PUBLISHER: Polaris Market Research | PRODUCT CODE: 1478608
PUBLISHER: Polaris Market Research | PRODUCT CODE: 1478608
The global alternative data market size is expected to reach USD 271.49 billion by 2032, according to a new study by Polaris Market Research. The report "Alternative Data Market Share, Size, Trends, Industry Analysis Report, By Industry; By Data Type; By End User (Investment Institutions, Retail Companies, Hedge Fund Operators, Other End-Users); By Region; Segment Forecast, 2024 - 2032" gives a detailed insight into current market dynamics and provides analysis on future market growth.
Alternative data refers to information obtained from non-traditional sources, which can provide insights beyond those derived from standard industry data sources. Investors utilize these non-traditional datasets, collectively known as "alternative data," to shape their investment strategies. Examples of alternative data sets include weather data, app usage, credit card transaction data, ESG (environmental, social, and corporate governance), website traffic data, product reviews, satellite images, mobile device data, and IoT sensor data.
A notable evolution in the alternative data market is the debut of next-generation platforms, representing a significant development within the sector. Leading players in the alternative data industry are prioritizing the launch of these advanced platforms, aiming to offer researchers, analysts, and enterprises relevant, timely, and insightful data. These next-generation platforms are designed to harness cutting-edge technologies and methodologies, enabling users to access fresh and pertinent insights that can inform strategic decision-making processes across various industries and domains.
Furthermore, the surge in demand from hedge funds is expected to propel market growth significantly. Currently, over half of hedge fund managers utilize alternative data to drive performance and augment risk management practices, seeking a competitive edge. The contributions of over 400 businesses substantially bolster the market revenue derived from supplying alternative data to hedge funds. Alternative data encompasses previously untapped information not found in conventional sources sourced from diverse channels.
Additionally, as businesses and investors seek to gain a deeper understanding of consumer behavior, market trends, and emerging opportunities, alternative data offers a wealth of untapped information sourced from non-traditional channels such as social media, satellite imagery, and IoT devices. This expanding market provides a platform for innovative data providers to offer valuable datasets and analytical solutions, catering to the evolving needs of organizations striving to make informed decisions in an increasingly data-driven world. With advancements in technology and analytics capabilities, the alternative data market continues to grow, offering opportunities for differentiation, innovation, and growth for both established players and emerging startups in the data ecosystem.
The Credit and Debit Card Transaction segment commands the largest portion of the global Alternative Data market in 2023. This dominance is a result of the widespread utilization of credit and debit cards across diverse economic activities, offering a robust stream of transactional data. This data serves as a valuable resource, providing insights into consumer behavior, spending patterns, and economic trends.
The hedge fund operators segment held the largest revenue share of the global alternative data market in 2023. This significant portion of the market share is a direct result of the increased demand from hedge fund companies seeking alternative data sources.
In 2023, North America asserted its dominance in the global market. This can be credited to various factors, such as the region's robust technological infrastructure, widespread adoption of data analytics and artificial intelligence (AI) technologies, and the presence of numerous leading alternative data providers and users.
The global key market players include 1010data, Inc., Advan Research Corporation, Dataminr, Earnest, M Science LLC, Preqin, RavenPack, Thinknum Alternative Data, UBS, and YipitData.
Polaris Market Research has segmented the Alternative Data market report based on industry, data type, end user, and region: