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Add to CartGlobal Alternative Data Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
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, and Other Data Types.By Industry;
Automotive, BFSI, Energy, Industrial, IT & Telecommunications, Media & Entertainment, Real Estate & Construction, Retail, Transportation & Logistics, and Other Industries.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global Alternative Data Market (USD Million), 2021 - 2031
In the year 2024, the Global Alternative Data Market was valued at USD 8,591.23 million. The size of this market is expected to increase to USD 165,553.09 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 52.6%.
The Global Alternative Data Market represents a dynamic and rapidly evolving segment within the financial industry, driven by the increasing demand for unique, non-traditional datasets to gain insights and make informed investment decisions.
One of the key drivers behind the growth of the Global Alternative Data Market is the rising importance of data-driven decision-making in the financial sector. With the proliferation of digital technologies, the volume and variety of data generated worldwide have grown exponentially, providing financial institutions, asset managers, and hedge funds with access to vast amounts of data beyond traditional financial metrics. Alternative data sources such as satellite imagery, social media feeds, web scraping, sensor data, and credit card transactions offer valuable insights into consumer behavior, supply chain dynamics, market trends, and macroeconomic indicators that can inform investment strategies, risk management, and portfolio optimization.
The increasing competition and regulatory pressures in the financial industry are driving firms to seek out innovative sources of alpha generation and risk mitigation. Alternative data provides investors with a competitive edge by uncovering hidden patterns, identifying emerging trends, and predicting market movements that may not be captured by conventional financial data sources. By leveraging alternative data analytics and machine learning algorithms, financial professionals can extract actionable intelligence from disparate datasets, enhance their investment research capabilities, and gain a deeper understanding of market dynamics and investment opportunities across asset classes and geographies.
The growing adoption of quantitative and algorithmic trading strategies is fueling the demand for alternative data among institutional investors and quantitative hedge funds. Alternative data offers quantitative traders and algorithmic trading systems a rich source of alpha signals and trading indicators that can be incorporated into systematic trading models to generate alpha and reduce portfolio risk. By integrating alternative data into their trading strategies, quantitative investors can exploit market inefficiencies, capitalize on short-term trading opportunities, and achieve superior risk-adjusted returns in volatile and competitive market environments.
The increasing availability and accessibility of alternative data through third-party data vendors, data marketplaces, and alternative data platforms are democratizing access to institutional-grade data insights for a broader range of market participants. Fintech startups, data analytics firms, and technology providers are innovating and collaborating to develop user-friendly tools and platforms that enable investors to discover, evaluate, and integrate alternative datasets into their investment processes seamlessly. These platforms offer advanced data analytics, visualization tools, and data integration capabilities that empower investors to harness the power of alternative data to gain actionable insights, mitigate risks, and make more informed investment decisions in real-time.
The Global Alternative Data Market is poised for significant growth as financial institutions, asset managers, and hedge funds increasingly recognize the value and potential of alternative data to enhance their investment research, trading strategies, and risk management practices. As the demand for alternative data continues to rise, driven by the quest for alpha generation, portfolio diversification, and competitive advantage, alternative data providers, data vendors, and technology innovators will continue to innovate and expand the range of alternative datasets and analytics solutions available to meet the evolving needs of the financial industry.
Global Alternative Data Market Recent Developments
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In September 2024, Snowflake launched new data,sharing capabilities tailored for alternative data providers, facilitating better integration with investment workflows. This move aims to attract more institutional investors to use its platform for real,time alternative data analysis.
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In November 2024, YipitData and Orbital Insight announced a collaboration to provide enhanced geospatial insights combined with transaction,level analysis. This partnership focuses on industries like retail and logistics, aiming to deliver comprehensive market intelligence.
Segment Analysis
The market is segmented by data type into credit and debit card transactions, email receipts, geo-location (foot traffic) records, mobile application usage, satellite and weather data, social and sentiment data, web scraped data, web traffic, and other data types. Credit and debit card transactions provide valuable insights into consumer spending patterns and behaviors, while email receipts are used to track purchases and customer interactions. Geo-location data, such as foot traffic records, helps businesses understand consumer movement patterns and identify potential marketing opportunities. Mobile app usage data offers insights into user engagement and preferences, while satellite and weather data assist industries in forecasting and decision-making. Social and sentiment data help organizations monitor public opinion, and web scraped data and web traffic provide valuable analytics for online behavior and content performance.
By industry, the market spans automotive, banking, financial services, and insurance (BFSI), energy, industrial, IT and telecommunications, media and entertainment, real estate and construction, retail, transportation and logistics, and other industries. In the automotive industry, data such as geo-location and web traffic are used to optimize vehicle routes and understand consumer preferences. The BFSI sector leverages credit card transaction data and sentiment analysis to improve customer experience and detect fraud. Energy companies use satellite and weather data for resource management and predictive maintenance, while industrial sectors apply these data types for supply chain optimization and operational efficiency. IT and telecommunications companies rely on web traffic and mobile usage data to enhance service offerings and customer engagement.
