Global Financial Advisory Services Market Overview:
Financial Advisory Services Market Size was estimated at 82.4 (USD Billion) in 2023. The Financial Advisory Services Market Industry is expected to grow from 86.26 (USD Billion) in 2024 to 138.52 (USD Billion) by 2032. The Financial Advisory Services Market CAGR (growth rate) is expected to be around 6.10% during the forecast period (2024 - 2032).
Key Financial Advisory Services Market Trends Highlighted
The Financial Advisory Services Market exhibits several prominent trends, including:
Rising demand for holistic financial planning: Individuals and businesses increasingly seek comprehensive advice encompassing wealth management, retirement planning, and tax strategies. This shift reflects growing financial complexities and the need for personalized guidance.
Technology-driven innovation: Digital platforms and artificial intelligence (AI) tools enhance advisor efficiency and accessibility. Clients benefit from real-time monitoring, automated portfolio management, and personalized recommendations.
ESG integration: Environmental, social, and governance (ESG) factors are gaining traction in investment decisions. Financial advisors are expected to incorporate ESG considerations into their advisory services to meet client preferences.
Cross-border advisory services: Globalization and the rise of remote work have fueled demand for cross-border advisory services. Advisors cater to clients with complex cross-jurisdictional financial needs.
Increased focus on succession planning: Aging advisors and the need for business continuity have spurred interest in succession planning. Financial advisory firms explore various models to ensure a smooth transition and preserve client relationships.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Financial Advisory Services Market Drivers
Rising Demand for Financial Planning and Wealth Management Services
The increasing complexity of financial markets and the growing need for individualized advisory services are the primary market drivers. Both individuals and corporations require professional advice and guidance for investing, retirement planning, tax optimization, and estate management. The broader acceptance of the importance of financial knowledge and the rising number of high-net-worth individuals also serve to boost the markets. Individuals and organizations are showing increased interest in all-encompassing solutions in the Financial Advisory Services Market Industry segment to achieve their financial targets and permanent financial protection.
Technological Advancements and Digitalization
Technological advancements and digitalization are transforming the financial advisory landscape. The adoption of artificial intelligence (AI), machine learning (ML), and data analytics is enabling financial advisors to provide more personalized and efficient services. Robo-advisors and automated investment platforms are gaining popularity, offering low-cost and convenient financial advice to a broader audience. Digital platforms and online tools are also making it easier for advisors to connect with clients and deliver tailored financial solutions.
Regulatory Changes and Compliance Requirements
Evolving regulatory frameworks and compliance requirements are shaping the Financial Advisory Services Market Industry. Governments worldwide are implementing stricter regulations to protect consumers and ensure the integrity of financial markets. These regulations are increasing the need for financial advisors to stay up-to-date with the latest regulatory changes and to adopt robust compliance measures. The increasing focus on transparency, disclosure, and fiduciary responsibilities is driving the demand for professional financial advice.
Financial Advisory Services Market Segment Insights:
Financial Advisory Services Market Type Insights
The Financial Advisory Services Market segmentation by Type includes Investment Advisory Services, Retirement Planning Services, Wealth Management Services, and Tax Planning Services. The market share of Investment Advisory Services was significant in 2023, and it is anticipated to sustain its dominance during the forecast period. This is ascribed to the growing requirement for personalized financial advice and investment management, which has been facilitated by the rise in the number of individuals with high net worth from the institutional sector.
In addition, there is an increase in the complexity of the financial market and specialized skills are required to manage the investments effectively. The second segment with a notable share in the Financial Advisory Services Market is Retirement Planning Services. The increased awareness about the need for retirement planning to ensure that there is regular income even after one has retired is driving the growth of this segment. Further, the high life expectancy and the increasing retirement population are commutatively adding up to the demand for this service, thus expanding the market further.Wealth Management Services is anticipated to grow at a substantial pace during the forecast period. The primary reason is the increasing number of ultra-high-net-worth people, as well as the severe concentration of wealth among them. This segment serves a broad range of purposes, including investment management and estate planning, as well as effective tax planning. The last Type that is of notable significance in the Financial Advisory Services Market is Tax Planning Services. There has been a surge in the number of tax laws and premiums in recent decades.This has further been accelerated due to the COVID-19 pandemic, which has forced governments to introduce new tax premiums and laws. Both the institutional and individual sectors are seeking planning advice to minimize tax liability.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Financial Advisory Services Market Client Type Insights
The Financial Advisory Services Market is segmented by Client Type into Individuals, High-Net-Worth Individuals (HNWI), Family Offices, and Institutions. Individuals are the largest segment, accounting for 45% of the market revenue in 2023. This segment is expected to continue to grow at a steady pace, driven by the increasing demand for financial advice from individuals seeking to manage their wealth and plan for their financial future. HNWI is the second largest segment, accounting for 30% of the market revenue in 2023. This segment is expected to grow at a faster pace than the overall market, driven by the increasing wealth of HNWI and their need for sophisticated financial advice.Family Offices are a niche segment, accounting for 15% of the market revenue in 2023. This segment is expected to grow at a moderate pace, driven by the increasing number of family offices and their need for comprehensive financial advisory services. Institutions are the smallest segment, accounting for 10% of the market revenue in 2023. This segment is expected to grow at a slow pace, driven by the increasing regulatory scrutiny and the need for institutions to manage their financial risks.
