Alternative Data Market Analysis and Forecast by Size, Share, Growth, and Trends 2030

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

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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 Regional Insights

The regional trends and factors influencing the Alternative Data Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Alternative Data Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Alternative Data Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Alternative Data Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Alternative Data Market are:

1. Dataminr Inc.
2. FactSet Research Systems Inc.
3. Moody's Analytics Inc.
4. Preqin Ltd
5. RavenPack International SL
6. Refinitiv Ltd

Disclaimer: The companies listed above are not ranked in any particular order.

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.