc.
- State Street Global Advisors
- Pacific Investment Management Company LLC
- Franklin Templeton
- Wellington Management Company LLP
Key Topics Covered:
1. Introduction
1.1. Market Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered
2. Research Methodology
2.1. Methodology Landscape
2.2. Objective of the Study
2.3. Baseline Methodology
2.4. Formulation of the Scope
2.5. Assumptions and Limitations
2.6. Sources of Research
2.7. Approach for the Market Study
2.8. Methodology Followed for Calculation of Market Size & Market Shares
2.9. Forecasting Methodology
3. Executive Summary
3.1. Market Overview
3.2. Market Forecast
3.3. Key Regions
3.4. Key Segments
4. Voice of Customer
4.1. Factors Influencing Availing Decision
4.2. Source of Information
5. United States Asset Management Market Outlook
5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Client Type Market Share Analysis (Retail, Pension Funds, Insurance Companies, Banks, Others)
5.2.2. By Asset Class Market Share Analysis (Equity, Fixed Income, Cash/Money Management, Alternative Investment, Others)
5.2.3. By Regional Market Share Analysis
5.2.3.1. South Market Share Analysis
5.2.3.2. West Market Share Analysis
5.2.3.3. Midwest Market Share Analysis
5.2.3.4. Northeast Market Share Analysis
5.2.4. By Top 5 Companies Market Share Analysis, Others (2024)
5.3. United States Asset Management Market Mapping & Opportunity Assessment
5.3.1. By Client Type Mapping & Opportunity Assessment
5.3.2. By Asset Class Market Mapping & Opportunity Assessment
5.3.3. By Region Market Mapping & Opportunity Assessment
6. South United States Asset Management Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Client Type Market Share Analysis
6.2.2. By Asset Class Market Share Analysis
7. West United States Asset Management Market Outlook
8. Midwest United States Asset Management Market Outlook
9. Northeast United States Asset Management Market Outlook
10. Market Dynamics
10.1. Drivers
10.2. Challenges
11. Market Trends & Developments
12. SWOT Analysis
12.1. Strength
12.2. Weakness
12.3. Opportunity
12.4. Threat
13. Policy & Regulatory Landscape
14. United States Economic Profile
15. Competitive Landscape
For more information about this report visit https://www.researchandmarkets.com/r/y9f3cj
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- U.S. Asset Management Market