Japan Asset Management Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.25 Trillion |
| Market Size (2029) | USD 5.05 Trillion |
| CAGR (2024 - 2029) | 3.56 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Asset Management Market Analysis
The Japan Asset Management Market size in terms of assets under management value is expected to grow from USD 4.25 trillion in 2024 to USD 5.05 trillion by 2029, at a CAGR of 3.56% during the forecast period (2024-2029).
Japan comprises of elderly population, which has implications for retirement planning and asset management. As individuals retire and seek to manage their savings and investments, there is a growing demand for retirement-oriented investment products and services. The asset management industry in Japan is subject to regulations set by the Financial Services Agency (FSA) and other regulatory bodies. Regulatory frameworks govern aspects such as licensing, compliance, investor protection, and product offerings, shaping the landscape for asset management firms and investment products. Japanese investors exhibit unique preferences and behaviours influenced by cultural and socioeconomic factors. Risk aversion, long-term investment horizons, and a preference for conservative investment strategies are common among Japanese investors, impacting the types of assets and products they seek. Economic factors such as GDP growth, inflation rates, interest rates, and market performance influence asset allocation decisions and investment returns. Asset managers must navigate economic trends and market cycles to optimize investment outcomes for clients. Technological advancements, including digital platforms, robo-advisors, and algorithmic trading, are transforming the asset management landscape in Japan. Firms that leverage technology to enhance operational efficiency, client engagement, and investment processes gain a competitive edge. ESG considerations are gaining prominence in Japan, with investors increasingly prioritizing sustainable and responsible investment practices. Asset managers integrate ESG factors into their investment processes, product development, and client communication to meet evolving investor preferences. Changing demographic dynamics, including population aging, declining birth rates, and shifting household structures, impact asset management strategies and product development. Asset managers tailor their offerings to address the evolving needs and preferences of different demographic segments.
Japan Asset Management Market Trends
Japanese Pension Funds: Slow but Better Returns
The Government Pension Investment Fund (GPIF) and private pension funds are the two main institutional investors in Japanese pension funds, which are retirement savings plans. With more than USD 1.32 trillion in assets under management as of 2022, the GPIF is the biggest pension fund in the world. It was founded in 2001 to oversee the administration of the country's pension system and makes investments across various asset classes, such as domestic and international stocks, bonds, and alternative investments.
Corporate pension funds, which are set up by businesses for their employees, and mutual aid associations, set up by groups of people with similar interests or occupations, are examples of private pension funds in Japan. Additionally, these funds make investments across various asset classes, such as domestic and international stocks and bonds.
Due to an aging population and a low birth rate, which resulted in a declining labor force and strain on the pension system, Japan experienced difficulties with its pension system in recent years. The government responded by implementing several reforms, including raising the retirement age and encouraging enrollment in private pension plans.
Technological Advancements are Driving the Market
As in many other parts of the world, technological advancements are indeed driving the asset management industry in Japan. Technology advances increase efficiency and lower asset management costs, enabling businesses to provide clients with lower-cost goods and services.
Robo-advisors are automated investment platforms that offer services like portfolio management and investment advice. They are becoming increasingly well-liked in Japan, especially among younger investors who are easily using technology and seeking affordable investment options. Blockchain technology is used in Japan to increase security and transparency in the asset management sector. Asset ownership and transfer can be tracked using blockchain, lowering the possibility of fraud and mistakes.
Asset managers in Japan are analyzing massive amounts of data with big data analytics tools to learn more about market trends and investor behavior. Asset managers can manage risk and make better investment decisions as a result.
As businesses work to increase productivity, cut costs, and offer clients more sophisticated investment solutions, technological advancements are a major force behind innovation and growth in the Japanese asset management sector.
Japan Asset Management Industry Overview
The Japanese asset management market includes sluggish growth with very low returns. The market presents opportunities for growth during the forecast period, which is expected to drive the market competition further. Some of the major players in the sector include Nikko Asset Management, Daiwa Asset Management, T & D Asset Management, Okasan Asset Management, and Nomura Asset Management. With multiple domestic players holding significant shares, the market studied is competitive.
Japan Asset Management Market Leaders
Nikko Asset Management
Daiwa Asset Management
T & D Asset Management
Okasan Asset Management
Nomura Asset Management
*Disclaimer: Major Players sorted in no particular order
Japan Asset Management Market News
- In September 2023, NEC has secured a 50.1% ownership stake in Japan Asset Management (JAM), a Tokyo-based financial technology company. Through this capital alliance, NEC aims to drive the digital transformation (DX) of IFA services.
- In May 2023, Union Bancaire Privée, UBP SA (UBP), revealed its acquisition of 100% of the shares issued by Angel Japan Asset Management Limited (Angel Japan AM), an independent investment advisor based in Tokyo, specializing in Japanese small-cap equities.
Japan Asset Management Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights on Impact of Technology and Innovation in Operation in Asset Management
4.5 Insights on Performance of Asset Managers in Japan
4.6 Industry Policies and Government Regulations on Asset Management Industry in Japan
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Buyers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Client Type
5.1.1 Retail
5.1.2 Pension Fund
5.1.3 Insurance Companies
5.1.4 Banks
5.1.5 Other Institutions
5.2 By Type of Mandate
5.2.1 Investment Funds
5.2.2 Discretionary Mandates
5.3 By Asset Class
5.3.1 Equity
5.3.2 Fixed Income
5.3.3 Cash/Money Market
5.3.4 Other Asset Classes
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Nomura Asset Management
6.2.2 Nikko Asset Management
6.2.3 Daiwa Asset Management
6.2.4 Okasan Asset Management
6.2.5 T & D Asset Management
6.2.6 Meiji Yasuda Asset Management
6.2.7 Schroder Investment Management
6.2.8 Aberdeen Standard Investment Limited
6.2.9 Norinchukin Zenkyoren Asset Management
6.2.10 Nissay Asset Management Corporation*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Japan Asset Management Industry Segmentation
Asset management is one of the most widely demanded markets as people are adopting digitalization. A complete background analysis of the Japanese asset management market includes an assessment of the economy, a market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles in the report.
The asset management market in Japan is segmented by client type, type of mandate, and asset class. By client type, the market is sub-segmented into retail, pension funds, insurance companies, banks, and other institutions. By type of mandate, the market is sub-segmented into investment funds and discretionary mandates, and by asset class, the market is sub-segmented into equity, fixed income, cash/money market, and others. The report offers the market sizes and forecast values (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 Research FAQs
How big is the Japan Asset Management Market?
The Japan Asset Management Market size is expected to reach USD 4.25 trillion in 2024 and grow at a CAGR of 3.56% to reach USD 5.05 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 4.25 trillion.
Who are the key players in Japan Asset Management Market?
Nikko Asset Management, Daiwa Asset Management, T & D Asset Management, Okasan Asset Management and Nomura Asset Management are the major companies operating in the Japan Asset Management Market.
What years does this Japan Asset Management Market cover, and what was the market size in 2023?
In 2023, the Japan Asset Management Market size was estimated at USD 4.10 trillion. The report covers the Japan Asset Management Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Japan Asset Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Asset Management Industry Report
Statistics for the 2024 Japan Asset Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Asset Management analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
