GITNUX REPORT 2024

Global Alternative Data Industry Statistics: $17.6B Market by 2027

Growth projections, key players, and trends shaping the $17.6 billion global alternative data market.

Author: Jannik Lindner

First published: 7/17/2024

Statistic 1

The use of alternative data in investment decision-making has increased by 70% in the past five years.

Statistic 2

The adoption of alternative data by private equity firms has increased by 63% in the last three years.

Statistic 3

Alternative data has been found to reduce investment model risk by up to 32% for hedge funds.

Statistic 4

By 2024, it is estimated that 90% of hedge funds will be using alternative data in some capacity.

Statistic 5

The use of social media data for investment analysis grew by 76% in the past year.

Statistic 6

Among asset managers, 51% report that alternative data has improved their investment decision-making process.

Statistic 7

Alternative data adoption by traditional asset managers has surged by 52% in the last two years.

Statistic 8

The adoption of IoT-generated data for investment analysis has increased by 47% in the past year.

Statistic 9

The adoption of AI-driven alternative data analytics tools by financial institutions has increased by 42% in the last eighteen months.

Statistic 10

81% of asset managers believe that alternative data has helped them identify new investment opportunities.

Statistic 11

The usage of alternative data by quantamental asset managers has increased by 49% since 2020.

Statistic 12

Alternative data usage by equity investors has grown by 35% in the past year.

Statistic 13

The hedge fund industry is the largest consumer of alternative data, with a usage rate of 63%.

Statistic 14

Approximately 69% of asset managers currently use alternative data in their investment process.

Statistic 15

The healthcare sector is increasingly using alternative data for predictive analytics, with a growth rate of 43%.

Statistic 16

Machine learning algorithms are used to analyze alternative data in 78% of financial institutions.

Statistic 17

Employment in the alternative data industry has increased by 47% in the past two years.

Statistic 18

The automotive industry is one of the fastest-growing users of alternative data for market research, with a growth rate of 61%.

Statistic 19

The usage of satellite data for alternative data analysis has increased by 54% in the past year.

Statistic 20

The proportion of financial firms using geolocation data for investment decisions has doubled in the past three years.

Statistic 21

The use of credit card transaction data for consumer behavior analysis has grown by 58% in the last twelve months.

Statistic 22

The adoption of alternative data by insurance companies for risk assessment has increased by 46% over the past two years.

Statistic 23

The global alternative data market is projected to reach $17.6 billion by 2027.

Statistic 24

The alternative data industry is expected to grow at a CAGR of 53.68% from 2021 to 2028.

Statistic 25

The data monetization segment of the alternative data industry is projected to grow at a CAGR of 44.5% from 2021 to 2028.

Statistic 26

In 2021, the market for mobile app data in the alternative data industry was valued at $825 million.

Statistic 27

The alternative data industry in Asia Pacific is expected to grow at a rate of 53.8% from 2021 to 2028.

Statistic 28

The alternative data industry is estimated to grow at a CAGR of 20.9% from 2022 to 2027.

Statistic 29

The market for sentiment analysis data in the alternative data industry is expected to reach $5.3 billion by 2026.

Statistic 30

Alternative data spending by buy-side firms is predicted to grow by 396% over the next five years.

Statistic 31

The demand for web-scraped data in the alternative data market is expected to rise by 62% by 2025.

Statistic 32

Geospatial data is projected to account for 15% of the alternative data market by 2024.

Statistic 33

The market for social media alternative data is expected to grow at a CAGR of 25% from 2021 to 2026.

Statistic 34

The market for sensor data in the alternative data industry is forecasted to reach $4.2 billion by 2025.

Statistic 35

The market for weather data in the alternative data industry is expected to grow at a CAGR of 30% over the next five years.

Statistic 36

The market for economic indicators data in the alternative data industry is projected to be worth $6.8 billion by 2027.

Statistic 37

The market for credit card transaction data in the alternative data industry is expected to expand at a CAGR of 28% through 2026.

Statistic 38

In 2020, North America accounted for the largest market share in the alternative data industry.

Statistic 39

The EMEA region is expected to witness significant growth in the alternative data industry due to increased adoption by financial services firms.

Statistic 40

The majority of alternative data users find unstructured data the most valuable for investment purposes.

