Global Alternative Data Market

Alternative Data Market size was valued at US$ 6.74 Bn. in 2023 and the total revenue is expected to grow at 58.3% through 2024 to 2030, reaching nearly US$ 167.97 Bn.

Alternative data is non-conventional data that can offer an indicator of a firm's future performance other than typical sources such as corporate filings, broker predictions, and management guidance. This information may be utilized in pre-trade investment research as well as to assist investors in monitoring the health of a business, industry, or economy.To know about the Research Methodology :- Request Free Sample Report

The advantages of using alternate data appear to be endless. Among the most crucial is its capacity to provide proprietary real-time signals that provide alternate perspectives, unexpected discoveries, or both. Beyond standard financial data, the ability to understand company performance, market dynamics, or consumer behavior is extremely valuable for companies and investors who want to plan and execute in a calculated, enlightened, and intentional manner with reduced risk.

Agility is required for digital transformation. That allows businesses to swiftly detect and adapt to ever-changing business situations to survive and prosper. Having the capacity to acquire and analyze alternative data effectively gives a significant advantage, especially for those who need to pivot quickly. This is true whether the goal is to restructure a strategy, structure, process, team, or technology to better ensure value-creation to enable a company to grow swiftly and affordably, to save money by recognizing that it is more economical to outsource non-critical operations to expert, to boost productivity, use the cutting-edge cloud, cybersecurity, and data science solutions. Profit-generating outcomes appear to be limitless.

The Alternative Data market is segmented based on Data Type, Industry, End-user, and Region. The growth of various segments helps our clients in acquiring knowledge of the many growth factors expected to be prevalent throughout the market and develop different strategies to help identify core application areas and the gap in the target market. The report provides an in-depth analysis of the market and contains meaningful insights, facts, historical data, and statistically supported and industry-validated market statistics.

Alternative Data Market Dynamics:

Hedge funds' increasing desire for alternative data is likely to significantly increase industry growth. More than half of hedge fund managers now use alternative data to generate outperformance and assist risk management processes, giving them a competitive advantage. Hedge funds get alternate data from roughly 400 companies, which helps to drive market revenue. The usage of new technology and alternative forms of data obtained through technologies such as AI and machine learning is steadily increasing.

Gone are the days when investment strategies were only dependent on traditional data methodologies, as investors have realized that these methods are insufficient to genuinely differentiate a portfolio and provide the alpha that investors require. Merchant Transaction Analysis, also known as Consumption Data Analysis, has recently been a hot topic in the alternative data arena. This type of data, which is directly linked to specific payments, clearly has a high potential to forecast firm revenue and overall success. It's no surprise, then, that it's in high demand. The issue is that it might be difficult to gain access to, particularly in international countries such as China.

Rules such as the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR), as well as other privacy regulations, are putting pressure on alternative data sources. Data sources such as mobile devices, social media, and mobile app usage, for example, can conflict with consumer privacy concerns. Personal Identifiable Information (PII) must be totally removed from any dataset that the companies examine (PII). As a result, data providers' adherence to privacy policies is a critical aspect of their ability to stay in business.

Alternative Data Market Segment Analysis:

On the basis of data type, the Alternative Data Market is sub-segmented into Web Scraped Data, Email Receipts, Satellite & Weather Data, Credit & Debit Card Transactions, Social & Sentiment Data, Geo-location (Foot Traffic) Records, Web Traffic, Mobile Application Usage, and Other Data Types. The Credit & Debit Card Transactions segment held largest share of xx% in 2023. This is due to the strong demand for this type of data from investors, as well as the availability of various credit card transaction data providers. Because of the improved capabilities of data providers, such as sorting client expenditure data according on gender, age, seller, area, and other variables, this category is predicted to increase at the fastest rate from 2023 to 2030. Companies are merging transaction data with other types of data to reveal hidden insights into consumer purchasing habits, allowing investors to invest in profitable projects. The Social & Sentiment Data is the second dominant segment and it held xx% of the share in 2023.

