The global crypto asset management market size is expected to grow from USD 94 million in 2018 to USD 207 million by 2023, at a Compound Annual Growth Rate (CAGR) of 17.1% during the forecast period during the forecast period.
The major growth drivers for the market include the need to safeguard cryptocurrency assets, the growth in the cryptocurrency market, the rising dependence on cryptocurrency, and the proliferation of the blockchain technology. However, the lack of regulatory frameworks may restrain the market from growing.
“On-premises deployment type is estimated to constitute a larger market size during the forecast period”
The on-premises deployment has witnessed a high demand and is a popular deployment type among end-users. Crypto asset management solutions are available as a platform and standalone form, and are mostly deployed in end-users’ premises. The solution providers have a full control over the infrastructure, software, hardware, data, maintenance, and the support they deliver.
All the operational activities, such as setup, configuration, maintenance, and deployment of the solution, are handled locally on the end-user’s premises.
The cost of crypto asset management solution is high. Therefore, end-users are looking for cost-effective options while installing crypto asset management solutions on their premises.
“Among end-users, the institution segment is expected to grow at the highest CAGR during the forecast period”
On the basis of end-users, the institutions segment is expected to hold the largest market size in the crypto asset management market during the forecast period. The institutional clients include financial firms, hedge fund providers, investment firms, and brokerage firms. Cryptocurrency has been widely accepted by institutional clients across the globe. Financial firms are expected to integrate digital currency with their traditional banking systems.
Cryptocurrencies offer several benefits to institutional clients, and the benefits include higher security, decentralized approach, borderless transaction settlement, and faster payment system. Such benefits are the reason why institutional clients are the major contributors to the growth of the crypto asset management market. The financial firms are adopting crypto asset management solutions for safeguarding their crypto assets and streamlining the exchange and trading process.
“Europe is estimated to grow at the highest CAGR during the forecast period”
Europe is expected to provide significant growth opportunities for the crypto asset management vendors during the forecast period. The region demonstrates a combination of high growth, developing economies, and mass adoption of digital currencies, such as Ethereum, Bitcoin, and Ripple.
Despite being highly regulated, the adoption of cryptocurrencies among banks, hedge funds, and investment firms in the EU are growing. Moreover, institutions are planning to integrate cryptocurrencies into the traditional banking services.
Leading financial firms see cryptocurrencies as investment opportunities. Hence, institutions are implementing crypto asset management solutions to safeguard their digital assets. Europe is expected to witness an upward trend of investments in the custodian and wallet management solutions that could fuel the growth of the crypto asset management market.