Alternative Data Market by Data Type (Web and Social Media Data, Financial Transactions Data, Mobile Application Usage Data, Satellite and Geospatial Data, Weather Data, Sensor Data), by Industry (Banking, Financial Services, and Insurance (BFSI), Retail and E-Commerce, Healthcare and Life Sciences, Energy and Utilities, IT and Telecommunications, Real Estate and Construction), by End-Use (Hedge Funds, Asset Managers, Investment Banks, Corporates), and by Region; Global Insights & Forecast (2024 – 2030).

As per Intent Market Research, the Alternative Data Market was valued at USD 14.8 billion in 2023 and will surpass USD 264.6 billion by 2030; growing at a CAGR of 51.0% during 2024 - 2030.

The alternative data market is rapidly growing as organizations increasingly rely on diverse, non-traditional data sources for strategic decision-making. Industries such as finance, retail, and healthcare are utilizing insights derived from web traffic, financial transactions, and satellite imagery, among others, to gain a competitive edge. This dynamic market is segmented by data type, industry, and end-use, each exhibiting unique trends and growth opportunities.

Web and Social Media Data Segment is the Largest Owing to Digital Adoption

Web and social media data represent the largest segment in the alternative data market. The rise of digital platforms and the sheer volume of user-generated content have made this data type indispensable for businesses. Financial institutions and retail players use web traffic and social media sentiment analysis to understand consumer behavior and market trends.

This segment benefits from advanced analytics tools that process vast amounts of unstructured data into actionable insights. For example, retail companies track online reviews and purchasing patterns, while financial firms use social media trends to predict stock movements.

Financial Transactions Data Segment is Growing Fastest Due to Payment Digitization

With the global surge in digital payments and e-commerce, the financial transactions data segment is the fastest-growing. Transactional data provides granular insights into consumer spending patterns, regional purchasing power, and economic trends, making it invaluable for financial institutions and corporates alike.

Hedge funds, for instance, leverage anonymized transaction data to predict earnings performance, while retailers use the data to optimize supply chains. The proliferation of payment gateways and mobile wallets continues to fuel the growth of this segment.

BFSI Industry Leads the Market Owing to Heavy Data Utilization

The Banking, Financial Services, and Insurance (BFSI) industry is the largest adopter of alternative data. This sector uses data to drive investment decisions, assess risk, and enhance fraud detection. Hedge funds and asset managers particularly benefit from transaction data and market sentiment derived from alternative sources.

The increasing use of machine learning and AI tools enables BFSI firms to integrate unstructured data seamlessly into their decision-making processes. This makes alternative data a critical component of their strategies, further solidifying the dominance of this industry.

Retail and E-Commerce Industry Shows Fastest Growth

The retail and e-commerce sector is experiencing rapid adoption of alternative data to personalize shopping experiences and optimize inventory. Data derived from social media and mobile app usage allows businesses to identify emerging trends and tailor marketing strategies to specific demographics.

Retailers also use geospatial and sensor data to monitor in-store customer behavior and refine store layouts. This combination of innovative applications and growing consumer expectations is driving accelerated growth in this segment.

Hedge Funds Dominate the End-Use Segment Owing to Predictive Insights

Among end-users, hedge funds represent the largest segment, driven by their focus on gaining a competitive edge through predictive analytics. Alternative data sources like web traffic, satellite imagery, and transaction data are key to identifying investment opportunities and market shifts.

Hedge funds often collaborate with data providers to obtain bespoke datasets, ensuring their strategies remain ahead of competitors. This focus on advanced analytics makes them the leading contributors to the alternative data market.

Corporates Drive Rapid Growth in End-Use Owing to Expanding Applications

Corporates are the fastest-growing end-use segment as they increasingly integrate alternative data into operational and strategic decisions. From optimizing supply chains to enhancing marketing campaigns, corporates leverage diverse data types such as weather and geospatial data for efficiency and profitability.

The broad applicability of alternative data across functions like market analysis, risk management, and customer engagement positions corporates as a key driver of market expansion.

North America is the Largest Region Due to Advanced Data Ecosystems

North America dominates the alternative data market, supported by a robust ecosystem of data providers, technology companies, and financial institutions. The region’s financial markets are highly mature, with significant investments in big data and analytics tools.

The presence of global leaders such as Quandl and YipitData further cements North America’s position. Additionally, the widespread adoption of digital platforms and high internet penetration contribute to the region's leadership.

Asia-Pacific Emerges as the Fastest-Growing Region

Asia-Pacific is the fastest-growing region in the alternative data market, driven by the rapid digitization of economies and the expansion of industries such as retail and banking. Countries like China and India are seeing increased adoption of alternative data by financial institutions and corporates to drive growth.

Government initiatives promoting digital transformation and the rise of e-commerce giants in the region also play a significant role in propelling market growth.

Leading Companies and Competitive Landscape

The alternative data market is characterized by intense competition among established providers and new entrants. Companies like Quandl, Eagle Alpha, and Dataminr dominate the landscape, offering comprehensive datasets and advanced analytics tools. Mergers and acquisitions are common as players aim to expand their offerings and geographic reach.

The competitive landscape is further shaped by technological advancements, with companies increasingly integrating AI and machine learning to enhance data accuracy and usability. This dynamic environment ensures continuous innovation and growth in the alternative data market

Recent Developments:

• Quandl Enhances Platform with AI Integration: Quandl launched AI-driven analytics tools to enhance the processing and visualization of complex alternative data sets.
• YipitData Acquires Competitor Firm: YipitData recently acquired a smaller data analytics firm to strengthen its foothold in transaction and e-commerce data.
• Advan Research Expands Data Sources: Advan Research announced a partnership with a satellite data provider to enrich its geospatial analytics offerings.
• RavenPack Introduces ESG Data Module: RavenPack launched a specialized module focusing on alternative ESG data for sustainable investment analysis.
• Dataminr Secures Funding for Global Expansion: Dataminr raised significant capital to expand its alternative data offerings in Asia-Pacific and European markets

List of Leading Companies:

• Quandl
• Eagle Alpha
• Thinknum Alternative Data
• Advan Research Corporation
• 1010data
• RS Metrics
• Earnest Research
• YipitData
• RavenPack
• Dataminr
• Second Measure
• Kensho Technologies
• Preqin
• The Data Alliance
• UBS Evidence Lab

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