Alternative Data Market Share

Alternative Data Market Overview

Alternative Data Market Size was valued at USD 4.9 Billion in 2022. The Alternative Data market industry is projected to grow from USD 7.5 Billion in 2023 to USD 227.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 53.20% during the forecast period (2023 - 2032). Increasing demand from hedge funds and acquiring data, are the key market drivers enhancing the market growth.

Figure 1: Alternative Data Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Alternative Data Market Trends

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. When we discuss alternative data, we refer to previously unknown data that is absent from traditional sources. Social media, e-commerce sites, public data, web traffic, mobile devices, sensors, satellites, and other sources are all used to assemble it.

Data sourcing is always changing as a result of the legislative context around its capture, usage, and dissemination. Laws like the GDPR and the California Consumer Privacy Act (CCPA) require that all data be obtained in a scientifically sound manner and in accordance with privacy standards. The component made a major contribution to the growth dynamics of the alternative data market. Demand has increased as a result of the use of alternative data analysis methods for credit card transaction data. A crucial consumer appeal fueling the surge in demand is the immense allure of data in predicting sales and economic indications that may affect future purchase intentions. As a result, investments by hedge fund managers have surged, enhancing the possibility for profit for individuals in the alternative data market.

Market growth is anticipated to be greatly accelerated by the increasing demand from hedge funds. Today, more than half of hedge fund managers use it to generate outperformance and assist risk management procedures in order to obtain a competitive advantage. The market revenue from selling alternative data to hedge funds is greatly boosted by the work of more than 400 businesses. Thus, driving the Alternative Data market revenue.

Alternative Data Market Segment Insights

Alternative Data: Data Type Insights

The 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, the market was dominated by credit & debit card transactions. This substantial share can be attributed to the fact that there are various sources of credit card transaction data available and that investors have a high demand for this kind of data. Businesses are fusing transaction data with other types of data to unearth unseen consumer spending patterns, allowing investors to finance profitable ventures.

Alternative Data Industry Insights

The 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 BFSI category dominated the market. The increase in demand for intelligent data from different BFSI organizations, including hedge funds, mutual funds, private equity funds, pension funds, unit trusts, and life insurance companies, explains the development. These animals aggressively employ the sources' occult predicting abilities to raise their alpha. Some of the sectors experiencing the fastest growth are logistics, real estate, construction, and the energy sector.

Alternative Data End User Insights

The Alternative Data Market segmentation, based on End User, includes hedge fund operators, investment institutions, retail companies, and other end users. In 2022, the target market's segmentation was headed by hedge fund operators. The huge demand from hedge fund companies is to blame for this high share. Alternative data is heavily used by hedge fund managers to produce alpha, including Blackrock Advisors, AQR Capital Management, and Bridgewater Associates, among others.

Figure 2: Alternative Data Market, by End User, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Alternative Data Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Approximately 45.80% of global revenue was generated in 2022 by North America, which is expected to continue to dominate the market going forward. The large number of market participants, including Advan, Eagle Alpha, M Science, and UBS Evidence Lab, is thought to be a contributing factor to the region's significant market share. A large market share is also a result of the early acceptance of alternative data from several industrial verticals in the nation. At the moment, more than 70% of American asset managers lean toward using alternative data in their investment process. Further, the U.S. Alternative Data market held the largest market share, and the Canada Alternative Data market was the fastest growing market in the North America region.

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.

Figure 3: Alternative Data Market SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Alternative Data market accounts for the second-largest market share owing to substantial alternative Assets the Management (AUM) category. These assets are mainly spread out among several classes, including real estate, private equity, hedge funds, and natural resources. Asset management firms are using alternative data more and more to develop successful alpha-generating methods. Further, the German Alternative Data market held the largest market share, and the UK Alternative Data market was the fastest growing market in the European region.

The Asia-Pacific Alternative Data market is expected to grow at the fastest CAGR from 2023 to 2032. Because investors are using data-driven research more and more, the Asia Pacific region is anticipated to be one of the fastest expanding regional markets. For businesses from growing nations like India, Singapore, Thailand, and China, the regional market is expected to present major development prospects. Further, China’s Alternative Data market held the largest market share, and the Indian Alternative Data market was the fastest growing market in the Asia-Pacific region.

Alternative Data Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their Product lines, which will help the Alternative Data market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Alternative Data industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Alternative Data industry to benefit clients and increase the market sector. In recent years, the Alternative Data industry has offered some of the most significant advantages to medicine. 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, which was founded in 2012, offers investing clients, restaurants, retailers, and e-commerce enterprises vital information on consumer behavior to support data-driven business decisions. Earnest gives businesses access to precise and nearly real-time data on sales, foot traffic, orders, and other spending trends, which helps them better understand customer behavior and gather insightful information about market share and rivals. The Earnest Research Company, a US-based data analytics firm, purchased Alpha Hat Inc. in January 2020 for an unknown sum. The acquisition would enable The Earnest Research Company to showcase the greatest caliber and accuracy of fresh data insights.

Advan, a pioneer in the field of big data geolocation, gives users in the financial sector access to foot traffic data on more than 2,500 companies from a variety of industries, including consumer services, energy, technology, healthcare, REITS, and financials. Advan develops its datasets via multi-parameter models that examine location data from mobile devices together with carefully selected geofenced locations. With time series data going back to 2015, Advan now processes over 5 billion daily foot traffic measurements over 5 million geofenced locations in the US and Europe. The primary customers of Advan's products have been top-tier institutional investors, ranging from quantitative hedge funds to fundamental asset managers. Advan has its primary office in New York and another one in Dublin, Ireland. Advan expanded by 300,000 locations, 540 new companies, and 44 new index categories in January 2021, bringing its total coverage to 2,790 companies over 310 industries.

Key Companies in the Alternative Data market include

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  1010Data

  
  


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  Advan

  
  


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  Dataminr

  
  


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  Earnest Research

  
  


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  M Science

  
  


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  Preqin

  
  


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  RavenPack

  
  


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  Thinknum Alternative Data

  
  


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  UBS Evidence Lab

  
  


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  YipitData

  
  

Alternative Data Industry Developments

June 2021 The Quandl Data Platform, a brand-new alternative data platform, was released by Quandl Inc. Users of the platform have access to a wide range of diverse data sources, including data from social media, satellite pictures, and site traffic statistics. There are also tools for data scrubbing, processing, and visualization.

October 2021 In order to give users with a variety of alternative data sources, 1010data established a new platform called 1010data AltData. This platform offers consumer purchase information, geolocation data, and credit card transaction data. Additionally, the platform provides data processing and visualization features.

Alternative Data Market Segmentation

Alternative Data Data Type Outlook

• 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

Alternative Data Industry Outlook

• Automotive


• BFSI


• Energy


• Industrial


• IT & Telecommunications


• Media & Entertainment


• Real Estate & Construction


• Retail


• Transportation & Logistics


• Other Industries

Alternative Data End User Outlook

• Hedge Fund Operators


• Investment Institutions


• Retail Companies


• Other End Users

Alternative Data Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America