Financial Advisory Services Market Service Type Insights
The market is segmented based on service type into hourly billing, fee-based, and commission-based. Hourly billing is a common pricing model in the financial advisory industry, where clients are charged an hourly rate for the services provided. This model is often used for short-term or project-based engagements. Fee-based services, on the other hand, involve a fixed fee for a specific scope of work or a retainer for ongoing services. This model provides clients with more predictability and budgeting control. Commission-based services are typically associated with investment advisory services, where advisors earn a commission on the products or investments they recommend to clients.This model aligns the incentives of the advisor with the client's financial goals, as the advisor benefits from the client's success. The choice of service type depends on various factors, including the nature of the engagement, the client's preferences, and the advisor's expertise. Hourly billing is often suitable for short-term or ad-hoc projects, while fee-based services provide more stability and predictability for ongoing relationships. Commission-based services can be beneficial for clients seeking investment advice and wealth management solutions.
Financial Advisory Services Market Technology Adoption Insights
Technology adoption is transforming the Financial Advisory Services Market. In 2023, the market for technology adoption in financial advisory services was valued at USD 231.25 billion and is projected to reach USD 378.15 billion by 2032, exhibiting a CAGR of 5.2%. The traditional approach of in-person consultations remains significant, but digital and hybrid models are gaining traction. Digital platforms and mobile apps offer convenience, accessibility, and cost-effectiveness, driving their adoption. In 2023, the digital segment held a market share of 35.8%, which is expected to increase to 44.1% by 2032.Hybrid models combine the strengths of both traditional and digital approaches, providing flexibility and personalization. This segment is expected to witness the highest growth, with a CAGR of 6.1% over the forecast period. The growing preference for personalized and tailored financial advice is fueling the adoption of hybrid models.
Financial Advisory Services Market Regional Insights
The Financial Advisory Services Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional market, accounting for over 35% of the global market in 2023. The region is expected to maintain its dominance over the next decade, driven by the presence of a large number of financial institutions and a growing demand for advisory services from corporates and high-net-worth individuals. Europe is the second-largest regional market, with a share of over 30% in 2023. The region is expected to grow at a CAGR of 4.5% during the forecast period, driven by increasing regulatory complexity and a growing need for cross-border advisory services.APAC is the fastest-growing regional market, with a CAGR of over 5% during the forecast period. The region is expected to benefit from rising disposable income and increasing awareness of financial advisory services. South America and MEA are relatively smaller regional markets, but they are expected to grow at a healthy pace over the next decade.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Financial Advisory Services Market Key Players And Competitive Insights:
The intense competition in the Financial Advisory Services Market is augmenting the presence of the major players and their developments of new products and services that would cater to the requirements of their clients. The leading companies are generally more interested in investing in technology and innovation which can improve the overall service delivery and enhance their customers’ satisfaction. In addition to that, the Financial Advisory Services Market sector has a significant number of consolidation tendencies, whereby the larger firms are acquiring smaller companies.
The landscape of the sector will remain highly competitive, with the continuous emergence of new players and disruptive technologies. Considering the aforementioned trends, it might be stated that the Financial Advisory Services Market development will require a firm emphasis on the delivery of value-added services, building strong relationships with the customers, and technology utilization for the purpose of efficiency and innovation.
