Portfolio Management Software Market Size was estimated at 6.2 (USD Billion) in 2022. The Portfolio Management Software Market Industry is expected to grow from 6.98 (USD Billion) in 2023 to 20.38 (USD Billion) by 2032. The Portfolio Management Software Market CAGR (growth rate) is expected to be around 12.63% during the forecast period (2024 - 2032).
The more intricate finance markets are becoming, and the more sophisticated investment strategies are being developed, the more demand is for strong portfolio management software. Cloud-based solutions adoption has been recognized as an important trend that allows flexibility, scalability and cost optimization. Portfolio management is now being changed with the help of artificial intelligence (AI) and machine learning (ML), which automate tasks, improve decision-making, and provide personalized recommendations. Similarly, there is an increasing interest in environmental and social governance (ESG) integration as investors make sustainability a priority. Moreover, digital wealth management platforms are on the rise, presenting opportunities to software vendors who want to cater to retail investor requirements holistically.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
With an ever-evolving regulatory environment and the rise of more sophisticated financial markets, organizations have to handle their risks well and remain compliant. Companies can use this software for portfolio management to effectively identify, measure and mitigate these risks as it provides robust features for risk assessment and risk reporting. The ability of the program to also benchmark risk exposure against the companies’ risk tolerance makes it easier for them to adhere to the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act, MiFID (Markets in Financial Instruments Directive) under the EU.
Risk management tools such as these are useful to manage compliance processes alongside other logistical risks, consequently assisting firms in making sound decisions in a fast-changing regulatory environment.
Introduction The adoption of cloud-based solutions in the Portfolio Management Software Market Industry is on the rise. There are a number of advantages that organizations enjoy: these systems are highly scalable, cheaper, and easy to roll out. In addition, customers can get their portfolio data and analyze it anywhere as long as they have access to the internet. This leads to efficient collaboration as stakeholders can make real-time decisions.
Moreover, dependence on on-premises infrastructure and IT progress and deployment is not needed anymore.
Organizations are increasingly seeking portfolio management software that can be customized to meet their specific requirements. The ability to tailor the software to unique investment strategies, risk profiles, and reporting needs is crucial for effective portfolio management. Modern portfolio management software offers flexible customization options, allowing organizations to configure the platform according to their preferences. Additionally, seamless integration with other enterprise systems, such as accounting, risk management, and data analytics tools, is becoming increasingly important for efficient data sharing and streamlined operations.
Its segmentation is based on purpose and includes investment tracking, performance analysis, risk management, asset allocation, and financial planning. Investment tracking is expected to grow the most throughout the forecast period, with an estimated market share of over 35% in 2023. Performance analysis should also grow substantially, amounting to an estimated share of over 25% in the same period. Risk management, asset allocation, and financial planning should have shares of over 20%, about 15%, and around 10%, respectively, in 2023. Investment Tracking This is the most important purpose in the Portfolio Management Software market. Investment tracking is vital for the use of portfolio management software, as it allows investors to oversee their investments’ performance in real-time. The purpose is expected to grow the most throughout the forecast period due to the output’s enhanced precision. The main drivers of growth will be the rising popularity of digital systems intended for investments and the growing interest in self-directed investments. Investment tracking should amount to over 35% of the Portfolio Management Software Market in 2023. Performance Analysis This market purpose is also essential, as it enables owners of portfolios and their monitors or managers to compare the results with predetermined benchmarks and make educated decisions about the situation based on the comparison. The output should grow substantially because clients of various types will be gradually becoming more advanced and seeking more developed systems to facilitate the analysis of how well their investments are performing. Performance analysis should account for over 25% of the Portfolio Management Software Market by 2023. Risk Management The purpose of risk management is also vital for agents and customers engaged in investing. The output should grow steadily throughout the forecast period due to increasing fluctuations in world financial markets and their regulators’ growing emphasis on the mitigation of the associated risks.
Risk management should account for over 20% of the Portfolio Management Software Market in 2023. Asset Allocation This purpose is also important because it is the key to good and safe portfolio management. Diversifying between different assets minimizes the risk of financial losses and maximizes the opportunity for significant returns on investment. Asset allocation should grow moderately, as the potential clients will be progressively realizing its importance. Financial Planning While perhaps not the most important purpose, financial planning is also vital for the effective and lucrative management of assets. People are becoming increasingly aware of the necessity of preparing for the financial future and tend to prefer planning to meet financial advisors and receive help planning portfolios. Financial planning should account for about 10% of the market by 2023.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Portfolio Management Software Market segmentation by Deployment includes Cloud-based, On-premises, and SaaS. The segment of cloud-based deployment has the most sway and it is expected to maintain this dominance in the years to come. The growth of the cloud-based segment may be attributed to the increased adoption of cloud computing by firms of all types and sizes. Clients prefer using on-premise software since it provides them with several benefits, such as scalability, flexibility and cost-effectiveness. On-premises deployment is a traditional model where a client installs software on their own servers.
Some businesses still choose this deployment model if they are concerned about data security and control. SaaS stands for Software as a Service; this is one of the recent models used for deploying applications whereby vendors host software while customers access them via the Internet. SaaS is becoming more popular because it’s easy to use and has low total ownership costs.
