Custody, Asset & Securities Services in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS 52399Revenue
$31.6bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
66,893
Businesses
14,870
Wages
$X.Xbn
Custody, Asset & Securities Services in the US industry analysis
The industry benefited from strong macroeconomic conditions and high trading volumes. Before 2020, a strong economy and stable financial markets supported demand for industry services. In 2020, due to the COVID-19 pandemic, financial market volatility increased and morphed into a bull market for certain equity classes. This led to exceptionally high daily average trading volumes throughout the year and bolstered demand for industry services. Moreover, a continued influx of assets under custody (AUC) led to higher fee income from the industry's trust services. Overall, custody, asset, and securities services revenue has dropped at a CAGR of 0.5% to $31.6 billion through the end of 2024, including a 0.2% increase in 2024, with profit dropping to 24.7%.
Trends and Insights
- Strong economic performance is an important factor for industry success. As economic conditions improve, investors will be more willing to place assets under custody with industry servicers.
- Strong corporate sentiment is crucial for financial markets. As trading activity and corporate sentiment grows, so does demand for AUC services among financial and commodity institutions.
- Large population centers fuel industry establishments' growth. Regions that have metropolitan centers are more likely to maintain a large industry presence within the region.
- Industry servicers must remain innovative to fend off high internal competition. By investing in advanced technology and analytical software, industry servicers can secure more lucrative clients.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.5 % over the past five years, to reach an estimated $31.6bn in 2024.
Trends and Insights
Strong macroeconomic growth fuels industry success
- The Custody, Asset, and Securities Services industry heavily depends on consistent growth within the broader economy, as economic success translates to high trading volumes and increased value of critical assets under custody (AUC) held within core markets such as the S&P 500.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Evolving economic conditions poised to maintain industry growth
- As the economy continues to recover following the COVID-19 pandemic, servicers will benefit from the renewed availability of disposable income from retail investors, fueling further growth in trading volume.
Biggest companies in the Custody, Asset & Securities Services in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
The Bank Of New York Mellon Corporation | 7,533.5 | 2,211.7 | 29.4 | |
State Street Corporation | 5,922.0 | 1,456.8 | 24.6 | |
Bank Of America Corporation | 2,883.0 | 793.8 | 27.5 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Support services for financial and commodity markets, Trust and fiduciary services and Brokerage and dealing services. Support services for financial and commodity markets is the largest segment of the Custody, Asset & Securities Services in the US.
Trends and Insights
Rocky economy causes decline in trust and fiduciary services
- The trust and fiduciary services product segment comprises revenue from asset custody services for personal, business, and government funds. Industry servicers charge fees to generate income here.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Portfolio Management in the US
- Financial Planning & Advice in the US
Complementors
- Investment Banking & Securities Dealing in the US
- Securities Brokering in the US
- Stock & Commodity Exchanges in the US
- Venture Capital & Principal Trading in the US
International industries
- Global Investment Banking & Brokerage
- Custody, Trustee and Stock Exchange Services in Australia
- Funds Management and Other Investment Services in New Zealand
Table of Contents
About this industry
Industry definition
This industry comprises custodial bank and brokerage firms that primarily provide trust, fiduciary and custody services to corporations, investment funds and individuals. Industry operations consist of back-office processes for transacting securities including settlement, accounting and record keeping. Other services include middle-office support such as securities lending, compliance pricing and performance analytics.
What's included in this industry?
Providing trust and fiduciary servicesProviding support services for financial and commodity marketsProviding brokerage and dealing servicesProviding financial planning and investment management servicesProviding financing related to securitiesProviding support for money management and investment securitiesCompanies
The Bank Of New York Mellon CorporationState Street CorporationBank Of America CorporationPurchase this report to view all 5 major companies in this industry.
Related Terms
ASSETS UNDER CUSTODY (AUC)ASSETS UNDER MANAGEMENT (AUM)BACK-OFFICEMIDDLE-OFFICECUSTODYFUND ACCOUNTINGFUND ADMINISTRATIONTRANSFER AGENCIESSECURITIES LENDINGSPREADIndustry Code
NAICS 52399 - Custody, Asset & Securities Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Strong economic performance is an important factor for industry success. As economic conditions improve, investors will be more willing to place assets under custody with ind...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Strong corporate sentiment is crucial for financial markets. As trading activity and corporate sentiment grows, so does demand for AUC services among financial and commodity ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Large population centers fuel industry establishments' growth. Regions that have metropolitan centers are more likely to maintain a large industry presence within the region.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Industry servicers must remain innovative to fend off high internal competition. By investing in advanced technology and analytical software, industry servicers can secure mo...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Three companies own more than a 5.0% share of the market. The industry requires qualified workers, giving established companies with greater access to capital a larger workfo...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of The Bank Of New York Mellon Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of State Street Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bank Of America Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for The Bank Of New York Mellon Corporation, and factors influencing its performance in the industry
- Description and key data for State Street Corporation, and factors influencing its performance in the industry
- Description and key data for Bank Of America Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Growing corporate profit fuels more robust industry performance. If corporate profit grows, financial institutions will have more capital to accelerate investment, benefiting...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Volatile economic conditions dampen profitability. Industry servicers will fare worse under bearish economic conditions and lower trading volume, hampering profitability.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Custody, Asset & Securities Services in the US industry in United States in 2024?
The market size of the Custody, Asset & Securities Services in the US industry in United States is $31.6bn in 2024.
How many businesses are there in the Custody, Asset & Securities Services in the US industry in 2024?
There are 14,870 businesses in the Custody, Asset & Securities Services in the US industry in United States, which has declined at a CAGR of 1.4 % between 2019 and 2024.
Has the Custody, Asset & Securities Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Custody, Asset & Securities Services in the US industry in United States has been declining at a CAGR of 0.5 % between 2019 and 2024.
What is the forecast growth of the Custody, Asset & Securities Services in the US industry in United States over the next 5 years?
Over the next five years, the Custody, Asset & Securities Services in the US industry in United States is expected to grow.
What are the biggest companies in the Custody, Asset & Securities Services in the US market in United States?
The biggest companies operating in the Custody, Asset & Securities Services market in United States are The Bank Of New York Mellon Corporation, State Street Corporation and Bank Of America Corporation
What does the Custody, Asset & Securities Services in the US in United States include?
Providing trust and fiduciary services and Providing support services for financial and commodity markets are part of the Custody, Asset & Securities Services in the US industry.
Which companies have the highest market share in the Custody, Asset & Securities Services in the US in United States?
The company holding the most market share in United States is The Bank Of New York Mellon Corporation.
How competitive is the Custody, Asset & Securities Services in the US industry in United States?
The level of competition is high and increasing in the Custody, Asset & Securities Services in the US industry in United States.