One of the main representatives of the Financial Advisory Services Market leading companies is Deloitte, which is a firm that offers a wide range of financial advisory services, including mergers, acquisitions, and other transactions, financial due diligence, and risk management. The company has a broad presence all across the globe and works with private and state-owned corporations, governments, and global financial institutions. Deloitte's main competitive advantages are the high quality of the services, innovation capabilities, and focus on the needs of the customers. The latter, combined with years of experience and a broad international network, makes the company one of the strongest players in the Financial Advisory Services Market.
PwC is a major competitor of Deloitte, which provides many of the Financial Advisory Services Market products and services that are offered by the aforementioned company. Specifically, PwC's products and services are concentrated across the areas of transaction advisory, risk consulting and management, and taxation issues. The company has a marked distinguishment of its global presence and works with small companies and major international corporations. PwC's services are distinct, as they are tailored to meet the individual needs of the customers, and the company's advantage lies in its industry knowledge and technological expertise.
Key Companies in the Financial Advisory Services Market Include:
Financial Advisory Services Industry Developments
The Financial Advisory Services Market is projected to reach USD 1090.9 billion by 2032, exhibiting a CAGR of 4.42% during the forecast period (2024-2032). The rising demand for personalized financial advice, growing awareness about financial planning, and increasing regulatory compliance requirements are primarily driving market growth.
Technological advancements, such as the adoption of artificial intelligence (AI) and machine learning (ML), are further enhancing the efficiency and accuracy of financial advisory services. Recent news developments include the acquisition of Wealthramp by Envestnet, Inc. in 2023, strengthening the latter's digital wealth management platform. Additionally, the launch of the "Financial Health Index" by the Financial Planning Association in 2024 aims to promote financial literacy and well-being.
Financial Advisory Services Market Segmentation Insights
-
Financial Advisory Services Market Type Outlook
-
Investment Advisory Services
-
Retirement Planning Services
-
Wealth Management Services
-
Tax Planning Services
-
Financial Advisory Services Market Client Type Outlook
-
Financial Advisory Services Market Service Type Outlook
-
Hourly Billing
-
Fee-Based
-
Commission-Based
-
Financial Advisory Services Market Technology Adoption Outlook
-
Traditional (In-Person Consultations)
-
Digital (Online Platforms and Mobile Apps)
-
Hybrid (Combination of In-Person and Digital Services)
-
Financial Advisory Services Market Regional Outlook
-
North America
-
Europe
-
South America
-
Asia Pacific
-
Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2023 |
82.4 (USD Billion) |
| Market Size 2024 |
86.26 (USD Billion) |
| Market Size 2032 |
138.52 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.10% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Fidelity National Information Services, S Global, Broadridge Financial Solutions, Raymond James Financial, The Blackstone Group, Boston Consulting Group, Goldman Sachs Group, PwC, Wells Fargo Company, Deloitte Touche Tohmatsu, Morgan Stanley, Ernst Young, JPMorgan Chase Co., Accenture, Bain Company |
| Segments Covered |
Type, Client Type, Service Type, Technology Adoption, Regional |
| Key Market Opportunities |
Rising demand for personalized financial adviceGrowing adoption of digital financial advisory servicesIncreasing regulatory requirements for financial advisory servicesExpanding middle class in emerging markets |
| Key Market Dynamics |
Increasing demand for strategic financial planningGrowing awareness of financial advisory services Technological advancements Regulatory changes Rise of digital financial advisory platforms |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Financial Advisory Services Market is expected to reach a valuation of 82.4 billion USD in 2023.
The Financial Advisory Services Market is anticipated to grow at a CAGR of 6.10% from 2024 to 2032.
North America is anticipated to maintain its dominance in the Financial Advisory Services Market throughout the forecast period.
Rising demand for financial planning and advisory services, increasing complexity of financial markets, and growing awareness of financial literacy are driving the growth of the Financial Advisory Services Market.
Major players in the Financial Advisory Services Market include Deloitte, PwC, EY, KPMG, and Bain Company.
Emerging trends in the Financial Advisory Services Market include the adoption of digital technologies, focus on sustainability, and increasing demand for specialized advisory services.
Challenges faced by the Financial Advisory Services Market include regulatory changes, competition from non-traditional players, and talent shortage.
The COVID-19 pandemic has accelerated the adoption of digital advisory services and increased the demand for financial planning and risk management services.
The Financial Advisory Services Market is projected to reach a valuation of 1090.9 billion USD by 2032.
Financial Advisory Services find applications in wealth management, investment planning, risk management, mergers and acquisitions, and financial restructuring.
