Japan Asset Management Market

Japan Asset Management Market Overview:

The Japan asset management market size reached USD 27.70 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 63.00 Billion by 2033, exhibiting a growth rate (CAGR) of 9.51% during 2025-2033. The market is experiencing growth driven by increasing demand for diversified investment strategies, particularly from high-net-worth individuals. Moreover, strong market performance, regulatory support, and rising interest in sustainable investments contribute to the market's expansion.

Japan Asset Management Market Trends:

Shift Towards Diversified Investment Strategies

The Japanese asset management market sees a considerable transformation towards investment strategies that favor diversification as investors look to broaden their portfolios beyond the traditional sectors. The desire to capture growth in non-conventional asset classes has been at the forefront of market action, especially with challenges being faced by established sectors such as leasing and banking. An important example of this shift is Orix Corporation, which, in January 2024, announced plans for a private fund. Orix, being one of the major companies in Japan's leasing and banking, has realized that these traditional segments offer limited growth and are thus moving toward diversification. This is boosting the demand for alternative investment strategies to open up new opportunities and enhance returns across a larger space. Orix's entry into private equity is an important marker-not only as a portfolio diversification but also an indication of an evolving trend in the asset management landscape of Japan. Asset managers and investors are increasingly exploring venture capital and other non-public market investments as part of their strategies. This shift aligns with the growing demand for higher-yield, risk-adjusted returns, particularly in the face of slow economic growth in traditional sectors. In addition, diversified strategies also include investments in real estate, infrastructure, and foreign markets, reflecting the growing sophistication of Japanese asset managers. The evolving regulatory environment, which has made it easier for investors to access alternative asset classes, also plays a crucial role in this trend.

Increasing Demand for Japan-Focused Equity Products

There is a growing demand for Japan-focused equity products, driven by investor interest in capitalizing on Japan's economic recovery and the attractive growth prospects within its equity market. This trend is particularly evident in the launch of more specialized, targeted investment vehicles such as exchange-traded funds (ETFs), which allow investors to gain exposure to Japan's equity markets flexibly and efficiently. A prime example is the partnership between Rayliant Global Advisors and Sumitomo Mitsui DS Asset Management (SMDAM) in April 2024. They have jointly launched the new Rayliant SMDAM Japan Equity ETF, an active ETF that has been conceptualized to onboard customized access to the Japan equity market for investors. This maneuver brings together Rayliant's strengths in quantitative strategy with deep domain knowledge of SMDAM concerning the Japanese market, where investors will be drawn to high-quality growth while having improved flexibility in the market. The idea of RAYJ is not only driven by the high tendencies of investments in  Japan-related equity products but also by recovery and modernization hitherto in progress. The Japanese market is demonstrating a performance of strong corporate governance within its stable financial systems, marshaling interest in innovative sectors such as technology, robotics, and clean energy. Furthermore, this creates tailored investment products from which investors can create niche market exposures or expected growth drivers in Japan. These developments characterize a broader approach where both active and passive management strategies are converging into more sophisticated combinations to provide flexible or customizable options. The demand for active ETFs like Rayliant-SMDAM is a response to what investors seek now for more integrated control of their investment portfolios without compromising the market insights of active managers.

Japan Asset Management Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on client type, type of mandate, and asset class.

Client Type Insights:

• Retail
• Pension Fund
• Insurance Companies
• Banks
• Others

The report has provided a detailed breakup and analysis of the market based on the client type. This includes retail, pension fund, insurance companies, banks, and others.

Type of Mandate Insights:

• Investment Funds
• Discretionary Mandates

A detailed breakup and analysis of the market based on the type of mandate have also been provided in the report. This includes investment funds and discretionary mandates.

Asset Class Insights:

• Equity
• Fixed Income
• Cash/Money Market
• Others

The report has provided a detailed breakup and analysis of the market based on the asset class. This includes equity, fixed income, cash/money market, and others.

Regional Insights:

• Kanto Region
• Kansai/Kinki Region
• Central/ Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kansai/Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Japan Asset Management Market News:

• February 2025: Macquarie Asset Management and Blackstone announced plans to launch private infrastructure investment products targeting retail investors in Japan. This move capitalizes on the rising demand for alternative assets, offering opportunities in infrastructure like roads, ports, and data centers, diversifying Japan’s asset management landscape.
• January 2025: 8F Asset Management secured USD 460 Million to fund the Soul of Japan’s land-based aquaculture facility in Tsu City, Japan. The investment, supported by global and Japanese institutional investors, underscores a growing trend towards sustainable, innovative food production, boosting Japan’s asset management sectors.

Japan Asset Management Market Report Coverage:

Key Questions Answered in This Report:

• How has the Japan asset management market performed so far and how will it perform in the coming years?
• What is the breakup of the Japan asset management market on the basis of client type?
• What is the breakup of the Japan asset management market on the basis of the type of mandate?
• What is the breakup of the Japan asset management market on the basis of asset class?
• What are the various stages in the value chain of the Japan asset management market? 
• What are the key driving factors and challenges in the Japan asset management ?
• What is the structure of the Japan asset management market and who are the key players?
• What is the degree of competition in the Japan asset management market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan asset management market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Japan asset management market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan asset management industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.