Key Data Broker Statistics: VPNRanks Analysis

Data or information brokers collect, process, and sell data to third parties. This data includes consumer behaviours, preferences, and sensitive information like financial records. Their role has become more prominent as businesses rely on data-driven decision-making.

Data brokers gather data from various sources, including online activities and public records. They analyze and package this information for companies to use in targeted advertising and risk assessment. This demand for detailed data makes data brokering a lucrative industry.

According to Knowledge Sourcing Intelligence, the global data broker market is expected to grow at a CAGR of 7.58%. This growth is driven by businesses’ need to understand customers, optimize marketing, and improve operations. Increasing privacy concerns lead to more sophisticated data collection and security measures.

The data broker industry is predicted to see substantial revenue growth alongside heightened scrutiny and regulation. Companies will need to balance data needs with individual privacy rights. VPNRanks predicts global data breaches involving data brokers are expected to reach approximately 17,418 by 2025, emphasizing the need for more ethical practices.

In this guide, I have discussed various statistics related to data brokers, providing an in-depth look at the market’s current state, future projections, and implications for businesses and consumers.

VPNRanks’ Analysis: Key Statistics on Data Brokers

The analysis of data brokers reveals critical statistics derived from extensive data sources, including industry reports and market research. This data highlights trends and growth patterns in the data broker market, providing valuable insights for businesses and consumers:

The global data broker market could reach approximately US$419.309 billion by 2025.
By 2025, the number of data broker companies globally is expected to reach approximately 5,250.
Networked devices could reach approximately 35.39 billion, with broadband IoT (4G/5G) connections growing to around 1.93 billion, benefiting the data brokerage industry in 2025.
By 2025, consumer awareness of unauthorized data collection by data brokers may increase to approximately 61.2%.
Approximately 78.5% of Americans in 2025 may still not understand what data brokers do with their data.
Data breaches involving data brokers are predicted to reach approximately 17,418 by 2025.
The number of organizations experiencing targeted scams due to data brokers is expected to rise to approximately 157% of the 2023 level.

Disclaimer: These figures are estimates provided by VPNRanks, based on historical data and current trends analyzed through predictive models. They represent potential future scenarios and should not be considered exact predictions. The actual outcomes may vary depending on various factors, including new interventions and changes in online behavior.

Market Overview of Data Brokers

The market for data brokers is expanding rapidly as businesses increasingly rely on data-driven strategies. Technological advancements have made data collection and analysis more sophisticated, driving demand for comprehensive data sets. This market growth is accompanied by rising privacy concerns and regulatory scrutiny, shaping the industry’s future dynamics.

📈VPNRanks predicts that by 2025, the global data broker market could reach approximately US$419.309 billion. This projection highlights the market’s robust growth trajectory and the increasing demand for detailed data sets.

According to data from Knowledge Sourcing Intelligence, the global data broker market is poised for significant growth. Their findings provide a detailed look at market trends and projections.

The global data broker market is expected to grow at a CAGR of 7.58%.
Market size is projected to reach US$561.538 billion in 2029.
The current market size is US$389.765 billion in 2024.

According to data, the global data broker market is poised for significant growth. The findings provide a detailed look at market trends and projections. Studying this data reveals the industry’s rapid expansion and future potential, driven by increased demand for comprehensive data sets.

VPNRanks predicts that by 2025, the global data broker market will reach approximately US$419.309 billion. This prediction reflects the robust growth trajectory the market is on. It underscores the significant role data brokers will continue to play in the data economy.

This forecast is based on the current growth rate and comprehensive market analysis. It highlights the sector’s rapid expansion driven by increasing demand for detailed data sets. Such growth is a testament to the evolving landscape of data utilization and privacy concerns.

Methodology for Market Size Calculation

Determine Present Value (PV): The market size in 2024 is US$389.765 billion.
Apply Compound Annual Growth Rate (CAGR): The CAGR of 7.58% is used.
Calculate Future Value (FV): Project the market size for 2025 using the CAGR.

