Millionaire Households’ Wealth in 25 Major Economies Will Soar to $202 Trillion by 2020: Deloitte Center for Financial Services
U.S. and Europe to remain global centers of wealth while emerging markets bubble up
NEW YORK, May 4, 2011 — A new report from the Deloitte Center for Financial Services suggests the total wealth among millionaire households could more than double over the next decade in 25 major economies, growing from an estimated $92 trillion this year to $202 trillion in 2020.
The study shows the United States and Europe will continue to have the greatest concentrations of wealth, even as emerging markets narrow the gap, and that numerous opportunities for growth in local markets around the U.S. remain.
Focusing on the emerging opportunities for wealth managers to serve the wealthiest customers, the Deloitte study provides estimates of the number of households with net wealth above the $1 million, $5 million and $30 million thresholds across each economy.
“We wanted to go beyond some existing wealth management statistics by looking both into the future and across the globe to forecast how wealth among millionaire households might evolve,” says Andrew Freeman, executive director of the Deloitte Center for Financial Services. “Identifying and understanding how different market segments are changing can help formulate growth strategies.”
Freeman adds, “Which countries may offer the most promising future and how wealth managers can potentially increase profitability in the next decade are important questions for a wide range of financial institutions. These days it’s about a lot more than just a few private banks. Each wealth manager needs to consider their individual footprint and see where it might make sense to capitalize on expected long-term shifts. While there may be enormous growth in the mass affluent sector, many of those customers may also be migrating into the millionaire category.”
Among the report’s main findings:
The 24 economies outside the U.S. included in the report are: Australia, Brazil, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Norway, Poland, Russia, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey and the United Kingdom.
Wealth in this study includes financial assets (stocks, bonds and other investments) and non-financial assets including primary residence, durables, business ownership and other assets. In order to maximize the reliability of estimates, the analysis relies solely on actual data sources. The study was sponsored by the Deloitte Center for Financial Services and conducted with Oxford Economics.
“It’s all about strategy,” says Freeman. “Asset and wealth managers looking at the study can draw their own conclusions about how much service will be required in an economy expected to have rapid growth in wealthy households and how much these households might prefer to locate their wealth in, for example, existing international centers of wealth management or private banking.”
The report – including more of the methodology and economy-by-economy projections – can be found online at www.deloitte.com/us/globalwealth.
As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.