Retail, transportation, and logistics industries also make extensive use of these data types to optimize inventory, enhance customer experiences, and streamline delivery routes. Real estate and construction industries leverage web traffic and social sentiment data to predict market trends and demand for properties. Media and entertainment use sentiment data to gauge public interest and adjust content strategies. Across all industries, data-driven insights play a crucial role in decision-making, operational improvements, and strategic planning, contributing to the growing reliance on big data and analytics solutions.
Global Alternative Data Segment Analysis
In this report, the Global Alternative Data Market has been segmented by Data Type, Industry and Geography.
Global Alternative Data Market, Segmentation by Data Type
The Global Alternative Data Market has been segmented by Data Type 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 and Other Data Types.
Credit & Debit Card Transactions represent a valuable source of alternative data, providing granular insights into consumer spending patterns, purchasing behavior, and economic activity. By analyzing transaction data from credit and debit card networks, investors can gain real-time visibility into consumer trends, retail sales performance, and industry-specific metrics that can inform investment strategies across sectors such as retail, hospitality, and e-commerce. Credit & Debit Card Transactions data enables investors to track changes in consumer sentiment, monitor competitive dynamics, and identify investment opportunities or risks in consumer-facing industries based on transaction volumes, spending trends, and demographic patterns. Email Receipts data offers another valuable source of alternative data, providing visibility into online consumer transactions, purchase behavior, and brand preferences. By analyzing email receipt data from e-commerce platforms, retailers, and digital payment processors, investors can gain insights into consumer spending habits, product preferences, and brand loyalty across different market segments. Email Receipts data allows investors to track the performance of individual companies, brands, or product categories based on transaction volumes, order sizes, and frequency of purchase, enabling them to make informed investment decisions and identify emerging trends or market disruptions in the e-commerce and retail sectors. Geo-location (Foot Traffic) Records data provides insights into consumer mobility, behavior, and location-based trends by tracking the movement patterns of individuals and populations using mobile devices and location-based services. By analyzing geo-location data from mobile apps, navigation platforms, and location-based services, investors can monitor foot traffic patterns, visitor flows, and consumer engagement at physical locations such as retail stores, restaurants, and entertainment venues. Geo-location (Foot Traffic) Records data enables investors to assess the operational performance of brick-and-mortar businesses, track changes in consumer behavior, and identify investment opportunities or risks based on shifts in foot traffic trends, market saturation, or competitive dynamics in specific geographic areas or market segments.
Mobile Application Usage data offers insights into consumer behavior, preferences, and engagement with mobile apps and digital platforms across various industries and sectors. By analyzing mobile application usage data from app analytics platforms, mobile operators, and app stores, investors can gain visibility into user demographics, app adoption rates, and engagement metrics that can inform investment decisions in technology, media, telecommunications, and other sectors. Mobile Application Usage data allows investors to track the performance of mobile apps, assess user engagement levels, and identify emerging trends or market opportunities based on app usage patterns, user reviews, and app store rankings, enabling them to make data-driven investment decisions in dynamic and rapidly evolving digital markets. Satellite & Weather Data offers unique insights into environmental conditions, natural disasters, and weather-related events that can impact industries such as agriculture, energy, insurance, and transportation. By analyzing satellite imagery, weather forecasts, and climate data, investors can monitor changes in weather patterns, assess the impact of extreme weather events, and identify investment opportunities or risks based on weather-related factors such as crop yields, energy demand, infrastructure damage, and supply chain disruptions. Satellite & Weather Data enables investors to integrate environmental factors into their investment models, hedge against weather-related risks, and capitalize on opportunities arising from climate change, natural disasters, or weather-dependent industries, enhancing their ability to make informed investment decisions and manage portfolio risks in volatile and uncertain markets. Social & Sentiment Data provides insights into consumer sentiment, brand perception, and market sentiment by analyzing social media conversations, online discussions, and sentiment analysis algorithms. By monitoring social media platforms, news websites, and online forums, investors can gauge public sentiment, sentiment trends, and sentiment shifts related to specific companies, brands, or market sectors. Social & Sentiment Data enables investors to identify emerging trends, anticipate market movements, and assess sentiment-driven risks or opportunities in the market based on sentiment analysis, sentiment scores, and sentiment indicators derived from social media data, enhancing their ability to make timely and informed investment decisions in response to changing market sentiment and investor sentiment dynamics.
