CATEGORY
Financial Data Services
The US Financial Data Provider market size is USD 20.8 Billion, and it is expected to grow at 4.9 percent. The increasing demand from the banking and financial sectors, growing investments in technologies, and a less volatile market have led to the growth of the market in the region
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Financial Data Services Global Market Outlook
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The US Financial Data Provider market size is USD 20.8 Billion, and it is expected to grow at 4.9 percent. The increasing demand from the banking and financial sectors, growing investments in technologies, and a less volatile market have led to the growth of the market in the region
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The European region has witnessed faster growth in adopting ESG-related products and data requirement
Financial Data Services Demand Market Outlook
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North America is the most significant revenue contributor to the global data market. The region is witnessing significant developments, in terms of adoption and investments in technologies, such as analytics, AI, and ML.
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The European and Asian markets are growing in revenue after the North American regions
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The current economic slowdown and market volatility are increasing the demand for effective market insights and decision-making
Supply and Demand : Financial Data Services
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Despite the COVID pandemic, the revenue earning trend for Financial Data Firms ranges between 5 percent and 15 percent. Like Thomson Reuters witnessed a growth of 5 percent, S&P Global reported an annual growth of 35 percent, mainly due to the acquisition of IHS Markit
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Service providers were able to retain their revenues through contract renewals and increased subscriptions. Also, companies have been able to grow and retain customers by modifying existing products and services for their needs or developing specific products for the local market
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The demand for data-driven financial decisions in various end-user verticals has increased. With the emergence of big data, Financial Data Providers are offering solutions, which can tackle large amounts of data and can provide valuable insights
Financial Data Services Cost Driver Analysis
Value Based Pricing
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The data providers follow a value-based pricing method, where the data provider sells the product or service to the customer at its perceived value as opposed to the actual cost of providing it. The pricing also varies based on the client’s industry, potential data usage, and the worth of the financial data to the clients
Cost of Value-Added Services
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Any additional services provided will be on an extra cost basis
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Inclusions, like credit assessments, risk modeling, data visualization, and economic data forecasts. The data providers also charge separately for the data, the platform, analytics, and customized solutions
High Bargaining Power
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Few service providers, like Bloomberg, Thomson Reuters, Morningstar, Refinitiv, FactSet, Moody’s, and S&P, have led to an oligopolistic market increasing the bargaining power of market data vendors and strengthening their market position. This has forced buyers to accept high prices
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