Leading Element Driving Change in the Custody Service Market in 2025: The Role Of Automation And Standardization In Enhancing Efficiency And Reducing Costs In Custody Services Driver

What market dynamics are playing a key role in accelerating the growth of the custody service market?
The growth of the custody service market is being steered by key elements such as automation and standardization. The focus in the industry of custody services is placed on the application of technology for efficiency enhancement. The automation and standardization of critical custody services and operations lead to greater visibility, better productivity due to proficient operations, and customer cost cuts. Furthermore, these advancements in service quality allow the custodian to respond swiftly to future requirements. With the automation and standardization of custody services over the forecasted period, there is an anticipation for the present asset-centric model to be enhanced by a more data-centric, open platform approach, allowing custodians access to a plethora of available services. For example, automated reporting systems deliver daily reports that include exceptions, securities ready for loan, on loan securities, cash collateral valuation, daily mark-to-market data, and margin calls. As such, these automation and standardization aspects are anticipated to propel the growth of the custody service market.

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How will the growth rate of the custody service market shape industry trends by 2034?
In recent times, the custody service market size has seen robust growth. The worth will increase from $45.19 billion in 2024 and ascend to $48.92 billion in 2025, showcasing a compound annual growth rate (CAGR) of 8.3%. This expansion during the historical period is because of factors such as the worldwide reach of financial markets, the emergence of institutional investors, compliance to regulations, and risk management. Other contributing factors include the growing intricate nature of financial tools and a heightened emphasis on the safeguarding of investors.

The market size of the custody service is predicted to experience robust growth over the next few years. The market is projected to expand to $69.38 billion by 2029, with a compound annual growth rate (CAGR) of 9.1%. This growth during the prediction period could be linked to alternative investments and a variety of asset classes, worldwide regulatory alterations and compliance requirements, evolving practices in risk management, the incorporation of environmental, social, and governance (ESG) components, shifts in investor interests, and overarching industry tendencies. The forecast period will see significant trends such as the tokenization of traditional assets, international custody solutions, growth in insurance coverage, integration with the defi ecosystem, as well as enhancement in scalability and automation.

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What trends are poised to drive the future success of the custody service market?
The ushering in of digital asset custody platforms is notably shaping the custody services market. Firms in the worldwide custody service market are directing more attention towards digital asset custody, blending enhanced security with operational performance. To illustrate this, in 2022, BNY Mellon, a U.S. based investment banking services firm, introduced its Digital Asset Custody platform in the U.S., providing customers the capability to hold and transact in bitcoin and ether. This platform, which supports multiple types of assets, functions as a bridge between the digital and traditional custody of assets. Moreover, the platform safeguards clients' private keys and keeps track of the cryptocurrency assets in the clients' portfolio.

Which primary segments of the custody service market are driving growth and industry transformations?
The custody service market covered in this report is segmented -

1) By Service: Core Custody Services, Ancillary Services, Core Depository Services, Other Administrative Services
2) By Type: Equity, Fixed Income, Alternative Assets, Other Types

Subsegments:
1) By Core Custody Services: Safekeeping Of Assets, Settlement Of Securities Transactions, Asset Servicing, Corporate Actions Processing
2) By Ancillary Services: Fund Accounting, Risk And Performance Analytics, Proxy Voting, Cash Management Services, Tax Support And Reporting
3) By Core Depository Services: Securities Issuance And Registration, Transfer Agency Services, Clearing And Settlement, Recordkeeping Of Securities
4) By Other Administrative Services: Regulatory Compliance And Reporting, Reporting And Reconciliation Services, Corporate Governance Support, Investor Relations Services, Data Management And Reporting

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Which geographical regions are pioneering growth in the custody service market?
North America was the largest region in the custody service market in 2024. Western Europe was the second largest market in the custody service market report. The regions covered in the custody service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the influential players reshaping the custody service market landscape?
Major companies operating in the custody service market include JPMorgan Chase & Co., HSBC Holdings plc, Citigroup Inc., Wells Fargo & Company, BNP Paribas, UBS AG, State Bank of India, Groupe Caisse d'Épargne, Deutsche Bank AG, HDFC Bank Ltd., ICICI Bank Ltd., The Bank of New York Mellon Corporation, DBS Bank Ltd., Commerzbank AG, State Street Bank and Trust Company, Northern Trust Corporation, Hang Seng Bank Limited, Kotak Mahindra Bank Limited, Standard Chartered plc, Yes Bank Ltd., Societe Generale Securities Services GmbH, Stock Holding Corporation of India Ltd., Julius Baer Group AG, Brown Shipley & Co. Limited, RBC Investor & Treasury Services, Edelweiss Custodial Services Ltd., Orbis Financial Corporation Ltd., Axis Bank Ltd., Brown Brothers Harriman & Co.

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What Is Covered In The Custody Service Global Market Report?

•Market Size Forecast: Examine the custody service market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the custody service market for a structured understanding.
•Key Players Overview: Analyze major players in the custody service market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the custody service market.
•Segment Contributions: Evaluate how different segments drive overall growth in the custody service market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the custody service market.
•Industry Challenges: Identify potential risks and obstacles affecting the custody service market.
•Competitive Landscape: Review strategic developments in the custody service market, including expansions, agreements, and new product launches.

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