The market for investment management software is necessary since it aids in the administration of capital. It aids in portfolio management and performance evaluation. Real-time data is provided by the software, assisting with decision-making. Plus, it sends alerts about changes to the inventory as well as currency fluctuations. Through portfolio diversification, the software assists in lowering risk. It also offers direction regarding the investment objectives.
COVID-19 Impact and Market Status
Businesses in all industries are witnessing the repercussions of the COVID-19 epidemic, which is significantly impacting the world economy. Due to the collapse of the stock market and the subsequent decline in asset values, the investment management industry has been particularly badly hit. As a result, there has been a rapid rise in demand for investment management software, which enables investors to maintain track of their portfolios and decide where to put their money with confidence. The COVID-19 pandemic's effects are anticipated to be transient, with the market starting to rebound in 2021 and regaining its pre-pandemic levels by 2023. However, because of the persistent economic uncertainty, the market will nonetheless likely expand more slowly than initially anticipated.
The On-premises to Emerge as the Most Lucrative Segment
The Investment Management Software sector is mainly segmented into On-premises and Cloud-based kinds, with On-premises, expected to overtake Cloud-based as the market leader over the forecast period. The expansion of this market is being driven by small and medium-sized businesses (SMEs) increasing awareness of the advantages of purchasing software for efficient investment management.
The SMEs Industry appears as the most emerging Application Segment
Applications-wise, the market for investment management software is segmented into three main groups: SME, Large Enterprise, and Personal Use. SME type is predicted to take the lead among these and experience the highest CAGR growth over the course of the forecast period. The growth of this market is being driven by SMEs' growing demand for investment management that is transparent and effective.
The North American region to render Adequate Financing Avenues
The Investment Management Software market is classified as Europe, Asia Pacific, America, South America, Africa, and the Middle East. North America will stand out among these as the market leader over the projection period. The expansion of this market is being fueled by the presence of numerous providers of investment management software in this area, and this trend is anticipated to last throughout the projection timeframe.
The demand for more effective asset management and better decision-making is what essentially drives the market for investment management software. Investor can view their entire portfolio with the help of investment management software, which helps them choose their investments more wisely. Additionally, investment management software can automate many portfolio management procedures, saving the investor time.
The process of managing investments can be streamlined and automated with the use of investment management software. It has capabilities including customer relationship management, performance reporting, recordkeeping, and corporate finance. Asset managers may have methods of conducting more effectively and with greater accountability thanks to investment management software.
The advantages of investment management software include enhanced decision-making, increased transparency, and increased efficiency. The software provides performance measurement, attribution analysis, and a portfolio overview. Besides, it has tools for managing orders, verifying compliance, and reporting on clients. The software also aids in recognising and evaluating the effects of world events on investments.
One of the main aspects creating expansion potential for industry participants is the increased demand for automated investment management software. By automating numerous operations, including portfolio rebalancing, performance reporting, and compliance checks, automated systems assist in lowering operational costs and increasing efficiency. They also assist in lowering the possibility of human error. Over the forecast period, this is anticipated to result in a rise in the usage of these solutions.
The market for investment management software is anticipated to increase by 10.8% CAGR from USD 5.92 billion in 2019 to USD 12.06 billion in 2029.
The market's expansion is attributed to both the rising popularity of investment management software and the use of cloud-based investment software applications.
One of the key problems impeding the market's expansion is the small and medium-sized businesses (SMEs) lack of knowledge about investment management software. SMEs frequently lack the resources needed to put these solutions into practice and are unable to benefit from them. They can also lack the skills and information required to choose and apply the best solution for their company. This frequently causes SMEs to choose time- and error-consuming traditional methods of managing their capital. This difficulty is anticipated to be somewhat lessened by the growing use of cloud-based solutions, which are more accessible and simple to install.
Some of the key companies in this market include Oracle Corporation, SS&C Technologies Holdings, Inc., United States Automation, Inc., invested, Advent Software, Inc., Info MD, Broadridge Financial Solutions, Inc., and ISS Market Intelligence. To obtain an advantage in the market, these businesses have implemented a variety of growth tactics, including mergers and acquisitions, partnerships and collaborations, the development of new products, and enlargement.
Recent Developments in the Investment Management Software Market
- In October 2019, Cinven paid KKR USD 2 billion for the majority of Advent Software. In the deal, Advent was valued at USD 2.07 billion. A small portion of the company will remain owned by Cinven.
- Boston Financial Data Services, Inc. (BFDS) and DST Systems, Inc. (DST) expanded their data and processing partnership in September 2019 to offer additional middle-office solutions for BFDS' hedge fund manager clients. The expansion includes the addition of services from DST's Aurora platform for processing derivatives, managing collateral, and foreign exchange (FX).
Investment Management Software Market Scope
|Revenue forecast in 2029
|USD 12.06 billion.
|CAGR of 10.8% during 2019-2029
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Oracle Corporation, SS&C Technologies Holdings, Inc., United States Automation, Inc., invested, Advent Software, Inc., Info MD, Broadridge Financial Solutions, Inc., and ISS Market Intelligence
Key Segments of the Global Investment Management Software Market
Type Overview (USD Billion)
Application Overview (USD Billion)
- Personal Use
- Large Enterprise
Regional Overview (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
The Middle East and South Africa