Web Scraped Data offers a rich source of alternative data, providing access to structured and unstructured data from websites, online databases, and digital platforms across the internet. By scraping web content, news articles, financial reports, and user-generated content, investors can gather information, extract insights, and generate alpha signals that can inform investment strategies, stock selection, and market analysis. Web Scraped Data enables investors to access real-time market intelligence, monitor competitor activities, and track changes in industry dynamics based on web data, enabling them to make data-driven investment decisions and gain a competitive edge in the market by leveraging web scraping technologies and data analytics tools to extract actionable insights from web data sources. Web Traffic data provides insights into online user behavior, website traffic patterns, and digital engagement metrics by tracking visits, page views, and user interactions on websites and online platforms. By analyzing web traffic data from web analytics tools, digital marketing platforms, and content management systems, investors can gain visibility into website performance, audience demographics, and user engagement metrics that can inform investment decisions in digital media, e-commerce, and technology sectors. Web Traffic data enables investors to assess the popularity, relevance, and effectiveness of online platforms, track changes in user behavior, and identify investment opportunities or risks based on web traffic trends, audience engagement levels, and website performance metrics, enabling them to make informed investment decisions in digital markets and capitalize on trends in online consumer behavior.
Global Alternative Data Market, Segmentation by Industry
The Global Alternative Data Market has been segmented by Industry into Automotive, BFSI, Energy, Industrial, IT & Telecommunications, Media & Entertainment, Real Estate & Construction, Retail, Transportation & Logistics and Other Industries.
In the Automotive sector, alternative data plays a crucial role in market analysis, supply chain management, and consumer behavior tracking. Data from sources such as vehicle telemetry, social media sentiment analysis, and web scraped data provide automotive companies with insights into consumer preferences, market trends, and competitor strategies. By analyzing alternative data, automotive manufacturers can optimize product development, forecast demand, and tailor marketing strategies to meet evolving consumer needs and preferences, driving innovation and competitiveness in the industry.
Within the BFSI sector, alternative data is increasingly used for risk assessment, credit scoring, and investment analysis. Data sources such as credit card transactions, social media activity, and satellite imagery offer valuable insights into consumer creditworthiness, market sentiment, and economic indicators. Banks, financial institutions, and insurance companies leverage alternative data analytics to enhance underwriting processes, detect fraudulent activities, and identify investment opportunities across asset classes. Alternative data enables BFSI firms to improve decision-making, mitigate risks, and capitalize on emerging market trends, driving efficiency and profitability in the financial industry.
The Energy sector relies on alternative data for asset monitoring, predictive maintenance, and market analysis. Data from sources such as satellite imagery, IoT sensors, and weather forecasts provide energy companies with insights into infrastructure performance, equipment health, and environmental factors affecting energy production and distribution. By leveraging alternative data analytics, energy firms can optimize operational efficiency, reduce downtime, and mitigate risks associated with equipment failures or supply chain disruptions. Alternative data enables energy companies to enhance decision-making, improve resource management, and adapt to dynamic market conditions, driving sustainability and resilience in the sector.
Global Alternative Data Market, Segmentation by Geography
In this report, the Global Alternative Data Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Alternative Data Market Share (%), by Geographical Region, 2024
North America, being a leading hub for technological innovation and financial services, represents a significant market for alternative data. With the presence of major financial institutions, technology companies, and data providers, North America leads in the adoption of alternative data solutions across various industries, including finance, healthcare, retail, and technology. The region benefits from a robust regulatory framework, advanced data infrastructure, and a culture of innovation, driving the development and adoption of alternative data analytics and insights. North America's dynamic economy and diverse industry landscape continue to fuel demand for alternative data solutions, offering opportunities for market players to capitalize on the growing need for data-driven decision-making and competitive intelligence.
Europe also represents a key market for alternative data solutions, driven by the region's growing emphasis on digital transformation, data-driven innovation, and regulatory reforms. European countries, including the UK, Germany, and France, are witnessing increasing adoption of alternative data across sectors such as finance, healthcare, manufacturing, and retail. With a strong focus on data privacy and security regulations such as GDPR (General Data Protection Regulation), European businesses are investing in compliant data analytics and insights solutions to unlock the value of alternative data while ensuring data protection and privacy rights. Europe's diverse economic landscape, technological advancements, and regulatory frameworks create opportunities for market players to offer tailored alternative data solutions that address the unique needs and challenges of European businesses and industries.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Alternative Data Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunities
Drivers:
- Growing Demand for Data-Driven Insights
- Advancements in Technology
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Rise of Unstructured Data: The explosion of unstructured data from various sources, including social media, web scraping, satellite imagery, and IoT devices, has catalyzed a paradigm shift in how businesses approach data analytics. Unlike structured data, which fits neatly into predefined databases, unstructured data encompasses a wealth of information in formats like text, images, videos, and sensor readings. This diverse array of data provides businesses with a richer, more nuanced understanding of their markets, customers, and operational environments.
