Global Spending On Financial Market Data And News Grows In 2024
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A new report published by Burton Taylor Consulting revealed a modest rise in global spending on financial market data and news in 2024. Revenue also saw an increase of 6.4% during this period, but this increase is noticeably slower than in the previous year, totaling in $44.3 billion.
According to the report, the growth rate was slightly over half of last year’s 12.4%, with real-time pricing and trading, reference, and valuation data all seeing moderate growth.
One area that saw significantly accelerated growth was news products. The report adds that strong institutional trading markets supported spending by fixed 7.9% in income and 6.8% in equity trading groups. However, spending by retail wealth management went down compared to the year before, seeing growth of only 3.9%.
The data revealed that LSEG Data & Analytics together with Bloomberg captured half of the market’s revenue coming from market data, marking both as the largest players in this area.
But, providers that offered customized or curated data have managed to get a cut of the share, taking a certain portion of it from major players. Collectively, they accounted for almost 20% of total revenue in the entire industry.
An Optimistic View of the Future
Looking at the future, the report predicted that technological advancements are likely to increase their ability to extract value from detailed data, which could grant smaller providers an even greater opportunity to increase their value, and potentially secure a larger chunk of the market share for themselves.
Burton Taylor’s senior analyst, Hadley Weinberger, commented on the situation, saying: “The rapid growth of AI and similar advanced analytical technologies has elevated the value of market data, but the efforts of financial institutions to rein in their data costs manifested in 2024.”
He added that financial institutions have been putting pressure on regulators and data providers to rationalize their pricing, which was a major contributor to a noticeable slowdown in this year’s spending.
