Münster/Frankfurt, December 10, 2025 – After several successful years, the asset management industry in Europe is facing a turning point. Despite growing markets worldwide, players need to adapt to considerably tougher conditions: in an environment characterized by margin pressure, rising costs and geopolitical uncertainties, client needs and product preferences have changed noticeably – making a profound impact on providers’ strategic orientation. This is a key finding of the European Asset Management Study conducted by zeb in 2025. The annual study is based on an analysis of 38 asset managers with significant business activities in Europe and assets under management of between EUR 100 billion and EUR 11 trillion. In addition, the authors of the study conducted a survey of market players and derived key strategic fields of action for the future of the industry.

Growth dominated by market performance

Specifically, the European Asset Management Study revealed that the assets under management of the companies surveyed increased by a total of 18% in 2024, while income rose by only 14%. Their cost-income ratio (CIR) was 67% in 2024, a slight improvement on the previous year. Compared to 2023, net inflows doubled in the 2024 period, accounting for around 25% of total growth – correspondingly, 75% was attributable to exceptional market performance. One thing is particularly striking from the perspective of the study authors and has been observable for years: the five largest providers accounted for two thirds of the inflows. Thus, the “winner-takes-all” trend of recent years continued.

“The industry is facing the challenge of achieving growth not only through uncontrollable market movements, but also through organic or inorganic client acquisition,” says Dr. Carsten Wittrock, Partner at zeb and co-author of the study. “This requires clear strategies and further significant investment in sales and technology.” 

ETFs and retail customers as growth drivers

The study shows a noticeable shift towards retail customers in asset managers’ business. End customer-friendly investment tools, cross-selling and a stronger focus on sales are becoming increasingly important. At the same time, ETFs have further established themselves as a key product category in the retail segment. The total managed ETF market grew by 38% in 2024, driven by market performance and rising inflows of funds, especially at the end of the year. The share of actively managed products in global ETF assets under management rose from 6.4% to 8% in 2024. Although this share is only a good 2% in Europe, it has almost quadrupled in the last five years. Private markets also remain attractive to clients regardless of the interest rate situation and are increasingly being made accessible to smaller investors too. 

Technological innovations and regulation as key challenges

Digitalization along the entire value chain remains a key field of action for the asset management industry in Europe. 40% of the companies surveyed see the use of technological innovations such as clouds and AI as the biggest field of action, while 49% cited the ongoing issue of regulatory implementation efforts. At the same time, the scenarios calculated in the study up to 2029 showed that efficiency gains can only be realized in the best-case scenario with stable commission levels and a high proportion of net inflows. In the worst-case scenario, by contrast, profit margins could fall by up to 45%, while the CIR could rise to up to 83%.

Wolfgang Schlaffer, Partner at zeb and co-author of the study, looks ahead: “Asset managers in Europe are facing a challenging agenda. The coming years will show who is able to make sensible use of technologies, generate net inflows of funds and remain resilient in terms of regulatory compliance. Efficiency is not an end in itself, but a prerequisite for lasting, profitable growth.”

Details on zeb’s European Asset Management Study 2025 are available at European Asset Management Study 2025 | zeb consulting.

About zeb

zeb offers a full range of consulting services in the financial services industry, which is heavily impacted by regulation and digital transformation. Clients include banks (incl. savings banks and neobanks) and fintech companies, insurers and insurtech companies, asset managers, captives, as well as numerous other specialized European financial services providers and financial intermediaries.

zeb was founded in 1992, currently has 1,200 employees and operates offices in Frankfurt, Berlin, Hamburg, Munich and Münster (HQ). Its international offices are located in Amsterdam, Kyiv, London, Luxembourg, Milan, Oslo, Stockholm, Vienna, Warsaw and Zurich. In industry rankings, zeb has repeatedly been classed and acknowledged as the “best consultancy” for the banking and insurance industry.