Key Drivers of the Global Data Broker Market

The increasing reliance on data-driven decision-making across various industries drives the global data broker market. Businesses seek detailed consumer insights to tailor their marketing strategies and improve customer engagement. This demand for precise and comprehensive data fuels the growth of data brokering.

Advancements in technology also play a crucial role in the market’s expansion. Enhanced data collection and analysis tools enable brokers to provide more valuable and actionable information. Additionally, the rising focus on personalized services and targeted advertising further propels the demand for data brokers’ services.

Increasing Demand for Targeted Marketing Statistics

The rising demand for personalized marketing solutions drives the data broker services market. Companies use data broker services to gain valuable consumer insights and enhance their marketing strategies. This allows them to create targeted campaigns that increase engagement and conversion rates.

🌐VPNRanks projects that by 2025, the number of data broker companies globally could reach approximately 5,250. This projection reflects steady growth driven by increasing demand for data-driven marketing solutions.

According to data from Techjury, personalized marketing solutions are increasingly driven by data collection and analysis. These findings highlight the role of data brokers in enhancing marketing effectiveness.

There are 5,000 data broker companies operating globally.
Acxiom is the largest data broker, contributing 12% to all direct marketing sales.
1,400 major brands provide data to brokers.
The number of brokerage firms has surged since 2000.

VPNRanks predicts that by 2025, the number of data broker companies globally may reach approximately 5,250. This forecast reflects the steady growth driven by the increasing demand for data-driven marketing solutions. The expansion underscores the vital role data brokers play in enhancing marketing effectiveness.

Methodology for Personalized Marketing Solutions Prediction

Determine Present Value (PV): The current number of data broker companies is 5,000.
Apply Annual Growth Rate: An estimated growth rate of 5% is used.
Calculate Future Value (FV): Project the number of companies for 2025 using the growth rate.

IoT Growth Driving Massive Data Generation for Data Brokers

The rapid expansion of IoT devices significantly increases the volume of data generated. This influx of data provides valuable insights that data brokers can harness for various applications. Consequently, the data brokerage industry is experiencing substantial growth and innovation.

📶It is predicted that networked devices could reach approximately 35.39 billion, with broadband IoT (4G/5G) connections growing to around 1.93 billion by 2025. This increase would significantly benefit the data brokerage industry with valuable insights.

According to data from Knowledge Sourcing Intelligence, the expansion of IoT devices has led to a massive increase in data generation. These findings illustrate the significant impact of IoT on the data brokerage industry worldwide:

Around 1.6 billion broadband IoT (4G/5G) connections were expected for cellular IoT devices by 2023.
According to Cisco, there were 3.6 networked devices per person in 2023, compared to 2.4 in 2018.
Networked device counts rose from 18.4 billion in 2018 to 29.3 billion in 2023.

VPNRanks predicts that by 2025, the number of networked devices will reach approximately 35.39 billion, and broadband IoT (4G/5G) connections will grow to around 1.93 billion. This increase will generate vast data, further boosting the global data brokerage industry. Data brokers will benefit from these connected devices’ influx of valuable insights.

Methodology for IoT Growth Prediction

Determine Initial Values (2023): Networked devices were 29.3 billion, and broadband IoT connections were 1.6 billion.
Apply Compound Annual Growth Rate (CAGR): A growth rate of 9.97% was used based on historical data.
Calculate Future Values (2025): Project the numbers for 2025 using the determined CAGR.

Privacy Risks Associated with Data Brokers

Data brokers’ extensive data collection practices pose significant privacy risks for individuals. Sensitive information such as financial records, health data, and personal behaviours can be aggregated and sold without the individual’s consent. This lack of transparency raises concerns about how personal data is used and who has access to it.

Moreover, data breaches and unauthorized access to data broker databases can lead to identity theft and other malicious activities. Third parties’ potential misuse of personal information highlights the urgent need for stricter regulations and better data protection measures. Ensuring privacy and security in the data brokerage industry is essential to mitigate these risks.

Unauthorized Data Collection

Unauthorized data collection by data brokers involves gathering personal information without explicit consent from individuals. This practice often includes data from various sources, such as online activities, purchases, and social media. The lack of transparency and consent raises significant privacy concerns and potential legal issues.