Share:FacebookLinkedIn
Sources

Our Reports have been cited by:

Trust Badges

Summary

  • The global alternative data market is projected to reach $17.6 billion by 2027.
  • In 2020, North America accounted for the largest market share in the alternative data industry.
  • The hedge fund industry is the largest consumer of alternative data, with a usage rate of 63%.
  • The use of alternative data in investment decision-making has increased by 70% in the past five years.
  • Approximately 69% of asset managers currently use alternative data in their investment process.
  • The alternative data industry is expected to grow at a CAGR of 53.68% from 2021 to 2028.
  • The data monetization segment of the alternative data industry is projected to grow at a CAGR of 44.5% from 2021 to 2028.
  • The adoption of alternative data by private equity firms has increased by 63% in the last three years.
  • Alternative data has been found to reduce investment model risk by up to 32% for hedge funds.
  • The majority of alternative data users find unstructured data the most valuable for investment purposes.
  • By 2024, it is estimated that 90% of hedge funds will be using alternative data in some capacity.
  • In 2021, the market for mobile app data in the alternative data industry was valued at $825 million.
  • The use of social media data for investment analysis grew by 76% in the past year.
  • The alternative data industry in Asia Pacific is expected to grow at a rate of 53.8% from 2021 to 2028.
  • Among asset managers, 51% report that alternative data has improved their investment decision-making process.

Roll up your sleeves and get ready to dive into the data goldmine that is the Alternative Data Industry! With the global market projected to skyrocket to $17.6 billion by 2027 and North America leading the charge, its no wonder hedge funds are gobbling up alternative data like its going out of style. From reducing investment model risks to the booming adoption by private equity firms, the industrys growth rate of 53.68% from 2021 to 2028 is sure to keep the numbers spinning. So, whether youre crunching unstructured data or surfing the mobile app wave, buckle up for a wild ride where statistics tell the story!

Adoption and Impact on Investment Decision-Making

  • The use of alternative data in investment decision-making has increased by 70% in the past five years.
  • The adoption of alternative data by private equity firms has increased by 63% in the last three years.
  • Alternative data has been found to reduce investment model risk by up to 32% for hedge funds.
  • By 2024, it is estimated that 90% of hedge funds will be using alternative data in some capacity.
  • The use of social media data for investment analysis grew by 76% in the past year.
  • Among asset managers, 51% report that alternative data has improved their investment decision-making process.
  • Alternative data adoption by traditional asset managers has surged by 52% in the last two years.
  • The adoption of IoT-generated data for investment analysis has increased by 47% in the past year.
  • The adoption of AI-driven alternative data analytics tools by financial institutions has increased by 42% in the last eighteen months.
  • 81% of asset managers believe that alternative data has helped them identify new investment opportunities.
  • The usage of alternative data by quantamental asset managers has increased by 49% since 2020.
  • Alternative data usage by equity investors has grown by 35% in the past year.

Interpretation

In the high-stakes world of investment, alternative data is no longer just a quirky sidekick, but a superhero in its own right, swooping in to rescue decision-makers with its 70% increase in usage over the past five years. Private equity firms have been quick to enlist its services, with a 63% adoption spike in the last three years. And for hedge funds, alternative data is the trusted sidekick, reducing investment model risk by a commendable 32%. The future looks bright for alternative data, with a projected 90% of hedge funds expected to jump on the bandwagon by 2024. Even social media data, once dismissed as frivolous gossip fodder, has seen a 76% surge in the past year, proving that in the fast-paced world of finance, information is power. As traditional asset managers and financial institutions race to embrace AI-driven analytics tools, it's clear that the data revolution is well underway. With 81% of asset managers singing its praises and a 49% uptick in usage by quantamental asset managers, it seems that alternative data is no longer an alternative, but a necessity for those looking to navigate the investment landscape with finesse. So, buckle up, investors. The era of alternative data has arrived, and it's here to stay.

Industry Sector Adoption of Alternative Data

  • The hedge fund industry is the largest consumer of alternative data, with a usage rate of 63%.
  • Approximately 69% of asset managers currently use alternative data in their investment process.
  • The healthcare sector is increasingly using alternative data for predictive analytics, with a growth rate of 43%.
  • Machine learning algorithms are used to analyze alternative data in 78% of financial institutions.
  • Employment in the alternative data industry has increased by 47% in the past two years.
  • The automotive industry is one of the fastest-growing users of alternative data for market research, with a growth rate of 61%.
  • The usage of satellite data for alternative data analysis has increased by 54% in the past year.
  • The proportion of financial firms using geolocation data for investment decisions has doubled in the past three years.
  • The use of credit card transaction data for consumer behavior analysis has grown by 58% in the last twelve months.
  • The adoption of alternative data by insurance companies for risk assessment has increased by 46% over the past two years.

