Alternative Data Market Overview:

According to a new report by IMIR Market Research on Global Alternative Data Market size was valued at around USD 7.2 billion in 2023 and is expected to reach a value of USD 190.52 Billion by 2031, at a CAGR of 50.6% over the forecast period (2024–2031).

Alternative data refers to information that is sourced from unconventional sources rather than traditional financial statements or publicly available reports. This type of data encompasses a wide array of non-traditional sources, including satellite imagery, web scraping data, social media sentiment analysis, credit card transactions, geolocation data, and sensor data. Unlike conventional data sources, alternative data provides unique and valuable insights into various industries, consumer behavior, supply chains, and economic trends. Alternative data holds particular significance, offering a competitive advantage to investors, hedge funds, and financial institutions. By accessing this distinct and timely information, stakeholders can enrich their research, develop innovative investment strategies, evaluate market trends, and make informed decisions. Essentially, alternative data represents previously undiscovered information that is not typically found in standard sources like SEC filings or financial statements. This data is collected from diverse channels such as social media platforms, financial transactions, web traffic, public records, mobile devices, sensors, e-commerce platforms, and satellites. Through the application of specialized analytics to this amalgamated dataset, investors can uncover insights that were previously overlooked, enabling them to assess investment opportunities more effectively.

Market Dynamics:

Market Drivers

Rising Demand from Hedge Funds

• The alternative data market is experiencing a surge in demand from hedge funds, driven by the need for unique and actionable insights to gain a competitive edge in the financial markets. Hedge funds are increasingly turning to alternative data sources to supplement traditional financial data and enhance their investment strategies. This rising demand can be attributed to several factors. Alternative data offers hedge funds access to non-traditional sources of information that can provide valuable insights into market trends, consumer behavior, and industry dynamics. By leveraging alternative data such as satellite imagery, web scraping data, and social media sentiment analysis, hedge funds can gain a deeper understanding of various sectors and make more informed investment decisions. Additionally, advancements in technology and data analytics have made it easier for hedge funds to access and analyze alternative data. With the proliferation of sophisticated data analysis tools and platforms, hedge funds can now process large volumes of alternative data more efficiently and extract actionable insights in real-time.

Expansion of Expenditures in Smart City Projects

• The alternative data market is witnessing a notable expansion in expenditures, particularly driven by the increasing investment in smart city projects worldwide. Smart city initiatives aim to leverage technology and data-driven solutions to enhance the efficiency, sustainability, and livability of urban environments. As governments and municipalities around the globe prioritize the development of smart cities, there is a growing demand for alternative data sources to support these initiatives. The expansion of expenditures in smart city projects is the implementation of IoT (Internet of Things) devices and sensors. These devices collect vast amounts of data on various aspects of urban life, including traffic patterns, air quality, energy consumption, and waste management. Alternative data derived from IoT devices provides valuable insights into urban infrastructure and enables city planners to make data-driven decisions to optimize resource allocation and improve citizen services.
• In addition to IoT-generated data, alternative data sources such as satellite imagery, social media sentiment analysis, and geolocation data play a crucial role in smart city planning and management. Satellite imagery, for example, can be used to monitor land use, identify urban sprawl, and assess environmental changes, while social media sentiment analysis can provide insights into public opinion and citizen satisfaction with city services.

Market Trends

Integration of Alternative Data into Investment Strategies

• The integration of alternative data into investment strategies represents a significant trend in the alternative data market, with far-reaching implications across various asset classes such as equities, fixed income, and commodities. Hedge funds, asset managers, and institutional investors are at the forefront of leveraging alternative data to enhance their investment decisions and gain a competitive edge in the market.
• Alternative data plays a crucial role in risk management and portfolio optimization. By analyzing non-traditional data sources, investors can identify potential risks and vulnerabilities in their portfolios and take proactive measures to mitigate them. This proactive approach to risk management enables investors to better protect their capital and preserve wealth in volatile market conditions.
• Institutional investors are also increasingly recognizing the value of alternative data in portfolio diversification. By incorporating alternative data into their investment strategies, institutional investors can access new sources of return and reduce portfolio volatility. This diversification benefits investors by enhancing risk-adjusted returns and improving overall portfolio performance.

Rise of Unstructured Data

• The rise of unstructured data represents a pivotal trend in the alternative data market, ushering in a new era of insights derived from diverse sources such as social media posts, satellite imagery, and sensor data. This shift in focus towards unstructured data is driven by the recognition of its potential to offer valuable insights into consumer sentiment, market trends, and economic indicators that may not be readily apparent from structured data sources alone.
• Organizations across various industries are increasingly seeking to harness the power of unstructured data to extract actionable insights and gain a competitive edge in the market. Social media platforms, for instance, provide a wealth of unstructured data that can be analyzed to understand consumer preferences, sentiment towards brands, and emerging trends in real-time. Similarly, satellite imagery offers unique perspectives on environmental changes, urban development, and infrastructure projects, enabling organizations to make informed decisions about resource allocation and risk management.

