U.S. Asset Management IT Solution Market: Snapshot
The growing need for IT solutions for the management of assets such as equity, fixed income, real estate, commodities, and international investments is the key factor boosting the deployment and adoption of asset management IT solutions across the globe. Within the U.S., the need for asset management IT solutions is spurred by the increasing number and value of asset managers in the country. The U.S. Department of Commerce states that in 2015, U.S. asset managers held over US$51 trillion worth of long-term conventional assets under management, which amounted to slightly over 47.0% of the global funds that year.
The growth in exchange traded funds has also created a need for the management of IT solutions in the U.S. The market for asset management IT solutions in the country is projected to exhibit a CAGR of 5.1% from 2016 to 2024, rising from a valuation of US$828.5 mn in 2015 to US$1,298.2 mn by 2024.
On-premise Solutions Gain Preference over Cloud-based Deployment Model
By component, asset management IT services dominate the U.S. market. The service segment is expected to retain its lead throughout the forecast period as asset managers are looking to hire third-party service providers to automate their business processes. Within this segment, enterprise data management services hold the major share, followed by reporting solution and services. This sub-segment is also projected to register strong growth by 2024.
Based on application, the asset management IT solution market area is expected to expand at a CAGR of 4.9% from 2016 to 2024 owing to the growing number of wealth managers in the U.S. Within this segment, portfolio management accounted for the leading market share in 2015, which can be primarily attributed to the expanding customer base of investment management firms in the country.
The U.S. asset management IT solution market, by deployment model, is segmented into cloud-based, on-premise, and hybrid. On-premise software solutions account for the prominent share, followed by hybrid deployment. Owing to rising security concerns over cloud-based services and the need to prevent the leakage of clients’ critical information, on-premise deployment is expected to hold a significant share in the coming years.
Northeastern U.S. Records High Revenue Growth
The northeastern region of the U.S. is expected to lead the asset management IT solutions market, accounting for a share of over 42.0% in 2016. Retaining its dominance throughout the forecast period, this region is fueled primarily due to the presence of a large number of asset managers.
The asset management IT solutions market in the southern region of the country is expected to expand at a high CAGR of 6.1% during the forecast period. This growth can be attributed to the rise in number of investment management firms in order to meet the rising demand for asset management in the region. Furthermore, the adoption of Big Data in investment management supports the growth of the asset management IT solution market in the U.S.
The U.S. asset management IT solution market is immensely competitive in nature and most companies have been strategically aiming for long-term alliances with investment management firms. Some of the key players offering asset management IT solutions in the U.S. are 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.
U.S. Asset Management IT Solution Market: Overview
Asset management refers to managing tangible or intangible assets. An asset management company serves as an advisor to clients, with a goal to maximize returns. Asset management firms are hired by institutional investors such as pension funds, corporations, and high net worth individuals. The asset management firms need IT solutions for managing assets such as equity, fixed income, real estate, commodities, and international investments. These IT solutions consist mainly of software solutions for business operations including portfolio management, compliance, and trade execution among others.
U.S. Asset Management IT Solution Market: Scope and Methodology
The U.S. asset management IT solution market report provides an analysis of the U.S. asset management IT solution market for the period 2014 – 2024, wherein 2015 is the base year and the period from 2016 to 2024 is the forecast period. Data for 2014 has been included as historical information. The report covers all the prevalent trends playing a major role in the growth of the asset management IT solution market over the forecast period. It also highlights various drivers, restraints, and opportunities expected to influence the market growth during the said period.
The study provides a holistic perspective on market growth, throughout the above forecast period in terms of revenue estimates (in US$ Mn), across different geographies in the U.S., which include Northeast, Midwest, West and South. The report provides cross-sectional analysis of the U.S. asset management IT solution market in terms of market estimates and forecasts for all the segments across different geographic regions. This research report provides in-depth analysis of the U.S. asset management IT solution market on the basis components, deployment model and geography. The report also includes U.S. asset Management player profile and asset manager’s IT viewpoint deploying IT solutions and services for managing assets.
Some of the key analytical pointers in the research study include Porter’s Five Force Analysis, and key market indicators which include industry outlook of investment management firms (asset managers) in the U.S. and key mergers and acquisition in the field of asset management IT solutions from vendor as well as buyer’s point of view.
Applications encompassed in the research study include portfolio management, compliance, risk management, client statements & reporting, trade order management, workflow automation, benchmarking, and cash flow & accounting. Whereas services encompassed in the report scope include enterprise data management, data integration, reporting solutions & services, operation support & monitoring, application development and maintenance, and resource management
This research study on the U.S. asset management IT solution market provides a detailed analysis of various components and their respective applications and services. The report also offers in-depth analysis of various factors such as market drivers, restraints, and growth opportunities affecting the market dynamics. These factors enable the analysis of various trends that would impact the market during the forecast period from 2016 to 2024. The report includes a comprehensive coverage of the underlying economic and technological factors under key trend analysis influencing the asset management IT solution market.
U.S. Asset Management IT Solution Market: Competitive Dynamics
The report aims to provide strategic insights about the investment management firms deploying IT solutions with the detailed analysis of their requirements pertaining to IT solutions. Some of the key industry players in the asset management IT solution 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.
Key asset managers profiled in the research study along with their IT viewpoints and requirements include Barings Corporate Investors, Geode Capital Management, The Carlyle Group LP, Voya Investment Management, Lazard Asset Management, Bridgewater Associates and Hartford Investment Management. Co among others.
U.S. Asset Management IT Solution Market Segmentation:
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