Value of global intangible assets falls by 25%

• Apple takes over top spot to become world’s most intangible company; Microsoft falls to third as Saudi Aramco is second

• Oil and Gas is stand-out sector for intangible gains, up 52%

• China and United States lead fall in intangible values

The value of intangible assets owned by the world’s largest companies has fallen by 25%. The new analysis has found that global intangible value has followed the trend seen in previous financial crises and has now declined 25% year-on-year, from US$76 trillion in 2021 to US$57 trillion in 2022.

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 fall in the value of intangible assets resembles the 27% decline in total intangible value in 2011 but is only half as big as the 59% decline observed in 2008 in connection with the global financial crisis.

It is important for businesses to understand the value of intangible assets. Brand Finance’s new data highlights the volatility of market values of firms when so much value is left unaccounted for. Investors should be concerned that these intangibles undisclosed, which could indicate they are also insufficiently supported and managed.

David Haigh, CEO & Chairman, Brand Finance

Apple takes over top spot; Microsoft falls to third as Saudi Aramco is second

Apple (intangible assets up 23% to US$2,297 billion) has taken top spot as owning the world’s most valuable intangible assets, up from 2^nd last year. Saudi Aramco (intangible assets up 9% to US$1,786 billion) has risen one place from 3^rd to 2^nd, while Microsoft (intangible assets down 17% to US$1,586 billion) has fallen from 1^st to 3^rd.

UnitedHealth Group (intangible assets up 35% to US$526 billion) is one of the big winners this year, entering the global top ten rankings at 7^th, a big jump from 13^th last year.

Oil and Gas is stand-out sector for intangible gains, up 52%

With most economic sectors suffering a fall in intangible asset value, Oil & Gas was the significant outlier with a 52% increase in intangible asset value. The growth in the Oil & Gas sector is largely driven by the increase in global oil prices and three companies: Exxon Mobil (intangible assets up 268% to US$292 billion), Chevron (intangible assets up 197% to US$222 billion) and Saudi Aramco (intangible assets up 9% to US$1,786 billion).

China and United States lead fall in intangible values

China (down 39%) and the United States (down 27%) are the countries accounting for the largest intangible value decreases. The United States accounts for nearly two thirds of global intangible value (61%), with China having the second largest contribution equalling 5% of global intangible value.