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Alternative Data Market size was valued at USD 16.13 Billion in 2024 and is projected to reach USD 408.72 Billion by 2031, growing at a CAGR of 54.92% from 2024 to 2031.
Global Alternative Data Market Drivers
Growing Need for Alpha Generation: Investors are continuously looking for fresh sources of alpha, or excess returns over a benchmark, in the fiercely competitive financial markets. Insights from alternative data are distinct from those from traditional sources, which helps investors spot opportunities and obtain a competitive advantage. Technological Developments: The mass gathering and examination of alternative data has been made easier by technological developments, especially in fields like artificial intelligence, machine learning, and big data analytics. These technologies improve the value proposition of alternative data for investors by enabling complex data processing, pattern detection, and predictive modeling. Proliferation of Data Sources: Beyond traditional financial and economic indicators, there is a proliferation of data sources due to the internet and digital technology. Web traffic, satellite imagery, social media feeds, consumer transactions, and sensor data are just a few examples of the many sources that make up alternative data, which offers deep and varied insights into a number of fields and industries. Regulatory Environment: The gathering, storing, and use of alternative data may be affected by changes in regulations, such as the General Data Protection Regulation (GDPR) of the European Union and other comparable data protection legislation across the globe. Adherence to regulatory mandates is crucial for alternative data providers and consumers, as it molds the market environment and impacts data procurement tactics.
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The Alternative Data Market size was valued at USD 7.20 billion in 2023 and is projected to reach USD 126.50 billion by 2032, exhibiting a CAGR of 50.6 % during the forecasts period. The use and processing of information that is not in financial databases is known as the alternative data market. Such data involves posts in social networks, satellite images, credit card transactions, web traffic and many others. It is mostly used in financial field to make the investment decisions, managing risks and analyzing competitors, giving a more general view on market trends as well as consumers’ attitude. It has been found that there is increasing requirement for the obtaining of data from unconventional sources as firms strive to nose ahead in highly competitive markets. Some current trend are the finding of AI and machine learning to drive large sets of data and the broadening utilization of the so called “Alternative Data” across industries that are not only the finance industry. Recent developments include: In April 2023, Thinknum Alternative Data launched new data fields to its employee sentiment datasets for people analytics teams and investors to use this as an 'employee NPS' proxy, and support highly-rated employers set up interviews through employee referrals. , In September 2022, Thinknum Alternative Data announced its plan to combine data Similarweb, SensorTower, Thinknum, Caplight, and Pathmatics with Lagoon, a sophisticated infrastructure platform to deliver an alternative data source for investment research, due diligence, deal sourcing and origination, and post-acquisition strategies in private markets. , In May 2022, M Science LLC launched a consumer spending trends platform, providing daily, weekly, monthly, and semi-annual visibility into consumer behaviors and competitive benchmarking. The consumer spending platform provided real-time insights into consumer spending patterns for Australian brands and an unparalleled business performance analysis. .
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Alternative Data Market Size 2025-2029
The alternative data market size is valued to increase USD 60.32 billion, at a CAGR of 52.5% from 2024 to 2029. Increased availability and diversity of data sources will drive the alternative data market.
Major Market Trends & Insights
North America dominated the market and accounted for a 56% growth during the forecast period.
By Type - Credit and debit card transactions segment was valued at USD 228.40 billion in 2023
By End-user - BFSI segment accounted for the largest market revenue share in 2023
Market Size & Forecast
Market Opportunities: USD 6.00 million
Market Future Opportunities: USD 60318.00 million
CAGR from 2024 to 2029 : 52.5%
Market Summary
The market represents a dynamic and rapidly expanding landscape, driven by the increasing availability and diversity of data sources. With the rise of alternative data-driven investment strategies, businesses and investors are increasingly relying on non-traditional data to gain a competitive edge. Core technologies, such as machine learning and natural language processing, are transforming the way alternative data is collected, analyzed, and utilized. Despite its potential, the market faces challenges related to data quality and standardization. According to a recent study, alternative data accounts for only 10% of the total data used in financial services, yet 45% of firms surveyed reported issues with data quality.
Service types, including data providers, data aggregators, and data analytics firms, are addressing these challenges by offering solutions to ensure data accuracy and reliability. Regional mentions, such as North America and Europe, are leading the adoption of alternative data, with Europe projected to grow at a significant rate due to increasing regulatory support for alternative data usage. The market's continuous evolution is influenced by various factors, including technological advancements, changing regulations, and emerging trends in data usage.
