| Study Period | 2019 - 2032 |
| Market Size in 2024 | USD 557.5 Billion |
| Market Size in 2025 | USD 604.9 Billion |
| Market Size by 2032 | USD 1139.6 Billion |
| Projected CAGR | 9.5% |
| Largest Region | Northeast |
| Fastest Growing Region | Midwest |
| Market Structure | Fragmented |
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The size of the U.S. portfolio management & investment advice market in 2024 was USD 557.5 billion, and it will reach USD 1139.6 million by 2032 at a CAGR of 9.5% during 2025–2032 The market is growing because of the changing investor preferences, technological advancements, and increasing size of the assets under management. Other major drivers for the market are the rise in the number of high-net-worth individuals, increasing demand for retirement planning, changing government regulations, increasing preference for personalized financial advice, volatile financial markets, and surging popularity of ESG investments.
The market is led by institutional investors with a share of 50%. Their large capital reserves and long-term investment horizons create a sustained demand for complex advisory services. In 2024, the total assets under management in U.S.-listed ETFs reached USD 10 trillion, due to increase adoption of retail and institutional investors.
The client types analyzed here are:
Financial planning & wealth management is largest category with a share of 40%. These services include retirement planning, estate management, and tax optimization. The rising client interest in total financial guidance creates a demand for financial planning and wealth management services. In April 2024, the U.S. Department of Labor issued the Retirement Security Rule on entities and individuals that can be qualified investment advice fiduciary for the Employee Retirement Income Security Act. The department also released final amendments to class-prohibited transaction exemptions (PTEs) for investment advisors.
The service types analyzed here are:
Active vs passive investment management had the largest share, of 60%, in 2024. Consumers prefer passive investment funds because of their low costs. Moreover, these funds track market indices to provide global market exposure. Passive investment strategies are effective during volatile market performance and against poor long-term loss from active managers who cannot beat market rates. The use of direct indexing facilitates customization and creates opportunities for tax-loss harvesting.
The investment strategies analyzed here are:
Traditional wealth management firms lead with a share of 30%. Financial institutions give clients detailed financial advice, manage estates, and optimize taxes for individuals with wealth exceeding USD 5 million. Due to their well-established industry reputation and vast resources, they offer tailor-made advice.
The distribution channels analyzed here are:
Registered investment advisors are the leading regulatory with a share of 35%. The total count of SEC-registered investment advisor records was 15,396 in 2023, which demonstrates an increasing client interest in unbiased financial solutions. Individual and institutional investors use the RIA model because of its duty requirements, which are transparent and give financial planning benefits.
The regulatory categories analyzed here are:
AI and ML lead the market with 35% share due to the rising usage of these tools for predicting models, analyzing data, and assessing risk. Financial institutions are actively integrating AI to enhance their operational processes and asset investment methods. In August 2024, PortfolioPilot.com, an AI-driven financial advisory platform developed by Global Predictions, secured USD 2 million in seed funding.
The Technology & Innovation analyzed here are:
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The Northeastern region has the largest revenue share, of 30%, because it has a large number of banking institutions, wealth management companies, and institutional investors. New York City is a major global hub for hedge funds, including Citadel and Millennium. People here are also richer than in other parts of the country and have large portfolios to manage.
The regions analyzed here are:
​The market is fragmented due to a large number of firms of various sizes and capabilities operating in various regions and industries. Smaller entities, including independent advisors, provide specialized services by establishing strong personal connections with clients. While they mostly cater to individuals, the major financial institutions generally serve millionaires & billionaires, commercial and industrial entities, and even government departments.
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