By incorporating unstructured data into their analytical frameworks, businesses can augment traditional data sources and uncover valuable insights that may have previously gone unnoticed. For instance, sentiment analysis of social media feeds can offer real-time feedback on brand perception and customer sentiment, enabling companies to swiftly adapt marketing strategies or address emerging issues. Similarly, satellite imagery and IoT sensor data can provide granular insights into supply chain logistics, environmental conditions, and infrastructure health, empowering organizations to optimize operations and mitigate risks proactively. As businesses continue to harness the power of unstructured data alongside structured data, they are better equipped to make informed decisions and stay ahead in today's dynamic and competitive landscape.
Restraints:
- Data Privacy and Regulatory Concerns
- Quality and Reliability Challenges
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Integration Complexity: Integrating alternative data into existing systems and workflows presents a significant challenge for many organizations due to its complexity and the diverse nature of the data sources involved. One primary hurdle is the need to standardize formats and structures across disparate data sets, which often come in varying formats and schemas. This process requires substantial effort and expertise to ensure compatibility and consistency, as data from sources like social media, web scraping, and IoT devices may have different data types, granularity levels, and temporal resolutions.
Moreover, aligning alternative data with existing analytics platforms poses additional challenges, as traditional systems may not be designed to handle the volume, velocity, and variety of alternative data sources. This can result in performance bottlenecks, data silos, and inefficiencies in data processing and analysis. Additionally, ensuring data quality and accuracy during integration is paramount, as inconsistencies or errors in the data can lead to flawed insights and decision-making. To address these challenges, organizations need to invest in robust data integration frameworks, advanced analytics tools, and skilled data engineering teams capable of handling the complexities of alternative data integration. By streamlining the integration process and establishing best practices for data governance and management, organizations can unlock the full potential of alternative data and leverage it effectively for decision-making and competitive advantage.
Opportunities:
- Industry-specific Applications
- Emerging Markets and Use Cases
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Partnerships and Collaborations: Collaboration among data providers, technology vendors, and industry stakeholders is pivotal in driving innovation and propelling the growth of the alternative data market. By joining forces, these entities can leverage their respective expertise, resources, and networks to develop comprehensive solutions that address the evolving needs of businesses across various sectors. Partnerships enable data providers to access a broader range of data sources and enhance the quality and diversity of their offerings. Likewise, technology vendors can integrate alternative data seamlessly into their platforms, enhancing their value proposition and empowering customers with more robust analytics capabilities.
Collaboration fosters synergies that facilitate the creation of innovative use cases and applications for alternative data. By pooling their resources and knowledge, stakeholders can explore new data-driven insights and uncover untapped opportunities in areas such as predictive analytics, risk management, and customer intelligence. Furthermore, partnerships enable industry stakeholders to navigate regulatory challenges, privacy concerns, and ethical considerations associated with alternative data usage more effectively. By working together to establish standards and best practices, stakeholders can foster trust and confidence in alternative data solutions, ultimately accelerating adoption and driving market growth. Overall, collaboration plays a vital role in catalyzing innovation, expanding market reach, and maximizing the value of alternative data for businesses and organizations worldwide.
Competitive Landscape Analysis
Key players in Global Alternative Data Market include
- 1010Data
- Advan
- Dataminr
- Earnest Research
- M Science
- Preqin
- RavenPack
- Thinknum Alternative Data
- UBS Evidence Lab
- YipitData
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Data Type
- Market Snapshot, By Industry
- Market Snapshot, By Region
- Global Alternative Data Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Growing Demand for Data-Driven Insights
- Advancements in Technology
- Rise of Unstructured Data
- Restraints
- Data Privacy and Regulatory Concerns
- Quality and Reliability Challenges
- Integration Complexity
- Opportunities
- Industry-specific Applications
- Emerging Markets and Use Cases
- Partnerships and Collaborations
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Alternative Data Market, By Data Type, 2023 - 2033 (USD Million)
- 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
- Global Alternative Data Market, By Industry, 2023 - 2033 (USD Million)
- Automotive
- BFSI
- Energy
- Industrial
- IT & Telecommunications
- Media & Entertainment
- Real Estate & Construction
- Retail
- Transportation & Logistics
- Other Industries
- Global Alternative Data Market, By Geography, 2023 - 2033 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Alternative Data Market, By Data Type, 2023 - 2033 (USD Million)
- Competitive Landscape
- Company Profiles
- 1010Data
- Advan
- Dataminr
- Earnest Research
- M Science
- Preqin
- RavenPack
- Thinknum Alternative Data
- UBS Evidence Lab
- YipitData
- Company Profiles
- Analyst Views
- Future Outlook of the Market