Asset Management Market in India

Asset Management in India Trends and Forecast

The future of the asset management market in India looks promising, with opportunities in the infrastructure asset management, enterprise asset management, healthcare asset management, and aviation asset management markets. The global asset management market is expected to grow with a CAGR of 11.5% from 2025 to 2031. The asset management market in India is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the swift evolution of the digital landscape, the growing adoption of cloud-based IT asset management solutions, and the rising need for asset tracking.

• Lucintel forecasts that, within the component category, solutions will remain a larger segment over the forecast period due to their 2D code-reading capabilities, long-term reliability, and multiple code-reading abilities.
• Within the application category, aviation will remain the largest segment due to the escalating demand for airborne freight and in-flight passenger transportation.

Emerging Trends in the Asset Management Market in India

The asset management market in India is undergoing rapid transformation, driven by changing investor preferences, technological innovations, and evolving regulatory frameworks. With an increasing number of retail investors seeking more diversified and customized investment solutions, asset managers in India must adapt to the evolving landscape. The following emerging trends are significantly shaping the asset management market, offering both opportunities and challenges for asset managers to stay competitive in this dynamic environment.

• Rise of ESG Investing: Environmental, social, and governance (ESG) investing is gaining significant momentum in India as investors are increasingly aligning their portfolios with sustainability goals. Asset managers are incorporating ESG factors into their investment strategies, launching ESG-focused funds, and integrating sustainability into their decision-making processes. This trend responds to growing investor demand for responsible investing, attracting both institutional and retail investors. Asset managers who prioritize ESG considerations can differentiate themselves in a competitive market while contributing to broader societal goals.
• Growth of Digital Platforms and Robo-Advisors: India is witnessing an increase in digital platforms and robo-advisors as investors turn to technology for cost-effective and accessible portfolio management solutions. Robo-advisors are helping asset managers offer low-cost, automated, and personalized investment strategies, making investment management more accessible to a broader segment of the population, particularly younger, tech-savvy individuals. The adoption of these digital tools enables asset managers to scale operations, reduce costs, and provide greater customer engagement through user-friendly interfaces, transforming the way investments are managed.
• Increase in Passive Investment Strategies: The popularity of passive investment strategies, particularly through Exchange-Traded Funds (ETFs) and index funds, is growing in India. Investors are gravitating toward low-cost, diversified products that offer transparency and liquidity, leading asset managers to expand their passive investment offerings. ETFs allow Indian investors to access global markets at a fraction of the cost of actively managed funds, making investing more affordable and accessible. The shift toward passive investing is reshaping the market by driving down fees and expanding access to a wider audience.
• Customization and Personalization: As Indian investors seek more personalized investment strategies, asset managers are increasingly leveraging big data, artificial intelligence, and advanced analytics to tailor their offerings. By providing customized solutions that align with individual financial goals, risk profiles, and investment preferences, asset managers can build stronger relationships with clients. Personalization has become a key differentiator in a competitive market, helping firms boost client satisfaction, retention, and long-term loyalty. This trend is pushing the industry towards greater flexibility and client-centricity in investment solutions.
• Regulatory Reforms and Investor Protection: The regulatory environment in India is evolving, with an increased emphasis on investor protection, transparency, and ethical practices. Recent changes in regulations, such as the introduction of the Securities and Exchange Board of India’s (SEBI) guidelines on ESG disclosures and the implementation of the Alternative Investment Fund (AIF) framework, are helping to enhance market integrity. These reforms are fostering investor confidence while ensuring that asset managers adhere to higher standards of governance. However, the regulatory landscape also presents challenges for firms to maintain compliance and adapt their practices accordingly.

The emerging trends in the Indian asset management market, such as ESG investing, digital platforms, passive investment strategies, customization, and regulatory reforms, are reshaping the industry. These developments are not only creating new opportunities for asset managers to diversify their offerings and enhance client engagement but also pushing them to innovate and remain competitive. By embracing these trends, asset managers can position themselves for long-term growth in an evolving and dynamic market.

Recent Developments in the Asset Management Market in India

The Indian asset management market is undergoing significant changes, driven by a combination of evolving investor preferences, technological advancements, and regulatory reforms. These developments are reshaping the strategies of asset managers, keeping them competitive in a rapidly changing market. Five key developments shape the asset management landscape in India, reflecting a shift toward more dynamic, innovative, and investor-centric solutions.

