The Latest Alternative Data Industry Statistics Explained
The global alternative data market growth projection is 31.2% during the forecast period of 2022-2030.
The statistic indicating that the global alternative data market is expected to grow by 31.2% during the forecast period of 2022-2030 suggests a remarkable expansion in the usage and demand for alternative datasets. Alternative data refers to non-traditional sources of information such as satellite imagery, social media activity, and sensor data that can provide valuable insights for investment decisions, business strategies, and various industries. This projected growth reflects the increasing recognition of the importance of alternative data in enhancing analytical capabilities, gaining a competitive edge, and uncovering new opportunities in a data-driven world. The substantial growth projection implies a significant shift towards incorporating alternative data into decision-making processes and underscores the potential for transformative impacts on various sectors in the coming years.
The US will hold over 49.6% of the global alternative data market in 2026.
The statistic indicates that by the year 2026, the United States is projected to dominate the global alternative data market, holding more than 49.6% of the market share. This suggests that the US will be a major player in the alternative data industry, which involves the collection and analysis of non-traditional data sources to gain insights for decision-making. The high percentage of market share held by the US reflects its strong position in adopting and utilizing alternative data sources for various sectors such as finance, healthcare, and technology. This statistic highlights the importance of the US in shaping the future growth and development of the alternative data market on a global scale.
The banking and capital markets sector holds the largest market share, at 44.3%, in alternative data usage.
The statistic suggests that the banking and capital markets sector is the most prominent industry utilizing alternative data sources, accounting for 44.3% of the market share. Alternative data refers to non-traditional sources of information, such as social media, satellite imagery, or credit card transactions, which can provide valuable insights for decision-making. The dominance of the banking and capital markets sector in alternative data usage signifies a growing recognition of the importance of innovative data sources in enhancing their competitive edge, improving risk management strategies, and identifying investment opportunities. This statistic highlights the sector’s proactive approach in harnessing new technologies and data tools to gain a deeper understanding of market trends and customer behavior, ultimately driving more informed and data-driven decision-making processes.
Public web data accounts for nearly 25% of alternative data sources.
This statistic suggests that a significant portion, approximately 25%, of alternative data sources available for analysis and decision-making are derived from publicly available web-based sources. These sources could include information from social media platforms, web scraping, online forums, news articles, and other publicly accessible online content. The use of public web data as an alternative data source has become increasingly common in various industries such as finance, marketing, and research due to its timely and extensive nature. By leveraging public web data, organizations can gain valuable insights and competitive advantages that may not be available through traditional data sources, helping them make more informed decisions and stay ahead in today’s data-driven landscape.
Social and sentiment data makes up almost 20% of alternative data used.
This statistic indicates that approximately 20% of the alternative data utilized by analysts and decision-makers comes from social and sentiment sources. Social and sentiment data encompasses information gathered from various social media platforms, news websites, blogs, and other online sources that reflect public opinions, attitudes, and emotions towards particular topics, companies, or events. By incorporating this unique dataset into their analyses, stakeholders can gain valuable insights into consumer sentiment, market trends, and potential risks and opportunities. The growing presence of social and sentiment data highlights the increasing recognition of its importance in driving informed decision-making and enhancing predictive analytics capabilities in various industries.
75% of companies are planning to increase their expenditure on data analytics.
The statistic reveals that a significant majority (75%) of companies are considering boosting their spending in the area of data analytics. This suggests a growing recognition among businesses of the value that data analytics can bring in terms of informing decision-making, improving operational efficiencies, and creating competitive advantages. The planned increase in expenditure reflects a strategic shift towards harnessing the power of data to drive business growth and innovation. Companies are likely recognizing the importance of leveraging data insights to stay ahead in today’s data-driven business landscape, where making informed choices based on data-driven analysis can lead to improved performance and stronger market positioning.
83% of companies view alternative data as adding value to their investment strategy.
