Custody Services Market
Report ID: SQMIG40H2006
Report ID: SQMIG40H2006
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Report ID:
SQMIG40H2006 |
Region:
Global |
Published Date: January, 2026
Pages:
197
|Tables:
92
|Figures:
71
Global Custody Services Market size was valued at USD 4.54 Billion in 2024 and is poised to grow from USD 4.91 Billion in 2025 to USD 9.15 Billion by 2033, growing at a CAGR of 8.1% during the forecast period (2026–2033).
The global custody services market is growing because the amount of global assets under management (AUM) is growing and the financial markets are becoming more complicated. Custody services, which include keeping financial assets safe, settling them, and servicing them, are very important for institutional clients like pension funds, mutual funds, and insurance companies. These institutions want to invest in more than just domestic and traditional asset classes. This is why it is so important for them to use a safe, secure, and reliable asset custodian, administrator, and reporter. This is what will drive long-term and sustained market growth.
However, the global custody services market analysis reveals some significant challenges. The market is still dealing with a lot of fee compression because big institutional clients use their size to get lower fees or look for contracts with lower prices, which cuts into profit margins. The market also has to deal with high operating costs, which are a big deal because the technology platforms needed are very advanced and the international regulatory environment is always changing and getting more complicated. The market is now adding new types of assets, like digital assets, and with these changes come new risks that will require a lot of money to be spent on technology and security measures.
How Are Artificial Intelligence and the Internet of Things Reshaping the Custody Services Market?
The introduction of Artificial Intelligence (AI) is changing the global custody services market trends in a big way. AI is changing the way businesses work by automating difficult, high-volume tasks like trade settlement, corporate actions, and regulatory reporting. AI machine-learned algorithms can predict trade-settlement failures, spot exceptions to reconciliation, and automatically process different types of documents like contracts and agreements. This is possible because AI can incorporate a wide range of attributes. AI's use in custody services will increase operational engagement, get rid of obvious mistakes in some cases, and give custodians the power to give clients better data analytics and insights about their assets.
In early 2024, a well-known custodian used an AI tool to see if they could make an automated process for corporate actions and chose a top AI platform. This platform automatically pulls out data and factors from press releases, legal notices, and all other unstructured data sources of corporate actions. It then automatically sorts the actions and factors/processes them so that the custodian can save time, money, and the risk of making a costly mistake, which protects the client's entitlement.
Market snapshot - 2026-2033
Global Market Size
USD 3.60 Billion
Largest Segment
Core Custody
Fastest Growth
Value-Added
Growth Rate
7.48% CAGR
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Global Custody Services Market is segmented by Asset Class, Custody Type, Custodian Type, End Client Type, Service Type and region. Based on Asset Class, the market is segmented into Equities, Fixed Income, Commodities and Alternative Investments. Based on Custody Type, the market is segmented into Physical Custody, Virtual Custody and Sub-Custody. Based on Custodian Type, the market is segmented into Bank Custodians, Non-Bank Custodians and Independent Custodians. Based on End Client Type, the market is segmented into Institutional Investors, Retail Investors and Family Offices. Based on Service Type, the market is segmented into Safekeeping, Settlement, Proxy Voting and Corporate Actions Processing. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
The global custody services market share is primarily driven by the Core Custody services segment. This is largely based on the fact that all institutional investors need safekeeping, settlement and corporate actions processing as the basic functions they need to ensure the safety and safeguarding of their assets. These services are at the core of the client-custodian relationship and are a requirement for any other services to be cross-sold.
The Value-Added Services segment is the fastest growing segment and represents one of the key trends driving the global custody services sector. As core custody becomes more commoditized, custodians are adding service differentiation through providing clients with more sophisticated data analytics, risk management tools, compliance, and regulatory reporting tools. This trend is because clients are looking to get actionable insights from their portfolio data.
The global custody services market size is significantly shaped by Institutional Investors segment (pension funds, mutual funds, or endowments), whereby, due to the size of assets such entities are managing, they require highly secure, large-scale asset servicing. And as overall strategies of these investors tend to be diversified and long-term in nature, they do require custody and fund administration services for every aspect of why they are the largest user of global custody services.
The Asset Managers & Hedge Funds segment is the fastest growing section of global custody services industry. This growth is driven by their investment strategies featuring increasing complexity and typically involving alternative assets, derivatives, or high-volume trading. These clients require a more sophisticated, nimbleness of servicing including real-time data, advanced analytics, and matching tools and support for complex asset classes.
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According to the global custody services regional outlook, North America has the most participation because it has the largest, most complicated capital markets and the most institutional assets in the world. The ability to build and manage huge pension funds, mutual funds, large active managers, and a very mature regulatory system means that there is always a growing need for custody services, fund administration, and other services that add value.
