Market Size of Japan Asset Management Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 4.49 Trillion |
Market Size (2029) | USD 5.49 Trillion |
CAGR (2024 - 2029) | 4.12 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Japan Asset Management Market Analysis
The Japan Asset Management Market size in terms of assets under management value is expected to grow from USD 4.49 trillion in 2024 to USD 5.49 trillion by 2029, at a CAGR of 4.12% during the forecast period (2024-2029).
The asset management market in Japan is a significant component of the country's financial sector. It plays a crucial role in managing the wealth of individuals, corporations, and institutions across the nation.
The Japanese asset management industry is characterized by a diverse range of products and services, including mutual funds, pension funds, and various investment vehicles. The market has been evolving in response to changing economic conditions, demographic shifts, and regulatory reforms.
Despite challenges such as an aging population and low interest rates, the Japanese asset management industry continues to attract both domestic and international players. The industry is adapting to new technologies and investment strategies to meet the evolving needs of investors in the world's third-largest economy.
Japan Asset Management Industry Segmentation
Asset management refers to the professional management of investments on behalf of individuals, institutions, or other entities.
The asset management industry in Japan is segmented by client type, type of mandate, and asset class. By client type, the market is segmented into retail, pension funds, insurance companies, banks, and other institutions (mutual funds). By type of mandate, the market is segmented into investment funds and discretionary mandates. By asset class, the market is segmented into equity, fixed income, cash/money market, and other asset classes (alternative investment). The report offers market sizes and forecasts in terms of value (USD) for all the above segments.
By Client Type | |
Retail | |
Pension Fund | |
Insurance Companies | |
Banks | |
Other Institutions |
By Type of Mandate | |
Investment Funds | |
Discretionary Mandates |
By Asset Class | |
Equity | |
Fixed Income | |
Cash/Money Market | |
Other Asset Classes |
Japan Asset Management Market Size Summary
The asset management industry in Japan is poised for growth, driven by the increasing demand for retirement-oriented investment products and services due to the country's aging population. Regulatory frameworks established by the Financial Services Agency and other bodies govern the industry, influencing licensing, compliance, and investor protection. Japanese investors tend to favor conservative, long-term investment strategies, which shapes the types of assets and products offered by asset management firms. Economic factors such as GDP growth, inflation, and interest rates play a significant role in asset allocation and investment returns. Technological advancements, including digital platforms and robo-advisors, are transforming the industry, providing firms with a competitive edge by enhancing operational efficiency and client engagement. Additionally, the integration of ESG considerations into investment processes is becoming increasingly important as investors prioritize sustainable and responsible investment practices.
The Japanese asset management market is characterized by a competitive landscape with major players like Nikko Asset Management, Daiwa Asset Management, and Nomura Asset Management holding significant market shares. The Government Pension Investment Fund (GPIF) and private pension funds are key institutional investors, with the GPIF being the largest pension fund globally. Despite challenges such as a declining labor force and strain on the pension system, the market presents opportunities for growth, driven by technological innovations and strategic acquisitions. Recent developments include NEC's acquisition of a majority stake in Japan Asset Management to enhance digital transformation and Union Bancaire Privée's acquisition of Angel Japan Asset Management, highlighting the ongoing trend of consolidation and digital advancement in the sector.
Japan Asset Management Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Aging Population Led to a Growing Demand for Retirement Planning and Wealth Management Services
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1.2.2 Growing Demand for Investment Products and Services
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1.3 Market Restraints
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1.3.1 The Country's Low Interest Rate Environment
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1.3.2 Japan's Shrinking Population and Stagnant Economic
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1.4 Market Opportunities
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1.4.1 Digital Transformation of the Asset Management Industry
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1.5 Insights on the Impact of Technology and Innovation in Operation in Asset Management
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1.6 Insights on the Performance of Asset Managers in Japan
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1.7 Industry Policies and Government Regulations on the Asset Management Industry in Japan
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1.8 Industry Attractiveness - Porter's Five Forces Analysis
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1.8.1 Bargaining Power of Suppliers
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1.8.2 Bargaining Power of Buyers
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1.8.3 Threat of New Entrants
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1.8.4 Threat of Substitutes
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1.8.5 Intensity of Competitive Rivalry
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1.9 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Client Type
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2.1.1 Retail
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2.1.2 Pension Fund
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2.1.3 Insurance Companies
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2.1.4 Banks
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2.1.5 Other Institutions
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2.2 By Type of Mandate
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2.2.1 Investment Funds
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2.2.2 Discretionary Mandates
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2.3 By Asset Class
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2.3.1 Equity
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2.3.2 Fixed Income
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2.3.3 Cash/Money Market
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2.3.4 Other Asset Classes
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Japan Asset Management Market Size FAQs
How big is the Japan Asset Management Market?
The Japan Asset Management Market size is expected to reach USD 4.49 trillion in 2024 and grow at a CAGR of 4.12% to reach USD 5.49 trillion by 2029.
What is the current Japan Asset Management Market size?
In 2024, the Japan Asset Management Market size is expected to reach USD 4.49 trillion.