Alternative Data Market Analysis

Alternative Data Market Analysis

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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.