Alternative Data Provider Market Size, Share, Growth, and Industry Analysis, By Type (Credit Card Transactions, Email Receipts, Web Traffic, Mobile Application Usage, and Other), By Application (BFSI, Industrial, IT & Telecommunications, Retail & Logistics, and Other Industries), and Regional Forecast to 2033

ALTERNATIVE DATA PROVIDER MARKET OVERVIEW

The Global alternative data provider market size was USD 1659.35 million in 2024 and the market is projected to touch USD 4084.05 million by 2033, exhibiting a CAGR of 9.6% during the forecast period.

Alternative data refers to information obtained from non-traditional sources, which can provide insights beyond those derived from standard industry figures sources. Investors utilize these non-conventional datasets to shape their investment strategies. They can tender an indicator of a firm’s future performance other than typical sources for instance corporate filings, broker predictions, and management guidance. This information may be utilized in pre-trade fund research as well as to aid investors in monitoring the health of a business, industry, or economy. By utilizing this data, firms can predict companies’ performance, understand real-time consumer patterns, and make informed decisions faster than through traditional information sources.

The increasing need for organizations to make more informed and data-driven decisions and the proliferation of digital transformation and the Internet of Things has resulted in increasing information generation. The market is going to continue growing forward with technological growth, increasing access to records and the growing requirements for data-informed decision making across all areas.

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COVID-19 IMPACT

Alternative Data Provider Industry Had a Positive Effect Due to Changes in Customer Behavior during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic had a significant influence on the market growth. This is due to the lockdown, remote work, and economic disruptions shifted consumer behaviors. The demand for real-time insights surged, particularly in industries for instance finance, healthcare, and supply chain. Conversely, challenges arose due to the unpredictability of the pandemic’s effects on sources and the need to recalibrate models. The pandemic highlighted both the prospective and limitations of the market in responding to incomparable worldwide events. The businesses are evaluating changes in customer behavior patterns connected to buy and interests during the coronavirus epidemic. Fundamental asset managers have increased their demand for the services as they seek fresh signals and sources of alpha for selecting stocks in the COVID economy. Both buy-side and sell-side organizations are interested in learning more about the service owing to the behavioral changes brought on by the epidemic.

LATEST TREND

"Implementation of Technology to Handle Large Volume Information to Drive Market Growth"

Bioinformatics tools allow the identification of new biomarkers based on changes in human physiology highlighted by results. Biomarkers have usefulness for in-vitro diagnostics, environmental toxicology screening and drug discovery and development platform methods. Over the past decade, the omics revolution has amplified sources usages in biomedical fields. Furthermore, Big Data analytics (BDA), artificial intelligence (AI) and machine learning (ML) are changing the way facts are gathered, processed and manipulated. Big-data technologies can deal with massive datasets as well as multifaceted datasets and provide a more granular view on market dynamics. The continuous technological advancement will create a wider space for what can be accomplished with these sources.

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ALTERNATIVE DATA PROVIDER MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into credit card transactions, email receipts, web traffic, mobile application usage, and other

• Credit Card Transactions: It is one of the most widely used, offering granular insights into consumer spending patterns, particularly valuable to financial institutions.

• Email Receipts: It plays a key role in providing detailed information about consumer purchases and preferences.

• Web Traffic: It helps companies understand consumer movement patterns and is extensively used in retail, real estate, and urban planning industries.

• Mobile Application Usage: They offer insights into app interactions and consumer behaviors, aiding in marketing strategies and user engagement analysis.

• Other: Other types of these services such as web scraping, and social media, also contribute to a holistic view of market dynamics, consumer sentiment, and industry drifts.

By Application

Based on application, the global market can be categorized into BFSI, industrial, IT & telecommunications, retail & logistics, and other industries

• BFSI: This market type is leveraging credit card transaction information and sentiment analysis to improve customer experience and detect fraud.

• Industrial: These sectors apply these systems types for supply chain optimization and operational efficiency, resource management and predictive maintenance.

• IT & Telecommunications: These companies rely on web traffic and electronic devices usage records to enhance service offerings and customer engagement.

• Retail & Logistics: This industry makes extensive use of these sources to optimize inventory, enhance customer experiences, and streamline delivery routes.

• Other Industries: There are other areas where these platforms are used such as real estate and construction industries, media and entertainment, and others.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.  

Driving Factors

"Rising Demand for Real-Time Insights in Financial Sectors to Boost the Market"

A factor in the alternative data provider market growth is the rising demand for the service is surging as financial sectors increasingly prioritize real-time insights to make faster, data-driven decisions. Traditional statistics sources, such as quarterly reports and historical performance records, often lack the timeliness required to respond to volatile market conditions. In contrast, the service which includes web traffic, social media sentiment, and satellite imagery, provides up-to-the-minute information on economic activity and consumer behavior. Hedge funds and investment institutions are adopting these information streams to stay ahead of market inclination, utilizing unique insights into events for instance product launches, store openings, and shifting consumer preferences. Real-time insights from systems have become especially valuable in the fast-paced environments of trading and investment, where milliseconds can affect outcomes. As finance firms integrate non-traditional information into their strategies, they gain a competitive edge, making real-time insight a crucial driver in the market’s expansion.

"Evolving Regulatory Environments to Expand the Market"

Although the market is relatively new, regulatory bodies are beginning to understand its potential and are working to provide a legal framework for its use. This is increasing the legitimacy and trustworthiness of the solution. Companies feel more secure investing in the platform when there is clear regulatory guidance, which in turn drives its adoption rates. Moreover, as industry standards develop, businesses are better able to gauge the quality and reliability of sources, thus making it a more integral part of decision-making processes. Furthermore, the industry is expected to benefit from the rising development of spending on smart city projects across many nations. In order to competently manage and operate municipal services for instance water supply, law enforcement, and transportation systems, smart cities leverage information and communication technology as an expansion market.