What will be the Size of the Alternative Data Market during the forecast period?
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How is the Alternative Data Market Segmented ?
The alternative data industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
Type
Credit and debit card transactions
Social media
Mobile application usage
Web scrapped data
Others
End-user
BFSI
IT and telecommunication
Retail
Others
Geography
North America
US
Canada
Mexico
Europe
France
Germany
Italy
UK
APAC
China
India
Japan
Rest of World (ROW)
By Type Insights
The credit and debit card transactions segment is estimated to witness significant growth during the forecast period.
Alternative data derived from credit and debit card transactions plays a significant role in offering valuable insights for market analysts, financial institutions, and businesses. This data category is segmented into credit card and debit card transactions. Credit card transactions serve as a rich source of information on consumers' discretionary spending, revealing their luxury spending tendencies and credit management skills. Debit card transactions, on the other hand, shed light on essential spending habits, budgeting strategies, and daily expenses, providing insights into consumers' practical needs and lifestyle choices. Market analysts and financial institutions utilize this data to enhance their strategies and customer experiences.
Natural language processing (NLP) and sentiment analysis tools help extract valuable insights from this data. Anomaly detection systems enable the identification of unusual spending patterns, while data validation techniques ensure data accuracy. Risk management frameworks and hypothesis testing methods are employed to assess potential risks and opportunities. Data visualization dashboards and machine learning models facilitate data exploration and trend analysis. Data quality metrics and signal processing methods ensure data reliability and accuracy. Data governance policies and real-time data streams enable timely access to data. Time series forecasting, clustering techniques, and high-frequency data analysis provide insights into trends and patterns.
Model training datasets and model evaluation metrics are essential for model development and performance assessment. Data security protocols are crucial to protect sensitive financial information. Economic indicators and compliance regulations play a role in the context of this market. Unstructured data analysis, data cleansing pipelines, and statistical significance are essential for deriving meaningful insights from this data. New
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The Global Alternative Data Market is poised for remarkable growth, expected to rise from USD 6.7 billion in 2023 to USD 426.8 billion by 2033, growing at an impressive CAGR of 51.50% during the forecast period from 2024 to 2033. Alternative data, which includes non-traditional data sources such as social media, satellite imagery, and transaction data, is gaining traction as companies seek new ways to gain insights into market trends and consumer behavior.
In 2023, North America was the dominant region, capturing 52.7% of the market share with USD 3.5 billion in revenue. As the need for data-driven decision-making continues to rise, the demand for alternative data solutions is expected to surge, impacting multiple industries across the globe.
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The Alternative Data market is experiencing explosive growth, projected to reach $5.54 billion in 2025 and exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 51.87% from 2025 to 2033. This surge is driven by the increasing need for businesses across diverse sectors to leverage non-traditional data sources for enhanced decision-making, risk management, and competitive advantage. Key drivers include the proliferation of digital channels generating vast amounts of alternative data (credit and debit card transactions, social media sentiment, mobile application usage, and geolocation records), advancements in data analytics capabilities enabling effective processing and interpretation of this data, and a growing awareness of the potential insights unlocked by alternative data sources. The BFSI (Banking, Financial Services, and Insurance), IT and telecommunications, retail, and media & entertainment sectors are leading adopters, utilizing alternative data for credit scoring, fraud detection, market research, and personalized customer experiences. However, challenges remain, including data privacy concerns, the need for robust data governance frameworks, and the complexity of integrating diverse data sources. The market segmentation reveals a diverse landscape. Credit and debit card transactions and social media data currently dominate, but the contribution of mobile application usage and web-scraped data is rapidly growing. Geographical distribution indicates strong growth across North America and Europe, particularly in the US, UK, Germany, and France, driven by robust technological infrastructure and early adoption. However, the Asia-Pacific (APAC) region, notably China, presents significant untapped potential and is projected to experience substantial growth over the forecast period due to increasing digitalization and expanding data infrastructure. The competitive landscape is dynamic, with leading companies vying for market share through strategic partnerships, acquisitions, and the development of innovative data analytics solutions. Navigating regulatory complexities and addressing data security concerns will be crucial for continued success in this rapidly evolving market. The forecast period of 2025-2033 will witness intensified competition and further market expansion, fueled by continuous technological innovation and the increasing value placed on data-driven insights.
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The global alternative data provider market size was valued at approximately USD 2.5 billion in 2023 and is expected to reach around USD 11 billion by 2032, growing at a robust CAGR of 18% during the forecast period. The surge in market size is primarily driven by the increasing demand for unique insights that alternative data provides to investment firms, hedge funds, and other financial institutions.
