The wealth of the high-net worth individuals has grown significantly over the years, backed by the increase in investments across different end user industries. With the Dot Com boom, the organizations gained significant growth in their assets in the last few decades.
Moreover, an increase in the total number of millionaires worldwide had also been observed over the last few years, although the global economy had ups and downs. Owing to such factors, there is a rising need among these wealthy individuals to increasingly deploy family office so as to efficiently manage their family wealth and assets, which is anticipated to drive the growth of the global family office market in the coming years.
Research Nester has released a report titled “Family Office Market – Global Demand Analysis & Opportunity Outlook 2028” which also includes some of the prominent market analyzing parameters such as industry growth drivers, restraints, supply and demand risk, market attractiveness, year-on-year (Y-O-Y) growth comparisons, market share comparisons, BPS analysis, SWOT analysis and Porter’s five force model.
The global family office market is anticipated to record a CAGR of 4.62% during the forecast period, i.e. 2020-2028 on account of the growing need among the families or individuals for outsourcing their entire financial management, and is further projected to reach a value of $26.57 billion by the end of 2028 from a value of $17.70 billion in the year 2019.
The global family office market is segmented by type into single family office and multi-family office. The single-family office segment, which registered the largest market share in the year 2019, is further anticipated to grow with a CAGR of 4.50% during the forecast period and cross a value of $19.90 billion by the end of 2028 from a value of $13.39 billion in the year 2019.
Geographically, the global family office market is segmented into five major regions including North America, Latin America, Europe, Asia Pacific, Middle East and Africa, out of which, the market in North America, which was valued at $7.90 billion in the year 2019, is further anticipated to grow with a CAGR of 4.74% during the forecast period and reach a value of $11.99 billion by the end of 2028 on account of the increasing number of established family offices in the region backed by the presence of numerous ultra-high-net-worth individuals.
However, concerns for the high cost of operations of family offices as it occupies a major share of the profits of the family business is anticipated to lower the growth of the global office market.