Custody Service Market to Grow with a CAGR of 6.02% through 2030

Increasing value of global financial assets, including equities, bonds, and alternative investments are factors driving the global custody service market..

According to TechSci Research report, “Custody Service Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, The global Custody Service Market was valued at USD 40.86 Billion in 2024 and is expected to reach USD 65.24 Billion by 2030 with a CAGR of 6.02% during the forecast period. The custody service market, a linchpin of the global financial infrastructure, plays a vital role in safeguarding and managing financial assets for institutional investors and high-net-worth individuals. The market has been witnessing dynamic shifts influenced by a combination of macroeconomic trends, technological advancements, regulatory changes, and evolving investor preferences. The custody service market is characterized by a diverse ecosystem of custodians, ranging from traditional banks and financial institutions to specialized custody service providers and emerging fintech firms.

The market has traditionally been dominated by established global custodians with extensive networks, providing services to institutional clients with complex and diverse investment portfolios. However, the landscape is evolving with the entry of new players, including fintech startups offering innovative solutions such as blockchain-based custody services for digital assets. The increasing demand for specialization in areas like environmental, social, and governance (ESG) investing, and the rise of digital assets are reshaping the competitive dynamics of the market. Traditional custodians are adapting their business models to incorporate technological innovations and meet the changing needs of clients.

The custody service market is undergoing a profound digital transformation, driven by technological innovations such as blockchain, artificial intelligence (AI), and data analytics. Traditional custodians are investing heavily in technology to enhance operational efficiency, automate routine tasks, and provide real-time reporting capabilities. The integration of distributed ledger technology (DLT) and blockchain is particularly notable, especially in the context of managing digital assets. The adoption of application programming interfaces (APIs) and cloud-based solutions is also on the rise, enabling custodians to offer more flexible and scalable services. This trend aligns with the broader financial industry's move toward digitization, enhancing the overall client experience and optimizing back-office operations.

The globalization of financial markets is a major driver for the custody service market. As institutional investors and high-net-worth individuals diversify their portfolios across different geographies, the demand for cross-border custody services increases. Custodians with a global presence and well-established networks of correspondent banks and sub-custodians are well-positioned to serve clients engaged in international transactions. The ability to provide efficient settlement services, navigate diverse regulatory environments, and offer expertise in local markets are key factors driving the growth of custodians with a global footprint. The interconnectedness of financial markets and the trend towards globalization ensure that custody service providers play a critical role in facilitating international investment strategies.

The continuous increase in global wealth and asset accumulation is a fundamental driver for the custody service market. High-net-worth individuals, family offices, and institutional investors seek secure and reliable custody services to safeguard and manage their expanding portfolios. The growing affluence of emerging markets and the expansion of the global middle class contribute significantly to the increased demand for custody services. As individuals and institutions accumulate a greater volume of financial assets, custodians play a pivotal role in providing safekeeping, record-keeping, and administration services. The proliferation of diverse asset classes, including traditional securities and alternative investments, further amplifies the need for sophisticated custody solutions capable of handling a broad range of financial instruments.

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Global Custody Service Market”

The global Custody Service market is segmented into type, service and region.

Based of type, fixed income assets have emerged as the fastest-growing segment, driven by increasing investor demand for stable returns and reduced risk in uncertain economic conditions. The expansion of bond markets and the growing complexity of fixed income instruments have heightened the need for specialized custody solutions. Investors are increasingly seeking secure and efficient ways to manage fixed income assets, prompting custodians to enhance their service offerings. The focus on consistent income and portfolio diversification has further strengthened the growth of fixed income custody services, making it a key driver in the evolving financial landscape.

Based on region, Europe has emerged as the fastest-growing segment, driven by increasing cross-border investments, evolving regulatory frameworks, and rising demand for digital asset custody. The region's financial institutions are enhancing their custody infrastructure to support a growing volume of diverse assets, including equities, fixed income, and alternative investments. The shift toward sustainable and ESG-compliant investments has further fueled demand for specialized custody services. Additionally, advancements in technology and the rise of digital assets have prompted European custodians to adopt innovative solutions, positioning the region as a key driver of growth in the global custody services market.

Major companies operating in global Custody Service market are:

• Axis Bank Ltd.
• DBS Bank Ltd.
• Deutsche Bank A.G.
• Edelweiss Custodial Services Ltd.
• HDFC Bank Ltd.
• Hong Kong & Shanghai Banking Corporation Ltd.
• ICICI Bank Ltd.
• Infrastructure Leasing & Financial Services Ltd.
• Kotak Mahindra Bank
• Orbis Financial Corporation Ltd.  

Download Free Sample Report

Customers can also request for 10% free customization on this report.

“The custody service market is at the nexus of profound changes influenced by technological advancements, regulatory developments, and shifting investor preferences. While challenges such as cybersecurity risks, regulatory complexities, fee compression, and the emergence of digital assets pose hurdles, custodians also find themselves at the forefront of exciting opportunities. The ongoing digital transformation, coupled with the rise of digital assets and the increasing focus on sustainability, demands that custodians adopt an adaptive and forward-thinking approach. Success in the custody service market hinges on the ability to navigate challenges, leverage technological innovations, comply with evolving regulations, and meet the diverse needs of a client base with increasingly complex and globally diversified investment portfolios.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Custody Service Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Equity, Fixed Income, Alternative Assets, Other), By Service (Core Custody Services, Ancillary Services, Core Depository Services, Others), By Region & Competition, 2020-2030F", has evaluated the future growth potential of global Custody Service market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Custody Service market.

Contact Us-

TechSci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States- 10170

M: +13322586602

Email: [email protected]

Website: www.techsciresearch.com