👁️VPNRanks predicts that by 2025, consumer awareness of unauthorized data collection by data brokers may increase to approximately 61.2%.

Here are some statistics on unauthorized data collection by data brokers, highlighting the significant privacy risks involved:

In 2018, only 23% of consumers knew that data brokers were selling their data (Essential Data Broker Industry Statistics).
In 2021, it was estimated that data brokers held information that would fill around 16 trillion file cabinets if stored physically, indicating the vast amount of personal data collected (Essential Data Broker Industry Statistics).
In 2021, 50% of data brokers reported concerns about cybersecurity threats, highlighting the industry’s vulnerability to data breaches (Essential Data Broker Industry Statistics).
Data brokers like Avast, X-Mode, and InMarket have been involved in high-profile cases where they often collected and sold sensitive data, including browsing and location information, without users’ consent (Epic.org).
The Federal Trade Commission (FTC) has taken enforcement actions against companies like Avast and X-Mode for selling sensitive data without proper user consent, illustrating ongoing regulatory challenges in curbing unauthorized data collection (Federal Trade Commission).

These statistics underscore the significant privacy risks data brokers pose due to unauthorized data collection, lack of transparency, and insufficient consumer awareness. It emphasizes stronger regulations and better consumer education to protect personal data.

Based on the growth trends and historical data, VPNRanks predicts that by 2025, global consumer awareness of unauthorized data collection by data brokers will significantly increase to approximately 61.2%. This prediction reflects the growing public concern and regulatory scrutiny regarding data privacy.

Methodology for Unauthorized Data Collection Prediction

Determine Initial Values (2018): Awareness of unauthorized data collection was 23%.
Analyze Growth Trend: Estimated hypothetical increase to 35% by 2021 due to growing awareness.
Project Future Value (2025): Using a CAGR of 14.74%, the projected consumer awareness will be approximately 61.2% by 2025.

Lack of Transparency

Data brokers often operate with little to no transparency, making it difficult for individuals to know what information is being collected and how it is used. This opacity creates significant privacy concerns, as consumers have limited control over their data. The lack of clear disclosure and consent mechanisms exacerbates the risks associated with data brokerage practices.

🤔It is predicted that in 2025, approximately 78.5% of Americans will still not understand what data brokers are doing with their data, down from 94% in 2019.

Following are the statistics on the lack of transparency among data brokers, based on data from PEW Research. These findings underscore significant privacy concerns and the urgent need for better regulations.

In 2019, 63% of Americans reported having little or no understanding of the laws and regulations protecting their data privacy.
Most Americans (81%) felt they had little or no control over the data collected about them by companies.
Only a small percentage of Americans (6% for companies, 4% for government) felt they understood much about what is being done with their data.
By 2024, this lack of understanding persisted, with a similar percentage of Americans still feeling uninformed about data privacy laws.

By 2025, VPNRanks predicts that approximately 78.5% of Americans will still not understand what data brokers are doing with their data, down from 94% in 2019. This reflects a modest improvement in transparency but still highlights significant privacy concerns.

Methodology for Lack of Transparency Prediction

Determine Initial Values (2019): Analyze the percentage of lack of understanding of data privacy laws, lack of control over data, and lack of understanding of data usage.
Estimate Annual Decrease Rate: Assume a modest 3% annual improvement rate.
Calculate Future Values (2025): Project the values for 2025 using the determined rate of decrease.

Data Breaches and Security Risks

Data breaches involving data brokers have significant consequences, exposing sensitive personal information to malicious actors. These breaches can lead to identity theft, financial loss, and severe privacy violations for affected individuals. The increasing frequency of such incidents underscores the urgent need for stronger data security measures and regulations.

🔓The number of data breaches involving data brokers worldwide could reach approximately 17,418 by 2025.

