Spend on market data, analysis and news has topped US$27 billion for the first time according to Burton-Taylor International Consulting’s latest report. The findings show a 3.45% increase in global spend for financial information last year, reaching US$$27.48 billion.
The report found that Bloomberg accounted for 33.40% of market share as a result of growth in its data feed and other non-terminal business. At the same time, terminal counts shrank for only the second time in company history.
Thomson Reuters market share contracted to 23.14% from 24.24%, although revenue was flat on a constant currency basis and the company showed positive net sales in each quarter of 2016.
S&P Global Market Intelligence grew the fastest in terms of year-on-year revenue (21.85%), half of which due to acquisition.
Platts (11.14%), S&P Global Market Intelligence (10.91%), Moody’s Analytics (10.19%) and FactSet (8.72%) delivered the highest five-year compound annual growth rates (CAGR) among market data/analysis or news vendors with at least US$500 million in global revenue.
Risk & compliance users and research analysts were the fastest growing data consumer groups in 2016. Over the past five years the greatest increase in user numbers comes from risk & compliance and Investment bankers/corporate financiers.
Pricing, reference & valuation products were in highest demand, growing an average of 8.51% per year over the five years. The report also indicates that demand increased sharply in the Americas and Asia, but shrank in Europe, Middle East & Africa (EMEA).
“The industry showed steady overall growth in 2016 and, in spite of rather pessimistic forecasts from market participants surveyed last year, performed surprisingly well in the Americas and Asia,” says Douglas Taylor, founder and managing director of Burton-Taylor. “Although EMEA held the market back last year, MiFID II requirements and the tight regulatory environment should drive spend in all regions in 2017.”