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The Alternative Data Market size is forecast to increase by USD 39,193.93 million, at a CAGR of 51.87% between 2023 and 2028. The growth rate of the market depends on several factors, including the increased availability and diversity of data sources, the growing demand for alpha generation, and the advancements in data analytics and AI. Alternative data is data that comes from sources other than traditional or standard data sources. Alternative data is used in financial research and analysis and in decision-making. Contrary to traditional financial data (stocks, earnings, economic indicators, etc.), alternative data includes a wide variety of diverse and unconventional data sources.
The report offers extensive research analysis on the Alternative Data Market, with a categorization based on Type, including credit and debit card transactions, social media, mobile application usage, web scrapped data, and geo location records, and others. It further segments the market by End-user, encompassing BFSI, IT and telecommunication, retail, and media and entertainment, and others. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD million) for all the mentioned segments.
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One of the key factors driving the alternative data market growth is the increased availability and diversity of data sources. The global alternative data market has become an important part of the information economy in recent years due to the massive amount of data generated by digital technologies. In addition, this data comes from a wide range of sources, from social media to satellite imagery to web scraping to sensors and Internet of Things (IoT) devices. Furthermore, all of this data is valuable to market participants because it provides non-standard information that goes beyond traditional financial metrics.
Moreover, in the financial sector, one of the most obvious benefits of having more data is that hedge funds and asset managers can use alternative data sources to get a head start in anticipating market movements. For instance, satellite imagery can be used to track the activity of retailers' parking lots, which can provide insights into consumer habits and retail sales patterns. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the alternative data market growth is the rise of alternative data-driven investment strategies. One of the main factors for using alternative data in the investment process is the requirement to gain a better understanding of market trends. In addition, traditional financial metrics are often unable to capture the nuance of fast-moving industries and new trends. Furthermore, alternative data fills this gap by offering unique insights into consumer behavior, supply chain dynamics, and other key factors that influence investment results.
Moreover, investors are turning to non-traditional data sources, such as mobile location data and foot traffic trends, to measure the performance of physical stores. In addition, by tracking consumer behavior, investors can better forecast a company's revenue and health and adjust investment portfolios accordingly. Hence, such factors are driving the market growth during the forecast period.
Issues related to data quality and standardization are some of the key challenges hindering the alternative data market growth. One of the significant challenges that the global alternative data market faces is the fact that data sources are diverse and heterogeneous. In addition, unlike traditional data sets that follow standard formats, alternative data sources are often sourced from dozens of different providers, each with its own data collection methodology and structure.
Moreover, this lack of homogeneity can lead to problems when it comes to integration and analysis because different data formats can cause discrepancies and mistakes. In addition, several alternative datasets are unstructured, which raises data quality concerns. Hence, such factors are negatively impacting the market which in turn hinders the market growth during the forecast period.
The credit and debit card transactions segment is estimated to witness significant growth during the forecast period. The card and debit card transactions segment is a valuable source of alternative data. In addition, they provide insights into how people spend money, what they like to spend money on, and how they spend money. Furthermore, this data is valuable to market analysts, banks, and companies looking to improve their strategies and customer experiences.
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The credit and debit card transactions segment was the largest segment and was valued at USD 155.21 million in 2018. Moreover, there are two main categories within this segmentation, mainly credit card transactions and debit card transactions. In addition, credit card transactions often provide insight into discretionary spending habits, luxury spending, and the consumer's credit management skills. Furthermore, debit card transactions provide insight into essential spending habits, budgeting strategies, and daily expenses. In addition, these transactions provide insight into the practical needs of consumers and their lifestyle choices. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The benefits offered by alternative data in the BFSI segment will increase the market growth. The BFSI segment has become an industry leader in the use of alternative data to enhance competitiveness, improve decision-making, and reduce risk. In addition, alternative data includes a wide variety of non-standard data sources, including social media data, satellite data, web scraping data, and much more. In the BFSI segment, alternative data is used for a variety of purposes, such as credit scores, fraud prevention, market intelligence, and investment decisions. Furthermore, one of the main reasons for alternative data adoption in BFSI is the need to assess risk in a more holistic and precise way. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America's alternative data market has a wide variety of sources of information, whether it is social media activity, satellite imagery, web scraping, or sensor data. In addition, these non-traditional sources of data have become an essential part of the financial institution, hedge fund, or investment firm's operations, as they offer unique insights into market dynamics, consumer trends, and economic trends. Moreover, startups and incumbents use satellite images and geospatial information to evaluate the performance of retail stores, track supply chains, and forecast economic conditions Furthermore, social media data is also widely used for sentiment analysis, helping companies understand public sentiment and make better decisions.
Alternative Data Market forecasts include the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their alternative data market growth and trends strategies.
Global Alternative Data Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Advan Research Corp: The company offers alternative data such as foot traffic data to analyze across multiple sectors, including retail, hospitality, consumer services, energy, technology, healthcare, REITS, financials and others.
Convergence Inc: The company offers alternative data such as standard industry reference data and proprietary datasets.
Dataminr Inc: The company offers alternative data such as financial data to help companies in choosing their investing tools.
The Alternative Data Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Alternative Data Market market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The alternative data market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Alternative Data Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 51.87% |
Market Growth 2024-2028 |
USD 39,193.93 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
50.29 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 55% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advan Research Corp., Beijing Tendcloud Tianxia Technology Co. Ltd., Convergence Inc., Dataminr Inc., Eagle Alpha Ltd., FactSet Research Systems Inc., Geotab Inc., Intrinio Inc., Japan Exchange Group Inc., Jefferies Financial Group Inc., Moodys Corp., Preqin Ltd., RavenPack International S.L.U., Refinitiv, Symphony Innovation LLC, The Earnest Analytics Co., Thinknum Alternative Data, UBS Group AG, Visible Alpha LLC, and Yipit LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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