Market Research Report
Custody Services Global Market Opportunities And Strategies To 2030: COVID-19 Impact And Recovery
|Custody Services Global Market Opportunities And Strategies To 2030: COVID-19 Impact And Recovery|
Published: June 17, 2022
The Business Research Company
Content info: 249 Pages
Delivery time: 2-3 business days
“Custody Services Global Market Opportunities And Strategies To 2030: COVID-19 Impact And Recovery” from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global custody services market as it emerges from the COVID-19 shut down.
Where is the largest and fastest growing market for custody services? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? “The custody services market global report” from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's historic and forecast market growth by geography. It places the market within the context of the wider custody services market; and compares it with other markets.
The custody service market consists of sales of custody services by entities (organizations, sole traders and partnerships) that are involved in providing settlement, safekeeping, and reporting of customers' marketable securities and cash. Securities lending can allow a customer to make additional income on custody assets by loaning securities to approved borrowers on a short-term basis. Only goods and services traded between entities or sold to end consumers are included.
The companies in this industry typically settle trades, invest cash balances as directed, collect income, process corporate actions, price securities positions, and provide recordkeeping and reporting services.
The global custody services market reached a value of nearly $32,224.32 million in 2020, having increased at a compound annual growth rate (CAGR) of 5.6% since 2015. The market is expected to grow from $32,224.32 million in 2020 to $49,098.11 million in 2025 at a rate of 8.8%. The growth is mainly due to the increasing aging population, well-defined pension schemes, increases the demand for the custodians to handle funds. The market is expected to grow from $49,098.11 million in 2025 to $75,355.08 million in 2030 at a CAGR of 8.9%.
Growth in the historic period resulted from increase in income and personal savings, economic growth, market liberalization, and digitization. Factors that negatively affected growth in the historic period were high competition, rising cyber risk, and stringent regulations.
Going forward, increase in crypto currencies is increasing demand for crypto-custody service; increasing wealth of high-net-worth individuals, aging population, and rising demand for alternative investments will drive the growth. Factors that could hinder the growth of the custody services market in the future include risk of loss through custodian error or poor performance, and impact of COVID-19.
The custody services market is segmented by type into equity, fixed income, alternative assets and others. The fixed income market was the largest segment of the custody services market segmented by type, accounting for 64.3% of the total in 2019. Going forward also, the fixed income segment is expected to be the fastest growing segment in the custody services market, at a CAGR of 9.0%.
The custody services market is also segmented by service into core custody services, ancillary services, core depository services and other administrative services. The core custody services market was the largest segment of the custody services market segmented by service, accounting for 43.7% of the total in 2020. Going forward, the core depository segment is expected to be the fastest growing segment in the custody services market, at a CAGR of 8.8% during 2020-2025.
North America was the largest region in the global custody services market, accounting for 51.4% of the total in 2020. It was followed by Western Europe, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the custody services market will be the Western Europe and Asia Pacific where growth will be at CAGRs of 11.0% and 9.2% respectively during 2020-2025. These will be followed by Eastern Europe and North America, where the markets are expected to grow at CAGRs of 8.6% and 8.0% respectively.
The global custody services market is highly fragmented, with large number of small players. The top ten competitors in the market made up to 53.6% of the total market in 2020. Major players in the market include State Street Corporation, The Bank of New York Mellon Corporation, JPMorgan Chase & Co., Northern Trust Corporation and BNP Paribas S.A.
The top opportunities in the custody services market segmented by type will arise in the fixed income market segment, which will gain $11,181.6 million of global annual sales by 2025. The top opportunities in the custody services market segmented by service type will arise in the core custody services segment, which will gain $ 7,304.7 million of global annual sales by 2025. The custody services market size will gain the most in the USA at $6,082.1 million.
Market-trend-based strategies for custody services market include investing in block chain technology, restructuring to gain market share inorganically and remain competitive, investing in data management tools such as cloud computing to provide a seamless service, investing in cyber, and investing in robotic process automation (RPA) to increase efficiencies. Player-adopted strategies in the custody services market include expanding services in other geographies, enhancing custody services through connected services, enhancing business capabilities through collaborations and partnerships, providing custody and brokerage services for clients globally via contracts.
Player-adopted strategies in the custody service industry includes investing in expanding its services in other geographies, improving in acquisitions and mergers to strengthen their service offerings.
To take advantage of these opportunities, The Business Research Company recommends the custody services companies to focus on implementing block chain technology, focus on data management, focus on cybersecurity as top priority, expand operations in emerging markets, scale up through merger and acquisition activity, focus on online services, focus on competitive pricing, leverage social media to maximize reach, focus on aging populations, focus on high-net-worth individuals.