- Data vendor price increases have slowed from recent highs of 18% in 2023 to 10% in 2025, but still outpace data budget growth
- Large pricing disparities still exist, with some firms paying up to 13 times more than others for similar products and use cases (indexes)
- Private markets data continues to rise along with demand with uplifts of up to 38%, usually with an additional ~15% increase over the lifetime of new multi-year agreements
Substantive Research, the research and data discovery and spend analytics provider, has again partnered with BCG Expand to produce the second annual joint study investigating data consumer spending and vendor pricing.
For the first time in five years, the pace of growth in data spending on vendors and their levels of average renewal uplifts have started to slow, but still remain at elevated rates above inflation (10%), and still outpace data budget growth (5.22%).
A combination of macro factors, including the rise of AI adoption and cloud-based infrastructure, together with professionalised approaches in data procurement are allowing financial institutions to negotiate from stronger positions.
Background
Soaring costs and opaque pricing structures have been long-standing challenges for firms which consume indexes, ratings, terminals and increasingly, private markets data. These feeds are vital to operations on both the buy side and sell side; they are viewed as ‘must-haves’ by firms and as signals of quality and best practice by end investors
Because of this, pricing power has been concentrated into the hands of the best-known providers, who themselves must navigate a market changing rapidly with technological advancements such as AI adoption.
Study findings
Despite ongoing vendor‑driven uplifts, product consolidations, and structural pricing changes, the Substantive Research and BCG Expand joint study shows a market in transition rather than one simply repeating past patterns.
The Substantive Research data showed that:
- Despite the recent slowdown in price increases, the average renewal increases for major vendors have remained elevated at rates of 14% in 2022, 18% in 2023, 15% in 2024, and now 10% in 2025.
- By contrast, annual data budgets have only seen modest growth, increasing by 3% in 2022, 2.11% in 2023, 2.01% in 2024, 4.1% in 2025, with 5.2% projected for 2026.
- Indexes: Pricing for products remains highly inconsistent, with some firms paying up to 13 times more than others for similar products and use cases, from the same vendors.
- Ratings: The largest pricing disparity uncovered by the study was 502%, meaning some firms are paying five times more than peers for the same products from the same vendors.
- Terminals: The study found that for identical products from the same vendors, some firms were paying nearly five times as much as their peers, with the largest price difference reaching 493%.
- Private markets: Private credit data somewhat bucks the slowdown trend, with renewal uplifts ranging from 14% to 38%, and an additional ~15% increase across the lifetime of new multi-year agreements.
The BCG Expand data showed that:
- Total data vendor revenues grew 6.4% in 2025, down from 6.6% in 2024 and 8.3% in 2023.
- The market has expanded at a 7.3% compound annual growth rate (CAGR) since 2020. Total revenues have increased by more than 40% over the past five years alone.
- Indexes: Vendor revenues grew 9.3% in 2025, strengthening versus 2024 and significantly exceeding overall market growth. The five-year CAGR of 8.9% remains well above the overall market rate of 7.3%
- Ratings: 2025 growth in vendor revenues rebounded to 7.4% (vs. 6.0% in 2024) but remains below the 2021–2023 average (~9%)
- Terminals: Vendor revenues grew by 5.4% in 2025, slightly up from 5.2% in 2024, and at $16.2bn, Terminals remain the largest product category, accounting for nearly one third of all vendor revenues
- Private markets: BCG Expand data confirms the robustness of private market data, with revenues increasing by 17.9% in 2024 and a further 17.1% in 2025.
Mike Carrodus, CEO of Substantive Research, said: "The key finding of our research is that, for the first time in recent memory, price increases are slowing. Vendors are testing new commercial models, clients are reassessing long-standing services, and buyers are becoming more assertive as they manage price increases that continue to persistently outpace budget growth, pointing to a future impasse and crunch point.”
Czarina Reinante, Head of Market Data Analytics at Substantive Research, said: "It is clear that data-consuming firms are becoming much more proactive about how they approach negotiation and agreements with their vendors. The received wisdom that any attempts to control costs and mitigate vendor price increases were doomed to failure is increasingly old-fashioned. Financial institutions are seeing their leverage, flexibility and optionality increase, albeit gradually, given the entrenched provider power that remains a reality in this vendor market.”
She added: “Uncertainty surrounding the long-term impact of artificial intelligence and cloud infrastructure, is causing C-suite executives to evaluate their data spends more closely. When this top-down scrutiny is combined with the ongoing professionalisation of procurement, buyers find themselves in a much stronger negotiating position."
Damian McCarthy, CEO at BCG Expand, commented: “We are delighted to publish this joint report with Substantive Research and to showcase it alongside our new market sizing product. This product was designed precisely to provide an independent, comprehensive view of the market as a whole — going well beyond the individual consumer institutions we work closely with. By combining Substantive’s insights with a robust perspective on market revenues and trends, we are helping bring greater transparency to an industry that has historically lacked it.”
Jens Munthe, Principal at BCG Expand, said: “The industry has now surpassed $50 billion in revenues and continues to grow at a healthy pace overall, expanding at a 7.3% CAGR since 2020. While growth has moderated over the past two years, it is too early to conclude whether this represents a longer-term slowdown or a short-term normalisation following the inflation-driven peaks of recent years. What is changing, however, is the level of scrutiny. Market data costs are firmly on the C-suite agenda, and firms are becoming more disciplined and data-driven in how they manage their market data spend.”
He added: “What this data also highlights is the dual dynamic within the industry. Large segments such as terminals, indexes and ratings remain concentrated and relatively stable, with limited movement at the top. In contrast, research and analytics continues to grow significantly faster than the overall market and remains far less consolidated. A few years ago ESG was the dominant growth theme; today we are seeing strong momentum in areas such as private credit. This underlines that while parts of the market are mature, others remain highly dynamic and continue to create space for new entrants to scale.”
Study methodology
This study examined trends in spending over a five year period, including actual annual figures from 2022 and projected figures for 2026. The data examines pricing inconsistencies within the industry by analysing historical pricing data, surveys, public disclosures, and interviews. By combining BCG Expand’s insights into market data consumer spending with Substantive Research’s analysis of vendor pricing variations and discounting practices, the study accurately highlights key dynamics shaping the market.
Study Universe
Buy side:
- 45 firms representing $25tr AUM;
- 55% UK & EU/45% North America;
- 70% long only/30% Hedge Fund
Sell side:
- 25 firms representing $35tr AUM;
- 50% UK & EU/50% North America