According to data from various resources, data breaches involving data brokers are on the rise, posing significant risks to personal privacy. Following are the statistics on data breaches involving data brokers:

In 2018, a researcher found that data broker Exactis exposed nearly 340 million people’s information to the public internet through an insecure server.
According to the 2019 Year End Data Breach QuickView Report, over 7,000 data breaches were reported, and over 15.1 billion records were exposed in 2019 alone.
In 2020, data broker Social Data, which scraped millions of records from Instagram, TikTok, and YouTube and then sold them (against platform terms of service), exposed nearly 235 million profiles on a server with no password or other authentication.
The Identity Theft Resource Center reported over 1,800 confirmed data breaches in 2022, with numbers continuing to rise in 2023 and 2024. Many of these breaches involved data brokers who collect and sell sensitive personal information (Secureframe).

Based on this calculation, VPNRanks predicts that by 2025, the number of data breaches involving data brokers could reach approximately 17,418. This projection underscores the critical need for improved data security measures and stricter regulations to protect personal information.

Methodology for Data Breach Prediction

Determine Initial Values: Analyze the reported data breaches from 2019 to 2022.
Estimate Annual Growth Rate: Consider an average annual growth rate of 20% based on historical trends.
Calculate Future Value: Project the number of breaches for 2025 using the determined growth rate.

Rise in Targeted Scams Due to Data Brokers

Data brokers collect and sell extensive personal information, which can be exploited for targeted scams. Scammers use this detailed data to craft convincing and personalized attacks, increasing their success rates. As data breaches continue to rise, the risk of targeted scams becomes even more significant.

🎯VPNRanks predicts that by 2025, the number of organizations experiencing targeted scams due to data brokers is expected to rise to approximately 157% of the 2023 level.

Following are the statistics on scams related to data brokers based on data from various resources. These findings highlight the significant risks and growing prevalence of targeted scams:

Data brokers’ information has been linked to the increased use of stolen credentials in cyberattacks. For example, over 60% of recent breaches involved using stolen credentials (Norton).
Phishing attacks, which often leverage personal data obtained from data brokers, have increased significantly. In 2022, there was a 47.2% increase in phishing attacks compared to the previous year, with 96% of organizations experiencing at least one phishing attack (Egress).
93% of organizations reported experiencing data leaks due to phishing attacks in 2023 (AAG).
The cost associated with these targeted scams is substantial. The average cost of a data breach involving phishing was estimated at $4.65 million per attack (Egress).

Based on this calculation, VPNRanks predicts that by 2025, the number of organizations globally experiencing targeted scams due to data brokers could rise to approximately 157% of the 2023 level. This significant increase underscores the urgent need for enhanced cybersecurity measures and stricter data protection regulations to mitigate the risks associated with data broker information.

Methodology for Scam Prediction

Determine Initial Values: Analyze the percentage of organizations affected by phishing attacks in 2023.
Estimate Annual Growth Rate: Use a conservative growth rate of 30% based on historical data.
Calculate Future Value: Project the number of affected organizations for 2025 using the determined growth rate.

Companies Leveraging Data Brokers for Strategic Insights

Data brokers are pivotal in helping companies gain valuable insights into consumer behaviour and trends. Here are three major companies that leverage data brokers for strategic advantages, along with relevant statistics and figures.

1. Acxiom

Acxiom is a leading data broker renowned for its extensive data analytics capabilities. It processes and interprets vast amounts of data, assisting companies such as Ford, Toyota, and Unilever develop targeted marketing strategies and personalized client interactions.

Acxiom operates 23,000 servers that collect information on 500 million people globally, providing up to 3,000 data points per person. This data power accounts for 12% of all direct marketing sales, highlighting its significant influence in the market (DataProt).

2. Experian

Experian, primarily known as a credit reporting agency, also functions as a data broker. It compiles and analyzes data on individuals’ credit history, financial activities, and demographics.

Businesses use Experian’s data for credit scoring, identity verification, and targeted marketing. It maintains data on over 235 million individual U.S. consumers and over 25 million U.S. businesses, providing crucial insights for financial institutions and retail brands (Techjury).

3. Oracle Data Cloud

Oracle Data Cloud collects and analyses consumer behaviour data from various sources, including online browsing activities, social media interactions, and purchase histories. This data is utilized for targeted advertising, marketing campaigns, and demographic studies.

