The U.S. cash equity markets are the largest in the world and continue to be among the deepest, most liquid and most efficient. This primer – one in the Primer Series by SIFMA Insights – is a thorough comparison of equity markets across the globe, analyzing data on market size, formation, performance and costs, as well as markets in indexes.

Market Cap Overview

Looking at market caps across the globe, we highlight the following trends:

• The World: The $120.4 trillion global equity market cap is split across the regions by Americas 43.4%, AsiaPac 32.7%, and EMEA 23.8%
• Developed vs. Emerging: Aggregate market cap for all developed markets is 2.7x that of emerging markets (developed $87.9 trillion, emerging $32.5 trillion)
• Largest Region: At $52.3 trillion, the Americas is the largest region for equity markets (43.4% of total global market cap); 1.8x EMEA and 1.3x AsiaPac
• Largest Country: At $47.0 trillion, the U.S. equity markets are the largest in the world; this represents 90.0% of total Americas market cap and 39.1% of total global market cap
• Highest Growth: AsiaPac saw the highest growth, +696.0 since 2000 or a +9.9% CAGR (from $4.9 trillion to $39.4 trillion); this was driven by growth in China, +2,518.8% since 2003 or a +18.8% CAGR (from $0.5 trillion to $13.4 trillion)
• Lowest Growth: EMEA saw the slowest growth, +205.7% since 2000 or a +5.2% CAGR (from $9.4 trillion to $28.7 trillion); the slowest growth country was Germany, +102.6% or a +3.3% CAGR (from $1.3 trillion to $2.6 trillion)

Global Comparison

Global market cap grew to $120.4 trillion in 2Q21, from $30.7 trillion in 2000 (+291.5%, +6.4% CAGR), with AsiaPac representing the biggest gainer over the past few decades.

• Americas: $52.3T in 2Q21, from $16.4T in 2000 (+218.6%, +5.4% CAGR); from 53.4% total global market cap to 43.4%
• EMEA: $28.7T in 2Q21, from $9.4T in 2000 (+205.7%, +5.2% CAGR); from 30.5% total global market cap to 23.8%
• AsiaPac: $39.4T in 2Q21, from $4.9T in 2000 (+696.0%, +9.9% CAGR); from 16.1% total global market cap to 32.7%

Download the full Primer for more, including sections on:

• Market Size
• Market Formation
• Market Performance
• Market Costs
• Markets in Indexes

SIFMA Insights Primers

The Primer series from SIFMA Insights goes beyond a typical 101-level brief, breaking down important technical and regulatory nuances to foster a fundamental understanding of the marketplace and set the scene to address complex issues arising in today’s markets.

Author

Katie Kolchin, CFA
Director of Research
SIFMA Insights

Related Resources

• SIFMA Insights

  The Primer Series

• SIFMA Research

  US Equity and Related Statistics

• SIFMA Research

  Research Quarterly: Equities