Alternative Data for Investing Market Outlook

According to our latest research, the global Alternative Data for Investing market size reached USD 6.2 billion in 2024, exhibiting robust momentum with a CAGR of 18.7% from 2025 to 2033. This dynamic market is projected to achieve a value of USD 33.7 billion by 2033, fueled by rising demand for non-traditional data sources that offer actionable investment insights. The rapid expansion is driven by increasing adoption among institutional investors, technological advancements in data analytics, and a growing appetite for alpha generation in competitive financial markets.

The primary growth factor for the Alternative Data for Investing market is the escalating need for unique, real-time information that can provide a competitive edge in investment decision-making. Traditional data sources, such as financial statements and economic indicators, are now widely available and often lead to crowded trades. In contrast, alternative data—ranging from satellite imagery and web-scraped data to mobile app usage and credit card transactions—offers granular, timely insights that are not yet fully priced into the market. As asset managers and hedge funds seek to outperform benchmarks, they are increasingly turning to alternative data to identify emerging trends, assess corporate performance, and anticipate market movements ahead of their peers. This shift is further amplified by advancements in artificial intelligence and machine learning, which enable investors to process and extract value from vast, unstructured datasets with unprecedented speed and accuracy.

Another significant driver is the proliferation of data sources and the democratization of data access. The digital transformation across industries has generated an explosion of data, much of which can be harnessed for investment purposes. Social media platforms, e-commerce sites, geospatial technologies, and IoT devices are continuously generating valuable signals about consumer behavior, supply chain dynamics, and macroeconomic conditions. Financial institutions are increasingly collaborating with data vendors and fintech startups to integrate these alternative datasets into their investment models. Additionally, regulatory changes in data privacy and open banking are enabling greater access to transaction-level data, further broadening the scope of alternative data applications in investing.

The growing sophistication and adoption of data analytics tools are also propelling the Alternative Data for Investing market forward. Cloud-based analytics platforms, advanced visualization tools, and scalable data management solutions have made it easier for investment professionals to ingest, process, and interpret large volumes of alternative data. This has led to the emergence of new investment strategies, such as sentiment-driven trading, real-time supply chain monitoring, and ESG (Environmental, Social, and Governance) analysis using non-traditional metrics. Furthermore, as more retail investors gain access to alternative data through digital platforms, the market is witnessing broader participation and innovation in data-driven investing.

Regionally, North America dominates the Alternative Data for Investing market, accounting for the largest share in 2024 due to the presence of leading financial hubs, advanced technology infrastructure, and a high concentration of institutional investors. Europe is also experiencing robust growth, driven by regulatory support for data sharing and the rise of fintech innovation hubs. The Asia Pacific region is emerging as a high-growth market, fueled by rapid digitalization, expanding capital markets, and increasing adoption of alternative data by local asset managers and hedge funds. Meanwhile, Latin America and the Middle East & Africa are witnessing steady growth, supported by rising financial inclusion and the entry of global data providers into these regions.

Data Type Analysis

The data type segment of the Alternative Data for Investing market is highly diverse, encompassing a wide array of sources such as social and sentiment data, web-scraped data, satellite and geospatial data, credit and debit card transactions, mobile application usage, and other emerging categories. Social and sentiment data, derived from platforms like Twitter, Reddit, and financial forums, has become indispensable for gauging market sentiment and predicting short-term price movements. Investment prof

USA Private Equity Market size was valued at USD 523 Billion in 2024 and is projected to reach USD 931.77 Billion by 2032, growing at a CAGR of 7.49% from 2026 to 2032. Key Market Drivers:Robust Capital Availability and Fundraising: The United States has established itself as the global leader in private equity fundraising, creating a self-reinforcing ecosystem for continued growth. According to the U.S. Securities and Exchange Commission (SEC), U.S.-based private equity firms raised over $350 billion in capital commitments in 2023, accounting for approximately 60% of global private equity fundraising. The U.S. maintains its dominant position in private equity fundraising due to its deep capital markets, sophisticated investor base, and favorable regulatory environment that continues to attract domestic and international limited partners seeking attractive risk-adjusted returns.Strong Institutional Investor Participation: The consistent allocation from institutional investors drives the U.S. private equity market's growth and stability. American Investment Council shows that public pension funds in the U.S. have allocated an average of 8.7% of their portfolios to private equity investments, with these allocations generating median 10-year returns of 13.2%, outperforming most other asset classes. U.S. pension funds have increasingly turned to private equity to meet their long-term obligations, with private equity investments delivering 490 basis points of outperformance compared to public market equivalents over the past decade, according to the 2023 Public Pension Fund Analysis published by the National Association of State Retirement Administrators.

A list of the top 50 Newtyn Management LLC holdings showing which stocks are owned by Newtyn Management LLC's hedge fund.

In 2018, investments in black assets were more popular among sovereign investors, as green assets at this time had a total investment value of under *********** U.S. dollars. From 2020 to 2021, the level of investment in black assets roughly halved, while the value of green asset investment almost tripled. This trend continued as the value of green asset investment is more than double the value of black asset investment in 2024. A surge in green investment has been evident, as the assets under management of sustainable funds worldwide more than doubled in just five years. How do green investments perform in comparison to peers? When comparing median returns of sustainable funds to non-ESG funds between 2019 and 2023, sustainable funds outperformed traditional funds. During this period, sustainable funds achieved a total median return of approximately ** percent, compared to ** percent for traditional funds. This strong performance highlights the growing appeal of sustainable investing as both a financially rewarding and responsible choice. What are ESG exchange-traded funds (ETFs)? ESG ETFs are investment funds that track indices composed of companies with strong environmental, social and governance attributes while maintaining risk and return profiles comparable to their parent index. As demand for responsible investing grows, ESG ETFs continue to gain popularity among investors seeking financial returns while making a positive societal impact. The largest ESG ETF by net assets worldwide is BlackRock’s iShares ESG Aware MSCI USA ETF, with ***** billion U.S. dollars in assets, followed by JPMorgan ETFs (Ireland) ICAV - US Research Enhanced Index Equity (ESG) UCITS ETF, with ***** billion U.S. dollars.