• Adoption of ESG Investments: ESG investing has gained significant momentum in the Indian market, with more investors aligning their financial aspirations with best practices in ethics and sustainability. Asset managers are responding in several ways, including integrating ESG factors into their funds, launching specific ESG-focused funds, and creating other products that emphasize social responsibility. This shift indicates growing awareness among both institutional and retail investors regarding the importance of sustainability. Additionally, as demand for socially responsible investments rises, asset managers who implement ESG strategies can attract a new wave of clients and strengthen their market position.
• Rise of Digital Platforms and Robo-Advisors: The digitalization of asset management in India is accelerating with the rise of digital platforms and robo-advisors. Investors, especially younger generations, are increasingly turning to these platforms for cost-effective, automated portfolio management solutions. Robo-advisors offer personalized investment strategies based on an individual’s preferences, risk tolerance, and financial goals. As a result, this shift has led to greater efficiency for asset managers, allowing them to serve a broader audience at lower operational costs. Digital platforms thus improve accessibility, enhance customer engagement, and streamline portfolio management, leading to greater market penetration.
• Increasing Popularity of Passive Investment Strategies: Passive investment strategies, particularly through Exchange-Traded Funds (ETFs) and index funds, are gaining immense popularity in India. These investment options offer low-cost, diversified, and transparent alternatives to traditional actively managed funds. This strategy is favored for its cost efficiency, offering a much-needed boost for long-term growth. Asset managers are responding by expanding their ETF offerings and providing broader access to global markets. This trend has transformed the asset management landscape by encouraging a shift from active to passive investing, benefiting both institutional and retail investors.
• Investment Solution Personalization: Indian investors are increasingly seeking customized investment solutions that align with their specific financial objectives, risk profiles, and values. In response to this demand, asset managers are increasingly using data analytics, artificial intelligence, and big data to offer tailored investment strategies. Customization allows asset managers to build stronger relationships with clients and improve client retention. As personalization becomes a competitive differentiator, firms are focusing on providing bespoke solutions that enhance customer satisfaction and loyalty. This trend is driving growth and helping asset managers stand out in a highly competitive market.
• Evolving Regulatory Environment: The Indian asset management market is experiencing significant regulatory changes aimed at improving transparency, investor protection, and market integrity. The Securities and Exchange Board of India (SEBI) has introduced new guidelines on ESG disclosures and investor protection measures, pushing asset managers to raise their governance standards. While these regulations increase investor confidence, they also create challenges for asset managers in terms of compliance and adjusting their operational practices. The evolving regulatory environment requires asset managers to remain flexible and invest in robust compliance systems, but it ultimately benefits the industry by fostering trust and market stability.

Recent developments in the Indian asset management market, including the rise of ESG investing, digital platforms, passive investment strategies, personalization, and regulatory reforms, are significantly shaping the industry. These developments present both challenges and opportunities for asset managers to adjust their strategies, improve client engagement, and maintain competitiveness. By embracing these trends, asset managers can position themselves for growth and long-term success in an increasingly dynamic and investor-focused market.

Strategic Growth Opportunities for Asset Management Market in India

Asset management is an ever-growing market in India, catalyzed by growing investor requirements, evolving technological platforms, and changes in regulations. Increased interest in sustainable investment, digital-based platforms, and customized financial offerings has driven opportunities for growth among asset managers across key applications. Adaptation in these strategies and subsequent responses by these firms to changing requirements are in continuous progression. Among all these key opportunities, five specific applications indicate significant growth avenues within the asset management industry of India.