One of the prominent growth factors fueling the alternative data provider market is the escalating number of data sources. With the digital footprint expanding across social media, web scraping, credit card transactions, and satellite data, firms are constantly seeking new ways to gain a competitive edge. Social media platforms alone generate an immense volume of data daily, enabling businesses to derive real-time insights into consumer behavior, market trends, and sentiment analysis. This vast pool of unstructured data, when properly processed and analyzed, provides a goldmine of information for investment strategies and risk management.
Another significant growth driver is the increasing adoption of advanced analytical tools and artificial intelligence (AI). These technologies enable the efficient processing and analysis of large datasets, thus enhancing the accuracy and reliability of the insights derived. AI algorithms, in particular, are adept at identifying patterns and trends that may not be immediately apparent to human analysts. Moreover, the integration of machine learning techniques allows for continuous improvement in data analysis capabilities, making alternative data an indispensable tool for financial institutions aiming to stay ahead of the market.
Furthermore, the growing regulatory emphasis on transparency and accountability in financial markets is driving the adoption of alternative data. Regulatory bodies across the globe are increasingly scrutinizing traditional data sources to ensure fair trading practices and risk mitigation. In response, financial institutions are turning to alternative data providers to gain a more comprehensive view of market dynamics and to comply with stringent regulatory requirements. This shift toward greater transparency is expected to further bolster market growth.
Regionally, North America dominates the alternative data provider market, owing to the early adoption of advanced technologies and the presence of major financial hubs. However, other regions such as Asia Pacific and Europe are rapidly catching up. In Asia Pacific, the burgeoning fintech sector and the increasing number of start-ups are contributing significantly to market growth. Europe, on the other hand, is witnessing a surge in demand due to stringent regulatory frameworks and a growing emphasis on sustainable investing practices.
The alternative data provider market can be segmented by data type into social media data, web scraped data, credit card transactions, satellite data, and others. Social media data is a significant segment that impacts the market due to the sheer volume and variety of data generated through various platforms like Facebook, Twitter, and LinkedIn. This data includes user posts, comments, likes, shares, and other forms of engagement that can be analyzed to gauge market sentiment and predict consumer behavior. Social media data is invaluable for real-time analysis and immediate insights, making it a crucial component for investment and marketing strategies.
Web scraped data is another vital segment, offering an extensive array of information collected from various online sources like e-commerce websites, news sites, blogs, and forums. This data type provides insights into market trends, product popularity, pricing strategies, and consumer preferences. Web scraping tools extract relevant information efficiently, which can then be analyzed to provide actionable insights for businesses looking to optimize their operations and investment strategies.
Credit card transaction data is a high-value segment, offering precise insights into consumer spending patterns and financial behaviors. This data can be used to track economic trends, monitor the performance of specific sectors, and forecast future spending habits. Financial institutions and hedge funds rely heavily on this type of data to make informed investment decisions and to develop targeted marketing campaigns. The granularity and accuracy of credit card transaction data make it a powerful tool for financial analysis.
Satellite data is an e
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The alternative data market was valued at USD 6.27 billion in 2023 and is projected to reach USD 79.22 billion by 2029, growing at a CAGR of 52.61% during the forecast period.
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The global alternative data market is targeting USD 271.49 billion by 2032 and is expected to grow at a compound annual growth rate (CAGR) of 49.8%
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The Alternative Data Platform market is experiencing robust growth, driven by the increasing demand for non-traditional data sources within the financial services sector. The market's expansion is fueled by several key factors: the rise of quantitative investment strategies that heavily rely on alternative data for alpha generation; the growing sophistication of data analytics techniques capable of extracting meaningful insights from complex datasets; and the increasing availability of diverse alternative data streams, including social media sentiment, satellite imagery, and transactional data. This market is segmented across various data types (e.g., web traffic, social media, satellite imagery), industry verticals (e.g., finance, retail, healthcare), and deployment models (cloud-based, on-premise). The competitive landscape is characterized by both established players and emerging fintech companies, leading to ongoing innovation and consolidation. We estimate the market size in 2025 to be $5 billion, with a compound annual growth rate (CAGR) of 25% projected through 2033. This signifies substantial future opportunities for vendors and investors alike. Significant trends shaping this market include the increasing adoption of cloud-based platforms for scalability and cost-effectiveness, the rise of AI-powered data analytics for enhanced insight extraction, and a greater focus on data security and regulatory compliance. However, challenges remain. These include the high cost of alternative data acquisition and processing, the need for specialized expertise in data science and analytics, and concerns related to data quality and bias. Despite these restraints, the overall market outlook is positive, with continued growth driven by the expanding use of alternative data across a broader range of industries and investment strategies. The competitive landscape includes companies like Accelex, Exabel, Similarweb, Preqin, and many others actively innovating and expanding their offerings to meet the evolving needs of the market. This ongoing innovation and competition ensure a dynamic and rapidly changing marketplace.
