Data Broker Market - Forecasts from 2024 to 2029

The Global data broker market is expected to grow at a CAGR of 7.58% over the forecast period to reach US$561.538 billion by 2029, increasing from estimated value of US$389.765 billion in 2024.

The global data broker market is growing rapidly due to advances in technology and changes in purchasing behavior by consumers in the information economy one of the most important sectors. Additionally, the surge in demand for data brokerage is a result of increasing digitalization levels across different sectors aiming at utilizing data for personalized customer experience creation and making well-informed decisions. Due to the increasing importance of regulatory compliance and data privacy, data brokerage evolves with businesses investing in robust security protocols and open data handling procedures to attract customers and adhere to strict laws. Moreover, massive amounts of data are generated by the widespread employment of IoT devices and other connected technologies, providing lucrative opportunities through which data brokers can aggregate, scrutinize, and capitalize on data streams.

Further, the use of more advanced algorithms in analytics and similar technologies such as artificial intelligence could be essential for being capable of providing analytics in real-time and also predictive modeling. This has, in turn, completely transformed what is normally referred to as data brokerage. It is now possible for firms through this approach, not only to make forecasts about different market conditions but also put them into practice so that they can increase their levels of operation efficiency.

The Global Data Broker Market Drivers:

Increasing demand for targeted marketing

The data broker industry is experiencing a major market force that is resulting in drastic changes in customer engagement strategies and business results due to the increased demand for focused marketing. Given recent shifts in consumer preferences alongside technological advancements, businesses now lay more emphasis on tailored advertising to reach out to as many clients as possible, including promoting client gains and enhancing customer loyalty.

Further, the use of large data sets gathered by data collecting services enables companies to use customer behaviours, preferences, and buying patterns. In addition to strengthening brand-consumer relationships, this customized strategy increases conversion rates and the return on investment (ROI) of marketing campaigns. For instance, Meta and other famous companies are important actors in the market of data brokers for consumers who target advertisements at specific audiences with caution. Targeted ads bring enormous profits that underline the intrinsic value of consumer data and such brokers who contribute vital information about the purchasing habits, tastes, and preferences of clients to businesses.

Rising penetration of IoT is leading to the generation of huge amounts of useful data

The Internet of Things (IoT) is a technology that is becoming very popular in every industry. The biggest factors behind this are the increasing usage of smartphones, the growing population of internet users, and the swift adoption of social media platforms. Moreover, according to Ericsson, around 1.6 billion broadband IoT (4G/5G) connections are expected for cellular IoT devices by 2023.

Further, the exponential growth in worldwide data generated by these gadgets is expected in the coming years, paralleling the increasing adoption of IoT technology. This will spur demand for data brokers even further. According to the report published by Cisco, there were 3.6 networked devices per person in 2023, compared to 2.4 in 2018. Networked device counts will rise from 18.4 billion in 2018 to 29.3 billion by 2023.

The Global Data Broker Market Restraint:

Lack of Acceptance of Virtualization Standards Globally to Obstruct Market Growth

In the data brokerage industry, data security issues pose a serious threat that calls for strong security protocols to safeguard confidential data. Cyber threats have become more elaborate, so stringent measures for security should be taken since they are categorized from hacking attacks to information leaks, which are possible from time to time. A difficult task that requires them to protect such data from abuse as well as unlawful access faces data brokers since they handle both company and individual details in large quantities. Tight regulations on the horizon, such as CCPA and GDPR, make compliance much harder, while stricter compliance requirements due to increased scrutiny result in heightened pressures on data management; therefore, security becomes more complex. For there is an increased frequency of data breaches that erode consumer trust while at the same time causing harm to firm reputations; meaning that cyber security must be spearheaded by information brokers.

The Consumer Financial Protection Bureau (CFPB) initiated an investigation into companies that monitor and gather personal data in March 2023. This implies that the CFPB wants to have full disclosure about what each data broker does, including their level of adherence to regulations, to fully understand how these entities operate. Moreover, public members are encouraged to consider those businesses that significantly affect others financially or otherwise when offering feedback during the submission of ideas on such issues.

Global Data Broker Market Geographical Outlook:

North America is projected to grow at a high rate during the forecast period

The region harbours a prosperous, intelligently designed economy characterized by the prominent existence of numerous international companies in various sectors such as technology, trade, health, and finances. Due to the production of massive data volumes, data broker services are frequently required in these sectors; competitive environments, market trends, and consumer behaviour must all be evaluated.

North America provides a regulatory environment that allows data brokerage to thrive, thereby promoting entrepreneurship and creativity within an economy that thrives on data. Furthermore, the innovative culture and early adoption of emerging technologies in North America support the ongoing development and growth of data broker services, establishing the region as a global leader in the data economy.

The Global Data Broker Market Developments:

• In February 2023, CoreLogic, a leading global provider of analytics, data-enabled solutions, and property information, purchased Roostify, a top provider of digital mortgage technology. Its customers will now get information on borrowers and properties in good time after they take out loans using Roostify's digital mortgage technology platform, which combines CoreLogic’s vast data, analytics, and workflow solutions, hence saving them time and cutting their expenses.
• In March 2023, the well-known customer intelligence firm Acxiom announced a collaboration with Amazon Ads. Through this partnership, advertisers can more easily connect with their target audience by using Amazon DSP.

Key Market Segmentation:

Global data broker Market is segmented and analyzed as below:

By Data Type

• Consumer Data
• Business Data

By End-User

• BFSI
• Retail
• Automotive
• Construction
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• Australia
• Others