The alternative data market size is projected to reach US$ 156.23 Billion by 2030 from US$ 5.55 Billion in 2022. The market is expected to register a CAGR of 51.80% during 2022–2030. The rising e-commerce industry and increasing demand for hedge funds are likely to be key trends and drivers of the alternative data market.
Alternative Data Market Analysis
The expanding e-commerce industry, growing digitalization, and increasing hedge funds are driving the alternative data market. Further, the increasing shift toward AI and the growing energy industry is expected to provide lucrative growth opportunities for the market. Further, the advent of IoT, big data, and machine learning is anticipated to be a trend in the alternative data market.
Alternative Data Market Overview
Alternative data refers to non-traditional data sets that investors use to guide investment strategy. Examples of alternative data sets include credit card transaction data, mobile device data, IoT sensor data, satellite imagery, social media sentiment, product reviews, weather data, web traffic, app usage and ESG (environmental, social, and corporate governance) data.
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Alternative Data Market: Strategic Insights
Market Size Value in US$ 5.55 Billion in 2022 Market Size Value by US$ 156.23 Billion by 2030 Growth rate CAGR of 51.8% from 2022 to 2030 Forecast Period 2022-2030 Historic Period 2020-2021
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Alternative Data Market: Strategic Insights
| Market Size Value in | US$ 5.55 Billion in 2022 |
| Market Size Value by | US$ 156.23 Billion by 2030 |
| Growth rate | CAGR of 51.8% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Historic Period | 2020-2021 |
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Alternative Data Market Drivers and Opportunities
Increasing Demand from Hedge Funds to Favor Market
Hedge funds are a pool of money from investors who invest in securities or other types of investments to receive positive returns. They have more flexible investment strategies. They help protect investors from market impulsiveness and downturns better than other investment benchmarks, indicating the rising investment in hedge funds. According to Empaxis’s blog in April 2023, the rise in inflations, the crisis in cryptocurrency, and changeable markets are some of the major factors adding to the growth of hedge funds. Alternative data for hedge funds, from satellite imagery to social media activity, is obtaining popularity among fund managers and financial institutions to stay competitive by producing outperformance and supporting the risk management processes.
Growth of Energy Industry.
Energy is considered one of the largest and fastest-growing industries. According to Exxon Mobil Corporation, the global energy demand will rise by ~15% in 2050 compared to 2021 due to population and prosperity. Energy companies can leverage the benefits of alternative data into their R&D, marketing, investment, risk analysis, and other key processes to fuel their business growth. It will help business managers and investors to make informed business decisions with the help of real-time business insights. The benefits of adopting digital solutions in the energy industry can further generate the demand for the use of alternative data. Therefore, the growing energy industry is anticipated to provide growth opportunities for the alternative data market during the forecast period.
Alternative Data Market Report Segmentation Analysis
Key segments that contributed to the derivation of the alternative data market analysis are components, manufacturing techniques, and applications.
- Based on components, the alternative data market is divided into credit and debit card transactions, email receipts, geo-location (foot traffic) records, mobile application usage, satellite and weather data, and others. The credit and debit card segment is anticipated to hold a significant market share in the forecast period.
- Based on industry, the alternative data market is divided into automotive, BFSI, energy industrial, IT and telecommunications, media, and entertainment. The energy segment is anticipated to hold a significant market share in the forecast period.
Alternative Data Market Share Analysis by Geography
The geographic scope of the alternative data market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America has dominated the alternative data market. High technology adoption trends in various industries in the North American region have fuelled the growth of the alternative data market. Factors such as increased adoption of digital and high technological spending by government agencies are expected to drive the North American alternative data market growth. Moreover, a strong emphasis on research and development in the developed economies of the US and Canada is forcing the North American players to bring technologically advanced solutions into the market. In addition, the US has a large number of alternative data market players who have been increasingly focusing on developing innovative solutions. All these factors contribute to the region's growth of the alternative data market.
Alternative Data Market Report Scope
Alternative Data Market News and Recent Developments
The alternative data market is evaluated by gathering qualitative and quantitative data post post-primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the alternative data market are listed below:
- New York-based clickstream data products provider Datos announced an integration partnership with financial sector alternative data research and workflow platform Exabel. (Source: Datos Company Website, May 2024)
- QUICK Corp. partnered with Toshiba Data Corporation to provide alternative data that can be used for investment decisions. Specifically, QUICK analyzes purchase statistics data from Toshiba Group’s electronic receipt service ’Smart Receipt’ and provides timely analysis results to institutional investors through the data platform “QUICK Data Factory.” (Source: QUICK Corp Company Website, January 2024)
Alternative Data Market Report Coverage and Deliverables
The “Alternative Data Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:
- Alternative data market size and forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Alternative data market trends as well as market dynamics such as drivers, restraints, and key opportunities.
- Detailed PEST/Porter’s Five Forces and SWOT analysis.
- Alternative data market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the alternative data market.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The expected CAGR of the alternative data market is 51.8%.
The rising e-commerce industry and increasing demand for hedge funds are some of the factors driving the alternative data market.
North America is anticipated to dominate the alternative data market in 2022.
The global alternative data market is expected to reach US$ 156.23 billion by 2030.
The key players holding majority shares in the global alternative data market are Dataminr Inc., FactSet Research Systems Inc., Moody's Analytics Inc., Preqin Ltd, RavenPack International SL, Refinitiv Ltd, Eagle Alpha Ltd, RetailStat, Visible Alpha LLC, Yipit LLC.
The advent of IoT, big data, and machine learning is anticipated to drive the market in the forecast period.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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