The Latest Wealthtech Industry Statistics Explained
In 2020, the global WealthTech market was valued at USD 5.84 billion.
The statistic ‘In 2020, the global WealthTech market was valued at USD 5.84 billion’ indicates the total estimated value of the financial technology sector that provides technology-based solutions for wealth and investment management. This figure represents the combined revenue generated by companies offering software, platforms, and services aimed at enhancing the efficiency, accessibility, and automation of personal finance, wealth management, and investment activities on a global scale. The growing adoption of digital solutions in the financial industry, coupled with increasing demand for more personalized and tech-savvy wealth management services, has led to the substantial growth and valuation of the WealthTech market, reflecting the evolving landscape of financial technology and the ongoing digital transformation within the wealth management sector.
The global market of WealthTech is projected to reach USD 11.87 billion by 2026.
The statistic indicates that the global market for WealthTech, which refers to technology solutions in the wealth management industry, is expected to grow significantly and reach a value of USD 11.87 billion by the year 2026. This projection suggests a strong and steady expansion of the WealthTech market as financial institutions and investors increasingly adopt digital solutions to manage their wealth. Factors such as the growing demand for personalized and efficient wealth management services, technological advancements, and the rise of digital transformation in the financial sector are likely to drive this growth. The projected market value highlights the increasing importance and adoption of technology in the wealth management industry, signaling opportunities for innovation and growth in the sector.
Europe is projected to experience the highest growth in the WealthTech industry, with a CAGR of 15.6% from 2021-2026.
This statistic indicates that the WealthTech industry in Europe is expected to undergo significant growth over the next five years, with a compound annual growth rate (CAGR) of 15.6% from 2021 to 2026. This forecast suggests that the adoption of technology solutions within the wealth management sector in Europe is set to accelerate, potentially driven by factors such as increased digitization, changing consumer preferences, regulatory developments, and the emergence of innovative fintech companies. The projected growth rate of 15.6% signals a robust expansion in the WealthTech market, highlighting Europe as a region of particular opportunity and dynamism within the global wealth management industry.
In 2019, there were over 2,200 WealthTech companies worldwide.
The statistic states that in the year 2019, there were more than 2,200 WealthTech companies operating globally. WealthTech refers to technology-based solutions specifically designed for the wealth management industry, enabling companies to provide better financial services and manage assets more efficiently. The growth of WealthTech companies indicates an increasing trend towards the adoption of technology in the financial sector, highlighting the importance of innovation and digital solutions in the wealth management industry. The large number of WealthTech companies globally signifies a competitive landscape with a diverse range of offerings aimed at catering to the evolving needs of investors, financial advisors, and wealth management firms.
In 2020, North America held the largest share (34.8%) in the global WealthTech market.
In 2020, North America accounted for the largest proportion, at 34.8%, of the total global WealthTech market. This statistic indicates that North America was a key player in the WealthTech industry that year, surpassing other regions in terms of market share. The substantial share held by North America suggests a strong presence and influence of WealthTech companies and solutions in the region, highlighting potential opportunities for growth and innovation in the industry. This statistic provides useful insights into the distribution of market activity across regions and underscores the significance of North America in the WealthTech sector during that period.
The Robo-Advisory technology segment is predicted to grow at a high CAGR of 15.3% from 2021-2026.
This statistic indicates that the Robo-Advisory technology segment is expected to experience rapid growth over the period from 2021 to 2026, with a Compound Annual Growth Rate (CAGR) of 15.3%. This suggests that the adoption and utilization of Robo-Advisory technology, which uses algorithms and automation to provide financial advice and investment management services, is projected to increase significantly over the forecast period. Factors driving this growth may include increasing demand for efficient and cost-effective investment solutions, technological advancements in the financial industry, and the rising popularity of digital financial services. The high CAGR implies a strong upward trend in the market size and revenue potential for companies operating in the Robo-Advisory technology sector.
The WealthTech sector saw a drop in deals by nearly 50% during Q1 of 2020 due to the COVID-19 pandemic.