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The Alternative Data Services market is experiencing robust growth, driven by the increasing demand for non-traditional data sources among financial institutions and investment firms. The market's expansion is fueled by several key factors. Firstly, the need for enhanced investment strategies and improved risk management is pushing firms to explore alternative data sources beyond traditional financial statements. This includes incorporating web scraping, social media sentiment analysis, satellite imagery, and transactional data to gain a competitive edge in market prediction and portfolio management. Secondly, advancements in data analytics and machine learning capabilities have made it easier to process and interpret this complex, unstructured alternative data, leading to more actionable insights. Finally, the rising availability of alternative data providers, many specializing in niche data segments, has fostered a dynamic and competitive market. While the exact market size in 2025 is unavailable, a reasonable estimation based on a plausible CAGR of 25% (a common growth rate for rapidly expanding technology sectors) from a hypothetical base year 2019 figure of $5 Billion, would place the 2025 market size at approximately $15 billion. This estimate acknowledges the market's dynamic nature and potential for faster or slower growth based on economic conditions and technological advancements. However, the upward trend remains undeniable. The market's segmentation includes various data types and service models. Companies are categorized into providers specializing in specific data sources (e.g., transactional data, satellite imagery) and those offering integrated platforms that combine multiple data types. Geopolitically, North America currently dominates the market, given the concentration of financial institutions and technology firms in the region. However, significant growth is expected from Asia-Pacific and Europe, driven by increasing adoption of alternative data in developing financial markets. Restraints include challenges related to data quality, regulation, and data privacy concerns. The increasing regulatory scrutiny around the use of alternative data necessitates robust compliance strategies for both data providers and users. Despite these challenges, the long-term outlook for the Alternative Data Services market remains extremely positive, with a projected substantial increase in market size over the next decade. This growth will be driven by continuous technological innovation, expanding data availability, and the increasing demand for data-driven investment decision-making.
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The Alternative Data (Alt-Data) market is experiencing robust growth, driven by the increasing demand for enhanced investment strategies and improved decision-making across various sectors. The market, estimated at $15 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 25% from 2025 to 2033, reaching approximately $75 billion by 2033. This expansion is fueled by several key drivers, including the proliferation of readily available digital data, advancements in artificial intelligence (AI) and machine learning (ML) for data analysis, and the rising adoption of alternative data sources by financial institutions, businesses, and governments seeking a competitive edge. Specific application areas like BFSI (Banking, Financial Services, and Insurance), and the retail and logistics sectors are spearheading this growth, leveraging alt-data for credit risk assessment, fraud detection, and supply chain optimization. However, challenges such as data quality issues, data privacy concerns, and regulatory hurdles continue to act as restraints. The segment breakdown reveals a diverse market landscape. Credit card transactions and web data/web traffic currently dominate the "Types" segment, reflecting their established utility in various analytical applications. However, the "Sentiment and Public Data" segment is expected to witness significant growth owing to increased focus on understanding public opinion and market sentiment. Geographically, North America holds a dominant market share due to the early adoption of alt-data technologies and the presence of key market players. However, the Asia-Pacific region, particularly China and India, is emerging as a rapidly growing market, fueled by increasing digitalization and expanding fintech sectors. The competitive landscape is dynamic, with established players like S&P Global and Bloomberg Second Measure alongside agile technology companies like Dataminr and SymphoneyAI vying for market share. This competition is pushing innovation and driving down the cost of access to alternative datasets, further boosting market adoption.
