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Global Alternative Data Market Size was valued at USD 4.5 Billion in 2022. The Alternative Data market industry is projected to grow from USD 7.7 Billion in 2023 to USD 227.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 53.10% during the forecast period (2023 - 2032). Obtaining data and meeting rising demand from hedge funds, are the key market drivers enhancing the market growth.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
It is anticipated that the increasing demand from hedge funds will greatly speed up market expansion. More than half of hedge fund managers use it now to enhance risk management procedures and achieve outperformance in order to obtain a competitive advantage. The market revenue from providing alternative data to hedge funds has greatly expanded thanks to the efforts of more than 400 businesses. When we talk about alternative data, we mean information that is not present in conventional sources and was previously unrecognized. It is put together using a variety of sources, including social media, e-commerce websites, open data, online traffic, mobile devices, sensors, satellites, and more.
The legal framework governing the collection, use, and dissemination of data is always changing. All data must be gathered in line with privacy standards and in accordance with laws like the GDPR and the California Consumer Privacy Act (CCPA). The element significantly influenced the alternative data market's growth patterns. The usage of alternative data analysis techniques for credit card transaction data has boosted demand. The enormous attraction of data in anticipating sales and economic indicators that may effect future purchase intentions is a key consumer appeal driving the spike in demand. Hedge fund managers' investments have increased as a result, increasing the potential for profit for people in the alternative data market.
The growing demand from hedge funds is expected to significantly speed up market expansion. Today, it is used by more than half of hedge fund managers to improve risk management processes and achieve outperformance in order to gain a competitive advantage. Through the efforts of more than 400 enterprises, the market revenue from supplying alternative data to hedge funds is significantly increased. Thus, driving the Alternative Data market revenue.
The global Alternative Data market segmentation, based on Data Type includes 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, and other data types. In 2022, Credit and debit card transactions accounted for the majority of market activity. This significant percentage can be attributable to the availability of numerous sources of credit card transaction data and the considerable demand for this kind of data among investors. Businesses are combining different types of data with transaction data to uncover previously unknown consumer spending trends, enabling investors to fund successful initiatives.
The global Alternative Data market segmentation, based on Industry, includes automotive, BFSI, energy, industrial, IT & telecommunications, media & entertainment, real estate & construction, retail, transportation & logistics, and other industries. In 2022, the market was controlled by the BFSI. This development can be explained by the rise in demand for intelligent data from various BFSI firms, such as hedge funds, mutual funds, private equity funds, pension funds, unit trusts, and life insurance companies. These creatures actively use the sources' occult foretelling skills to boost their alpha. Logistics, real estate, construction, and the energy industry are a few of the industries with the quickest growth.
The global Alternative Data market segmentation, based on End User, includes hedge fund operators, investment institutions, retail companies, and other end users. In 2022, Hedge fund managers oversaw the segmentation of the target market. This large proportion is due to the enormous demand from hedge fund firms. Hedge fund managers, like Blackrock Advisors, AQR Capital Management, and Bridgewater Associates, among others, largely rely on alternative data to build alpha.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. North America produced about 45.80% of global revenue in 2022, and it is anticipated that it will hold its position as the market leader going ahead. Advan, Eagle Alpha, M Science, and UBS Evidence Lab are just a few of the numerous market players that are believed to have contributed to the region's sizable market share. The early embrace of alternative data by a number of national industry verticals also contributed to a sizable market share. Over 70% of American asset managers currently favor utilising alternative data in their investment process. Further, In the North American area, the U.S. Alternative Data market had the biggest market share, while the Canada Alternative Data market had the quickest rate of expansion.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Due to the sizeable alternative Assets the Management (AUM) category, the Europe Alternative Data market has the second-largest market share. The majority of these assets are dispersed throughout numerous asset types, including real estate, private equity, hedge funds, and raw materials. Alternative data is being utilized by asset management companies to create effective alpha-generating strategies more and more. Further, In the European region, the German Alternative Data market had the biggest market share, and the U.K. Alternative Data market had the quickest rate of growth.
From 2023 to 2032, the Asia-Pacific alternative data market is anticipated to experience the quickest CAGR growth. The Asia Pacific region is predicted to be one of the fastest growing regional markets since investors are increasingly embracing data-driven research. The regional market is anticipated to offer significant expansion opportunities for companies from developing nations including China, India, Singapore, and Thailand. Further, In the Asia-Pacific region, the Indian Alternative Data market had the quickest rate of growth while China's Alternative Data market had the greatest market share.
Leading industry companies are making significant R&D investments in order to diversify their product offerings, which will drive the Alternative Data market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaging in a number of strategic actions to increase their global footprint. The Alternative Data sector needs to provide affordable products if it wants to grow and thrive in a more competitive and challenging market environment.
