10 Data Broker Statistics You Need to Know

Data brokers are like secret agents of the digital world, helping businesses succeed by understanding what customers like and do. They gather essential information about people's habits and behaviors.

Surprising numbers show that the data broker business is growing fast and could be worth a whopping $345 billion by 2026. More and more companies are using data brokers to improve their services and make more money. 

Discover the latest trends, eye-opening statistics, and the risks to your personal information. Let's make sure your data is protected in this digital world!

Is Data Brokerage Services in Demand?

Data brokerage services are highly in demand. Approximately 5,000 data brokers can be found worldwide. At the same time, government agencies and non-governmental organizations have released approximately 10 million freely available datasets.

In the US, where data-privacy laws are less strict, data broker companies have up to 1,500 pieces of information about a person. In the EU, data brokers operate on the edge of the law, quickly navigating GDPR restrictions. For example, by skewing the interpretation of "legitimate interest" or exploiting internet users' inattention by not reading what they consent to.

In the age of "big data," businesses seek to leverage consumer data for informed decision-making. Big data analytics helps harness data, identify opportunities, make smarter decisions, improve operations, increase profits, and enhance customer satisfaction. 

The demand for data-driven insights has fueled the growth of data brokers, who provide valuable information on customer behavior and trends. Businesses are utilizing these brokers to gain a competitive edge in the $103 billion big data analytics market by 2023.

In recent years, the data brokerage business has grown significantly. It was valued at 232.634 billion dollars in 2019 and is expected to grow. Thus, it is now a prime consideration for some businesses.

Data Brokerage Market Size Statistics

The need for businesses to make data-based decisions drives much of the growth in the data brokerage industry. 

Here are some statistics that give you an idea of how big the market for data brokering is:

1. There are 4,000 data broker companies worldwide. 

(Web FX)

Some notable players in the data brokering industry include Experian, Equifax, Acxiom, and Epsilon. The existence of these broker companies worldwide highlights the expansive and lucrative nature of the data brokering industry.

2. Acxiom is the largest data broker, with 23,000 servers.

(MySudo)

Acxiom has 23,000 servers that gather consumer data and analyze it. This company has information on 500 million people worldwide, with up to 3,000 data points per person. This is just one company. Around the world, businesses do a lot of business with data insights.

The size of Acxiom's infrastructure shows how much consumer information data brokers collect and analyze.

3. 1,400 leading brands sell information to data brokers.

(Pro Publica)

More than 1,400 "leading brands" actively contribute to the data brokers' pool by sharing information obtained from store loyalty cards. When you sign up for a store credit card or loyalty card at one of your favorite stores, the information you provide is often sold to a broker. This exchange allows brands to access valuable consumer data, as 89% of customers express loyalty towards brands that share similar values.

It's important to know that, depending on where you sign up, you could be added to several different databases and share your information with other companies.

Rising Trends in Data Brokers Ecosystem

The increasing utilization of big data, intelligent data, and business intelligence solutions has fueled the expansion of data broker companies. This growth is driven by the widespread adoption of: 

• Smart devices
• Social media
• The internet

As a result, the global business intelligence market is projected to reach $33.3 billion by 2025.

Considering these trends, it's essential to look at some statistics showing how data brokers' growth is rising.

4. Brokerage firms have increased from $585 million in 2000 to over $1 billion in 2006.

(EveryCRSReport.com)

Since 2000, the growth of the Internet and parallel programming software has made it easy for data brokerage firms to multiply. ChoicePoint and LexisNexis are two of the most successful data brokers. 

ChoicePoint's sales went from $585 million in 2000 to over $1 billion in 2006. The Departments of Homeland Security and Justice signed contracts worth millions of dollars with the company. 

ChoicePoint was criticized in 2004 for not informing the public about a criminal ring having access to personal information. As a result, the FTC filed charges against the company in 2006. ChoicePoint paid $10 million in civil penalties to rectify the situation and $5 million to compensate customers.

In 2005, LexisNexis acquired Seisint for a sum of $775 million. Unfortunately, unauthorized individuals gained access to the personal information of 32,000 customers by using their actual passwords without their consent.

The growth and success of ChoicePoint and LexisNexis exemplify the profitability and controversies surrounding data brokerage firms.

5. Over 4,000 data brokers were identified in a $156 billion market in 2015.

(I’mTech)

In an article entitled The Black Box Society, Franck Pasquale, a law professor at the University of Maryland, identified over 4,000 data brokers in a 156-billion-dollar market. 

Identifying these data brokers highlights the industry's established presence and economic significance.

6. The global data broker service market is expected to reach $407.5 billion by 2028.

(Market Research)

In 2022, the global data broker service market was worth $247.4 billion. By 2028, it is expected to be worth $407.5 billion, with a CAGR of 8.67%.

The COVID-19 pandemic is a factor. It has sped up the growth of the digital economy and has become a critical factor in changing the structure of the global economy.

For countries under the epidemic, data brokers will help open up public and social data, promote the free flow of data elements, establish new formats of data elements, and give birth to new scenes and occupations.

Data Broker's Influence and Risks Statistics

Data brokers sell the information you give to other companies for various business reasons. Marketing and promotion are two of these. Businesses buy data to send you marketing messages, customer deals, and online ads specifically for you. 

Now let's look at the people who use broker services.

7. Acxiom is the biggest data broker; its data power is 12% of all direct marketing sales.

(Forbes)

Acxiom was the first company to collect user information and sell it to other companies for marketing. The company says it has information on all US households, and these data make up 12% of marketing sales in the country. 

Followed by Nielsen, which has been around since 1923. It is a leader in market research and ratings and collects consumer information in more than 100 other countries. 

Acxiom and Nielsen's prominence in collecting and selling consumer information illustrates data brokers' pivotal role in marketing and market research.

8. 99% of the executive’s information is available from 3 dozen data brokers.

(Dark Reading)

Research by BlackCloak shows that the personal information of more than three dozen online data broker websites is available to more than 99% of senior business leaders. 

The alarming rise in cybercrime will cost the world $10.5 trillion annually by 2025. Exploiting the widespread use of social media, online data brokers acquire 70% of executive profiles along with their associated information and pictures. Worryingly, 40% of these brokers have access to an executive's home network's IP address, making them vulnerable to cyberattacks. 

Also, 95% of executive profiles have private and confidential information, which is a considerable risk for people and businesses. These numbers show how dangerous it is for personal information to be widely available on data broker websites.

The concerning statistics regarding the availability of personal information on data broker websites underscore the significant risks faced by senior business leaders and the need for enhanced privacy measures. 

9. 43% of data brokers allow free opt-out.

(Web FX)

While customers may not have as much to gain from their personal information as data brokers do, this does not imply that they are completely powerless.

43% of data companies let people opt out for free. This can take some time, but it's worth it if you don't want your information to be sold. Reputation.com offers users the option to keep their data out of these directories.

The ability of customers to opt out for free from a significant percentage of data companies and the option to pay for privacy protection highlight the potential power individuals have in safeguarding their personal information.

Conclusion

Knowing these statistics is essential because they show us how our personal information is gathered and how it affects us. 

It is essential to emphasize the risks and challenges associated with privacy and security breaches, highlighting the need for individuals and users to have control over their personal information.

This information can change how we decide to share personal information. It could be by changing our privacy settings or not agreeing to share our information.