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
Market Size Value in US$ 41.53 billion in 2023 Market Size Value by US$ 82.46 billion by 2031 Growth rate CAGR of 9.0% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Custody Service Market: Strategic Insights
| Market Size Value in | US$ 41.53 billion in 2023 |
| Market Size Value by | US$ 82.46 billion by 2031 |
| Growth rate | CAGR of 9.0% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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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 Report Scope
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.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Services, Type, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The key players holding majority shares in the global custody service market are JPMorgan Chase & Co.; HSBC Holdings PLC; Citigroup Inc.; Wells Fargo & Company; and Deutsche Bank AG.
The global custody service market is expected to reach US$ 82.46 billion by 2031.
The global custody service market was estimated to be US$ 41.53 billion in 2023 and is expected to grow at a CAGR of 9.0 % during 2023 - 2031.
The rise of digital asset custody platforms is anticipated to play a significant role in the global custody service market in the coming years.
The increase in cryptocurrencies and the increasing financial industry are the major factors that propel the global custody service market.
- JPMorgan Chase & Co.
- HSBC Holdings PLC
- Citigroup Inc.
- Wells Fargo & Company
- BNP Paribas
- UBS AG
- Deutsche Bank AG
- HDFC Bank Ltd.
- ICICI Bank Ltd
- THE BANK OF NEW YORK MELLON CORPORATION
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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