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Alternative Data Market Size 2025-2029

The alternative data market size is forecast to increase by USD 60.32 billion at a CAGR of 52.5% between 2024 and 2029.

The market is experiencing significant growth due to the increased availability and diversity of data sources. This trend is driven by the rise of alternative data-driven investment strategies, which offer unique insights and opportunities for businesses and investors. However, challenges persist in the form of issues related to data quality and standardization. big data analytics and machine learning help businesses gain insights from vast amounts of data, enabling data-driven innovation and competitive advantage. Data governance, data security, and data ethics are crucial aspects of managing alternative data.
As more data becomes available, ensuring its accuracy and consistency is crucial for effective decision-making. The market analysis report provides an in-depth examination of these factors and their impact on the growth of the market. With the increasing importance of data-driven strategies, staying informed about the latest trends and challenges is essential for businesses looking to remain competitive in today's data-driven economy.

What will be the Size of the Alternative Data Market During the Forecast Period?

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Alternative data, the non-traditional information sourced from various industries and domains, is revolutionizing business landscapes by offering new opportunities for data monetization. This trend is driven by the increasing availability of data from various sources such as credit card transactions, IoT devices, satellite data, social media, and more. Data privacy is a critical consideration in the market. With the increasing focus on data protection regulations, businesses must ensure they comply with stringent data privacy standards. Data storytelling and data-driven financial analysis are essential applications of alternative data, providing valuable insights for businesses to make informed decisions. Data-driven product development and sales prediction are other significant areas where alternative data plays a pivotal role.
Moreover, data management platforms and analytics tools facilitate data integration, data quality, and data visualization, ensuring data accuracy and consistency. Predictive analytics and data-driven risk management help businesses anticipate trends and mitigate risks. Data enrichment and data-as-a-service are emerging business models that enable businesses to access and utilize alternative data. Economic indicators and data-driven operations are other areas where alternative data is transforming business processes.

How is the Alternative Data Market Segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' 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

    Canada
    Mexico
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    India
    Japan


  South America



  Middle East and Africa

By Type Insights

The credit and debit card transactions segment is estimated to witness significant growth during the forecast period.

Alternative data derived from card and debit card transactions offers valuable insights into consumer spending behaviors and lifestyle choices. This data is essential for market analysts, financial institutions, and businesses seeking to enhance their strategies and customer experiences. The two primary categories of card transactions are credit and debit. Credit card transactions provide information on discretionary spending, luxury purchases, and credit management skills. In contrast, debit card transactions reveal essential spending habits, budgeting strategies, and daily expenses. By analyzing this data using advanced methods, businesses can gain a competitive advantage, understand market trends, and cater to consumer needs effectively. IT & telecommunications companies, hedge funds, and other organizations rely on web scraped data, social and sentiment analysis, and public data to supplement their internal data sources. Adhering to GDPR regulations ensures ethical data usage and compliance.

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The credit and debit card transactions segment was valued at USD 228.40 million in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 56% to the growth of the global market during the forecast period.

T

The global alternative data market is expected to cross the value of USD 271.49 billion by 2032, expanding at a CAGR of 49.8% during the forecast period

The Alternative Financing Market Report is Segmented by Type (Peer-To-Peer Lending, Debt-Based Crowdfunding, and Invoice Trading), by End User (Businesses, Individuals), and by Geography (North America, Europe, Asia-Pacific, South America, and Middle East). The Report Offers Market Size and Forecasts for the Alternative Financing Market in Terms of Transaction Value (USD) for all the Above Segments.

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%

The alternative finance market in the Nordic countries increased steadily between 2012 and 2020. In 2012 the market size was estimated at 32 million U.S. dollars. By 2020, it increased more than 28 times and reached the level of 923 million U.S. dollars.

The Report Covers Alternative Data Companies and the Market is Segmented by Data Type (Credit & Debit Card Transactions, Email Receipts, Geo-Location (Foot Traffic) Records, Mobile Application Usage, Harvesting Management, Social & Sentiment Data, Web Scraped Data, Web Traffic, Other Data Types), by End-User Industries (BFSI, Automotive and Machine Parts, Oil & Energy, Industrial, IT & Telecommunications, Retail). The Market Sizes and Forecasts are Provided in USD for all the Above Segments.