Restraining Factor

"High Costs and Complexity of Data Integration to Potentially Impede Market Growth"

One of the main limiting factors for the market impediment is the significant cost and complexity associated with data integration. They often come from unconventional sources creating challenges in quality control. Financial institutions and corporations frequently need to build specialized information management systems to process and analyze vast datasets, which requires significant investment. For smaller firms, the upfront costs of these technologies, alongside the expenses for skilled data-sciences professionals may be prohibitively high. Additionally, the lack of consistent formats across sources can lead to integration issues, as merging multiple information type’s often requires complex algorithms and processing power.

Opportunity

"Expansion into New Industry Verticals to Create Opportunity for the Market"

While substitute information has traditionally been used by the finance and retail sectors, there is growing potential for its application in a variety of other industries such as healthcare providers, real estate firms, and others. Similarly, government organizations are beginning to use the service in urban planning and environmental monitoring, satellite imagery and IoT provide unique perspectives on infrastructure and population density. As these industries realize the value of the services, providers have the opportunities to diversify their offerings and tailor solutions for specific sectors. This expansion into new verticals represents a significant growth avenue, as companies outside of finance and retail increasingly view sources as a strategies asset, opening the door for providers to broaden their client base and innovate in appliances.

Challenge

"Privacy and Regulatory Concerns Could Be a Potential Challenge for Market Growth"

A key challenge for the market growth is navigating privacy and regulatory concerns, particularly as sources become more personal and location-specific. With growing security from regulatory bodies, companies must carefully balance information collection with compliance to avoid potential legal repercussions. Moreover, as consumers become more aware of information privacy issues, they are more questioning on how their figures are being used, putting additional pressure on companies to maintain transparency in their information gathering processes. These regulatory concerns can create a barrier for companies aiming to utilize systems, as they need to ensure their sources and methodologies align with evolving legal standards.

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ALTERNATIVE DATA PROVIDER MARKET REGIONAL INSIGHTS

North America

North America is the leading region in this alternative data provider market share bolstered by the concentration of major services companies and startups which are continually innovating and expanding the boundaries of information usage. The market is expanding due to its regulatory environment, which generally supports the ethical collection and use of such data. Policies and guidelines around information privacy and consumer protection, such as the CCPA, have encouraged transparent and responsible sources usage, building trust and expanding the market. The United States alternative data provider market has propelled due to significant investment in AI and analytics technologies, which enhance the capabilities of businesses to process and derive meaningful insights from large sets of unstructured data. The integration of ML has enabled companies in this region to stay ahead in delivering customer solutions and strategic insights to end-users.

Europe

Europe is the demand leading region in the market growth owing to a large number of substitute resources under management. Private equity, hedge funds, real estate, and natural resources are among the asset classes that make up the majority of these possessions. Asset management firms are increasingly relying on the system to develop profitable alpha-generating methods. The growing awareness of the value of the services in investment management and business strategy optimization is boosting demand for the platforms. The region benefits from a high level of digitalization, increasing integration of AI, and strong regulatory support for system usage, particularly within the financial market. The focus on sustainability and environmental, social, and governance systems also plays a pivotal role in the market expansion.

Asia

The Asia Pacific region is the fastest-growing market because of the increasing digital transformation, and growing e-commerce activities. The adoption of AI and BDA across several industries is boosting the market expansion. In specific terms, it includes countries such as China, Japan, and India that are major contributors to the market progress. This is expanding the data-driven businesses handling systems to make informed decisions within sectors. The services to be used for investment and risk assessment by companies in developing markets are fueling the regional market expansion.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Customization of Solutions and Market Strategies"

Smaller companies and niche providers often focus on specific verticals, offering specialized datasets and insights that cater to distinct market segments. As competition intensifies, many firms focus on offering more customizable solutions, particularly in consumer sentiment, and social media data. Furthermore, mergers and partnerships are expected to increase in the market as companies seek to broaden their datasets and improve analytical capabilities. Moreover, as demand for more transparent, ethical, and privacy-compliant information practices grows, there will likely be greater emphasis on records governance and regulatory compliance. The rise of service providers offering ESG-focused datasets will continue to shape industry dynamics, while investment in AI and ML to derive actionable insights from vast datasets will be a critical factor for maintaining a competitive edge in the future.

List Of Top Alternative Data Provider Companies

• Accern (U.S.)
• Alexa (U.S.)
• Brain Company (U.S.)
• Caretta (Istanbul)
• Dataminr (U.S.)
• Exante Data (U.S.)
• InfoTrie (Singapore)
• Quandl (Canada)
• QueXopa (U.S.)
• Quiver Quant (U.S.)
• RavenPack (Spain)
• S&P Global (U.S.)
• Suburbia (Mexico)
• Thinknum (U.S.)
• Yewno (U.S.)

KEY INDUSTRY DEVELOPMENTS

October 2024: RavenPack introduced Bigdata.com, which is an advanced AI platform designed to transform financial research and decision-making. This platform facilitates users to interact with billions of financial documents in real-time, create custom research tools, and automate tasks, thereby increasing the speed of the research process.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The alternative data provider market is poised for a continued boom pushed by as industry standards develop, businesses are better able to gauge the quality and reliability of source and circumvent funds and investment institutions are adopting these information streams. Despite challenges, which include confined navigating privacy and regulatory concerns and the significant cost and complexity associated with records integration. Key industry players are focusing on offering more customizable solutions to fulfill customer’s demand for more transparent, ethical, and privacy-compliant statistics practices. There is growing potential for its application in a variety of other industries and government organizations are beginning to use the service in urban planning and environmental monitoring, opening avenues for market growth.