• ESG Investing: Indian ESG investing has gained momentum in line with the global trend to shift towards sustainable, responsible, and green investment modes. Growing awareness related to climate change, social justice issues, and enhanced corporate governance has increased demand from both institutional and retail investors for ESG-compliant products. Asset managers can capitalize on this trend by integrating ESG factors into their investment strategies and launching ESG-focused funds. By doing so, firms will attract a new generation of socially conscious investors and position themselves as leaders in sustainable finance, an area that will continue to gain traction.
• Digital Transformation and Robo-Advisors: With the rise of robo-advisors on digital platforms and advancements in asset management technologies, cost-effectiveness has helped investors obtain high-quality, computerized portfolio management tailored to their risk, financial, and personal goals. This trend particularly attracts younger, tech-savvy investors. Asset managers can easily take advantage of more scalable and effective solutions by utilizing artificial intelligence and machine learning, promoting market growth in India. Digital transformation also improves operational efficiency, reduces costs, and enhances client engagement, enabling firms to compete in an increasingly dynamic market.
• Passive Investment Strategies (ETFs and Index Funds): Passive investment strategies, especially Exchange-Traded Funds (ETFs) and index funds, are gaining immense popularity in India due to their low cost, transparency, and diversification. More Indian investors are seeking affordable, long-term investment options, and asset managers are expanding their ETF offerings to cater to this demand. ETFs enable investors to gain exposure to a diversified portfolio at a fraction of the cost of actively managed funds. This trend is reshaping the market by shifting investments from active to passive strategies, offering asset managers new growth opportunities by catering to cost-conscious investors.
• Personalized Investment Solutions: Indian investors are increasingly demanding personalized investment strategies that align with their specific financial goals, risk profiles, and values. Asset managers are leveraging data analytics, artificial intelligence, and big data to create highly customized portfolios that meet this demand. Personalization helps asset managers build deeper relationships with clients and enhances retention rates. As customization becomes a key competitive edge, those providing bespoke investment solutions are better positioned to meet the evolving needs of investors. This approach is likely to foster customer loyalty and create untapped avenues for growth through a highly differentiated product mix.
• Regulatory Compliance and Risk Management: Asset managers must anticipate and invest in robust compliance systems and risk management practices due to the evolving regulatory landscape in India. Recent regulatory changes, such as ESG disclosures and investor protection, are compelling asset managers to raise governance standards and improve transparency. This can be achieved by focusing on compliance and risk management, thereby increasing investor confidence and reducing operational risks. This focus not only helps firms comply with changing regulations but also builds a reputation for trust and stability, contributing to long-term market growth.

The asset management market in India is undergoing significant transformation, with key growth opportunities emerging in ESG investing, digital transformation, passive investment strategies, personalized solutions, and regulatory compliance. Seizing these opportunities will help asset managers improve their competitiveness, attract new clients, and expand their market share. The ongoing evolution of the market is driving growth and innovation, making it an exciting time for firms to position themselves for long-term success.

Asset Management Market in India Driver and Challenges

The asset management market in India is influenced by a mix of technological, economic, and regulatory factors. These forces drive both opportunities and challenges within the industry, shaping the strategies and operations of asset management firms. Technological advancements, evolving investor preferences, regulatory reforms, and economic changes are pivotal in defining the direction of the market. While these drivers create new growth opportunities, they also present challenges that firms must navigate to remain competitive and sustainable in a rapidly evolving environment.

The factors responsible for driving the asset management market in India include:
• Technological Advancements and Digital Transformation: Technological innovation, particularly digitalization and the rise of robo-advisors, is one of the key drivers in India’s asset management market. Digital platforms are revolutionizing portfolio management by offering cost-effective, efficient, and tailored solutions. These technologies allow asset managers to engage a broader base of tech-savvy investors, enhance customer service, and reduce operational costs. Automation and artificial intelligence also allow for personalized investment strategies and scalable operations, helping firms manage larger client bases and better meet individual needs, fueling market expansion.
• Rising Demand for ESG Investments: Environmental, Social, and Governance (ESG) investing has gained significant traction in India as both institutional and retail investors increasingly seek sustainable, responsible investment options. Growing awareness of climate change, social justice issues, and corporate governance standards has driven investors to demand ESG-compliant products. Asset managers can capitalize on this shift by integrating ESG factors into their investment strategies and launching ESG-focused funds. Firms that align with this trend will not only attract socially conscious investors but also differentiate themselves in a highly competitive market.
• Growth of Passive Investment Strategies: The rise of passive investment strategies, particularly Exchange-Traded Funds (ETFs) and index funds, is another major driver in India’s asset management market. These investment products offer lower costs, greater transparency, and broad diversification, making them increasingly popular among cost-conscious investors. As more investors gravitate toward passive investing, asset managers are expanding their ETF offerings and improving access to global markets. This shift from active to passive investment strategies presents an opportunity for firms to tap into a larger investor base and achieve sustainable growth.
• Increasing Affluence and Financial Literacy: Indian expanding middle class and increasing levels of financial literacy are driving demand for professional asset management services. As individuals accumulate wealth, they are seeking more sophisticated investment solutions to meet long-term financial goals. Enhanced financial literacy has also encouraged more people to invest in mutual funds, stocks, and other financial instruments. This trend has significantly boosted the demand for asset management services, providing firms with an opportunity to expand their offerings and cater to a broader, more informed investor base.
• Regulatory Reforms and Government Support: Recent regulatory changes by the Securities and Exchange Board of India (SEBI) and the Indian government have fostered a more transparent and investor-friendly environment. Initiatives to enhance investor protection, enforce stricter disclosures, and encourage financial inclusion have been crucial in growing investor confidence. These reforms not only make the market more attractive to investors but also create opportunities for asset managers to offer products that comply with evolving standards. Adapting to these changes can provide firms with a competitive edge in the market.

