Wirehouses, look out: Independents are coming up on the inside.

That’s the word from Cerulli, which says that by 2019, the combined asset market share held by the independent advisory channels will surpass that of wirehouses.

Independent broker-dealers should be wary, too, however. According to Cerulli, not just wire houses will be hurting, but the “projected market share gains in the RIA and dually registered channels will likely come at [their] expense,” as well. The consultant “expects both channels to lose significant asset market share over the next five years.”

“Multiple factors have contributed to the historical and expected growth of independent channels,” said Kenton Shirk, associate director at Cerulli, in a statement. “More than two-thirds of advisors indicate they would prefer the independent broker-dealer, registered investment advisor, or dually registered models if they decided to leave their current firms.”

The independent channel, Shirk added, offers more flexibility and autonomy when it comes to portfolio construction, operational flexibility, fee structure and technology.

He continued, “The economics can also be appealing to advisors, as payouts are higher and advisors become responsible for their own overhead decisions. Independent advisors can build long-term enterprise value in not only their own solo practice, but also in a broader business entity comprised of multiple advisors, staff, and infrastructure.”

With lots of independent broker-dealers and custodians able to achieve sufficient scale to provide service offerings that are both broad and deep, he said, those services — such as practice management resources, financial planning support, and investment research — have become “commonplace.” That’s cut down on the factors that distinguish one from another.

In addition, Shirk said that technology advances also have minimized the differences in platform capabilities across channels.