Global Financial Research Software Market By Type (Cloud Based, Web Based), By Application (Large Enterprises, SMEs), By Region, And Segment Forecasts, 2023 to 2032
Report Id: 44230 | Published Date: Jul 2024 | No. of Pages: 15 | Base Year for Estimate: Jul 2024 | Format:
Market Overview:
Financial research software can be used by business portfolio managers to locate, organize and create an analysis of data that pertains to the company’s investment decisions. Professions like fund managers, investment advisors and business development analysts can also benefit from doing the same. The programme can be used in conjunction with other trading programmes to offer practical solutions by providing market risk analysis. This software is used for forecasting the market, predicting market trends and providing financial guidance.
The global financial research software was valued at USD 1.24 billion in 2024 and is projected to reach USD 1.83 billion by 2032, growing at a CAGR of 3.6% from 2024-2032. One of the main factors propelling the global financial research software market is the growing trend of small and medium-sized enterprises, in addition to large businesses utilising online applications and financial research software. Companies growing all over the world are also leading to the adoption of numerous software programs to optimize different business operations.
Premium Insights:
A growing trend in the financial research software industry is towards solutions involving artificial intelligence and advanced analytics. Businesses are also looking for platforms with real-time data processing capabilities so they are quick to obtain competitive insights.
Small and medium-sized businesses along with large businesses are increasingly using online applications and financial research software is one of the key drivers of global financial research software.
Global Financial Research Software Market Dynamics:
Drivers: Focus on algorithmic trading & quantitative analysis, growing focus on alternative data & ESG investing and demand for cloud-based solutions.
-The rise of quantitative investing and algorithmic trading strategies necessitates sophisticated software tools for backtesting, portfolio optimization, and risk analysis. Financial research software caters to these needs by offering advanced analytical capabilities.
-Investors are increasingly incorporating alternative data sources (e.g., social media sentiment, satellite imagery) and environmental, social, and governance (ESG) factors into their investment decisions. Financial research software that can integrate and analyze these diverse data sets is becoming increasingly important.
-Cloud-based financial research software offers scalability, accessibility, and reduced IT infrastructure costs. This makes it attractive for smaller investment firms and allows for collaboration and data sharing across teams.
Restraints: High cost of implementation and maintenance, Vendor lock-in & limited interoperability and data accuracy & model risk management.
-Financial research software can be expensive, with upfront licensing fees, ongoing subscription costs, and potential customization charges. This can be a barrier for smaller investment firms with limited budgets.
-Some software may lock users into specific vendor ecosystems, hindering integration with other financial technologies and potentially limiting future flexibility.
-The quality of investment decisions hinges on data accuracy and financial models' effectiveness. Data quality checks and robust model risk management practices are essential to mitigate potential losses.
Opportunities: Advancements in AI and ML, focus on cloud-based solutions and expansion into niche markets.
-Integrating AI and ML capabilities allows for sentiment analysis of news and social media data, pattern recognition, and the development of more sophisticated investment strategies.
-Offering cloud-based solutions and subscription-based pricing models makes financial research software more accessible to a wider range of investors and investment firms, particularly smaller players.
-Developing specialized solutions for specific investor segments, such as retail investors, wealth managers, or hedge funds, can cater to their unique needs and workflows and open up new market opportunities.
Market By Financial Research Software Type Insights:
Based on product type, the market is segmented into Cloud-Based and On-Premise. Cloud-based financial research software is expected to hold a dominant market share in 204 due to the several advantages this software provides, like scalability, easy accessibility and reduced IT burden as cloud deployment eliminates the need for on-premise hardware and software maintenance.
Based on application, the market is segmented into large enterprises and Small and medium-sized enterprises. Large enterprises, particularly established financial institutions and investment management firms are expected to hold a dominant market share primarily due to the resources it has to invest in comprehensive financial research software suites with advanced functionalities for complex financial modelling, portfolio analysis and risk assessment.
Based on deployment, the market is segmented into Public Cloud, Private Cloud and Hybrid Cloud. The Public Cloud deployment segment is expected to lead the market as public cloud solutions offer a cost-effective entry point for many users, with readily available resources and scalability options. However, some large enterprises with security requirements may opt for private cloud deployment as it provides greater control over data security and customization options.
Based on the Pricing model, the market is segmented into subscription, pay-as-you-go and one-time license. Subscription pricing models account for a major share of this segment. Subscription plans offer predictable costs and allow users to access features based on their specific needs and budget This caters to a wide range of users, from individual investors to large enterprises.
Market By End-Use Insights:
Based on end-use, investment management firms occupy a major portion of the market as financial research software is crucial for their core functions, including portfolio management, stock analysis and risk assessment.
Market By Region Insights:
Based on regional coverage, the market can be segmented into North America, Europe, Latin America, Asia-Pacific and Middle East & Africa. Asia-Pacific is rapidly growing in the financial research software market primarily as a result of factors like the region's massive uptake of cloud-computing solutions and technologies. Additionally, the growth of the market is anticipated to be aided by the emergence of small businesses and the rise in SME investments in the cloud and SaaS sectors.
Competitive Scenario:
Key players in the region include Bloomberg LP, S&P Global Market Intelligence, Pitchbook Data, Refinitiv, FactSet, Sentieo, SS&C Advent, Merger Links, Analec, and Stock Edge, among others.
Scope of Work-Global Financial Research Software Market
Key Market Developments:
February 2022-In response to the increasing demand for ESG investment data, Sentieo and Clarity AI partnered.
March 2022-Together, Refinitiv and Vestorly are able to provide wealth management companies with enhanced AI-powered digital marketing solutions.
August 2020- S & P Global partnered with Google Cloud to provide financial data and analytics to customers.
Frequently Asked Questions (FAQs)
What drives the growth of the financial research software market?
Ans. Key market drivers include a focus on algorithmic trading & quantitative analysis, a growing focus on alternative data & ESG investing and demand for cloud-based solutions.
What are the major challenges in the market?
Ans. Major challenges include a high cost of implementation and maintenance, Vendor lock-in & limited interoperability and data accuracy & model risk management.
Who are the key players in the market?
Ans. Key players include Bloomberg LP, S&P Global Market Intelligence, Pitchbook Data, Refinitiv, FactSet, Sentieo, SS&C Advent, Merger Links, Analec, and Stock Edge, among others.
What opportunities exist in the market?
Ans. Opportunities include advancements in AI and ML, a focus on cloud-based solutions and expansion into niche markets
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