In the large enterprises sector, growth can be linked to such factors as the growing acceptance of cloud-based portfolio management tools; the need for better risk control, and regulatory compliance requirements. The SME segment is anticipated to register high growth over the forecast period on account of increasing demand for low-cost portfolio management solutions and growing awareness about portfolio management software benefits. As a result, the individual investors segment is expected to grow continuously during the forecast period.
The Portfolio Management Software Market is segmented into five regions - North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The region's strong financial sector and the presence of leading technology providers contribute to its market dominance. Europe is the second-largest market and is expected to witness steady growth owing to the increasing adoption of portfolio management software by asset managers and institutional investors.APAC is the fastest-growing region, driven by rapid economic growth and the rising number of high-net-worth individuals in the region. South America and MEA are expected to witness moderate growth, primarily due to the increasing awareness of portfolio management software and the growing need for efficient investment management solutions in these regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Major players in the Portfolio Management Software Market industry are continuously investing in research and development to enhance their offerings and gain a competitive edge. Leading Portfolio Management Software Market players such as BlackRock, Inc., Capital Group, and Vanguard Group, among others, are focusing on expanding their operations globally to cater to the growing demand for portfolio management solutions. The Portfolio Management Software Market development is driven by the increasing adoption of cloud-based solutions and the rise of digital wealth management platforms.BlackRock, Inc. is a leading provider of portfolio management software solutions. The company's Aladdin platform is widely used by asset managers and institutional investors for portfolio construction, risk management, and performance analysis. BlackRock has a strong global presence and serves clients across different regions, including North America, Europe, and Asia-Pacific.
The company is actively investing in expanding its product portfolio and enhancing its technology infrastructure to meet the evolving needs of its clients. Fidelity Investments is another major competitor in the Portfolio Management Software Market. The company's Wealthscape platform is a comprehensive wealth management solution that includes portfolio management, financial planning, and trading capabilities. Fidelity has a strong focus on providing personalized investment advice and tailored solutions to its clients. The company is also actively engaged in developing new technologies and solutions to enhance the user experience and drive innovation in the wealth management industry.
The Portfolio Management Software Market is projected to reach USD 20.38 billion by 2032, exhibiting a CAGR of 12.63% during the forecast period. Growth in investment activities and increasing adoption of digital technologies in the financial industry are key factors driving market expansion.Recent developments include the integration of AI and machine learning into portfolio management software to enhance decision-making and risk management. Cloud-based solutions are also gaining popularity, offering scalability and cost-effectiveness. Partnerships between software providers and financial institutions are fostering innovation and expanding market reach.
| Report Attribute/Metric | Details |
| Market Size 2022 | 6.2 (USD Billion) |
| Market Size 2023 | 6.98 (USD Billion) |
| Market Size 2032 | 20.38 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 12.63% (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 | BlackRock, Broadridge Financial Solutions, BNP Paribas, Goldman Sachs, Fidelity Investments, Deutsche Bank, Northern Trust, Citigroup, Credit Suisse, Wells Fargo, Morgan Stanley, UBS, J.P. Morgan, Vanguard, State Street. |
| Segments Covered | Purpose, Deployment, Size of End-User, Regional. |
| Key Market Opportunities | Rising adoption of cloud-based portfolio management solutions. Growing demand for automated investment management tools. Increasing focus on risk and compliance management. The growing popularity of digital onboarding and customer self-service. Integration of AI and machine learning for enhanced portfolio performance. |
| Key Market Dynamics | Growing demand for automated investment solutions. Increasing adoption of cloud-based portfolio management platforms. Focus on risk and compliance management. |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Portfolio Management Software Market size was valued at USD 6.98 billion in 2023 and is projected to grow at a CAGR of 12.63% to reach USD 20.38 billion by 2032.
North America is expected to hold the largest market share in the Portfolio Management Software Market due to the presence of a large number of financial institutions and investment firms in the region.
The key growth drivers of the Portfolio Management Software Market include the increasing need for efficient portfolio management, the growing adoption of cloud-based solutions, and the rising demand for risk management tools.
The key competitors in the Portfolio Management Software Market include BlackRock, Inc., FactSet Research Systems Inc., Invesco Ltd., Fidelity National Information Services, Inc., and SS&C Technologies Holdings, Inc.
The major applications of Portfolio Management Software include investment management, risk management, performance measurement, and regulatory compliance.
The challenges faced by the Portfolio Management Software Market include data security concerns, the high cost of implementation, and the lack of skilled professionals.
The key trends in the Portfolio Management Software Market include the adoption of artificial intelligence (AI) and machine learning (ML), the increasing use of cloud-based solutions, and the growing demand for integrated solutions.
The Portfolio Management Software Market is expected to grow at a CAGR of 12.63% from 2024 to 2032.
The major factors driving the growth of the Portfolio Management Software Market include the increasing need for efficient portfolio management, the growing adoption of cloud-based solutions, and the rising demand for risk management tools.
The challenges faced by the Portfolio Management Software Market include data security concerns, the high cost of implementation, and the lack of skilled professionals.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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