Financial Data Service Providers in the US Industry Market Research Report Now Available from IBISWorld

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The Financial Data Service Providers depends heavily on demand from financial institutions such as investment banks and large corporate clients, which use industry data to make a variety of financial decisions. As these downstream users were rocked during the financial crisis and recession, demand for the industry fell in kind. Subsequent recovery in the finance sector, however, boosted industry revenue, and the industry is poised to continue growing into the next five years as stricter government oversight of the financial sector makes the regulatory data sold by the industry more essential than ever. For these reasons, industry research firm IBISWorld has added a report on the Financial Data Service Providers industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The financial markets' recovery in 2010 helped stabilize financial data providers

During the five years to 2012, revenue for the Financial Data Service Providers industry is expected to grow at an annualized rate of 4.1% to roughly $6.1 billion. Despite the financial markets' turmoil during the recession in 2008 and 2009, many industry operators were able to evade significant losses. During the recession, however, the level of activity from financial institutions, including investment banks, securities brokers and commodity contract dealers, dropped severely. “This decline led to a lack of demand for industry services,” says IBISWorld industry analyst Antonio Danova, “as these financial institutions comprise the largest downstream market for industry firms.” In turn, industry revenue fell 3.1% and 3.4% during 2008 and 2009, respectively.

Nonetheless, as the economy gradually improved and investors began ramping up trading and other financial activity, demand for industry services was restored. Overall, recent trends toward the liberalization and globalization of world capital markets have resulted in greater mobility of investor capital, “benefiting the financial sector through greater international participation in financial markets but also intensifying competition,” according to Danova. This trend led to a strong post-recession surge, with revenue growth of 8.4% during 2010, which anchored the industry's upward performance during the past five years. The industry also benefited from a tightening regulatory environment for the entire financial sector. As more regulations and provisions were passed, firms in the Financial Data Service Providers industry expanded their regulatory information offerings, boosting revenue in the process, including expected growth of 9.1% during 2012. The largest firms in the industry, including Bloomberg LP, Thompson Reuters Corporation and Down Jones & Company Inc., benefit from widely recognized products and brands and command loyal customer bases, making entry into this competitive industry difficult for new firms.

In the next five years, the Financial Data Service Providers industry is forecast to experience more rapid growth as the economy continues to improve, financial markets stabilize and investors, brokers and traders increase activity across the board. Additionally, thanks to significant restructuring efforts to improve efficiency after the recession, many corporations and large businesses will become more profitable, causing total corporate profit across all industries to soar. This trend will facilitate greater opportunity for financial institutions and other businesses to purchase industry services. As a result, industry revenue is expected to grow at a brisk pace during the five years to 2017. For more information, visit IBISWorld’s Financial Data Service Providers in the US industry report page.

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IBISWorld industry Report Key Topics

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 Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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