The US is the biggest player in the North American custody services market and has the biggest asset managers in the world. A constant focus on custody solutions for alternative assets (like private credit, infrastructure funds, etc.) and all the problems that come with them has been a big reason for growth in this area. To meet the growing allocation needs of their institutional clients, U.S. custodians are putting a lot of time and money into technology and expertise to handle these complicated, illiquid assets. This has led to new ideas and growth in the market.
The Canadian market is also incredibly large due to its pension funds and stable financial system. A key trend that we are seeing is a growing demand for cross-border custody solutions, as Canadian institutional investors diversify their portfolios globally. Canadian custodians have been building out their global networks and enhancements to their technology platforms to offer international settlement services and multi-currency reporting to support this growing amount of global strategic capital allocation, creating a fast-growing and vibrant market.
The Asia Pacific region is set to be the fastest growing region in the global custody services regional forecast due to major wealth creation, a growing middle class, and an explosive expansion of familial capital markets and institutional investor bases. While all regional pension funds and asset managers are growing in assets, the demand for custody and asset servicing capabilities is also increasing as these funds scale further and deeper into new opportunities over longer horizons both domestically and abroad.
Japan is a big, grown-up market in the Asia Pacific region with big insurance companies and pension funds. Japanese regulators have been pushing for openness and good management in asset management lately. This has made more people want independent custody and third-party fund administration because asset owners want their service providers to give them more oversight and reports. This makes Japan even more of a leader.
South Korea is also experiencing rapid growth due to the increased size of the National Pension Service (NPS) and the strength of the rivalry in the asset management market. Recently, we are observing a trend of greater initiation of securities lending programs by Korean institutional investors looking to enhance portfolio returns. This has led to greater demand for custody providers who can provide sophisticated securities lending services coupled with strong risk management and reporting functions, allowing South Korea to be the fastest growing market.
The global custody services market outlook in Europe is a big, complicated, and very competitive market with custody centres in Luxembourg and Ireland. The rules for custody, especially UCITS, tend to set very high standards for protecting investors. Europe has a lot of different investments, and many of them are in different countries. This makes multi-jurisdictional custody and fund administration very difficult.
Germany has a strong market because it has a big economy and a lot of corporate pension funds and insurance companies. As German institutional investors put more money into sustainable investing (ESG), they are asking their custodians for more advanced ESG reporting and analytics. This is to make sure that they are managing portfolios that follow a sustainability mandate and the rules that come with it. This makes them the clear leader in the region's focus on sustainable finance.
The UK is still an important financial centre with a large number of institutional investors and asset managers. Custody for digital assets is becoming a new area of demand. The UK is working on making its rules for digital assets clearer. In response, custodians in London are starting to build their ability to safely store and service cryptocurrencies and tokenized securities to meet the growing demand from clients. This makes the UK a fast-growing market for digital finance.
France has a large domestic market is anchored by its sizeable asset management sector and major insurance companies. A defining trend is the emphasis on technology enabled operational efficiency. French custodians have invested significant sums into AI and automation in order to automate back-office functions such as trade settlement and reconciliation. This is aimed at cost savings and service capability within an increasingly competitive space, the market can continue to be valuable in the evolving European landscape.
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Growth in Global AUM and Cross-Border Investment
Increasing Complexity of Financial Instruments and Regulations
Intense Fee Compression and Margin Pressure
High Technology Costs and Evolving Cybersecurity Threats
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The global custody services industry trends show that a small number of very successful, globally systemic banks are in charge of the industry. These companies—BNY Mellon, State Street, and J.P. Morgan—have gained those advantages by being big and having a global reach, as well as by having a deep understanding of the rules. These banks focus on higher efficiency by offering a full range of services to the world's biggest asset management and institutional investor clients. This makes it hard for new banks to get in.
A wave of fintech companies that offer specialized services is disrupting what these banks offer, but these companies are not traditional banks. The fintech’s are experts in blockchain, cryptography, and software development. They offer a unique service: regulated custody of digital assets, which is just one of the many problems that new technology is helping to solve. They usually work with traditional banks or sell their services directly to crypto-native funds.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global custody services market is a very important part of the financial system. It will eventually be driven by the large and growing number of global assets that are being managed. One of the most important changes in the market is moving away from a commoditized safekeeping function to a technology-driven services partnership. The future of this industry will depend on two things: the ability to handle a growing range of complex assets (like digital tokens) and the ability to turn huge amounts of client data into useful information using advanced analytics.
Regional markets, especially North America, show how many assets are concentrated in the institution market. However, custody is still very important for market growth, and the best opportunities for growth are in adding value to data services, even though fees are going down and technology is expensive.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 4.54 Billion |
| Market size value in 2033 | USD 9.15 Billion |
| Growth Rate | 8.1% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Custody Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Custody Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Custody Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Custody Services Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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