The global alternative data market was valued at USD 7.16 billion in 2023 and is expected to grow from USD 10.70 billion in 2024 to USD 271.49 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 49.8% during the forecast period. The rapid expansion of the alternative data market is driven by increasing demand for non-traditional data sources, technological advancements, and the growing need for insights that offer a competitive edge in decision-making processes across industries.
Market Overview
Alternative data refers to non-traditional data sets that are sourced from a variety of channels, such as social media activity, satellite imagery, sensor data, web scraping, transaction data, and others. Unlike traditional financial data, alternative data is often unstructured and can provide valuable insights into market trends, consumer behavior, and economic conditions.
As businesses and investors look for new ways to gain insights beyond conventional financial metrics, the use of alternative data has been growing rapidly. The financial industry, in particular, is a major consumer of alternative data, using it to gain actionable insights for better investment decisions. However, industries such as retail, healthcare, and logistics are also adopting alternative data for improving operational efficiencies, market predictions, and competitive intelligence.
Key Growth Drivers
Rising Demand for Data-Driven Decision-Making
As the amount of traditional data becomes more saturated, businesses are increasingly turning to alternative data to gain deeper insights and make more informed decisions. Companies across sectors are leveraging alternative data to improve forecasting, optimize strategies, and innovate product offerings.
Technological Advancements in Data Collection and Analysis
With the development of advanced technologies such as artificial intelligence (AI), machine learning (ML), and big data analytics, it is now easier to process and extract valuable insights from large, complex alternative data sets. This has made alternative data more accessible and valuable to organizations.
Increased Adoption of Alternative Data in Financial Services
The financial services industry has been a pioneer in adopting alternative data. Investors and hedge funds use alternative data to predict market trends, identify investment opportunities, and manage risks more effectively. This growing demand for alternative data in the financial sector is a key driver of market growth.
Availability of Diverse Data Sources
The availability of diverse alternative data sources, such as satellite imagery, e-commerce data, social media activity, and transaction data, is driving market expansion. Companies now have access to a variety of real-time and rich data sources that allow them to make better business decisions and gain a competitive edge in their respective industries.
Regulatory Support for Data Transparency
Governments and regulatory bodies are increasingly focusing on data privacy and transparency. As regulations evolve and encourage the use of alternative data, businesses are becoming more confident in leveraging these data sources for commercial benefits.
Key Companies in the Alternative Data Market
- Alternative Data Group
- Quandl (Acquired by Nasdaq)
- RS Metrics
- Accern
- Thinknum Alternative Data
- Predata
- YipitData
- S&P Global Market Intelligence
- Battlefin
- 2iQ Research
Recent Developments in the Alternative Data Industry
June 2023:
Thinknum Alternative Data launched a new data platform that integrates web scraping and social media sentiment analysis tools, offering businesses deeper insights into consumer behavior and market trends.
March 2022:
Accern introduced a new AI-powered alternative data platform that uses natural language processing (NLP) to analyze news articles, blogs, and social media posts, providing businesses with sentiment analysis and trend forecasting tools.
Market Segmentation
The alternative data market can be segmented based on data type, industry, and region, offering a comprehensive view of the market dynamics.
Alternative Data Market, Data Type Outlook (Revenue – USD Billion, 2020–2034)
- Web Scraping Data
- Social Media Data
- Geospatial Data (Satellite Imagery)
- Transactional Data
- Sensor Data
- Others
Alternative Data Market, Industry Outlook (Revenue – USD Billion, 2020–2034)
- Financial Services
- Retail and E-Commerce
- Healthcare
- Telecommunications
- Logistics and Supply Chain
- Others
Regional Analysis
North America holds the largest share of the alternative data market, driven by the presence of leading data providers and high demand from financial services, technology, and retail industries. The Asia Pacific region is expected to witness the fastest growth during the forecast period, fueled by increasing digitalization, investments in data-driven technologies, and growing adoption of alternative data by businesses in countries like China, India, and Japan.
𝐂𝐥𝐢𝐜𝐤 𝐡𝐞𝐫𝐞 𝐭𝐨 𝐀𝐜𝐜𝐞𝐬𝐬 𝐭𝐡𝐞 𝐅𝐮𝐥𝐥 𝐑𝐞𝐩𝐨𝐫𝐭:
https://polarismarketresearch.com/industry-analysis/alternative-data-market
The global alternative data market is experiencing rapid growth, driven by technological advancements, increasing demand for data-driven insights, and the growing importance of non-traditional data sources. As businesses seek new ways to gain a competitive advantage and make more informed decisions, the use of alternative data will continue to rise across industries such as finance, healthcare, retail, and logistics. Market players are increasingly focused on providing advanced solutions to meet the rising demand, offering tremendous growth opportunities in the coming years.
𝐌𝐨𝐫𝐞 𝐓𝐫𝐞𝐧𝐝𝐢𝐧𝐠 𝐋𝐚𝐭𝐞𝐬𝐭 𝐑𝐞𝐩𝐨𝐫𝐭𝐬 𝐁𝐲 𝐏𝐨𝐥𝐚𝐫𝐢𝐬 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡:
Consumer Identity and Access Management (CIAM) Market
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