Challenges in the asset management market in India are:
• Intense Competition: The asset management market in India is highly competitive, with numerous local and international players vying for market share. Established firms face pressure from newer, agile companies that offer digital-first, cost-effective solutions. Additionally, as passive investment strategies gain popularity, asset managers must rethink their approaches to remain competitive. The challenge for firms is differentiating themselves in an oversaturated market while maintaining profitability, which requires continuous innovation, customer engagement, and operational efficiency.
• Regulatory Compliance and Risk Management: As the regulatory landscape in India continues to evolve, asset managers face challenges related to compliance and risk management. With new guidelines around ESG disclosures, fee transparency, and investor protection, firms must ensure their strategies align with regulatory expectations. Compliance with these regulations often requires significant investments in technology, processes, and training. Managing risk in such a complex environment, while also keeping pace with regulatory changes, can be a daunting task for asset managers looking to safeguard their reputation and avoid penalties.
• Investor Education and Awareness: Despite growing financial literacy, a significant portion of the Indian population remains unaware of the benefits of professional asset management. Many retail investors still favor traditional investment methods, such as gold and real estate, over mutual funds and equities. Educating investors about the long-term benefits of diversified, professionally managed portfolios is a challenge for asset managers. Ensuring that investors understand the value of different financial products requires ongoing outreach and education, which can be resource-intensive for firms.

The asset management market in India is shaped by multiple drivers, such as technological advancements, ESG investing, the popularity of passive strategies, rising affluence, and regulatory reforms. While these drivers open up growth opportunities, challenges like intense competition, regulatory compliance, and investor education must also be addressed. By navigating these challenges and seizing the growth opportunities, asset managers can strengthen their market position and achieve long-term success in a rapidly evolving industry.

List of Asset Management Market in India Companies

Companies in the market compete based on the product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, asset management companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the asset management companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10

Asset Management Market in India by Segment

The study includes a forecast for the asset management market in India by component, asset type, function, and application.

Asset Management Market in India by Component [Analysis by Value from 2019 to 2031]:

• Solution
• Service

Asset Management Market in India by Asset Type [Analysis by Value from 2019 to 2031]:

• Digital Assets
• Returnable Transport Assets
• In-Transit Assets
• Manufacturing Assets
• Personnel/ Staff

Asset Management Market in India by Function [Analysis by Value from 2019 to 2031]:

• Location & Movement Tracking
• Check In/ Check Out
• Repair & Maintenance
• Others

Asset Management Market in India by Application [Analysis by Value from 2019 to 2031]:

• Infrastructure Asset Management
• Enterprise Asset Management
• Healthcare Asset Management
• Aviation Asset Management
• Others

Features of the Asset Management Market in India

Market Size Estimates: Asset management in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Asset management in India market size by component, asset type, function, and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different components, asset types, functions, and applications for the asset management in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the asset management in India.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.

FAQ

Q1. What are the major drivers influencing the growth of the asset management market in India?
Answer: The major drivers for this market are the swift evolution of the digital landscape, the growing adoption of cloud-based it asset management solutions and the rising need for asset tracking.
Q2. What are the major segments for asset management market in India?
Answer: The future of the asset management market in India looks promising with opportunities in the infrastructure asset management, enterprise asset management, healthcare asset management, and aviation asset management market in India.
Q3. Which asset management market segment in India will be the largest in future?
Answer: Lucintel forecasts that solution will remain the larger segment over the forecast period due to its 2D code-reading capabilities, long-term reliability, and multiple code-reading abilities.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the asset management market in India by component (solution and service), asset type (digital assets, returnable transport assets, in-transit assets, manufacturing assets, and personnel/ staff), function (location & movement tracking, check in/ check out, repair & maintenance, and others), and application (infrastructure asset management, enterprise asset management, healthcare asset management, aviation asset management, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Asset Management Market in India, Asset Management Market in India Size, Asset Management Market in India Growth, Asset Management Market in India Analysis, Asset Management Market in India Report, Asset Management Market in India Share, Asset Management Market in India Trends, Asset Management Market in India Forecast, Asset Management Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.