Growing opportunity in pension asset, unstable globalization and FDI, and political and economic ambiguitiesThe “Global Trust and Corporate Service Market (by Alternative Asset, Segment, & Region): Insights and Forecast (2023-2028)” report has been added to ResearchAndMarkets.com’s offering. Access the complete report findings here.
(GLOBE NEWSWIRE) — The global trust and corporate services market value is expected to reach US$11.96 billion in 2023, growing at a CAGR of 4.98% over the projected period.
Trust and corporate services encompass a wide array of administrative offerings designed to assist clients in establishing, organizing, and overseeing their financial and investment activities. This sector primarily focuses on stable countries with stringent regulatory frameworks.
Several factors have contributed to the growth of the trust and corporate service market, including a highly skilled workforce, the provision of high-value services, fostering personal client-service provider relationships, and the ongoing trend of globalization. Anticipated drivers of market expansion include increasing household wealth, heightened corporate and tax regulations, and the growing outsourcing of administrative functions by private equity and real estate funds.
The global trust and corporate services market exhibit fragmentation, with key players including TMF Sapphire Midco B.V. (TMF Group), M&T Bank Corporation (Wilmington Trust), Intertrust Group, Tricor Group, JTC plc, American Stock Transfer & Trust Company, LLC, Cafico International, Apex Group Ltd. (Sanne Group), IQ EQ Group Holdings S.a r.l., Vivanco & Vivanco, Ocorian, and Vistra.
North America currently dominates the trust and corporate service market, driven by a thriving tech sector that has fueled substantial wealth growth. This region is expected to witness an increase in demand for trust and corporate services, particularly due to the expanding population of high-net-worth individuals (HNWIs).
Meanwhile, the Asia Pacific region is poised to experience the most rapid growth in the coming years. The private equity and real estate fund sectors are anticipated to generate strong demand for trust and corporate services due to industry growth and increasingly complex reporting requirements driving the outsourcing of fund-related services.
Furthermore, the growing need for regulatory compliance is a significant factor supporting the expansion of the trust and corporate service market in Europe. Within Europe, the United Kingdom currently holds the largest market share and is projected to be the fastest-growing region in the near future.
Driver, Challenge and Trend Analysis
Driver: Growing Opportunity in Pension Asset
The industry is likely to be primarily motivated by governing alterations in both developed and developing markets which are in quest of getting more of their labor forces under defined contribution retirement plans.
This upcoming financial segment, united with increasing levels of trust and corporate service outsourcing, is expected to create a great opportunity for various players to participate and generate new client profiles from exposure to another end market which is expected to enjoy structural growth.
Challenge: Unstable Globalization and FDI
With the introduction of globalization, many commonly accepted and well-integrated policy frameworks and organizational structures have emerged. This has increased the inflow of foreign direct investment globally. But during the past few years, foreign direct investment has been displaying a fluctuating trend.
The trust and corporate service marketplace is always compelled by increasing globalization and foreign direct investment. With fluctuations in FDI inflows, the trust and corporate service-providing organizations may observe certain challenges in the expansion of their business in their home countries as well as outside the home countries.
Hence, if the FDI net inflows continue decreasing, trust and the corporate industry may face a major growth barrier during the forecasted period.
Trend: Political and Economic Ambiguities
Both political and economic uncertainties are visible across the global landscape. Owing to these fluxes, the number of clients (from organizations, and companies to individuals and HNWI) in the requirement for trust and corporate services are also increasing. Considering the recent scenario, clients are demanding secured and innovative solutions for their wealth management.
Furthermore, in the present situation, high net worth individuals (HNWIs) possess their assets across boundaries, and with the rise in political and economic instability across the world, it enhances the capabilities of the market to provide a wide range of solutions to allocate the HNWIs’ wealth. In a nutshell, the market is anticipated to perceive an increased demand for their services to satisfy complex client needs.
The COVID-19 Analysis
The COVID-19 pandemic has led to a considerable decline in business activities and hence a decline in the income of individuals. Therefore, demand for trust and corporate service providers observed a hit as the numbers of high-income-generating individuals plummeted.
This has led to a slowdown in the demand for experienced personnel’s needed for the management of finances such as structuring of their wealth, tax fillings, administrative services, and much more, thus hampering the overall growth of the market in 2020. However, the market experienced growth in 2021 with a gradual resumption of business activities as COVID-19 cases declined.
In terms of segment, the report offers insights of the trust and corporate services market into four segments: Corporates, Funds SPV, High Net-worth Individuals, and Others.
Corporates held the largest share of the market, whereas funds SPV is expected to be the fastest-growing segment in the forthcoming years. The demand for services by corporates has continued to rise in the past few years due to the high value-added administrative services and widely needed support services provided by trusts and corporate service providers, such as business advisory services and compliance services.
Funds Special Purpose Vehicles (SPV) have thrived over the historic period owing to global economic expansion and increased globalization, which urged the necessity for outsourcing fund administration along with the basic trust and corporate services and inclined the demand for funds.
The report also provides the bifurcation of the market on the basis of alternative assets.
Alternative assets typically refer to investments that fall outside of the traditional asset classes commonly accessed by most investors, such as stocks, bonds, or cash investments. A surge in the global alternative assets market is attributed to the high performance of capital markets driven by accommodative monetary policies and substantial GDP Growth.
- Escalating Global GDP Per-Capita
- Growing Global HNWI Wealth
- Growing Opportunity in Pension Asset
- High Client Retention Rate
- Increasing Number of Sovereign Investors
- Upsurge in Outsourcing
- Unstable Globalization and FDI
- Failure of Client Relationship
- Shuddering Global Consumer Confidence
- Increasing Cyber Threat
- Brexit Aftershocks
- Modifications in Regulations
- Political and Economic Ambiguities
- Trust and Good Corporate Behavior
- Low Entry Barriers
- Improvement and Advancement in Technology Infrastructure
- Strong Culture of Excellence
Company Profiles: Business Overview, Operating Segments, Revenue by Service Line, Business Strategies
- Intertrust Group
- JTC plc
- TMF Sapphire Midco B.V. (TMF Group)
- M&T Bank Corporation (Wilmington Trust)
- Tricor Group
- American Stock Transfer & Trust Company, LLC
- Cafico International
- Apex Group Ltd. (Sanne Group)
- IQ EQ Group Holdings S.a r.l.
- Vivanco & Vivanco
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