Portfolio Management Software Market Expected to Reach $11.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Portfolio Management Software Market, By Component (Solution and Service), By Deployment Mode (On-premise and Cloud), By Enterprise Size (Large Enterprises and Small and Medium-sized Enterprises), and By End User (Business and Individual): Global Opportunity Analysis and Industry Forecast, 2022-2032". The portfolio management software market was valued at $3.2 billion in 2022, and is estimated to reach $11.8 billion by 2032, growing at a CAGR of 14.2% from 2023 to 2032.

Portfolio management software is a tool or application used by individuals or organizations to oversee, analyze, and optimize their investment portfolios. It helps users track and manage various types of assets, such as stocks, bonds, mutual funds, real estate, and others. The software provides tools to analyze the performance of the portfolio, including gains, losses, and overall returns.

Furthermore, it helps in optimizing asset allocation by suggesting adjustments based on investment goals and risk tolerance. It helps users generate reports and visualizations to gain insights into their portfolio's performance and make informed decisions. Many portfolio management software options offer real-time market data and news updates to assist users in staying informed.

Rise in demand for efficient asset management is one of the primary drivers of the portfolio management software market. As more individuals and businesses seek to optimize their investments and assets, there is a growing demand for portfolio management software to help streamline the process and make informed decisions. Furthermore, continuous advancements in technology, such as artificial intelligence and data analytics, have enhanced the capabilities of portfolio management software, making it more powerful and attractive to users. Thus, technological advancements drive the adoption of portfolio management software and propel the portfolio management software market growth. In addition, regulatory compliance and risk management promote the growth of the market. Stricter regulatory requirements and the need for effective risk management have led to the adoption of portfolio management software, which can help ensure compliance and mitigate risks more effectively.

However, the cost and complexity of portfolio management software and data security concerns hamper the growth of the market by affecting customer trust and confidence. On the contrary, the increasing demand for digital transformation is expected to provide lucrative growth opportunities to the portfolio management software market in the upcoming years because businesses and financial institutions are recognizing the benefits of going digital. They are investing in portfolio management software that helps them to make their investment processes more efficient and effective by providing tools to keep track of investments, analyze data, and make smart decisions. As more companies adopt digital strategies, the need for these software solutions grows, creating a lucrative opportunity for portfolio management software providers. Thus, these portfolio management software market trends are driving the market growth. 

By enterprise size, the large enterprises segment acquired a major share in 2022. The growth of the large enterprises segment in the portfolio management software market is being pushed by the need for real-time data analytics, decision support, and collaboration tools which are crucial for managing extensive portfolios efficiently. However, the small and medium-sized enterprises segment is the fastest-growing segment during the forecast period. This is attributed to the increasing competition, and a desire for better financial management among SMEs.

Region-wise, North America dominated the market in 2022. This is attributed to the increase in complexity of financial markets and the growing emphasis on risk management and compliance in investment practices. However, Asia-Pacific is considered to be the fastest-growing region during the forecast period. The growth of the portfolio management software market in Asia-Pacific is fueled by the region's economic growth, the rising interest in investment portfolio management software, and the adoption of technology in the financial sector.

The COVID-19 pandemic had a significant impact on the portfolio management software market size. As the pandemic disrupted global financial markets and caused uncertainty, many investors sought out portfolio management software to better track and manage their investments in volatile times. This led to a short-term boost in demand for these tools. However, the economic fallout from the pandemic led to budget cuts in various sectors, including financial services. Some firms reduced their spending on software, including portfolio management tools. Therefore, while the portfolio management software market experienced a temporary surge, its growth trajectory was influenced by the evolving economic conditions and the changing needs of businesses during and after the pandemic.     

Key Findings of the Study

• On the basis of component, the solution segment accounted for the highest portfolio management software market share, in terms of revenue in 2022.
• On the basis of deployment mode, the on-premise segment attained the highest market share in 2022.
• On the basis of region, North America generated the highest revenue in 2022.  

The key players operating in the portfolio management software market analysis include MProfit Software Private Limited, Oracle, BlackRock, Inc., Beiley Software, Inc., Miles Software, SS&C Advent, Quicken Inc., Ziggma Analytics Inc., Planview, and FinFolio Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the portfolio management software industry.