Family Office Market Size, Share, Growth, And Industry Analysis, By Type (Single Family Office, Multi Family Office and Virtual Family Office), By Application (Financial, Strategy, Governance and Advisory), Regional Insights, and Forecast From 2024 To 2031

Updated On: 08 July 2024

Family Office Market Report Overview

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The global family office market size was USD 12888.17 million in 2021 and is expected to reach USD 25850.58 million in 2031, exhibiting a CAGR of 7.21% during the forecast period. 

When a family has accumulated a fortune substantial enough to require full-time professional management, family workplaces are frequently established. A family office is a single organization that offers one or more rich families all-inclusive wealth management services. These offices are essential because they may provide the coordination and consolidation of all the varied specialists, such as accountants, attorneys, investment advisers, and insurance agents, who deal with various facets of the family's finances. In addition to increasing privacy, this enables the family to have more monitoring and management over their resources.

Using these offices can wealth preservation through proactive management, proper tactics, and risk mitigation through investment diversification. Helps to transmit wealth from one generation to the next by carefully allocating assets and using estate planning. coordinating all advisor work and ensuring that all solutions are integrated by working with other experts, such as lawyers and CPAs. For some people, having financial security means different things. But the objective is often to make sure that family members can maintain their existing standard of living while maximizing wealth transfer to subsequent generations. Over time, a lot of families rely on the office to develop a sense of belonging and family harmony. The owners' partner in the task of maintaining their assets is the family workplace.

COVID-19 Impact: Recession Due to the Pandemic to Hamper Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with family office experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden decline in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Numerous aspects of our daily life have changed as a result of the recent COVID-19 outbreak. Naturally, the health and safety of individuals, families, and society have received a lot of attention from the general public. Others have concentrated on the virus's economic effects as well as those of the numerous regulations put in place to impede its transmission and "flatten the curve." Nearly all facets of our everyday relationships have changed as a result of social distance. Families have reported greater time spent together at home as a result of these initiatives. Probably many families have profited from this more time spent together. As priorities have changed, perhaps long-dormant relationships have begun to reignite.

Latest Trends

"Increased High-Net-Worth Individuals to Augment Market Growth"

High-net-worth individuals are growing more and more interested in family workplaces because they provide a variety of specialized wealth management services that are catered to the unique demands and requirements of each family. This has increased demand for family workplaces, which is causing this sector to expand. Through online platforms and smartphone apps, families and their advisers may now manage their finances more skillfully and successfully thanks to the growth of digital technology. Due to this, the family workplace market growth increased as a result of enhanced efficiency and transparency.

Family Office Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into single family office, multifamily office and virtual family office.

In terms of product, multifamily office is the largest segment.

• By Application Analysis

Based on application, the market can be divided into financial, strategy, governance and advisory.

In terms of application, financial is the largest segment.

Driving Factors

"Consulting Segment to Lead Market Growth"

The consulting segment led the market for family offices worldwide, and over the next years it is anticipated to rise significantly. The demand for professional advisors has increased as a result of the growing significance of family guidance for decisions regarding both personal and professional matters. Furthermore, the need for advisory services has increased due to the rise in high-net-worth people (HNWI) around the world. Due to their significant assets, HNWI are more vulnerable to risk, which could lead to losses if sufficient planning and management are not done. As a result, it is projected that this tendency will accelerate industry growth during the coming years.

"Higher Rates of Achieving Financial Objectives to Provide Impetus to The Market"

A sort of financial and business management service called a multi-family office involves more than two families cooperating. These businesses' principal mission is to effectively assist their clients in reaching their financial objectives. These services, which involve planning, organizing, investing in, and regulating wealth as well as shielding it from various threats, are intended to benefit both families and clients. The need for family workplace services is rising as a result of the rapidly rising number of ultra-high net worth individuals. According to a Wealth Insight report, there will be an increase in the number of people with extremely high net worth. Significant growth prospects are being created by the expanding population.

Restraining Factors

"Reduced Freedom in the Office to Impede Market Expansion"

In order to invest collectively, various family members (or branches of the family) give up their individuality and freedom. It can be difficult, expensive, and time-consuming to set up and run a family workplace. The possibility of scope creep exists. Over time, certain family members may develop higher expectations for the family workplace's services and returns.

Family Office Market Regional Insights

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"Asia Pacific to Dominate the Market Due to Expanding Population"

Global family office market share was dominated by Asia Pacific. Due to variables including the region's expanding population and rise in the number of high-net-worth individuals, it is anticipated that the region will maintain its supremacy during the projected period (HNWIs). Regional expansion will also be fueled by the growing use of international financial services for asset management. Additionally, new laws intended to attract international investors will probably accelerate regional growth. For example, the Foreign Investment Promotion Law (FIPL) was established with the intention of luring more foreign investments into the UAE economy by providing a range of incentives, such as tax breaks and regulatory flexibility within set parameters (i.e., a 50% cap on investment instruments).

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Citi Private Bank (India)
• Atlantic Trust (U.S.)
• Pictet (Switzerland)
• BNY Mellon Wealth Management (U.S.)
• Stonehage Fleming Family & Partners (U.K.)
• Abbot Downing (U.S.)
• UBS Global Family Offices Group (Switzerland)
• Bessemer Trust (U.S.)
• Wilmington Trust (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.