World Wealth Report 2022: 22.5 Million HNWIs & 220,100 UHNWs with $87 Trillion Wealth, Top 5 Countries with Most HNWs from United States, Japan, Germa

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World Wealth Report 2022: 22.5 Million HNWIs & 220,100 UHNWs with $87 Trillion Wealth, Top 5 Countries with Most HNWs from United States, Japan, Germany, China & France

10th December 2022 | Hong Kong

Capgemini has released the World Wealth Report 2022, providing key data & insights into HNWs, UHNWs, global wealth and asset allocation in 2021/2022.  In 2021, the world has 22.5 million HNWIs (high net worth) with a total wealth of $87 trillion.  The top 5 countries with the highest HNWI population are United States (7.46 million), Japan (3.65 million), Germany (1.63 million), China (1.53 million) and France (775,000).  In Asia-Pacific, the top 5 countries are Japan (3.65 million), China (1.53 million), Australia (319,000), India (308,000) and South Korea (272,000).  There 220,100 UHNWs (ultra high net worth) with $30 million (1% of HNWIs) with 34% of total HNW wealth, 2.05 million HNWIs with $5 million to $30 million (9.1% of HNWIs) with 22.8% of total HNW wealth, 20.1 million HNWIs with $1 million to $5 million (89.9% of HNWIs) with 43.2% of total HNW wealth.   The 2022 HNW asset allocation (2022 January) are Equities 29%, Cash Equivalents 24%, Fixed Income 18%, Real Estate 15%, Alternative Investments 14%.  View key findings & summary below | Download Report here

“ World Wealth Report 2022: 22.5 Million HNWIs & 220,100 UHNWs with $87 Trillion Wealth, Top 5 Countries with Most HNWs from United States, Japan, Germany, China & France “

 


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World Wealth Report 2022 The World of Billionaires World Wealth Report 2022 Key Findings:
  • Total HNWIs – 22.5 milion HNWIs
  • Total Wealth – $87 trillion
  • UHNWs with $30 million – 220,100 (1% of HNWIs) with 34% of total HNW wealth
  • HNWIs with $5 m to $30 million2.05 million (9.1% of HNWIs) with 22.8% of total HNW wealth
  • HNWIs with $1 m to $5 million20.1 million (89.9% of HNWIs) with 43.2% of total HNW wealth
  • Top 5 HNWI Population – United States (7.46 million), Japan (3.65 million), Germany (1.63 million), China (1.53 million), France (775,000)
  • Top 5 HNWI Population in APAC – Japan (3.65 million), China (1.53 million), Australia (319,000), India (308,000), South Korea (272,000)
  • Most HNWIs by Region – North America (7.9 million), APAC (7.2 million), Europe (5.7 million)
  • Most HNW Wealth by Region – North America ($27.7 trillion), APAC ($25.3 trillion), Europe ($18.8 trillion)
  • HNW Growth – 1.7 million new HNWIs (7.8% increase)
  • Wealth Growth – $6.4 trillion increase (8% increase)
  • HNW Wealth Growth Factors – Government stimulus packages, low-interest-rate environments, increased liquidity, stock market gains, widespread COVID-19 vaccinations 
  • Top Unicorns by Sector – Fintech, Internet software & services, E-commerce & direct-to-consumer
  • Top Unicorns by Country – United States, China, India
  • Private Equity – 6,217 deals, valued at more than $1 trillion
  • No. of Venture Capital Unicorns – 1,057 (70% Growth, 2021: 586)
  • More

  • 2022 HNW Asset Allocation: Equities 29%, Cash Equivalents 24%, Fixed Income 18%, Real Estate 15%, Alternative Investments 14%
  • 73% of Tech-wealth HNWIs switched their primary Wealth Management firm after crossing the USD 1 million threshold
  • 49% of HNWIs plan to spread their assets across wealth service providers within the next 12 months
  • Important for Wealth Managers – Industry trends trainings, CRM & smart analytics tool, Digital tools for client interactions
  • Top 3 Tech-wealth HNWI preferences – Conduct transactions on their own, Actively managed personalized investment strategies,  Advisor with a matching socio-demographic profile
  •  