The rise can be attributed to the retail industry's growing interest in smartphone usage data. Retailers utilise this data to research how people interact with their e-commerce platforms. Furthermore, retailers are increasingly depending on social media sentiment data to acquire a better knowledge of consumer preferences across diverse demographics and locations. Geolocation (foot traffic) data from satellite photos is also becoming more common for analysing consumer store visits at specific times and days, and so establishing operational strategies for store operations.

On the basis of industry, the Alternative Data Market is sub-segmented into IT & Telecommunications, Transportation & Logistics, Automotive, Real Estate & Construction, BFSI, Media & Entertainment, Retail, Other Industries, Energy, and Industrial.

The BFSI is the dominant segment and it held largest share of xx% in 2023. Hedge funds, mutual funds, private equity funds, pension funds, unit trusts, and life insurance companies have all increased their demand for sophisticated data. These companies are aggressively pursuing alpha by utilising the hidden psychic abilities of data sources. From 2023 to 2030, the retail industry segment is expected to grow at a strong CAGR of 60.6 %. Energy, real estate, and construction, as well as transportation and logistics, are among the fastest-growing categories.

The IT & Telecommunications segment is the second dominant segment and it held xx% of the share in 2023. Telecom firms face critical difficulties such as low bandwidth, dropped calls, and a weak network. As a result, operators are focusing more on using alternative data to improve services like asset monitoring, capacity planning, and preventative maintenance. Furthermore, for personalised advertisements and region-specific marketing tactics, these organizations use demographic data, social and sentiment data, and browser activity data.

Regional Insights:

North America held the largest share of xx% in 2023. Over the forecast period, the regional market is expected to continue its lead. The presence of several firms in the market, such as Adan, Detain, Eagle Alpha, M Science, and UBS Evidence Lab are linked to this. The country's early embrace of alt-data by several industrial verticals has resulted in a high market share. More than 70% of asset managers in the United States are now considering using non-traditional data, such as alternative data, in their investment process.

Europe is the second dominant region and it held xx% of the share in 2023. Due to a large number of alternative assets under management (AUM). Private equity, hedge funds, real estate, and natural resources are among the asset classes that make up the majority of these assets. Asset management firms are increasingly relying on alternative data to develop profitable alpha-generating methods. Because investors are increasingly using data-driven research, the Asia Pacific region is likely to emerge as one of the fastest-growing regional marketplaces during the forecast period. Companies from growing economies such as India, Singapore, Thailand, and China are expected to benefit greatly from the regional market.

The objective of the report is to present a comprehensive analysis of the Alternative Data Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the Alternative Data Market dynamics, structure by analyzing the market segments and project the Alternative Data Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Alternative Data Market make the report investor’s guide.

Alternative Data Market Scope: Inquire before buying

Alternative Data Market, by Region

Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
North America (United States, Canada and Mexico)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)

Alternative Data Market, Key Players

1. 1010Data
2. Advan
3. Dataminr
4. Earnest Research
5. M Science
6. Preqin
7. RavenPack
8. Thinknum Alternative Data
9. UBS Evidence Lab
10. YipitData
11. Nasdaq, Inc.
12. Eagle Alpha Ltd
13. 7Park Data Inc
14. Convergence Inc
15. Geotab Inc
16. Jumpshot
17. JWN Energy
18. Talkingdata

Frequently Asked Questions:

1. Which region has the largest share in Alternative Data Market?
Ans: North America region holds the highest share in 2023.

2. What is the growth rate of Alternative Data Market?
Ans: The Alternative Data Market is growing at a CAGR of 58.3 % during forecasting period 2024-2030.

3. What segments are covered in Alternative Data Market?
Ans: Alternative Data Market is segmented into data type, industry, end-user and region.

4. Who are the key players in Alternative Data Market?
Ans: The important key players in the Alternative Data Market are – 1010Data, Advan, Dataminr, Earnest Research, M Science, Preqin, RavenPack, Thinknum Alternative Data, UBS Evidence Lab, YipitData, Inc., Eagle Alpha Ltd, 7Park Data Inc, Convergence Inc, Geotab Inc, Jumpshot, JWN Energy, and Talkingdata.

5. What is the study period of this market?
Ans: The Alternative Data Market is studied from 2023 to 2030.