Global spending on financial market data continued its decade-long growth streak with revenues increasing 12.4% to another record of $42.0 billion in 2023, as companies are becoming more aware of the importance of market data.  Although real-time trading and data spending accounted for the largest share of total revenues at over 35%, strong demand for Portfolio Management & Analytics and Pricing, Reference and Valuation data drove spending.

Source: Burton Taylor estimates

Growth was primarily concentrated in the Americas at 11.5%, while it was 12.4% in EMEA and 14.7% in Asia.  Market data spending in the Americas accounted for 50.4% of the global total, with EMEA accounting for 31.1% and Asia accounting for 18.5% of the total.

Bloomberg, LSEG, and S&P Global Market Intelligence continued to maintain their position as the largest global market data vendors.  Moody’s Analytics, FactSet, S&P Global MI, and SIX Financial reported the sharpest revenue growth rates in 2023.

AI continues to become a major focus for data vendors, as it is a major driver for market data demand. Clients can now extract the value of the data they already have as well as use the data they thought was never usable.  The bigger data providers stand to benefit the most from this as they cover more areas and have more data sets as well as the required staffing to actively participate in their clients’ business. Along the same lines, investment in cloud technologies to support data infrastructure continues its strong upward trajectory, predicting strong future growth of spending on market data. Because financial institutions expect to ingest a much greater volume of data in the coming years, they are committing more resources to building an infrastructure to support the storage and analytic power it will require.

The skill set of industry professionals has drastically changed over the past 20 years, fueling the growth of data through the enhanced capabilities the institutions have to gain intelligence from it.  The quantitative and analytical skills of both the people and the technology have exceeded our expectations.  When we couple this with a clearer understanding of the market data and AI, we can see an even greater increase in demand for market data, yielding greater revenues for market data providers.

Hadley Weinberger is a Senior Analyst at Burton-Taylor International Consulting.  Visit our newly redesigned website at https://burton-taylor.com/ and see Burton-Taylor’s 2023 benchmark report on the index industry at https://tpicap.com/burtontaylor/reports/04/2024/financial-market-dataanalysis-global-share-segment-sizing-2024 and look for our continuing research for market data, exchanges and indexes, to be published throughout the year.