Interpretation

In the numbers game of alternative data, the hedge fund industry seems to be leading the pack like the popular kid in high school, with a 63% usage rate flaunting their cool factor. Asset managers are not far behind, joining the alternative data party at 69%, showing that it's a trend worth hopping on. The healthcare sector is like the quiet achiever, slowly but surely embracing alternative data for predictive analytics, with a respectable 43% growth rate. It's a tech-savvy world out there, with machine learning algorithms powering through the data deluge in financial institutions at a whopping 78%. As for job seekers, the alternative data industry seems to be the place to be, with a 47% increase in employment over the past two years. The automotive industry is revving up its engines, zooming ahead in the race to use alternative data for market research, boasting a speedy growth rate of 61%. From outer space to your pocket, the use of satellite and geolocation data is skyrocketing and doubling, respectively, showing that the data frontier knows no bounds. And let's not forget the nitty-gritty details – credit card transactions and consumer behavior, a match made in data heaven with a 58% boost in analysis. Insurance companies are not far behind, jumping on board the alternative data train for risk assessment, marking a 46% increase in adoption in the last two years. It's a data-driven world out there, and these numbers show that the future is bright for those who dare to dive deep into the alternative data pool. Remember, when it comes to data, the more, the merrier.

Market Size and Growth Projections

  • The global alternative data market is projected to reach $17.6 billion by 2027.
  • The alternative data industry is expected to grow at a CAGR of 53.68% from 2021 to 2028.
  • The data monetization segment of the alternative data industry is projected to grow at a CAGR of 44.5% from 2021 to 2028.
  • In 2021, the market for mobile app data in the alternative data industry was valued at $825 million.
  • The alternative data industry in Asia Pacific is expected to grow at a rate of 53.8% from 2021 to 2028.
  • The alternative data industry is estimated to grow at a CAGR of 20.9% from 2022 to 2027.
  • The market for sentiment analysis data in the alternative data industry is expected to reach $5.3 billion by 2026.
  • Alternative data spending by buy-side firms is predicted to grow by 396% over the next five years.
  • The demand for web-scraped data in the alternative data market is expected to rise by 62% by 2025.
  • Geospatial data is projected to account for 15% of the alternative data market by 2024.
  • The market for social media alternative data is expected to grow at a CAGR of 25% from 2021 to 2026.
  • The market for sensor data in the alternative data industry is forecasted to reach $4.2 billion by 2025.
  • The market for weather data in the alternative data industry is expected to grow at a CAGR of 30% over the next five years.
  • The market for economic indicators data in the alternative data industry is projected to be worth $6.8 billion by 2027.
  • The market for credit card transaction data in the alternative data industry is expected to expand at a CAGR of 28% through 2026.

Interpretation

The numbers don't lie, and in the wild world of alternative data, they're speaking volumes. With projections soaring higher than the latest rocket launch, the alternative data industry seems to be on a turbo-charged trajectory towards a future where every digital nook and cranny holds a goldmine of insights waiting to be excavated. From mobile app mavens to sentiment sleuths, and from social media spelunkers to weather whisperers, the array of data sources being tapped into is dizzying. As buy-side firms prepare to splash the cash and web-scrapers gear up for a data bounty, it's clear that the information age has hit hyperdrive, and those in the know are surfing the data wave like digital cowboys in a high-tech rodeo. So hang on tight, folks, as the alternative data train hurtles towards a future where even the geospatial coordinates of your morning coffee could hold the key to predicting market fluctuations.

Regional Analysis and Market Trends

  • In 2020, North America accounted for the largest market share in the alternative data industry.
  • The EMEA region is expected to witness significant growth in the alternative data industry due to increased adoption by financial services firms.

Interpretation

In the ever-evolving world of data, North America has firmly established itself as the trendsetter, flaunting the largest slice of the alternative data industry pie in 2020. However, as the winds of change blow across the EMEA region, financial services firms are eagerly embracing alternative data like a bouquet of fresh roses. With this growing appetite for non-traditional data sources, the stage is set for EMEA to rise and shine as the next big player in the global data arena, making waves that even the most seasoned data aficionados can't ignore. Watch out, North America - the alternative data spotlight is shifting, and EMEA is ready to take a bow.

Specific Data Types and Applications

  • The majority of alternative data users find unstructured data the most valuable for investment purposes.

Interpretation

In a world where data is the new currency, it seems the unstructured variety holds the most valuable treasure for those navigating the turbulent seas of investment. Like uncovering hidden gems in a chaotic marketplace, the majority of alternative data users have deemed unstructured data as their secret weapon for making informed decisions and staying ahead of the curve. The unconventional wisdom of finding order in chaos may just be the key to unlocking untapped opportunities in the ever-evolving landscape of modern finance.

References