Alternative Data Market Size - By Data Type (Credit & Debit Card Transactions, Email Receipts, Geo-location Records, Mobile Application Usage, Satellite & Weather Data, Social & Sentiment Data, Web Scraped Data), Industry Vertical, End Use & Forecast, 2024 - 2032

Alternative Data Market Size

Alternative Data Market size was valued at USD 4.9 billion in 2023 and is projected to register a CAGR of over 28% between 2024 and 2032. The surge in data-driven decision-making across industries is a prime factor driving the market growth. Organizations recognize that traditional data sources may not provide a complete picture. Alternative data supplements this by offering unique insights from sources such as social media, satellite imagery, and online behavior. The consolidation of traditional and alternative data empowers businesses to make more accurate & informed decisions, leading to better strategies, improved customer understanding, and enhanced operational efficiency.
 

Alternative data sources offer a crucial advantage in delivering real-time insights, particularly through platforms such as social media and online reviews. Businesses can evaluate consumer sentiment, preferences, and reactions to products & services at the moment. This real-time understanding enables companies to adapt swiftly to changing trends & customer feedback, ensuring agility in decision-making and the ability to tailor strategies to match evolving consumer behaviors. These factors ultimately enhance customer satisfaction and competitiveness.
 

The absence of standardized formats and structures for alternative data sources has introduced complexity in the aggregation & analysis process. Each source may present data in unique ways, making it challenging to seamlessly integrate and compare information. This lack of uniformity hampers data harmonization efforts and increases the time & effort required for data preprocessing. Establishing common standards for data presentation & quality across diverse alternative data sources is essential to streamline analysis, enhance data consistency, and promote effective cross-source insights extraction.
 

COVID-19 Impact

The COVID-19 pandemic had a significant impact on the alternative data market as lockdowns, remote work, and economic disruptions shifted consumer behavior. The demand for real-time insights surged, particularly in industries such as finance, healthcare, and supply chain. However, challenges arose due to the unpredictability of the pandemic's effects on data sources and the need to recalibrate models. The pandemic highlighted both the potential and limitations of alternative data in responding to unprecedented global events.
 

Alternative Data Market Trends

The increased adoption of Environmental, Social, and Governance (ESG) data is one of the significant trends promoting the alternative data industry growth. As sustainability and responsible business practices gain importance, organizations are seeking data to assess their environmental impact, social responsibility, and corporate governance. Alternative data sources, such as satellite imagery, social media sentiment analysis & supply chain tracking, provide insights into a company's ESG performance. This trend has created a valuable market for alternative data providers catering to ESG-related analytics & reporting.
 

Alternative Data Market Analysis

Based on end use, the hedge fund operators segment dominated around USD 2.4 billion in market revenue in 2023. Hedge fund operators hold a dominant position in the market due to their unique demand for innovative data sources. Hedge fund operators leverage alternative data to gain insights into market trends, sentiment analysis, and proprietary investment strategies. Their substantial resources allow them to invest in advanced data analytics and processing tools. Additionally, the agility of hedge funds & the willingness to explore unconventional data sources position them as early adopters, influencing the development of new data offerings and driving market size.
 

Based on industry vertical, the BFSI segment held a dominant share in alternative data market revenue in 2023.  Insights into customer relationships in the Banking, Financial Services, and Insurance (BFSI) sector are driving the growth of the market. By analyzing unconventional data sources such as social media interactions, online behavior, and transaction patterns, BFSI institutions can gain a deeper understanding of customer preferences, risk profiles, and financial needs. This enables personalized offerings, enhanced risk assessment, and more effective customer engagement, ultimately boosting customer satisfaction and fostering the expansion of the market within BFSI.
 

North America alternative data market accounted for 32% of the revenue share in 2023. In North America, the ongoing digital transformation has profoundly impacted the market. The region's widespread adoption of digital technologies, online platforms, and e-commerce activities has generated an extensive volume of unconventional data. From social media interactions to e-commerce transactions, this wealth of digital information provides a unique opportunity for businesses across various sectors to leverage alternative data sources and gain insights into consumer behavior, market trends & emerging opportunities.
 

Alternative Data Market Share

Major companies operating in the alternative data industry are:

• Advan Research Corporation
• Dataminr Inc.
• Eagle Alpha Ltd.
• M Science LLC
• UBS Evidence Lab

The competitive landscape of this market is dynamic and diverse, characterized by a multitude of players ranging from established data providers to emerging startups.
 

Alternative Data Industry News

• In July 2023, Dillibits launched AltIndex, a fresh alternative data platform designed to enrich the trading proficiency of cryptocurrency users. The platform provides customers with improved insights and expanded investment prospects.
   
• In May 2022, Synaptic, a data analytics startup, secured USD 20 million in its Series B funding phase. This successful funding round marked the completion of the equity-based Series B cycle. The raised funds were slated for purposes such as advancing product development, bolstering Synaptic's prowess in data science & recruitment efforts and fostering partnerships with data vendors.
   

The alternative data market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Data Type

• 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
• Others

Market, By Industry Vertical

• Automotive
• BFSI
• Energy
• Industrial
• IT & Telecommunications
• Media & Entertainment
• Real Estate & Construction
• Retail
• Transportation & Logistics
• Others

Market, By End Users

• Hedge Fund Operators
• Investment Institutions
• Retail Companies
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • South Africa
  • GCC