Global spending on financial market data and news grew modestly in 2024, with revenues rising 6.4% - far slower than the previous year - to $44.3 billion.
The growth rate was little more than half the 12.4% seen the previous year, with real-time trading and pricing, reference, and valuation data all seeing "moderated" growth, according to a report from Burton Taylor Consulting.
One area did see uncharacteristically accelerated growth: news products.
Strong institutional trading markets supported spending by fixed in income and equity trading groups - 7.9% and 6.8% respectively. But, spending by retail wealth management slowed, showing only 3.9% growth.
Bloomberg and LSEG Data & Analytics together capture half of the market’s revenues from market data.
However, providers offering customised or curated data have chipped away at the share of the major players to collectively account for nearly 20% of all revenue in this industry. The report predicts that, as technology advances elevate the ability to extract value from detailed data, these smaller providers will have a greater opportunity to build their value.
“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,” says Hadley Weinberger, senior analyst, Burton Taylor.
“Financial institutions have been pressuring regulators and data providers to rationalize their pricing, which contributed to a noticeable slowdown in this year’s spending growth.”