Europe Asset Management Market Outlook, 2029

Europe Asset Management Market Outlook, 2029

Europe has been growing over the years, reaching significant milestones. Europe is at the forefront of sustainable and responsible investing (SRI) initiatives, with an increasing focus on environmental, social, and governance (ESG) criteria in investment decision-making. Asset managers in Europe are incorporating ESG considerations into their investment strategies and product offerings to meet growing investor demand for socially responsible investments. European asset managers are embracing technology and innovation to enhance operational efficiency, improve client engagement, and deliver better investment outcomes. The adoption of digital platforms, data analytics, artificial intelligence, and machine learning is transforming how asset management firms operate and interact with clients. Furthermore, Europe is home to a substantial wealth management market, with high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) seeking sophisticated investment solutions and personalised wealth management services. Asset managers in Europe cater to the diverse needs of affluent clients through tailored investment strategies and holistic wealth management offerings. The industry landscape is characterised by a multitude of players, ranging from venerable multinational firms to agile boutique investment houses, each offering a spectrum of investment solutions tailored to diverse investor needs and preferences. Against the backdrop of a rigorous regulatory environment, Europe leads the charge in sustainable and responsible investing (SRI), with a growing emphasis on environmental, social, and governance (ESG) considerations in investment decision-making. Technological innovation is reshaping the industry, driving the adoption of digital platforms, data analytics, and artificial intelligence to enhance operational efficiency and deliver superior investment outcomes.

According to the research report, “Europe Asset Management Market Outlook, 2029,” published by Bonafide Research, the Europe Asset Management market is anticipated to grow with more than 25% CAGR from 2024–2029. The world's wealth resides in Europe, where wealthy people, families, and organisations look to professional asset management services to protect and increase their money. The need for advanced investment techniques and asset managers' wealth management solutions grows as wealth growth continues. Europe has an ageing population, with a growing number of individuals nearing retirement age. As retirees seek to ensure financial security and the longevity of their savings, the demand for retirement planning services and investment products that generate steady income streams becomes essential. Asset managers play a crucial role in designing retirement portfolios and providing income-generating solutions tailored to retirees' needs. Furthermore, Europe's pension funds and institutional investors represent significant drivers of demand for asset management services. Pension funds, insurance companies, endowments, and sovereign wealth funds allocate substantial assets to asset managers to achieve long-term investment objectives, including funding retirement benefits, managing insurance liabilities, and preserving capital. Furthermore, the growing awareness of environmental, social, and governance (ESG) factors among European investors drives demand for SRI products and strategies. Asset managers integrating ESG criteria into their investment processes attract investors seeking to align their investments with sustainability goals and ethical principles.

Major Drivers
• Demographic Trends: Demographic trends play a significant role in driving the European asset management market. Europe is experiencing profound demographic shifts characterised by an ageing population, changing household structures, and increasing life expectancy. As individuals plan for retirement, wealth preservation, and intergenerational wealth transfer, the demand for asset management services escalates. Older individuals seek investment strategies that provide steady income streams and preserve capital, while younger generations prioritise wealth accumulation and long-term financial planning. Asset managers tailor their offerings to meet the diverse needs and objectives of different demographic segments, offering retirement planning services, investment solutions for life events such as buying a home or starting a family, and inheritance planning strategies.
• Globalisation and Cross-Border Investments: Globalisation and cross-border investments are key drivers of the Europe Asset Management market, facilitating access to international markets, diversified investment opportunities, and economies of scale. Europe's interconnectedness with global markets and economies enables investors to access a wide range of asset classes, including equities, fixed income, commodities, and alternative investments, across different regions and countries. Asset managers with expertise in international markets attract investors seeking exposure to global investment opportunities while managing risks effectively. Cross-border investment flows contribute to the growth of the European asset management market by expanding the reach of asset managers operating in the region.

Major Challenges
• Regulatory Complexity: Europe's asset management industry operates in a highly regulated environment, with a complex web of regulations governing various aspects of asset management, including investor protection, product distribution, and risk management. Compliance with regulatory requirements, such as the Markets in Financial Instruments Directive (MiFID II), the Undertakings for Collective Investment in Transferable Securities (UCITS) directive, and the European Market Infrastructure Regulation (EMIR), requires significant resources and expertise. Navigating regulatory complexities poses challenges for asset managers in terms of regulatory reporting, compliance monitoring, and governance.
• Market Volatility and Uncertainty: Europe's asset management market is subject to market volatility, economic uncertainties, and geopolitical risks that can impact investment performance and investor sentiment. Fluctuations in asset prices, interest rates, and currency exchange rates can affect portfolio returns and pose challenges for asset allocation and risk management strategies. Managing market volatility and uncertainty requires active risk management, diversification, and adherence to investment objectives and mandates.

Based on the components, they are segmented into solutions and services. In terms of asset types, they are bifurcated into; digital assets, returnable transport assets, in-transit assets, manufacturing assets, and personnel and staff.