The Broad-Based Index Fund market is poised for substantial expansion, projected to reach an estimated $550 million by 2025, with a robust Compound Annual Growth Rate (CAGR) of 15% anticipated over the forecast period of 2025-2033. This remarkable growth is primarily fueled by an increasing investor preference for low-cost, diversified investment vehicles that mirror the performance of broader market indices. The inherent transparency and reduced management fees associated with index funds make them particularly attractive to both individual and institutional investors seeking passive investment strategies. Key drivers include a growing awareness of the long-term benefits of diversification, a desire to outperform actively managed funds amidst their often higher expense ratios and inconsistent performance, and the favorable regulatory environments in major economies that support the growth of passive investment products. The market's expansion is also being significantly influenced by the increasing adoption of these funds within corporate pension plans and university endowment funds, which are increasingly seeking efficient and cost-effective ways to manage large asset pools. The market is segmented into various applications, with Personal Finance emerging as a dominant segment due to the growing retail investor base and the accessibility of index funds through various platforms. Corporate Pension Funds and Insurance Funds represent significant institutional adoption, driven by the need for stable, long-term growth and risk management. University Endowment Funds are also increasingly allocating capital to index funds for their diversification and cost-efficiency. In terms of types, Traditional Index Funds continue to hold a significant market share, offering broad market exposure at minimal cost. However, Enhanced Index Funds are gaining traction, providing investors with a degree of active management to potentially outperform the benchmark index while still maintaining many of the cost and diversification benefits of traditional index funds. Geographically, Asia Pacific, particularly China, is expected to exhibit the fastest growth, driven by a rapidly expanding middle class and increasing financial literacy. North America and Europe remain mature markets with substantial existing investments in broad-based index funds. This report provides an in-depth analysis of the global Broad-Based Index Fund market, encompassing historical trends, current dynamics, and future projections from 2019 to 2033. The study leverages a base year of 2025 for estimated market sizes and a forecast period of 2025-2033. Historical data from 2019-2024 provides the foundation for understanding market evolution.

The Open-Ended Investment Company Activities industry's revenue is set to contract at a compound annual rate of 0.2% over the five years through 2025-26 to £3.9 billion, including estimated growth of 4% in 2025-26. The total assets under management in the industry have picked up over the past decade, thanks in part to the rollout of automatic enrolment into pensions and the launch of pension funds' capital invested into OEICs. High interest rates caused by soaring inflation damaged the short-term value of fixed assets in portfolios and limited interest in equities. This hampered various markets, including Real Estate, growth industries like FinTech and capital-intensive companies.

Capital markets have been extremely volatile over recent years, navigating uncertain interest rates and sticky inflation. Excitement around generative AI also drove capital inflows, contributing to healthy equity market returns over the two years through 2025-26. Momentum is set to continue in 2025-26 as investors continue to be drawn by healthy returns in the technology stocks. However, concerns of a bubble as valuations and enthusiasm outpace real earnings growth will keep investors on their toes and increase the likelihood of sharp sell-offs. Although passive investment strategies will continue to attract capital, in such volatile markets over 2025-26, many active funds have outperformed their benchmarks, driving revenue growth with their higher fees. Nevertheless, passive funds will keep fees low, contributing to the average industry profit margin falling to 26.2% in 2025-26.

Revenue is expected to rise at a compound annual rate of 3.8% to £4.7 billion over the five years through 2030-31. Technology stocks will continue to be the primary driver behind growth as investors view AI as the engine of the next economic cycle. Reforms to insurance margin requirements and the pension age are likely to free up capital used for investments into OEICs. Higher clarity and digital transformation will force a change in the industry, with higher domestic investment and digital capabilities being introduced. However, global equity funds will continue to outpace domestic equity thanks to higher returns and liquidity.

A list of the top 50 Generation Investment Management holdings showing which stocks are owned by David Blood's hedge fund.

As of October 6, 2025, the S&P 500 and the S&P 500 ESG index exhibited similar performance; both indexes were weighted to similar industries, as the S&P 500 followed the leading 500 companies in the United States. Throughout 2025, the S&P 500 ESG index steadily outperformed the S&P 500 by ***** points on average. During the coronavirus pandemic, the technology sector was one of the best-performing sectors in the market. The major differences between the two indexes were that the S&P 500 ESG index was skewed towards firms with higher environmental, social, and governance (ESG) scores and had a higher concentration of technology securities than the S&P 500 index. What is a market capitalization index? Both the S&P 500 and the S&P 500 ESG are market capitalization indexes, meaning the individual components (such as stocks and other securities) weighted to the indexes influence the overall value. Market trends such as inflation, interest rates, and international issues like the coronavirus pandemic and the popularity of ESG among professional investors affect the performance of stocks. When weighted components rise in value, this causes an increase in the overall value of the index they are weighted too. What trends are driving index performance? Recent economic and social trends have led to higher levels of ESG integration and maintenance among firms worldwide and higher prioritization from investors to include ESG-focused firms in their investment choices. From a global survey group, over ********* of the respondents were willing to prioritize ESG benefits over a higher return on their investment. These trends influenced the performance of securities on the market, leading to an increased value of individual weighted stocks, resulting in an overall increase in the index value.