Prominent companies leveraging Oracle’s data include Uber, Samsung, and Twitter. The data broker market, including Oracle Data Cloud, is expected to grow at a CAGR of 6.8% from 2021 to 2031, reaching substantial market size (Grandview Research).

These statistics and figures demonstrate how data brokers like Acxiom, Experian, and Oracle Data Cloud provide critical data-driven insights, aiding companies in enhancing their strategic decision-making processes.

Notable Data Breach Cases Involving Data Brokers

Data breaches involving data brokers have exposed vast amounts of personal information, highlighting significant security flaws in the industry. Here are two major and recent cases that underscore these vulnerabilities.

Case 1: Exactis Data Breach (2018)

Incident Overview: In 2018, Exactis, a data broker, exposed the personal information of nearly 340 million individuals and businesses. The breach was due to an unsecured server, making the data publicly accessible online (Wired).

Data Compromised: The leaked data included names, addresses, phone numbers, email addresses, and personal characteristics like interests and habits. Although no sensitive information such as Social Security numbers or credit card details was exposed, the breadth of personal data compromised was substantial.

Impact and Response: The breach highlighted the vulnerabilities in data broker practices and sparked discussions on stricter data protection regulations. Exactis faced significant backlash, and the incident underscored the importance of securing personal data against unauthorized access.

Case 2: Social Data Breach (2020)

Incident Overview: In 2020, Social Data, a data broker that scraped information from social media platforms like Instagram, TikTok, and YouTube, exposed nearly 235 million profiles. The breach occurred due to a server without password protection or other security measures (Forbes).

Data Compromised: The exposed data included users’ names, contact information, profile details, and social media statistics. This extensive collection of personal information was made publicly accessible, raising significant privacy concerns.

Impact and Response: The breach increased scrutiny of data brokers and their practices, particularly concerning the unauthorized scraping and selling of social media data. Regulatory bodies and social media platforms responded by reinforcing data protection policies and taking legal action against entities violating their terms of service.

Expert Opinions on the Risks Posed by Data Brokers

Industry experts highlight significant risks data brokers pose, including privacy breaches and unauthorized data sales. Their insights underscore the need for robust regulations and enhanced security measures to protect consumer data.

Danny Montilla highlights a significant concern:

Did you know there's a huge market where our personal data is traded? Despite endless laws for 'our protection', our data and privacy are at their highest risk of being violated. The rise of AI makes our data even more vulnerable, creating significant threats as sensitive information becomes more accessible to small groups, including governments.

Samuel A.A. Levine emphasizes a critical issue:

Data broker practices have helped fuel a vast market for consumer data that both businesses and governments are tapping into. The increasingly blurry line between commercial and government surveillance is putting our fundamental liberties at risk.

General Perspective on Data Brokers: Insights from Reddit

Redditors express significant disapproval and concern regarding data brokers. They criticize these entities for monetizing personal data without sufficient transparency, advocating for strict regulation or even a complete industry shutdown. Many highlight the severe privacy invasions and potential data misuse, urging for robust privacy laws and enforcement.

Additionally, there’s a strong sentiment that data brokers contribute to broader societal issues like increased surveillance and exploitation by corporations and government entities, emphasizing the need for greater accountability and protection for individuals’ data privacy.

Explore More In-Depth Statistics and Reports by VPNRanks

Conclusion

The global data broker market is on a trajectory for significant growth, potentially reaching approximately US$419.309 billion by 2025. This expansion highlights the increasing reliance on data for business intelligence and decision-making. However, this growth comes with its own set of challenges and responsibilities.

In parallel with this market expansion, the risk landscape is also evolving. Data breaches involving data brokers are predicted to reach approximately 17,418 by 2025. This alarming statistic underscores the critical need for enhanced security measures and stringent regulatory compliance to protect sensitive information.

As the industry grows, so does the importance of balancing data utilization with individual privacy rights. Companies must adopt more ethical practices and prioritize transparency in their data-handling processes. The future of the data broker market will depend on its ability to navigate these complexities and build trust with consumers.

VPNRanks Reveals Startling Data: 17,418 Data Broker Breaches Predicted by 2025