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The Alternative Data (Alt-Data) market is experiencing robust growth, driven by the increasing need for enhanced investment strategies and improved decision-making across various sectors. The market, currently valued at approximately $15 billion in 2025 (estimated based on typical market sizes for data-driven sectors and given a CAGR below, indicating substantial growth), is projected to witness a Compound Annual Growth Rate (CAGR) of 25% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, the proliferation of digital data sources offers unprecedented opportunities for extracting valuable insights previously unavailable through traditional data channels. Secondly, the rising adoption of advanced analytics techniques like machine learning and AI enables effective processing and interpretation of this complex alt-data, unlocking its predictive power for financial modeling and risk assessment. Thirdly, regulatory changes and increased transparency demands are pushing businesses to leverage a broader range of information sources for improved compliance and risk management. Finally, the increasing competition and the need to gain a competitive edge are driving businesses to seek out and utilize alternative data to improve their decision-making processes. The market's growth is not without its challenges. Data quality and reliability remain major concerns, with issues of data biases, inaccuracies, and inconsistencies requiring careful handling and validation. Furthermore, concerns about data privacy and security pose regulatory hurdles that must be navigated for sustainable market growth. Market segmentation reveals a diverse landscape, with significant traction in financial services, where alt-data fuels more sophisticated quantitative strategies and risk management solutions. Other sectors such as marketing and advertising, and supply chain management are also seeing increased adoption, although perhaps at a slower pace than the finance sector. Leading players like Preqin, S&P Global, and Bloomberg Second Measure are at the forefront of this evolution, constantly innovating to deliver high-quality, reliable, and actionable insights. The market's evolution towards greater integration with traditional data sources and more sophisticated analytical tools will further accelerate growth in the coming years.
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The Alternative Data Vendor market is experiencing robust growth, driven by the increasing demand for non-traditional data sources to enhance investment strategies and business decision-making. The market's expansion is fueled by the proliferation of digital data, advancements in data analytics, and a growing need for more comprehensive and nuanced insights across various sectors. The BFSI (Banking, Financial Services, and Insurance) sector remains a significant driver, leveraging alternative data for credit scoring, fraud detection, and risk management. However, growth is also witnessed in industrial, IT and telecommunications, and retail and logistics sectors as businesses seek competitive advantages through data-driven decision-making. The diverse types of alternative data, including credit card transactions, web data, sentiment analysis, and public data, cater to a wide range of applications. While data privacy and regulatory concerns pose challenges, the market is overcoming these hurdles through robust data anonymization and compliance strategies. The competitive landscape features both established players like S&P Global and Bloomberg, along with emerging technology-driven companies, fostering innovation and market expansion. We project a steady compound annual growth rate (CAGR) resulting in a substantial market expansion over the next decade. This growth is expected to be distributed across regions, with North America and Europe maintaining leading positions due to early adoption and developed data infrastructure. The forecast period from 2025 to 2033 anticipates continued market expansion, propelled by factors such as increasing data availability from IoT devices, refined analytical techniques, and expanding applications across new sectors. The market's segmentation by application and data type is expected to further evolve, with niche players focusing on specific data sets and industries. This specialized approach allows for deeper insights and catering to specific client needs. Geographic expansion will continue, with growth in Asia-Pacific particularly driven by the increasing adoption of digital technologies and expanding economic activity. Strategic partnerships and mergers and acquisitions will likely shape the competitive landscape, fostering consolidation and further innovation in alternative data solutions. Despite challenges related to data quality, security, and ethical considerations, the overall outlook for the Alternative Data Vendor market remains highly positive, with substantial growth opportunities over the long term.
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Global Alternative Data market size is expected to reach $36.01 billion by 2029 at 39.1%, segmented as by data type, credit and debit card transactions, email receipts, geo-location (foot traffic) records, mobile application usage
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The Alternative Data Market offers a diverse range of products and services, broadly categorized as: Data Type: This categorization focuses on the source of the data, offering granular options to meet specific analytical needs. Options include, but are not limited to:
Credit & Debit Card Transactions
Email Receipts
Geo-location (Foot Traffic)
Social Media Data
Mobile App Usage Data
Web Scraping Data
Industry: This segmentation tailors data offerings to specific industry requirements and analytical frameworks. Examples include:
Automotive
BFSI
Energy
Industrial
IT & Telecommunications
Media & Entertainment
Real Estate & Construction
Retail
Transportation & Logistics
Healthcare
Other Industries
Recent developments include: June 2021 The Quandl Data Platform, a brand-new alternative data platform, was released by Quandl Inc. Users of the platform have access to a wide range of diverse data sources, including data from social media, satellite pictures, and site traffic statistics. There are also tools for data scrubbing, processing, and visualization., October 2021 In order to give users with a variety of alternative data sources, 1010data established a new platform called 1010data AltData. This platform offers consumer purchase information, geolocation data, and credit card transaction data. Additionally, the platform provides data processing and visualization features.. Notable trends are: Increasing demand from hedge funds is driving the market growth.
