Neudata: The Future of Alternative and Market Data 2025

We’ve summarised Neudata’s Future of Alternative and Market Data 2025 report for you, no forms, no fluff, just the key insights that matter.

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Key Takeaways

• Budgets stay strong: 89% of buyers expect their alternative data spend to increase or remain steady in 2025.

• Stable growth: Market data spending remains consistent, with only 2% of buyers reporting any decrease.

• Adoption of AI surges: 66% of buyers use AI or LLMs internally, nearly double from 2024.

• Persistent pain points: Price negotiations, limited trial access, and data quality issues remain key buyer frustrations.

• Vendors optimistic: 57% expect stronger sales in 2026, with retention rates as high as 90%.

• Demand shift: Focus moves from consumer data to IT and consumer discretionary datasets as AI and macro trends reshape the landscape.

• Trust & transparency: Only 24% of dataset trials lead to purchases, showing the need for clearer value and vendor credibility.

Survey Scope and Context

Between June and August 2025, Neudata surveyed 171 participants from across the global data ecosystem, including 67 data buyers and 104 data providers. 

Respondents represented quantitative, discretionary, macro, and multi-strategy funds, as well as data vendors of varying maturity levels.

While the majority of responses came from North America, notable input was also received from Europe and China, creating a diverse and representative snapshot of the current data landscape.

 

Budget Optimism

Alternative data budgets remain strong, with 89% of buyers expecting their spending to either increase or stay the same in 2025. 

This optimism mirrors last year’s forecast, where nearly all respondents anticipated budget growth.

Market data spend, though steadier, still shows stability, only 2% of buyers reported any budget decrease. 

Around 48% expect spending to remain flat, signalling a mature, reliable sector with consistent value.

 

Data Spend Trends

Buyers now subscribe to an average of 19 alternative datasets per year, with macro funds leading the pack. 

Budgets continue to shape subscription habits, firms spending over $5 million annually subscribe to roughly 30 datasets, compared to just two for those below the $250k mark.

Market data remains equally active, with buyers subscribing to an average of 30 datasets annually. Budgets again play a defining role, with higher spenders engaging hundreds of datasets across multiple sources.

 

Pain Points and Trial Barriers

Despite growing budgets, buyers continue to face familiar challenges.

• 58% cite price negotiations as their top barrier to onboarding.

• 40% report insufficient trial access.

• 42% identify data quality issues post-purchase.
  
  

Interestingly, compliance concerns have dropped sharply, from 40% in 2024 to just 13% this year, while customer service and communication gaps remain key frustrations, particularly in Asia-Pacific and Europe.

Dataset trials still rarely lead to long-term contracts: only 24% result in purchases, underscoring the importance of clear value and trust in vendor relationships.

 

Vendor Insights and Retention

Providers share this cautious optimism, 57% expect stronger sales in 2026, while nearly half reported 90% client retention rates. 

The biggest challenge? Reaching decision-makers at buy-side institutions.

Most vendors see their greatest value in signal strength, delivery frequency, and customer service, aligning closely with buyer expectations around data quality.

 

Shifting Data Demand

Buyers are showing increased interest in information technology and consumer discretionary datasets, marking a shift from last year’s preference for consumer data. This change reflects the rising influence of AI and macroeconomic volatility shaping global investment behaviour.

Quantitative and multi-strategy funds remain the most active buyers, but vendors are increasingly optimistic about opportunities with macro funds and consultancies, suggesting a broadening data ecosystem.

 

AI Integration in the Data Ecosystem

Artificial intelligence is no longer experimental, it’s embedded.

• 66% of buyers use AI/LLMs for internal efficiency.

• 49% employ chatbots.

• 31% integrate AI-processed data into investment strategies.
  
  

Over 40% of respondents now use foundation models, while nearly a quarter are actively developing AI-driven algorithms for investment analysis.

Compared to 2024, AI adoption has nearly doubled, signalling a turning point where automation, large language models, and data-driven decision-making define competitive advantage.

Conclusion

Neudata’s Future of Alternative and Market Data 2025 paints a picture of a resilient, expanding, and increasingly AI-powered industry.

Alternative data continues to drive innovation and budget growth, while market data provides the stability investors depend on. As the gap between data buyers and providers narrows, trust, governance, and AI maturity will shape the next evolution of the data economy.