The statistic suggests that the WealthTech sector, which encompasses technology companies focused on wealth management and financial services, experienced a significant decline in the number of investment deals during the first quarter of 2020 as a result of the COVID-19 pandemic. The drop of nearly 50% in deals indicates a notable downturn in investor activity within the sector, potentially due to market uncertainty and economic instability caused by the global health crisis. This decrease in deals may imply reduced funding opportunities for WealthTech companies seeking capital for growth and innovation, reflecting the broader impact of the pandemic on financial markets and investment trends in the early months of 2020.
The AI in Wealth Management market size, a subcategory of WealthTech, is projected to reach USD 450.5 million by 2027.
The statistic indicates that the AI in Wealth Management market, which falls under the broader category of WealthTech (technology innovations in wealth management), is expected to expand significantly and reach a total market size of USD 450.5 million by the year 2027. This projection suggests a growing trend towards the adoption of artificial intelligence technology within the wealth management sector to enhance financial services and investment decision-making processes. The rise in market size reflects increasing demand for AI-driven solutions that can provide more personalized and efficient wealth management services to clients, as well as improve operational efficiencies for financial institutions.
China’s WealthTech market grew by 66% in 2020 boosted by its fintech industry.
The statistic indicates that China’s WealthTech market experienced a significant growth rate of 66% in 2020, largely driven by the development and expansion of its fintech industry. WealthTech refers to technology solutions that enable wealth management and investment services, and China’s fintech sector has been instrumental in enhancing the accessibility and efficiency of such services. The notable growth rate highlights the increasing adoption and demand for digital wealth management solutions in China, reflecting a broader trend towards technological innovation and digital transformation within the financial services industry in the country.
The use of AI for asset and wealth management was only 1% in 2016, and it’s expected to increase to 75% by 2025.
The statistic indicates a significant growth trend in the adoption of artificial intelligence (AI) within the asset and wealth management industry. In 2016, only 1% of firms were utilizing AI technology for managing assets and wealth, but this figure is forecasted to soar to 75% by 2025. This growth projection suggests a notable shift towards algorithmic and data-driven approaches to managing financial assets and portfolios. The expected surge in AI adoption reflects the industry’s recognition of the potential benefits of AI in terms of optimizing investment decisions, enhancing risk management, and improving operational efficiency. The increasing utilization of AI in asset and wealth management signifies a transformative period for the industry as it embraces technological innovation to drive better financial outcomes and services for clients.
50% of global wealth managers plan to partner with WealthTech providers to improve services.
The statistic suggests that half of wealth managers across the world are intending to collaborate with WealthTech providers as a strategic move to enhance their services. WealthTech refers to technology-based solutions specifically designed for the wealth management industry. By partnering with these technology providers, wealth managers aim to leverage innovative tools and platforms to streamline operational processes, enhance client experience, and deliver more personalized and efficient financial services. This trend underscores the increasing importance of technology in the wealth management sector as firms seek to stay competitive by embracing digital solutions to better serve their clients and manage their assets.
Robo-advisors are projected to be the fastest-growing technology in the WealthTech industry, with 20.8% growth in 2021.
The statistic suggests that robo-advisors are expected to experience rapid expansion within the WealthTech industry, indicating a projected growth rate of 20.8% in the year 2021. This figure signifies that robo-advisors, automated platforms that provide algorithm-based financial advice and investment management services, are poised to outpace other technologies within the WealthTech sector in terms of its rate of growth. The substantial projected growth rate indicates increasing adoption and interest in utilizing robo-advisors as a solution for wealth management and investment needs, highlighting the potential of this technology to disrupt and transform the traditional wealth management landscape.
References
0. – https://www.www.statista.com
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3. – https://www.www.bobsguide.com
4. – https://www.www.marketdataforecast.com
5. – https://www.www.finextra.com
6. – https://www.www.prnewswire.com
7. – https://www.www.fortunebusinessinsights.com
