Private market revenues are set to reach $432.2 billion and account for more than half of the total global asset management industry’s revenues by 2030, according to PwC’s 2025 Global Asset & Wealth Management Report.

The report, which surveyed 300 international asset managers, institutional investors and distributors, also found that based on PwC estimates, global AuM (assets under management) are projected to surge from $139 trillion in 2024 to $200 trillion by 2030, growing at a CAGR of 6.2%, with total investable wealth worldwide expected to exceed $481 trillion.

But while the report founds revenues are rising – asset managers continue to face profitability pressures and narrowing margins amid “relentless competition, fee pressure, a premium on talent, and cost-heavy investments for increasingly sophisticated and diverse client segments.”

The report said 89% of asset managers reported profitability pressure over the past five years – with PwC analysis finding that profit per AuM is down 19% since 2018, with a further market-wide 9% decline expected by 2030, even though institutions can buck this trend, particularly by embracing the potential of new technologies.

Costs remain the most visible driver of the squeeze – with more than two-thirds (68%) of every dollar consumed by expenses.

“Furthermore, almost three-fifths of institutional investors say they are likely (41%) or very likely (16%) to replace managers purely due to high fees,” said PwC.

“As asset managers contend with surging revenues but diminishing profit per AuM – half (50%) say they are targeting convergence with wealth managers and FinTech’s to build technology-enabled ecosystems, with AI integration and automation seen as the most important action to transform and future proof their business models by 2030.”

Albertha Charles, Global Asset & Wealth Management Leader, PwC UK, said: “Asset managers are evolving in the Intelligence Age, as new technologies – from Generative AI to Agentic AI – re-shape how value is created and delivered. The winners won’t be those who gather the most assets, but those who rewire fastest, translating innovation into digital ecosystems that serve more diverse investors, more personally and efficiently than ever before.”

North America will remain the dominant market for global AuM and grow at a CAGR of 6.2%, but Asia-Pacific is projected to grow fastest at a CAGR of 6.8%. Latin America (6.6%), the Middle East and Africa (6.3%) and Europe (5.6%) are also expanding.

At the same time, the total pool of global investable wealth is set to climb from $345 trillion in 2024 to $482 trillion by the end of the decade, growing at a CAGR of 5.7%.

“Two-thirds of this growth will be driven by structural and demographic shifts among Mass Affluents (5.7% CAGR) and high-net-worth-individuals (HNWIs) – one of the fastest growing client segments – growing at a CAGR of 6.5%,” said PwC.

“Private markets are set to remain the industry’s most profitable engine. Private markets generate roughly four times more profit per billion dollars of AuM than traditional managers today.

“By 2030, private markets revenues are set to reach US $432.2 billion and deliver over half of the total asset management industry’s revenues by 2030.

“Other bright spots include tokenised funds. AuM is projected to grow at a staggering 41% CAGR, from about $90 billion in 2024 to $715 billion by 2030, driven by the maturation of blockchain infrastructure, institutional adoption, as well as the democratisation of private markets.

“Elsewhere, passive AuM is projected to rise at a CAGR of 10%, to reach $70 trillion by 2030.

“The spearhead of reinvention is the rapid advance of AI, including generative and agentic models, together with tokenisation.

“Half of asset managers say convergence with wealth management and FinTech players will have the most significant impact on their revenue growth by 2030 – ahead of tokenisation and digital asset adoption (38%).

“Two-thirds (69%) of institutional investors signalled a likelihood to allocate capital to asset managers developing tech capabilities to offer enhanced products and services.”