Need to know basis: As the financial sector improves, demand for data services will rise

The Financial Data Service Providers industry provides financial market data and related services to financial institutions, traders and investors. Since the financial crisis, the level of activity in this sector has remained depressed, but is expected to continue rising, facilitating a recovery of industry revenue. Industry operators have additionally benefited from a tightened regulatory environment, which expanded their regulatory information offerings and demand for their services. In the next five years, growth in the industry is anticipated to accelerate as the economy improves, financial markets stabilize and investors, brokers and traders increase activity...purchase to read more.

Industry Statistics & Market Size
Revenue
$13bn
Annual Growth 11-16
1.7%
Forecast Growth 16-21
Profit
Employment
7,835
Businesses
449

Industry Threats & Opportunities

  • Rising activity in mutual fund, hedge fund and other markets has bolstered industry demand
  • Greater demand for industry products and services attracted new competitors to the market
  • Financial data vendors will benefit from continued innovation in the financial sector
  • Industry Report - Starting a New Business Chapter

    Barriers to entry in the industry are moderate and include establishing a brand name and acquiring skilled labor, which represents a significant cost. Many end-users of financial data services are already the customers of major players such as Bloomberg LP and Thomson Reuters, who have established reputations and brand names. Prominent industry players have gained market presence through acquisitions and strategic alliances, allowing them to expand their market share and client base. For example, Thomson Reuters continues to grow its operations through a high number of acquisitions. Additionally, the majority of the company's revenue is recurring. These barriers largely reflect the growing market share concentration among financial data service providers. Non...purchase to read more.

    Additional Insights for the Financial Data Service Providers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Financial Data Service Providers Industry are

  • Ability to alter goods in favor of market conditions
  • Aggressive marketing given the high level of competition
  • Company's product is user friendly
  • IBISWorld analysts also discuss how external factors such as Demand from finance and insurance and Private investment in computers and software in the Financial Data Service Providers industry impact industry performance..

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    What's in this report

    What is the Financial Data Service Providers Industry?

    This industry provides financial market data to financial firms, traders and investors. The data that vendors distribute comes from stock exchange feeds, broker and dealer desks and regulatory filings. This industry is a section of the larger business information reseller industry and only includes third-party resellers of information (i.e. vendors). It does not include exchanges or securities dealers and brokers.

    Industry Products
  • Real-time and trading data
  • Portfolio management and analytics
  • Research
  • Pricing, reference and valuation data
  • News
  • Industry Activities
  • Provide financial data and research
  • Provide fixed income market data
  • Provide balance sheet data
  • Provide regulatory compliance support
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from finance and insurance
  • Private investment in computers and software
  • Corporate profit
  • Investor uncertainty
  • Regulation for the Investment Management industries

  • Current Performance
  • Rising demand, declining profitability
  • Regulatory assistance
  • Chart: Revenue Growth

  • Industry Outlook
  • Innovation and demand
  • Investment banking
  • Regulatory benefits and costs
  • Table: Financial Data Service Providers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Financial Data Service Providers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Securities Brokering
  • Financial Planning & Advice
  • Public Administration
  • Colleges & Universities

  • Key Selling Industries
  • Commercial Leasing
  • Data Processing & Hosting Services
  • VoIP
  • Wired Telecommunications Carriers

  • Products & Services
  • Real-time and trading data
  • Research
  • Portfolio management and analytics
  • Pricing, reference and valuation data
  • Other
  • News
  • Chart: Financial Data Service Providers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Salespeople
  • Traders
  • Other
  • Research analysts
  • Portfolio managers
  • Financial advisors
  • Risk and compliance users
  • Chart: Major Market Segmentation for the Financial Data Service Providers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Financial Data Service Providers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Financial Data Service Providers Industry

  • Industry Globalization
    Bloomberg LP, Thomson Reuters Corporation, FactSet Research Systems Inc.,
  • Table: Bloomberg LP - financial performance
  • Table: Thomson Reuters Corporation - financial performance
  • Table: FactSet Research Systems Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Financial Data Service Providers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Financial Data Service Providers Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Corporate Profit (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Corporate Profit
  • Corporate profit describes the level of earnings from revenue after subtracting wages after inventory valuation and capital consumption adjustments.
  • Piracy
  • The unauthorized reproduction or use of a copyrighted software, book, recording, television program, patented invention or trademarked product.
  • Real Time Data
  • Data that is delivered immediately after collection.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Financial Data Service Providers is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Financial Data Service Providers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Financial Data Service Providers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Financial Data Service Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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