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Alternative Finance Market Size 2024-2028

The alternative finance market size is estimated to increase by USD 64.3 billion at a CAGR of 7.44% between 2023 and 2028. The key factor driving the market forward is the potential for higher returns for investors. Alternative finance channels offer significantly greater returns compared to traditional investment options like fixed deposits (FDs) or government bonds from conventional financial institutions. Another important contributor to market growth is the rapid expansion in the APAC region and the increasing focus on structured finance. Alternative finance platforms, such as P2P lending, crowdfunding, and invoice trading, are gaining traction in APAC, driven by the presence of numerous small and medium-sized enterprises (SMEs).

What will be the Size of the Alternative Finance Market During the Forecast Period?

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Alternative Finance Market Segmentation

The alternative finance market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in 'USD Billion' for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

Type Outlook 

  P2P lending
  Crowdfunding
  Invoice trading





End-User Outlook

  Individual
  Organization





Region Outlook

  North America

    The U.S.
    Canada





  Europe

    The U.K.
    Germany
    France
    Rest of Europe





  APAC

    China
    India


  South America

    Chile
    Argentina
    Brazil





  Middle East & Africa

    Saudi Arabia
    South Africa
    Rest of the Middle East & Africa

By Type

The alternative financing market share growth in the segment of P2P lending will be significant during the forecast period. The P2P consumer lending sub-segment holds a major share of the P2P lending segment due to the growth in the number of online consumer lending platforms and the increasing use of technology in financial transactions. Some popular P2P lending platforms include LendingClub, Zopa, Bondora Capital, Prosper Marketplace, and Upstart Network. However, P2P lending is associated with a high risk of defaults as the loans are unsecured. Therefore, large investors usually maintain a spread portfolio of their investments. P2P lending is also associated with challenges such as platform failures, the risk of fraud, hacking, and data theft. These factors are expected to augment the demand of the P2P lending segment hence driving the growth of the market in focus during the forecast period.

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The P2P lending segment was valued at USD 123.70 billion in 2018. In this segment, P2P lending is similar to credit obtained from financial institutions. However, the funds are raised from one or more independent investors. P2P borrowers must make weekly or monthly repayments of the principal amount with interest. P2P lending is usually carried out through online platforms. Investors directly select businesses to fund, or the lending platforms provide the terms of credit. Some variations in the model allow investors to bid on loan amounts and interest rates through an online auction. P2P lending is popular among individual borrowers and SMEs, as small to medium-scale loans can be obtained easily. Several individuals opt for P2P loans for debt consolidation, which allows them to pay debts accrued from credit cards or loans from financial institutions.

By Region

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North America is estimated to contribute 70% to the global alternative financing market during the forecast period. Technavio's analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period. The growth of P2P lending and crowdfunding has increased significantly in North America. The increasing number of students, growing awareness about clearing personal debt, rising Internet penetration, technological advances, the rise of online trading platforms and finance platforms, and the presence of prominent companies are the major factors driving the market in North America. The number of SMEs has grown significantly in North America. Therefore, a growing number of SMEs in this region are boosting the growth in North America.

Alternative Finance Market Dynamics

The market is reshaping the landscape traditionally dominated by conventional big banks and regulated banks. Instead of relying solely on traditional finance systems, entrepreneurs and investors are increasingly turning to alternative lenders and innovative financial services solutions. Online lenders offer streamlined access to capital, while reward-based crowdfunding and equity-based crowdfunding present opp

Explore the Alternative Data Market trends! Covers key players, growth rate 39.2% CAGR, market size $36.29 Billion, and forecasts to 2034. Get insights now!

Explore the Alternative Finance Market trends! Covers key players, growth rate 20.9% CAGR, market size $676.67 Billion, and forecasts to 2033. Get insights now!

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. .

The alternative finance market size in Germany increased steadily between 2014 and 2020. In 2014, the market size of alternative finance in Germany was 173 million U.S. dollars. By 2020, it noted an exponential growth to the level of almost 1.5 billion U.S. dollars.

Financial Research Software Market size was valued at USD 1.23 Billion in 2024 and is projected to reach USD 1.82 Billion by 2031, growing at a CAGR of 3.5% during the forecast period 2024-2031.

