In a recent research report by Maximize Market Research, the Global Alternative Data Market is expected to surpass US $ 42.4 Billion by the year 2027, from US $ 1.7 Billion in 2020.
The Alternative Data Market Trends:
Alternative data is defined as non-traditional data that can be used to estimate a firm’s future performance in addition to typical sources including corporate filings, broker forecasts, and management guidance.
Despite a huge decline in the sales of products during the initial phase of pandemic spread and lockdown restrictions all over the region, the market is observed to pick up a quick pace for registering a CAGR of almost more than 58.3%, during the tenure of 2021 – 2027.
Undiscovered data that isn’t found in standard data sources like SEC filings, financial statements, press releases, and management presentations are referred to as alt-data. E-commerce portals, public records, social media, financial transactions, online traffic, mobile devices, sensors, and satellites are all used to provide an alternative data set. When specific algorithms are applied to this amassed data, previously unknown insights are revealed, which investors can use to evaluate investment opportunities. Hedge funds, mutual funds, private equity funds, pension funds, unit trusts, and life insurance companies are all actively using this new data to build fundamental investment models in order to outperform the market because it is a critical difference that leads to alpha (market outperformance).
The report published by Maximize encompasses the market dynamics, which could affect the market growth of Global Alternative Data in the region, the Value – Chain analysis, and the PORTER’s analysis for the Alternative Data market at a global level.
On the basis of end-user, the Alternative Data Market is sub-segmented into Hedge Fund Operators, Investment Institutions, Retail Companies.
The Hedge Fund Operator segment held largest share of xx% in 2020. This is due to hedge fund firms’ increased desire for alternative data. Alt data is heavily used by hedge fund operators such as Blackrock Advisors, AQR Capital Management, and Bridgewater Associates to generate alpha. Due to the increasing need for multiple sources of data to study companies and uncover lucrative investment possibilities, this market is expected to grow at a stable rate from 2021 to 2027. Due to growing demand from institutional investors seeking a competitive advantage, the investment institutions category represented the second-largest revenue share in 2020.
Retail is the second dominant segment and it held xx% of share in 2020. Retail organizations are using alternative data, such as geo-location data, satellite data, social media, and sentiment data, in creative ways to make strategic decisions, which is driving the growth. Retailers such as Walmart, Target, and Gap, for example, makes extensive use of geolocation data. Geo-location data assists major retail businesses and malls in correlating foot traffic with real sales in an environment where internet shopping is fast gaining market share. Furthermore, geolocation data aids retailers in deciding where to open new stores.
The study is consolidated on the basis of segments and further into sub-segments by data type (Credit & Debit Card Transactions, Email Receipts, Geo-location (Foot Traffic) Records,
Mobile Application Usage, Satellite & Weather Data, Social & Sentiment Data, Web Scraped Data, Web Traffic, Other Data Types) industry (Automotive, BFSI, Energy, Industrial, IT & Telecommunications, Media & Entertainment, Real Estate & Construction, Retail, Transportation & Logistics, Other Industries) end-user (Hedge Fund Operators, Investment Institutions, Retail Companies).
Lastly, the market research report provides a regional comparison and a complete country level analysis for the latest trends, along with the major key players –1010Data, Advan, Dataminr, Earnest Research, M Science, Preqin, RavenPack, Thinknum Alternative Data, UBS Evidence Lab, YipitData, Eagle Alpha Ltd, 7Park Data Inc, Convergence Inc, Geotab Inc, Jumpshot, JWN Energy, Talkingdata.
You can browse the market data Tables and Figures spread through a comprehensive research report and in-depth TOC on “Alternative Data Market.”
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