Transparency Market Research has observed that the degree of competition in the U.S. asset management IT solutions market is rather high owing to the growing presence of leading players in the country. Low initial capital investments and less-differentiated product offerings have also resulted in increased rivalry among the competitors.
Major industry participants include Hewlett Packard Enterprise Development LP, FundCount, SoftTarget Inc., SimCorp Inc., QED Financial System, eFront Financial Solutions, Broadridge Investment Management Solutions, ProTrak International, SunGard Financials, and CreditPoint Software.
Partnerships and acquisitions were among the key strategies adopted by players in order to sustain in the U.S. asset management IT solutions market and strengthen their presence. Partnerships have been primarily observed with regional asset managers that provide IT infrastructure management solutions.
The opportunity in the U.S. market for asset management IT solutions is projected to be worth US$1,298.2 mn by 2024. Rising from a valuation of US$828.5 mn in 2015, the market will exhibit a CAGR of 5.1% during the forecast period.
Asset Management IT Services Take Lead in U.S. Market
The U.S. asset management IT solution market, by deployment model, is led by on-premise software solutions, which is projected to hold a 43.6% share by the end of 2016. Recording a 5.8% CAGR during the course of the forecast period, the hybrid solutions segment presents immense scope for growth.
By component, asset management IT services take the lead in the U.S. market and are likely to continue this trend through 2024. Enterprise data management services hold the major share within this segment. Within the asset management IT application segment, portfolio management accounted for the leading market share in 2015.
Based on geography, the northeastern region of the U.S. is anticipated to dominate the asset management IT solutions market, accounting for a share of more than 42.0% in 2016. On the other hand, the asset management IT solutions market in the southern part of the country is expected to register a strong CAGR of 6.1% from 2016 to 2024.
Complexities and Compliances of Financial Regulations Boost Adoption of IT Solutions
TMR has noted an ongoing growth in exchange traded funds (ETFs) in the U.S., brought on by tax efficiency and high returns associated with them. This, in turn, has created a need for asset management IT solutions. “Asset management companies need comprehensive IT solutions that can help maintain a record of price fluctuations and offer support to the asset manager so as to maximize the returns on an asset,” the author of the study says.
Another factor driving the need for IT solutions is the complexities in financial regulations by the U.S. Government. Compliances such as the Foreign Account Tax Compliance Act and the Dodd-Frank Act have given rise to new reporting requirements for asset managers, which boosts the adoption of asset management IT solutions.
In contrast, concerns over data security pose a major threat to the development of the asset management IT solutions market. “Asset management companies house critical data pertaining to the financials of leading companies and high net-worth individuals and the growing adoption of digitalization in the banking process has also brought to the fore the shortcomings of various technologies, such as cloud-based computing,” the lead analyst states. An alarming rise in the incidence of cybercrimes also hampers the widespread adoption of asset management IT solutions.
This review is based on the findings of a TMR report titled “Asset Management IT Solution Market - U.S. Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
U.S. Asset Management IT Solution Market, by Component
- Portfolio Management
- Risk Management
- Client Statements & Reporting
- Trade Order Management
- Workflow Automation
- Cash Flow & Accounting
- Enterprise Data Management
- Data Integration
- Reporting Solutions & Services
- Operation Support & Monitoring
- Application Development and Maintenance
- Resource Management
U.S. Asset Management IT Solution Market, by Deployment Model
U.S. Asset Management IT Solution Market, by Geography