Global Financial Research Software Market Drivers

Growing Demand for Data Analytics: Increasing demand for data-driven insights and analytics in the financial sector drives the adoption of financial research software to analyze market trends, investment opportunities, risk factors, and financial performance metrics.

Technological Advancements: Ongoing advancements in financial research software, including artificial intelligence (AI), machine learning (ML), natural language processing (NLP), and big data analytics, enhance data processing capabilities, improve accuracy, and enable predictive modeling for investment decision-making.

Regulatory Compliance Requirements: Stringent regulatory requirements and compliance standards in the financial industry drive the adoption of financial research software to ensure regulatory compliance, risk management, and transparency in reporting and disclosure practices.

Investment Management and Portfolio Optimization: Financial research software enables investment professionals, portfolio managers, and asset allocators to conduct comprehensive research, perform quantitative analysis, and optimize investment portfolios to maximize returns and mitigate risks.

Rise of Robo-Advisors and Fintech Solutions: The rise of robo-advisors, digital wealth management platforms, and fintech solutions drives demand for financial research software with automated investment algorithms, portfolio rebalancing tools, and personalized financial advice for retail investors and wealth management clients.

Globalization and Market Integration: Globalization of financial markets and increased market integration drive the need for financial research software that provides real-time market data, news feeds, and economic indicators to support informed decision-making in a dynamic and interconnected marketplace.

Shift Towards ESG Investing: The growing focus on environmental, social, and governance (ESG) factors in investment decision-making drives demand for financial research software with ESG data integration, sustainability metrics, and impact analysis tools to support responsible investing strategies.

Risk Management and Stress Testing: Financial research software enables financial institutions and investment firms to conduct risk assessments, scenario analysis, and stress testing to evaluate portfolio resilience, liquidity risk, credit risk, and market volatility in various market conditions.

Alternative Data Sources and Quantitative Analysis: Financial research software integrates alternative data sources, such as social media sentiment, satellite imagery, and consumer behavior data, into quantitative models and analytical frameworks to gain insights into market trends and investment opportunities.

Demand for Customization and Integration: Financial institutions and investment professionals seek customizable financial research software solutions that can be tailored to their specific needs, integrated with existing systems and workflows, and scalable to accommodate future growth and expansion.

According to Cognitive Market Research, the global online alternative investment market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 7.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.
Equity crowdfunding currently holds the major share of the online alternative investment market.

Market Dynamics of Online Alternative Investment Market

Key Drivers for Online Alternative Investment Market

Advances in Digital Platforms Simplifying Access to Investments Are Fueling Market Growth

Advances in digital platforms have made it accessible to invest, which is driving growth in the online alternative investment business. Innovative fintech solutions improve user experiences by providing simple interfaces and efficient processes for investing in an abundance of asset types. This accessibility attracts a broader spectrum of investors, particularly younger people looking for nontraditional investment options. Furthermore, the implementation of technology such as blockchain assures transparency and security, which boosts investor confidence. Furthermore, updated mobile applications provide real-time investment tracking and mobile transaction assistance. As digital platforms advance, they enhance training resources, allowing investors to make more informed choices and eventually encouraging increasing participation in the alternative investing sector. For instance, In August 2024, Quest Investment Advisors announced the launch of their new open-ended Category III Alternative Investment Fund (AIF), the Quest Smart Alpha Sector Rotation Series II. This launch followed the success of their previous AIF, the Quest Smart Alpha - Sector Rotation, which raised around Rs 500 crore in corpus commitments.

Growing Awareness of Diversified Investment Options Boosts Market Demand

The online alternative investing industry is expanding rapidly as investors become increasingly conscious of the financial advantages of diversifying their investments. Individuals are increasingly recognizing the value of diversifying their investments beyond traditional assets such as equities and bonds. This trend is motivated by a desire for higher returns, lower risk, and access to unique options, including real estate, peer-to-peer lending, and cryptocurrency. Educational resources and internet platforms help investors better understand and access these possibilities. As a result, a broader audience, especially younger and more tech-savvy investors, have become involved in alternative investments, increasing market demand and encouraging innovation in the field.

