Custody Service Market - Size, Share, and Forecast 2031

The custody service market size is expected to grow from US$ 41.53 billion in 2023 to US$ 82.46 billion by 2031; it is anticipated to expand at a CAGR of 9.0% from 2023 to 2031. The custody service market includes growth prospects owing to the current custody service market trends and their foreseeable impact during the forecast period. The custody service market is growing due to an increase in cryptocurrencies and the growing financial industry. Technological integration and the rise of digital asset custody platforms provide lucrative opportunities for the custody service market growth.

Custody Service Market Analysis

• Custody services refer to the safekeeping and management of financial assets on behalf of clients.

• Custody services are provided by banks, broker-dealers, and other financial institutions that have the necessary infrastructure and expertise to protect and manage assets. These assets may range from stocks and bonds to cash, real estate, and other types of investments.

• A bank's custody services usually involve the settlement, reporting, and storage of its clients' cash and marketable securities. Lending securities to qualified borrowers on a short-term basis might enable a client to earn additional revenue on custody assets.

Custody Service Market Industry Overview

• The custody service market is all about keeping valuable assets safe for individuals and institutions. Organizations in the custody service market provide a range of services, including safekeeping, settlement, and reporting.

• In recent years, the custody service industry has been growing steadily due to increased globalization and complexity in financial markets. More investors are seeking reliable custodians to safeguard their assets and ensure compliance with regulations.

• With the rise of digital assets like cryptocurrencies, the custody service market is evolving to include secure storage solutions for these new types of assets.

• Key players in the custody service market include banks, financial institutions, and specialized custody providers.

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Custody Service Market: Strategic Insights

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Custody Service Market Driver

Increasing Financial Industry To Drive The Custody Service Market

• As the financial industry expands, more people and businesses will invest in various assets like stocks, bonds, and cryptocurrencies. With this growth, the need for safekeeping and managing these assets also increases.

• Custody services act like a secure vault for these assets, ensuring they are protected and managed properly.

• Thus, as the financial industry grows, the demand for custody services will also rise, creating the need for custody firms to provide their essential services to a larger market of investors.

Custody Service Market Report Segmentation Analysis

• Based on services, the custody service market is segmented into core custody services, ancillary services, core depository services, and other administrative services. The core custody services segment is expected to hold a substantial custody service market share in 2023.

• The core custody services segment is also expected to hold the highest CAGR over the forecast period. Core custody services are crucial for institutional investors, such as pension funds, hedge funds, and asset managers, to ensure the security and integrity of their investment portfolios.

Custody Service Market Share Analysis By Geography

The scope of the custody service market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant custody service market share. The custody services market in North America was robust, driven by the growth of digital assets and increasing demand for secure storage solutions.

Custody Service Market Regional Insights

The regional trends and factors influencing the Custody Service Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Custody Service Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Custody Service Market Report Scope

Custody Service Market Players Density: Understanding Its Impact on Business Dynamics

The Custody Service Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Custody Service Market are:

1. JPMorgan Chase & Co.
2. HSBC Holdings PLC
3. Citigroup Inc.
4. Wells Fargo & Company
5. BNP Paribas

Disclaimer: The companies listed above are not ranked in any particular order.

The "Custody Service Market Analysis" was carried out based on services, type, and geography. On the basis of service type, the market is segmented into core custody services, ancillary services, core depository services, and other administrative services. Based on type, the market is segmented into equity, fixed income, alternative assets, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Custody Service Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the custody service market. A few recent key market developments are listed below:

• In November 2023, HSBC announced its plans to launch a custody service for storing blockchain-based assets, excluding cryptocurrency, in 2024. The service, which is a partnership with Swiss digital asset firm Metaco, will allow institutional clients to store blockchain-based tokens representing traditional financial assets, as opposed to crypto or stablecoins.

[Source: HSBC, Company Website]

• In September 2023, TCS extended its partnership with Standard Bank Group (SBG), Africa's largest custodian bank, to centralize and standardize custody and securities settlement operations across more than 15 markets. This partnership aimed to upgrade SBG's platform with next-gen tech, enabling cloud-based critical business operations by 2026.

[Source: TCS, Company Website]

Custody Service Market Report Coverage & Deliverables

The custody service market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Custody Service Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
• Detailed company profiles.