The global alternative data market size is anticipated to reach USD 143.31 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 54.4% from 2022 to 2030. The increasing emphasis on gaining alpha from hedge funds is expected to boost the demand for alternative data. The asset managers from hedge funds, mutual funds, private equity funds, pension funds, unit trusts, life insurance companies, and other BFSI entities are highly inclined to use alternative data to derive predictive insights. Moreover, the use of alternative data for risk management processes is also expected to drive market growth.
Alternative Data Market Report Highlights
- Amidst the coronavirus pandemic, the companies are using alternative data collected from social media, mobile phones, applications, wearables, and other IoT-based devices to assess changes in consumer behavior patterns related to purchases and interests
- The credit and debit card transactions segment is anticipated to exhibit the highest CAGR from 2022 to 2030 owing to the high accuracy of the data type and significant demand from asset managers
- The hedge fund operators segment held the largest revenue share amongst all end-users in 2021 on account of rising demand for data from the investors and firms to identify lucrative investment opportunities and generate alpha
- The BFSI industry segment held the largest market share in 2021 as the entities such as hedge funds, mutual funds, and insurance companies are early adopters of alternative data
- North America dominated the market and accounted for over 67.0% share of revenue in 2021 and is expected to maintain its dominance from 2022 to 2030
- Emerging economies, such as India, Thailand, Singapore, and China, are expected to drive the market in the Asia Pacific owing to the rising use cases of alternative data for predictive risk assessment
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During & Post COVID-19 pandemic, Companies are using alternative data collected from social media, mobile phones, applications, and wearables to get an advantage. Alt data is driving novel and disruptive market research opportunities at a staggering rate amid vertical growth forecasts and prompting industries of every size to capitalize on this strategy. Hedge funds and investment banks are among the top users of alt data as investors seek new data sources to provide speedier insights. It has spread throughout the institutional investment world and become a valuable tool for investment management firms. Nowadays, data sources are not limited to transactions, and email receipts as companies are finding ways to extract data from various emerging sources. These include social media, web traffic, mobile devices, sensors, IoT-based devices, satellites, and e-commerce portals. The data analysts utilize this data in correlation with each other to derive various hidden patterns and insights. However, the data collected from some of these sources conflict with privacy regulations such as the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR). Thus, the data aggregators and end-users need regulatory compliance, which ensures their datasets are free from Personal Identifiable Information (PII).
North America dominated the market and accounted for a revenue share of more than 67.0% in 2021. The region is estimated to continue its dominance over the forecast period from 2022 to 2030. The emerging presence of numerous alternative data providers in the U.S is the major driving factor. Companies such as Advan, Eagle Alpha, M Science, and YipitData are providing various types of alternative data, including credit and debit card transactions, email receipts, geo-location (foot traffic) records, mobile usage, satellite, weather data, social and sentiment data, and web scraped data. The acquisitions and partnership initiatives from companies such as Nasdaq and S&P Global Platts is further expected to fuel regional market growth.
On the other hand, Asia Pacific is expected to emerge as one of the fastest-growing regional markets over the forecast period. This is due to rising use-cases of alternative data in BFSI, retail, automotive, and telecommunication industries. The use of alternative data for investments and risk assessment, particularly from companies in emerging economies, such as India and China, is expected to boost the regional market growth.
Alternative Data Market Insights By End-use
The hedge fund operators segment dominated the market for alternative data and accounted for a largest revenue share. This high share is attributable to the high demand from hedge fund companies. This segment is also expected to register a steady growth rate. The retail companies’ segment is expected to register the highest CAGR. The growth is attributed to novel use cases of alternative data, such as geo-location, satellite, social media, and sentiment data by retail companies to take strategic decisions.
Competitive Analysis By Major Companies
The market for alternative data is highly fragmented with the presence of numerous companies; especially the providers of web scraped and credit/debit card transaction data. Some market players are engaged in acquisitions and partnerships to expand their capabilities. Some of the prominent players in the alternative data market include:
- 1010Data
- Advan
- Dataminr
- Earnest Research
- M Science
- Preqin
- RavenPack
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Alternative Data Market Segmentation
Grand View Research has segmented the global alternative data market based on data type, industry, end-users, and region
- Alternative Data Type Outlook (Revenue, USD Million, 2017 – 2030)
- Alternative Data Industry Outlook (Revenue, USD Million, 2017 – 2030)
- Alternative Data End-user Outlook (Revenue, USD Million, 2017 – 2030)
- Alternative Data Regional Outlook (Revenue, USD Million, 2017 – 2030)
- List of Key Players of Alternative Data Market
Research Methodology
We employ a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. We utilize a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously.
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About Grand View Research
Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S. based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.
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