One of the primary business strategies employed by manufacturers in the worldwide Aerospace Foam industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. Some of the biggest benefits to medicine have recently come from the Alternative Data sector. Major players in the Alternative Data market, including Telefonaktiebolaget LM Ericsson, Qualcomm Technologies, Inc., Nokia, Intel Corporation, Samsung, Verizon, Cisco Systems, Inc., Huawei Technologies Co., Ltd., VMware, Inc., and Rakuten Symphony Singapore Pte. Ltd, are attempting to increase market demand by investing in research and development operations.
Earnest Research, a company launched in 2012, provides crucial data on consumer behavior to enable data-driven business decisions to investment clients, restaurants, retailers, and e-commerce businesses. Businesses can obtain detailed and almost real-time data on sales, foot traffic, orders, and other spending trends through Earnest, which helps them better understand consumer behavior and gain useful data on market share and competitors. In January 2020, a US-based data analytics company called The Earnest Research Company paid an undisclosed amount to acquire Alpha Hat Inc. The Earnest Research Company would be able to present the highest quality and accuracy of new data insights thanks to the acquisition.
Users in the financial industry have access to foot traffic data on more than 2,500 businesses from a range of industries, including consumer services, energy, technology, healthcare, REITS, and financials, thanks to Advan, a pioneer in the field of big data geolocation. Through the use of multi-parameter models, Advan creates its datasets by analyzing location information from mobile devices along with carefully chosen geofenced sites. Advan now collects more than 5 billion daily foot traffic measures over 5 million geofenced areas in the US and Europe, with time series data stretching back to 2015. Top-tier institutional investors, ranging from fundamental asset managers to quantitative hedge funds, have been Advan's main target market. In addition to having a location in Dublin, Ireland, Advan also has its main office there. In January 2021, Advan added 300,000 new locations, 540 new businesses, and 44 new index categories, increasing its total coverage to 2,790 businesses across 310 industries.
· 1010Data
· Advan
· Dataminr
· Earnest Research
· M Science
· Preqin
· RavenPack
· Thinknum Alternative Data
· UBS Evidence Lab
· YipitData
June 2021: Quandl Inc. just unveiled the Quandl Data Platform, a brand-new alternative data platform. Users of the platform have access to a wide variety of data sources, such as statistics on site traffic, images from satellites, and information from social media. Additionally, there are tools for processing, analyzing, and visualizing data.
October 2021: 1010data created a new platform called 1010data AltData to provide consumers with a choice of alternative data sources. This platform provides information on consumer purchases, geolocation, and credit card transaction data. The platform also offers tools for data processing and visualization.
· 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
· Automotive
· BFSI
· Energy
· Industrial
· IT & Telecommunications
· Media & Entertainment
· Real Estate & Construction
· Retail
· Transportation & Logistics
· Other Industries
· Hedge Fund Operators
· Investment Institutions
· Retail Companies
· Other End Users
· North America
- U.S.
- Canada
· Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
· Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
· Rest of the World
- Middle East
- Africa
- Latin America
|
Report Attribute/Metric |
Details |
|
Market Size 2022 |
USD 4.5 Billion |
|
Market Size 2023 |
USD 7.7 Billion |
|
Market Size 2032 |
USD 227.5Billion |
|
Compound Annual Growth Rate (CAGR) |
53.10% (2023-2032) |
|
Base Year |
2022 |
|
Market Forecast Period |
2023-2032 |
|
Historical Data |
2018- 2022 |
|
Market Forecast Units |
Value (USD Billion) |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
Data Type, Industry, End User, and Region |
|
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
|
Countries Covered |
The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
|
Key Companies Profiled |
1010Data, Advan, Dataminr, Earnest Research, M Science, Preqin, RavenPack, Thinknum Alternative Data, UBS Evidence Lab, and YipitData |
|
Key Market Opportunities |
Expansion of expenditures in smart city projects |
|
Key Market Dynamics |
Rising demand from hedge funds and data obtaining |
The global Alternative Data Market was valued at USD 4.5 billion in 2022, and it is estimated to reach USD 227.7 billion by 2032.
The global market is projected to grow at a CAGR of 53.10% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are 1010Data, Advan, Dataminr, Earnest Research, M Science, Preqin, RavenPack, Thinknum Alternative Data, UBS Evidence Lab, and YipitData.
The Credit & Debit Card Transactions Data Type dominated the market in 2022.
The BFSI Industry had the largest share in the global market.
Report Code :
RL65107
Published on :
Aug 2023
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