Alternative Data Market Organization Segment Trends, PEST Analysis and Forecast By 2030

Alternative Data Industry Overview

The global alternative data market size is anticipated to reach USD 143.31 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 54.4% from 2022 to 2030. The increasing emphasis on gaining alpha from hedge funds is expected to boost the demand for alternative data. The asset managers from hedge funds, mutual funds, private equity funds, pension funds, unit trusts, life insurance companies, and other BFSI entities are highly inclined to use alternative data to derive predictive insights. Moreover, the use of alternative data for risk management processes is also expected to drive market growth.

Alternative Data Market Segmentation

Grand View Research has segmented the global alternative data market based on data type, industry, end-users, and region:

Based on the Data Type Insights, the market is segmented 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

• The credit and debit card transactions segment led the market for alternative data and accounted for revenue share of more than 15.0% in 2021.
• This segment is also expected to register the highest growth rate over the forecast period from 2022 to 2030 due to the advanced capabilities of the data providers, such as sorting customer expenditure based on gender, age, seller, geography, and other metrics.
• The social and sentiment data and mobile application usage segments are estimated to witness a significant growth rate over the forecast period. The growth is attributed to the rising demand for smartphone usage from the retail industry.
• Retail companies utilize it to analyze the user’s e-commerce application usage patterns. Further, the retailers are increasingly using sentiment data from social media websites to understand user interests from various groups and regions.

Based on the Industry Insights, the market is segmented into Automotive, BFSI, Energy, Industrial, IT & Telecommunications, Media & Entertainment, Real Estate & Construction, Retail, Transportation & Logistics and Other Industries.

• The Banking, Financial Services, and Insurance (BFSI) industry led the market for alternative data and accounted for a revenue share of more than 15.0% in 2021.
• The growth can be attributed to the increasing demand for insightful data from various BFSI entities, including hedge funds, mutual funds, private equity funds, pension funds, unit trusts, and life insurance companies.
• The retail industry segment is projected to exhibit a significant CAGR of more than 56.3% from 2022 to 2030.
• The IT and telecommunications industry also held a significant revenue share of the market in 2021.
• Some of the highest growing segments include energy, real estate, and construction, and transportation and logistics.

Based on the End-user Insights, the market is segmented into Hedge Fund Operators, Investment Institutions, Retail Companies and Other End-users.

• The hedge fund operators segment dominated the market for alternative data and accounted for a revenue share of around 70.0% in 2021.
• The investment institutions segment also held a significant market share in 2021 due to institutional investors' increasing demand to gain a competitive edge.
• The retail companies’ segment is expected to register the highest CAGR from 2022 to 2030. The growth is attributed to novel use cases of alternative data, such as geo-location, satellite, social media, and sentiment data by retail companies to take strategic decisions.

Alternative Data Regional Outlook

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Key Companies Profile & Market Share Insights

The market for alternative data is highly fragmented with the presence of numerous companies; especially the providers of web scraped and credit/debit card transaction data. Some market players are engaged in acquisitions and partnerships to expand their capabilities.

Some prominent players in the Alternative Data market include

• 1010Data
• Advan
• Dataminr
• Earnest Research
• M Science
• Preqin
• RavenPack
• Thinknum Alternative Data
• UBS Evidence Lab
• YipitData

Order a free sample PDF of the Alternative Data Market Intelligence Study, published by Grand View Research.