Dublin, May 17, 2024 (GLOBE NEWSWIRE) -- The "Global Alternative Data Market: Analysis By Type, By Industry, By End User, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.
The global alternative data market value stood at US$6.97 billion in 2023 and is expected to reach US$88.92 billion by 2029. The market is expected to grow at a CAGR of 52.87% over the projected period of 2024-2029.
The global alternative data market is fragmented, with an increasing number of large and medium-sized players accounting for the majority of the market revenue, and the presence of a substantial number of regional market players with limited business offerings and customer base.
The global alternative data market continues to expand steadily, propelled by a multitude of factors. The proliferation of credit and debit card transaction data providers has significantly enriched the available datasets, offering valuable insights into consumer behavior and economic trends. Concurrently, rising demand from hedge fund managers and institutional investors underscores the growing recognition of alternative data's value in enhancing investment strategies and mitigating risks.
Additionally, the surge in data-driven decision-making across industries, driven by growing digitalization, fosters the adoption of alternative data solutions for informed decision-making. Government initiatives and regulatory environments further support market growth by promoting data transparency and entrepreneurship. The integration of unstructured data, globalization of markets, and increasing penetration in sectors like automotive and BFSI also contribute to the market's expansion, reflecting the diverse applications and increasing relevance of alternative data across various domains.
North America is the largest region of the alternative data market and presents a promising landscape. Notably, countries like the US, Canada, and Mexico contribute significantly to this market, each shaped by unique elements shaping their alternative data realm. In the US, the alternative data market thrives due to a combination of factors. The country's robust technological infrastructure and widespread adoption of digital platforms generate vast amounts of diverse data sources.
Additionally, a mature financial sector and a highly competitive landscape drive the demand for innovative data solutions among hedge funds, investment institutions, and corporations. Regulatory frameworks promoting data transparency and entrepreneurship further bolster the market. In Canada, while smaller in scale, similar trends emerge with growing adoption among financial institutions and corporations. In Mexico, the market is in its nascent stage but shows potential, fueled by increasing digitalization and a growing interest from investors and businesses.
The Asia Pacific emerges as the fastest-growing region in the alternative data sector, fueled by several key factors. Robust economic growth and widespread digital transformation drive exponential data generation across industries. The adoption of advanced technologies like IoT, AI, and big data analytics amplifies the demand for alternative data solutions. Expanding financial markets and escalating investment activities, especially in emerging economies such as China and India, further accelerate market growth.
In China, the sector thrives due to its vast population and dynamic digital ecosystem, attracting both domestic and international investors. India experiences burgeoning growth in tandem with rapid digitalization and a thriving startup landscape, offering ample opportunities for alternative data providers across sectors. Japan, with its mature economy and technological prowess, witnesses significant adoption of alternative data solutions driven by its established financial industry and innovation culture. Overall, the Asia Pacific's dynamic economies, technological advancements, and growing awareness of the value of alternative data propel it as the fastest-growing region in the sector.
Market Segmentation Analysis:
The Credit & Debit Card Transactions segment held the highest share in the market and is expected to be the fastest-growing segment in the forecasted period. Firstly, the proliferation of electronic payment methods has significantly increased the volume and granularity of transactional data. Secondly, advancements in data analytics technologies enable more sophisticated analysis of this data, unlocking valuable insights for various industries.
Additionally, the growing acceptance of cashless transactions worldwide further boosts the relevance and demand for credit and debit card transaction data. As a result, this segment is expected to maintain its rapid growth trajectory, driven by the continuous expansion of digital payment systems and the increasing integration of alternative data in decision-making processes.
The BFSI segment held the highest share in the market and is expected to be the fastest-growing segment in the forecasted period. Firstly, the BFSI industry heavily relies on data-driven decision-making, making alternative data invaluable for risk assessment, fraud detection, and customer segmentation. Secondly, regulatory changes and increasing competition drive the need for more advanced analytics and insights. Thirdly, the sector's digital transformation encourages the adoption of alternative data to gain a competitive edge and improve operational efficiency. As a result, the BFSI segment is expected to maintain its rapid growth, fueled by the continuous demand for innovative data solutions in the finance industry.
The Hedge Fund Operators held the highest share in the market. The dominance of Hedge Fund Operators in the global alternative data market can be attributed to their high demand for unique datasets to gain a competitive advantage in investment strategies. They heavily rely on alternative data for market sentiment analysis, trend spotting, and risk mitigation.
On the other hand, Retail Companies is expected to be the fastest-growing segment in the forecasted period, due to increasing awareness of alternative data's value among retailers for customer analytics, demand forecasting, and inventory management. As retail becomes more data-driven, the demand for alternative data solutions in this segment is expected to surge, driving its rapid growth in the forecasted period.
Competitive Landscape and Recent Developments:
Some of the strategies among key players in the market are new launch, mergers, acquisitions, and collaborations. For instance, On February 20, 2024, Preqin had announced a partnership to equip investment professionals with asset-level impact data. This collaboration aimed to address the scarcity of credible ESG and impact data in opaque alternative markets.
On July 24, 2023, RavenPack announced the integration of data and knowledge graph with Snowflake, the Data Cloud company. This collaboration empowered customers to access RavenPack's news, social media, and job datasets seamlessly on Snowflake's platform.
Market Dynamics
Growth Drivers
- Proliferation of Credit and Debit Card Transaction Data Providers
- Rising Demand From Hedge Funds Managers
- Growing Digitalization
- Surge in Data-Driven Decision-Making
- Government Initiatives and Regulatory Environment
- Integration of Unstructured Data
- Globalization of Markets
Real-Time Insights
- Increasing Penetration in Automotive Sector
- Rising BFSI Industry
- Rising Demand from Institutional and Retail Investors
Challenges
- Lack Of Expert Personnel
- Lack Of Data Accuracy
- Data Privacy and Compliance Issues
Market Trends
- Internet Penetration and 5G Adoption
- Penetration of Internet of Things (IoT)
- Advancements in AI, ML, and NLP
- Expansion of Emerging Data Sources
- Emergence of Generative AI
- Growing Interest In Stock Market Trading
- Rise of ESG Alternative Data
Company Profiles: Business Overview, Operating Segments, Business Strategy
- Factset Research Systems Inc.
- Jefferies Financial Group Inc. (M Science)
- London Stock Exchange Group Plc (LSEG Data & Analytics)
- Nasdaq, Inc.
- SymphonyAI, LLC (1010data, Inc.)
- Thinknum Alternative Data
- Dataminr, Inc.
- RavenPack International SL
- Preqin Ltd.
- Advan Research Corporation
- Eagle Alpha Ltd.
- Earnest Analytics
- YipitData Inc.
For more information about this report visit https://www.researchandmarkets.com/r/him534
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