Brand Finance data estimates 79% of global intangible asset value is not disclosed on balance sheets
- Global intangible value surges 28% to USD79.4 trillion, surpassing 2021 peak
- Denmark surpasses Ireland to become most intangible market globally
- Driven by tech giants, US market has the largest absolute increase in intangible asset value
- Asset & Investment Management sector enters 2024 ranking with 57% intangibility
LONDON, 30 October 2024 – In 2024, the value of intangible assets owned by the world’s largest companies has reached USD79.4 trillion, according to a new report from Brand Finance, the world’s leading brand valuation consultancy. This represents a substantial 28% increase from 2023 when global intangible value stood at USD61.9 trillion, now reaching its highest level since Brand Finance began tracking it in 1996. During the same period, the value of global tangible net assets has also increased to USD68.8 trillion.
The Brand Finance methodology relies on the enterprise value of firms to determine implied intangible asset, value because most intangible asset value is not reported by the owner companies. This lack of reporting is why 79% of estimated total global intangible asset value is unaccounted for in company financial reports.
Every year, the Brand Finance Global Intangible Finance Tracker (GIFT™) report tracks the value of the world’s largest companies by intangible asset value. Intangible assets are identifiable, non-monetary assets without physical substance. Intangible assets can be grouped into three broad categories: rights (including leases, agreements, contracts), relationships (including a trained workforce), and intellectual property (including brands, patents, copyrights).
“This year’s record-high in global intangible asset value highlights the growing importance of intangible assets in today’s global economy. As companies continue to invest in digital transformation, innovation, and research and development, intangible assets have become crucial drivers of long-term growth and competitive advantage.”
Annie Brown, Valuation Director at Brand Finance
On a market level, Denmark has overtaken Ireland to become the most intangible market in the world. The total intangible value of the Danish market has risen 6-percentage points to reach total intangible value of 82%. Denmark is considered a highly intangible market due to its strong emphasis on innovation, research, and high-value industries like pharmaceuticals and renewable energy. Pharmaceutical giant Novo Nordisk has seen a significant 45% rise in its intangible asset value, Coloplast AS has increased by 29%, and Vestas Wind Systems has risen by 11%.
Brand Finance data reveals that the intangible asset value of the US market has skyrocketed USD12.1 trillion (34%) from 2023, the country with the largest absolute increase. The Semiconductor sector is driving the US growth in intangible value. Semiconductors has seen the largest growth in intangible asset value among all sectors ranked in the study; it is now the sector with the third-highest intangible value, at over USD7 trillion. US giant NVIDIA has played a significant role in this growth.
“NVIDIA’s remarkable rise has not only solidified its market leadership in the growing AI economy, but has substantially boosted its intangible value, enhancing the value of its brand, intellectual property, and customer relationships. As such, Brand Finance data reveals that NVIDIA now has the third-highest intangible value among companies globally, at USD2.9 billion.”
Annie Brown, Valuation Director at Brand Finance
Moreover, the 2024 ranking reveals that eight of the world’s top 10 companies with the highest intangible value are based in the US, with technology and internet giants significantly contributing to the country’s high intangible value. Apple and Microsoft continue to hold their positions as the top two companies with the highest intangible value globally. At the same time, media powerhouses Alphabet and Meta, and retail giant Amazon, are also key contributors.
The 2024 GIFT™ study has also split Asset & Investment Management businesses (as defined by third-party CIQ) and Banking businesses into two separate sectors. Asset & Investment Management enters the 2024 ranking in 17th position with 57% intangibility; 43% of this is undisclosed.
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