Restraint Factor for the Online Alternative Investment Market

Limited Financial Education Prevents Broader Market Participation

Limited financial education significantly reduces overall market participation in the online alternative investment sector. Many potential investors lack the understanding required to interpret complicated investment products, including private equity, real estate crowdfunding, and cryptocurrency. This intellectual gap presents a barrier to entrance, prohibiting people from pursuing lucrative options beyond traditional investments. Furthermore, a lack of financial knowledge may increase susceptibility to scams and misinformation in the online investment market. To encourage increased involvement, educational activities must be encouraged that simplify alternative investments, improve comprehension, and boost confidence among potential investors, eventually leading to a more accessible and informed...

The alternative finance market in France has grown year-on-year from 2014 to 2020. In 2014, the market size was estimated at just under 200 million U.S. dollars. By 2020, that figure had risen to the level of approximately 1.66 billion U.S. dollars - an increase of almost 350 million U.S. dollars from the previous year. As of 2020, the United States had the largest alternative finance volume per capita globally.

The alternative finance market size in the Netherlands increased considerably between 2014 and 2020. In 2014 the market size was estimated at100 million U.S. dollars. By 2020, it noted a growth to the level of 5.6 billion U.S. dollars.

The US hedge fund market, a significant segment of the global alternative investment landscape, is projected to experience robust growth over the forecast period (2025-2033). With a 2025 market size estimated at $2.77 trillion (based on global data and US market dominance), a Compound Annual Growth Rate (CAGR) of 6.52% suggests a substantial expansion. This growth is driven by several factors, including increasing institutional investor participation seeking higher returns beyond traditional asset classes, the ongoing development of sophisticated investment strategies like quantitative and data-driven approaches, and a persistent need for diversification within investment portfolios. While regulatory scrutiny and economic uncertainty pose potential constraints, the adaptability of hedge fund managers and their capacity to navigate market volatility are expected to mitigate these risks. Specific strategies like equity, macro, and event-driven approaches continue to attract significant capital, alongside the rising prominence of more specialized niche strategies catering to unique market opportunities. The concentration of major players like Bridgewater Associates and Renaissance Technologies within the US contributes significantly to the market's strength and dynamism. The competitive landscape within the US hedge fund market remains fiercely contested. Established firms consistently refine their strategies and leverage technological advancements to maintain an edge, while emerging managers seek to differentiate themselves through innovative approaches. Geographic concentration, with a significant portion of the market residing in major financial hubs like New York and Connecticut, suggests opportunities for regional expansion and potential diversification into less saturated areas. The ongoing evolution of technology, particularly within artificial intelligence and machine learning, is expected to significantly impact investment strategies and operational efficiencies across the industry, driving further growth and innovation in the coming years. The overall outlook remains optimistic, with the US hedge fund market poised for considerable expansion fueled by evolving investor demands and the inherent resilience of alternative investment strategies. Recent developments include: January 2024: The Palm Beach Hedge Fund Association (PBHFA), the premier trade association for investors and financial professionals in South Florida, and Entoro, a leading boutique finance and investment banking group, announced a strategic partnership to improve deal distribution for hedge funds., October 2022: Divya Nettimi, a former Viking Global Investors portfolio manager who oversaw over USD 4 billion at the Greenwich, Connecticut-based hedge fund firm, became the first woman to launch a hedge fund that has committed more than USD 1 billion.. Key drivers for this market are: Positive Trends in Equity Market is Driving the Market. Potential restraints include: Positive Trends in Equity Market is Driving the Market. Notable trends are: Rise of the Crypto Hedge Funds in United States.

Global alternative lending platform market was valued at USD 3.83 Billion in 2024 and is expected to reach USD 14.46 Billion by 2030 with a CAGR of 24.8% during the forecast period

The alternative finance market grew dramatically in Italy from 2013 to 2020. In fact, as data show, in 2013 the market size was estimated at one million U.S. dollars. By 2020, it had increased to a value of 1.8 U.S. dollars .

Alternative finance in Belgium, or loans granted to companies that did not come from banks, almost excusively belonged to investment funds. Factoring, leasing and consumer credits combined made up around five percent of non-bank investments in the country. Crowdfunding was not mentioned in this overview, as figures on this market were relatively difficult to find for Belgium. The latest available crowdfunding figures for 2017 showed a decline.

The size and share of the market is categorized based on Type (High Fructose Syrup, High-Intensity Sweetener, Low-Intensity Sweetener) and Application (Food, Beverage, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).