In Europe, the solution is to lead the market and be solution-focused. Understanding and meeting each investor's specific needs, objectives, and preferences is a top priority in asset management. Rather than providing generic investment products, asset managers provide customised solutions based on the financial goals, risk tolerance, and time horizon of their customers. Building long-term relationships between asset managers and investors is facilitated by this investor-centric strategy, which also improves customer satisfaction and builds confidence. Solution-oriented asset management emphasises risk management and mitigation strategies to protect investors' capital and preserve wealth. Asset managers employ sophisticated risk analytics, portfolio optimisation techniques, and diversification strategies to manage downside risk and volatility effectively. By offering comprehensive risk management solutions, asset managers help clients navigate uncertain market environments and achieve their investment objectives with greater confidence. Furthermore, digital assets contribute to the market, and institutional adoption of digital assets is gaining traction in Europe, with institutional investors, asset managers, and financial institutions exploring opportunities to incorporate digital assets into their investment strategies. Institutional-grade custody solutions, trading platforms, and regulatory frameworks are emerging to support institutional adoption of digital assets in Europe. Asset managers are positioning themselves to cater to institutional demand for digital asset investment products and services, including digital asset funds, structured products, and advisory services.

According to the report, the applications are categorised on the basis of infrastructure asset management, enterprise asset management, healthcare asset management, aviation asset management, and others.

In Europe, Aviation Asset Management contributes the highest market share. Europe is home to a significant portion of the global aviation industry, with major airports, airlines, aircraft manufacturers, and leasing companies operating across the region. The aviation sector plays a vital role in driving economic growth, facilitating trade and tourism, and connecting European countries with the rest of the world. Given the strategic importance of the aviation industry, aviation asset management holds a central position in managing and optimising aviation assets to support operational efficiency, profitability, and safety. Aviation assets, including commercial aircraft, engines, spare parts, and airport infrastructure, represent high-value investments with complex operational and financial considerations. Managing aviation assets requires specialised expertise in aircraft leasing, maintenance, financing, and regulatory compliance. Asset managers with domain knowledge and experience in aviation asset management are essential for optimising the value, utilisation, and lifecycle management of aviation assets across their entire operational lifespan. Furthermore, Europe is at the forefront of sustainable aviation initiatives aimed at reducing carbon emissions, improving fuel efficiency, and promoting environmentally friendly aviation practices. Aviation Asset Management plays a crucial role in supporting sustainable aviation initiatives by investing in modern, fuel-efficient aircraft, implementing eco-friendly maintenance practices, and exploring alternative propulsion technologies. Asset managers incorporate environmental, social, and governance (ESG) criteria into aviation asset management strategies to align with sustainable development goals and address stakeholder concerns about climate change and environmental impact.

Based on the report, the major countries covered include Germany, the UK, France, Italy, Spain, Russia, and the rest of Europe.

In Europe, Germany leads the asset management market. Germany boasts the largest economy in Europe and is a key player in the global economy. Its strong economic fundamentals, including stable GDP growth, low unemployment rates, and a robust industrial base, create a favourable environment for asset management activities. The country's economic strength attracts domestic and international investors seeking opportunities to invest in German assets, including equities, bonds, real estate, and alternative investments. Germany has a large and affluent population with significant investable assets, including high-net-worth individuals (HNWIs) and institutional investors. The country's strong tradition of savings and investment, coupled with a well-developed financial services industry, fuels demand for wealth management services, asset allocation strategies, and investment products offered by asset managers. German asset managers cater to the diverse needs and preferences of investors, providing tailored solutions for wealth preservation, retirement planning, and portfolio diversification. German asset management firms have a strong international presence and manage assets for clients worldwide. These firms benefit from Germany's reputation for financial stability, reliability, and quality of service, attracting clients from across Europe and beyond. German asset managers actively participate in cross-border investments, global asset allocation, and international partnerships, expanding their reach and influence in the global asset management market.

The major companies operating in the global industry are expanding the capabilities of their solutions by integrating various emerging technologies, such as machine learning, AI, and others. Also, the companies are adopting various growth strategies, including new product launches, strategic partnerships & collaborations, and mergers & acquisitions, to strengthen their product portfolios. The vendors operating in the global industry are adopting various organic and inorganic growth strategies, including new product launches, strategic partnerships & collaborations, and mergers & acquisitions, to strengthen their portfolios. For instance, in July 2021, SATO Holdings Corp. signed a contract with Wiliot Ltd., a provider of the IoT sensing label “Wiliot IoT Pixel” to introduce IoT in the retail field. With a three-year contract, the collaboration is a strategic partnership to establish retail market leadership. In April 2021, Zebra Technologies Corp. announced the new partner connect with Alliance Track, recognizing expertise and influence while allowing greater collaborative efforts with parallel, quasi-partners. Vendors are also expanding the capabilities of their solutions by integrating various emerging technologies, such as machine learning, AI, and others. These solutions are also evolving in line with the growing R&D investments in developing cloud-based predictive analytical solutions. Advances in technology and evolving digital solutions are equally paving the way for implementing asset management solutions across the globe.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Asset Management market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Component
• Solution
• Services

By Solution
• Real-Time Location System (RTLS)
• Barcode
• Mobile Computer
• Labels
• Global Positioning System (GPS)
• Others

By Services
• Strategic Asset Management
• Operational Asset Management
• Tactical Asset Management

By Asset type
• Digital Assets
• Returnable Transport Assets
• In-transit Assets
• Manufacturing Assets
• Personnel/ Staff

By Application
• Infrastructure Asset Management
• Enterprise Asset Management
• Healthcare Asset Management
• Aviation Asset Management
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Asset Management industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.