The total wealth of US millionaires will reach $87 trillion by 2020, growing at a compound annual rate of 9 per cent over the period from 2011, and the country will hold its place as the world’s largest wealth management market, according to a new survey by Deloitte.

At the heart of the survey’s findings is that, despite the astronomic rise of emerging markets, the developed markets – particularly the US and Europe – are expected to remain the global centers of wealth over the next decade. This is in terms of both the amount of wealth and the number of millionaire households. China is found to be the most likely exception, with an estimated wealth of $8.2 trillion in 2020, according to the report.

The aggregate wealth of millionaire households in the US is predicted to reach $87 trillion in 2020, from $39 trillion in 2011, and the country will be host to 43 per cent of the world’s wealth among millionaires, the report finds.

The $1 million-$5 million group is predicted to reach 15.8 million households in 2020, a growth rate of 103 per cent over the decade; the $5 million-$30 million group is predicted to grow by 83 per cent to reach 4.2 million households; and the $30 million+ group is expected to grow 24 per cent to hit 600,000 households, according to Deloitte. 

According to these figures, there are many opportunities for the wealth management industry, and the study says one way of tapping into these may be via greater state penetration. Particularly, California is likely to have the highest number of millionaire households in 2020, while New Jersey may continue to have the greatest density. Meanwhile, the East Coast is likely to see the fastest growth in the number of millionaire households, with New York and Florida adding 1.5 million collectively over the decade, Deloitte says.

A regional breakdown shows that, in terms of numbers of millionaire households, California will likely lead the Pacific Southwest; Texas will lead in Mid-America; Washington in the Northern Pacific; Florida in the Southeast; New York in the Northeast; Illinois in the Midwest, and Pennsylvania in the North Central region.