    1) HNW Breakdown

    No. of HNWIs by Region

    • North America – 7.9 million HNWIs
    • APAC – 7.2 million
    • Europe – 5.7 million
    • Latin America – 600,000 
    • Middle East – 900,000 
    • Africa – 200,000

    Top 25 HNWI Population by Country

  • United States – 7.46 million
  • Japan – 3.65 million
  • Germany – 1.63 million
  • China – 1.53 million
  • France – 775,000
  • United Kingdom – 609,000
  • Switzerland – 479,000
  • Canada – 439,000
  • Netherlands – 328,000
  • Italy – 322,000
  • Australia – 319,000
  • India – 308,000
  • South Korea – 272,000
  • Iran – 256,000
  • Spain – 247,000
  • Russia – 228,000
  • Saudi Arabia – 224,000
  • Kuwait – 217,000
  • Taiwan – 215,000
  • Norway – 200,000
  • Hong Kong – 182,000
  • Brazil – 181,000
  • Austria – 176,000
  • Sweden – 165,000
  • Belgium – 141,000
  • 2021 HNW Wealth Segment

    • UHNWs with > $30 million – 220,100 (1% of HNWIs)
    • HNWIs with $5 m to $30 million – 2.05 million (9.1% of HNWIs)
    • HNWIs with $1 m to $5 million – 20.1 million (89.9% of HNWIs)
    • HNWIs with $5 m to $30 million – Mid-Tier Millionaires
    • HNWIs with $1 m to $5 million – Millionaires Next Door

    2021 HNW Share of Wealth

    • UHNWs with > $30 million – 34% of Total Wealth
    • HNWIs with $5 m to $30 million – 22.8% of Total Wealth
    • HNWIs with $1 m to $5 million – 43.2% of Total Wealth

    2021 HNW Population, Wealth Growth

    • UHNWs with > $30 million – 9.6% increase, 8.1% increase
    • HNWIs with $5 m to $30 million – 8.5% increase, 8.4% increase
    • HNWIs with $1 m to $5 million – 7.7% increase, 7.8% increase

    HNWIs Growth by Region

    • North America – 13.2% increase
    • APAC – 4.2% increase
    • Europe – 6.7% increase
    • Latin America – 0.2% decrease
    • Middle East – 5.5% increase
    • Africa – 2.9% increase

    HNWIs Wealth by Region

    • North America – $27.7 trillion
    • APAC – $25.3 trillion
    • Europe – $18.8 trillion
    • Latin America – $9 trillion
    • Middle East – $3.4 trillion
    • Africa – $1.8 trillion

    HNW Wealth Growth by Region

    • North America – 13.8% increase
    • APAC – 5.4% increase
    • Europe – 7.5% increase
    • Latin America – 1.8% increase
    • Middle East – 6.3% increase
    • Africa – 4.7% increase

     

    2) HNW Insights

    2022 Jan Asset Allocation

    • Equities – 29%
    • Cash & Cash Equivalents – 24%
    • Fixed Income – 18%
    • Real Estate – 15%
    • Alternative Investments – 14%

    HNWI ESG Investment Importance

    • North America – 55%
    • Latin America – 65%
    • Europe – 66%
    • APAC – 69%
    • Japan – 25%
    • APAC – 55%

    HNWI ESG Investment Focus Areas:

    • Environmental risks
    • Effective & ethical corporate governance
    • Socially conscious business policies 
    • Robust risk & compliance frameworks
    • Climate Change 
    • Environmental risks 

    HNWs Key Service Providers

    • Wealth Management Firms – Private Banks, Universal Banks, Full-Service Firms, Broker-Dealers, IFAs/RIAs, Asset Managers 
    • Non-Traditional Players – Legal Advisors, Tax Planners, Premium Healthcare & Pension Providers, Travel & Event Planning 
    • Family Office

    Key Findings

    • 73% of Tech-wealth HNWIs switched their primary WM firm after crossing the USD 1 million threshold, primarily due to lack of an attractive product portfolio, low digital maturity, and poor customer experience. 
    • 49%  of HNWIs plan to spread their assets across wealth service providers within the next 12 months. 

