Price increases from market data vendors have slowed for the first time in five years, but continue to outpace the growth of data budgets at financial institutions, according to a new study from Substantive Research and BCG Expand.
Average renewal uplifts from major data vendors fell to 10% in 2025, down from a peak of 18% in 2023 and 15% in 2024. However, the increases remain above both inflation and the pace of budget growth at firms consuming market data. According to the report, annual data budgets have grown far more slowly, increasing by 3% in 2022, 2.11% in 2023 and 2.01% in 2024, before rising to 4.1% in 2025, while this year is expected to increase to 5.2%.
Speaking to The TRADE, Mike Carrodus, chief executive of Substantive Research, explains: “If we are about to enter a period of higher inflation then we will have the perfect opportunity to confirm that this slowdown in price increases is a structural shift.
“If data consumers continue to foster greater competition and increase their leverage in negotiations, then will see the results of that in the pricing of indexes, ratings and terminals at a product and license level.”
Read more: Market data prices officially reach ‘unsustainable’ levels, new research finds
Despite the moderation in vendor price increases, the report found large pricing disparities across several product categories. In index data, some firms were paying up to 13 times more than peers for similar products and use cases from the same vendors.
Pricing gaps were also uncovered in ratings and terminal services, where the largest differences reached 502% and 493% respectively for identical products.
Substantive Research suggested that data-consuming firms are becoming increasingly proactive when it comes to negotiations with vendors.
“Despite a marginally better data pricing backdrop for financial institutions, it is still easy not to benefit from this trend and remain unaware that your peers are forging a more economically sustainable future,” Carrodus tells The TRADE.
Increasing levels of scrutiny
As market data price increases are slowing, so too are vendor revenues, according to the study which found that though the market for data services continues to expand, growth has moderated slightly.
Total data vendor revenues increased by 6.4% in 2025, down from 6.6% in 2024 and 8.3% in 2023.
Jens Munthe, principal at BCG Expand, explained: “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.”
Munthe added that the data highlights a dual dynamic within the industry, with large segments such as terminals, indexes and ratings remaining concentrated and relatively stable.
On the other hand, research and analytics continue to grow faster than the wider market and remain far less consolidated – how this plays out remains to be seen.