Market Restraining Factors

Data Privacy and Compliance Concerns

• Data privacy and compliance concerns loom large in the alternative data market, presenting significant challenges to organizations seeking to harness the potential of non-traditional data sources. With the proliferation of data collection activities and the increasing scrutiny of regulatory bodies worldwide, organizations must navigate a complex landscape of privacy regulations such as GDPR, CCPA, and HIPAA. Failure to comply with these regulations can result in severe penalties, reputational damage, and loss of customer trust.
• The collection and analysis of alternative data often involve sensitive information about individuals, including personal preferences, behaviors, and interactions. As such, organizations must ensure that they have robust data governance frameworks in place to protect the privacy and confidentiality of this data. This requires implementing stringent security measures, such as encryption, access controls, and anonymization techniques, to safeguard data against unauthorized access and misuse.

Key Industry Developments:

In April 2023, Thinknum Alternative Data launched new data fields to its employee sentiment datasets so that investors and people analytics teams may use them as a stand-in for "employee NPS" and help top-rated firms arrange employee referrals for interviews.

In September 2022, Thinknum Alternative Data announced its plan to combine data Similarweb, With Lagoon, a cutting-edge infrastructure platform, SensorTower, Thinknum, Caplight, and Pathmatics can provide an alternate data source for investment research, due diligence, deal sourcing and origination, and post-acquisition strategy in private markets.

In May 2022, M Science LLC launched a consumer spending trends platform, providing daily, visibility into customer behaviour and competitive benchmarking on a weekly, monthly, and semi-annual basis. The consumer spending platform offered an unmatched business performance analysis together with real-time insights into consumer spending patterns for Australian firms.

In February 2022, in collaboration with Microsoft, Refinitiv announced the launch of Refinitiv AI Alerts, a market-data-powered intelligent assistant available in Microsoft Teams. Refinitiv AI Alerts provide personalized, timely, and actionable market insights for financial professionals in collaboration with ModuleQ, a leader in human-centered artificial intelligence.

Report Coverage:

The report will cover the qualitative and quantitative data on the global Alternative Data Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations:

List of Companies Profiled:

• Advan Research Corporation
• Preqin Ltd.
• 7Park Data Inc.
• Convergence Inc.
• UBS Evidence Lab
• YipitData
• Dataminr Inc.
• M Science LLC
• Eagle Alpha Ltd.
• Geotab Inc.
• Jumpshot
• JWN Energy
• Ravenpack International SL
• The Earnest Research Company
• Thinknum Inc.
• Talkingdata
• Others

Alternative Data Market Segmentation Analysis:

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 Market Segment Insights:

The market scope is segmented because of By Data Type, By Industry, By End User.

By Data Type

Based on the Data Type of the market is segmented into 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.

In 2023, the target market's leading segment—credit and debit card transactions—accounted for almost 16% of total revenue worldwide. This high percentage can be attributed to the fact that investors have a strong demand for this kind of information and that there are many sources of credit card transaction data. Lenders can use alternative data for credit score to inform loan approval decisions.

Examples of this type of data include gig economy revenue, rent payment history, and utility bill payments. Because of the enhanced capabilities of the data providers—such as the ability to sort client expenditure based on seller, area, gender, age, and other metrics—this market is also anticipated to increase at the fastest rate over the projection period of 2024 to 2030.

The predicted timeframe indicates a notable growth rate for the mobile application usage and social and sentiment data areas. The retail industry's increasing need for smartphone usage is credited with the development. Retail businesses use it to examine how users use e-commerce applications. Moreover, merchants are increasingly utilising sentiment analysis from social media platforms to comprehend the preferences of users across different demographics and geographical areas.

By Industry

Based on the Industry of the market is segmented into Automotive, BFSI, Energy, Industrial, IT & Telecommunications, Media & Entertainment, Real Estate & Construction, Retail, Transportation & Logistics, Other Industries.

In 2023, the market was dominated by the Banking, Financial Services, and Insurance (BFSI) sector, which generated over 16% of worldwide revenue. The rise in growth can be ascribed to the growing need for informative data from a range of BFSI organisations, such as life insurance firms, hedge funds, mutual funds, pension funds, and private equity funds. These entities leverage the underlying prediction capabilities of these sources with the explicit goal of achieving alpha. From 2024 to 2030, the retail industry segment is expected to grow at a noteworthy compound annual growth rate (CAGR) of about 52.5%. The industries with the fastest rates of growth include real estate, construction, energy, and logistics and transportation.

By End User

Based on the End User of the market is segmented into Hedge Fund Operators, Investment Institutions, Retail Companies, Other End-users.

In 2023, the target market was headed by the hedge fund operator sector, which generated over 68% of global revenue. The significant demand from hedge fund companies is the reason for this high share. Alternative data is heavily used by hedge fund operators, such Bridgewater Associates, AQR Capital Management, Blackrock Advisors, and others, to produce alpha.

Because more and more sources are needed to study the markets and identify profitable business opportunities, this category is likewise anticipated to increase steadily between 2024 and 2030. As a result of institutional investors' growing desire to obtain a competitive advantage, the investment institutions category also had a sizable market share in 2022.

Alternative Data Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 5 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Questions:

• How much the global Alternative Data Market valued?
• Which region has the largest share in 2024 for the global Alternative Data Market?
• What are the driving factors for the market?
• Which is the leading segment in the global market?
• What are the major players in the market?

Research Scope of Alternative Data Market:

• Historic year: 2019- 2022
• Base year: 2023
• Forecast: 2024 to 2031
• Representation of Market revenue in USD Million

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