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The global alternative data service market is projected to reach USD 121.1 billion by 2033, exhibiting a CAGR of 32.4% during the forecast period (2025-2033). The increasing adoption of alternative data sources, such as web data and traffic, sentiment and public data, by various industries to gain actionable insights into market trends and consumer behavior is driving market growth. The growing demand for alternative data from the financial services industry, particularly for credit risk analysis and portfolio management, is also contributing to market expansion. The expansion of the alternative data service market is facilitated by several emerging trends, including the rise of artificial intelligence (AI) and machine learning (ML) technologies. These technologies enable the automated analysis of large volumes of alternative data, enhancing the ability to extract meaningful insights. Additionally, the growing awareness and adoption of ESG (environmental, social, and governance) data are expected to create opportunities for alternative data providers in the coming years. However, concerns regarding data privacy and security may pose challenges to the market's growth. Alternative data services provide actionable insights by analyzing non-traditional data sources such as credit card transactions, social media, and internet traffic. This rapidly growing industry offers valuable information for various industries and applications.
In 2020, more than ** percent of hedge fund managers classified as alternative data market leaders used ***** or more alternative data sets globally, while only ***** percent of the rest of the market used at least ***** alternative data sets. This highlights the difference between the level of alternative data experience between the two groups. Using *** or more alternative data sets was the most popular approach across both groups with ** percent of market leaders and ** percent of the rest of the market doing this.
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The alternative data solutions market is experiencing robust growth, driven by the increasing demand for richer, more granular datasets beyond traditional financial information. The market, currently estimated at $5 billion in 2025, is projected to grow at a Compound Annual Growth Rate (CAGR) of 20% from 2025 to 2033, reaching approximately $20 billion by 2033. This expansion is fueled by several key drivers, including the rise of quantitative investment strategies, the need for improved risk management, and the increasing availability of diverse data sources like social media, satellite imagery, and transactional data. Fintech innovations are also playing a crucial role, offering sophisticated analytical tools to process and interpret this complex data, leading to more informed decision-making across various sectors. While data privacy regulations and the cost of data acquisition represent challenges, the potential for enhanced insights and competitive advantage continues to fuel market growth. The market is segmented by data type (e.g., social media, transactional, satellite), application (e.g., investment management, risk management, market research), and region. North America currently holds the largest market share, followed by Europe, driven by the presence of established financial institutions and advanced technological infrastructure. However, Asia-Pacific is witnessing rapid growth, propelled by increasing technological adoption and the expansion of fintech firms. Key players, including Alternative Data Group, Equifax, and Sentieo, are actively competing through strategic partnerships, acquisitions, and the development of innovative data analytics platforms. The future of the alternative data solutions market hinges on addressing data quality, accessibility, and security concerns while continuing to innovate in data analytics and machine learning to unlock the full potential of this rapidly evolving landscape.
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Global Alternative Data Provider market size 2025 was XX Million. Alternative Data Provider Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.
In 2020, almost ** percent of hedge fund managers who were classified as alternative data market leaders named having appropriate infrastructure as their main challenge when using alternative data. As for the rest of the market, ** percent of alternative data users considered having a good infrastructure to be a challenge.
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Alternative Data Market size was valued at USD 16.13 Billion in 2024 and is projected to reach USD 408.72 Billion by 2031, growing at a CAGR of 54.92% from 2024 to 2031.
Global Alternative Data Market Drivers
Growing Need for Alpha Generation: Investors are continuously looking for fresh sources of alpha, or excess returns over a benchmark, in the fiercely competitive financial markets. Insights from alternative data are distinct from those from traditional sources, which helps investors spot opportunities and obtain a competitive advantage. Technological Developments: The mass gathering and examination of alternative data has been made easier by technological developments, especially in fields like artificial intelligence, machine learning, and big data analytics. These technologies improve the value proposition of alternative data for investors by enabling complex data processing, pattern detection, and predictive modeling. Proliferation of Data Sources: Beyond traditional financial and economic indicators, there is a proliferation of data sources due to the internet and digital technology. Web traffic, satellite imagery, social media feeds, consumer transactions, and sensor data are just a few examples of the many sources that make up alternative data, which offers deep and varied insights into a number of fields and industries. Regulatory Environment: The gathering, storing, and use of alternative data may be affected by changes in regulations, such as the General Data Protection Regulation (GDPR) of the European Union and other comparable data protection legislation across the globe. Adherence to regulatory mandates is crucial for alternative data providers and consumers, as it molds the market environment and impacts data procurement tactics.