    HNWI Areas of Dissatisfaction 

    • Overall digital maturity – 52%
    • Digital interface to analyze portfolio performance – 52%
    • Personalized offerings – 51%
    • Education to enable informed decisions – 51%
    • Seamless communication about performance & new offerings – 48%
    • Wide range of investment options – 47%

    What is important for Wealth Managers vs Perception of Firm Focus

    • Industry trends trainings – 71% vs 44%
    • CRM & smart analytics tool – 71% vs 48%
    • Digital tools for client interactions – 71% vs 43%
    • Data-enabled workstations – 68% vs 45%
    • Strong wealth planning tools – 66% vs 42%

    Top 3 Unicorns by Sector

    • Fintech – 21%
    • Internet software & services – 18%
    • E-commerce & direct-to-consumer – 11%

    Top 3 Unicorns by Country

    • United States – 51%
    • China – 17%
    • India – 6%

    Tech-wealth HNWI preferences & behaviors 

    • Prefer to conduct transactions on their own – 76%
    • Actively managed personalized investment strategies – 71% 
    • Prefer an advisor with a matching socio-demographic profile – 66%
    • Expect consolidated services to meet personal and professional needs – 64%
    • Like to take advantage of all financial services in one platform – 62%
    • Want low risk investment strategies even if it means less ROI – 57%
    • Want a purely virtual advisory to guide their investment decisions – 51%

    Tech-Wealth HNWIs ~ HNWIs who have made their wealth through technology-related businesses (FinTech, EdTech, MarTech, BigTech etc). 

     

    The World Wealth Report 2022 market sizing model covers 71 countries, accounting for more than 98% of global gross national income and 99% of world stock market capitalization. We estimate the size and growth of wealth in various regions using the proprietary Capgemini Lorenz curve methodology. Using this methodology, we derive the macro level value of HNWI investable wealth annually. The two-stage model estimates total wealth by country and the distribution of this wealth across the adult population in that country. The Capgemini 2022 Global HNW Insights Survey questioned 2,973 HNWIs across 24 major wealth markets in North America, Latin America, Europe, and Asia-Pacific as broken down by region, age, gender, and wealth band, respondent demographics can be seen in the paragraph below. 

    The Global HNW Insights Survey was administered in January 2022 in collaboration with Aon, a firm with more than 20 years of experience in conducting private client and professional advisor interviews in the wealth management industry through its global Client Insight team. The 2022 survey covered HNWI investment behavior, channel preferences, value-added services, preference for emerging asset classes such as digital assets and ESG investments, and preference for WM providers. Of the total HNWIs surveyed, 30% belonged to the Tech-Wealth HNWI category. To arrive at global and regional values and ensure survey results represent the actual HNWI population, we use market- and region-level weightings based on the respective share of the global HNWI population. HNWI survey had diverse representation:

    • by Wealth Band – $1-5MN: 21%, $5-30MN: 34%, $30MN+: 46%
    • by Age Band – Under 40yrs: 47%, 40-59yrs: 42%, 60+yrs: 11%
    • by Gender – Male: 63%, Female: 37%

     

    About Capgemini

    Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The Group is guided every day by its purpose of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organization of over 340,000 team members in more than 50 countries. With its strong 55- year heritage and deep industry expertise, clients trust Capgemini to address the entire breadth of their business needs, from strategy and design to operations, fueled by the fast-evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering, and platforms. The Group reported 2021 global revenues of €18 billion. Visit www.capgemini.com 




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