The statistic ‘83% of companies view alternative data as adding value to their investment strategy’ indicates that a significant majority of companies consider alternative data sources to be beneficial in informing their investment decisions. This suggests that these companies believe that by incorporating alternative data, such as non-traditional datasets like social media trends or satellite imagery, into their analysis, they can gain valuable insights and potentially improve the performance of their investment portfolios. The high percentage of companies endorsing the value of alternative data highlights a growing trend in the financial industry towards utilizing innovative data sources to enhance investment strategies and gain a competitive edge in the market.
China holds a market share of 17.5% in the global alternative data market.
This statistic indicates that China accounts for 17.5% of the market share in the global alternative data market, which refers to non-traditional data sources used by investment firms and financial institutions for making investment decisions. This suggests that China plays a significant role in the alternative data landscape, showcasing its growing importance in the field of financial analysis and decision-making. With a sizable market share, China is a major contributor to the diversity and availability of alternative data sources, reflecting the country’s growing influence in the global financial sector. Understanding China’s market share in the alternative data market provides insights into the country’s economic significance and its impact on the broader financial industry.
69% of asset managers believe alternative data gives them an investing edge.
The statistic that 69% of asset managers believe alternative data provides them with an investing edge suggests that a significant majority of professionals in the financial industry perceive the value of using non-traditional sources of information to gain a competitive advantage in investment decision-making. This indicates a growing recognition of the importance of leveraging alternative data sets, such as web scraping, satellite imagery, social media sentiment analysis, and other unconventional sources, to uncover unique insights and opportunities that may not be readily available through traditional financial data sources. Asset managers who embrace alternative data as a complement to traditional analysis methods are likely seeking to improve their ability to identify investment trends, evaluate risks, and ultimately generate superior returns for their clients.
The average alternative data budget is $900,000 per year.
This statistic indicates that across the sample of businesses or organizations that utilize alternative data for decision-making purposes, the average budget allocated specifically for obtaining, managing, and utilizing alternative data amounts to $900,000 on an annual basis. This budget likely covers expenses related to data acquisition, processing, analytics tools, and any necessary infrastructure. The figure of $900,000 serves as a benchmark for understanding the financial commitment that entities typically make towards leveraging non-traditional data sources to enhance their decision-making processes and gain a competitive edge in their respective industries.
The alternative data industry employs an estimated 9,000 people worldwide.
The statistic “The alternative data industry employs an estimated 9,000 people worldwide” refers to the number of individuals working within the alternative data industry on a global scale. Alternative data typically refers to non-traditional data sources such as social media, IoT devices, and satellite imagery that are used by businesses to gain insights and make informed decisions. The fact that this industry employs approximately 9,000 people highlights the growing importance and scale of alternative data in today’s data-driven economy. It suggests a significant level of investment and job creation within this sector, reflecting its increasing relevance and potential for further growth in the future.
Consumer transaction data makes up nearly 10% of the alternative data used by investment firms.
This statistic indicates that consumer transaction data is a significant component of the alternative data sources utilized by investment firms, comprising close to 10% of the total data. Consumer transaction data refers to information on individual consumers’ purchasing behaviors and patterns, which can provide valuable insights into consumer trends, preferences, and economic activity. Investment firms use this data to supplement traditional financial indicators and gain a deeper understanding of market dynamics and investment opportunities. The prevalence of consumer transaction data in the alternative data landscape highlights its importance in informing investment decisions and staying ahead in a competitive financial market environment.
Among sell-side firms, 43% of survey respondents are already using alternative data.
The statistic “Among sell-side firms, 43% of survey respondents are already using alternative data” indicates that 43% of the sell-side firms surveyed reported that they are currently utilizing alternative data sources in their operations. Alternative data refers to non-traditional sources of information that can provide unique insights and a competitive edge in decision-making processes. This statistic suggests that a significant portion of sell-side firms are recognizing the value and potential benefits of incorporating alternative data into their strategies, potentially to gain a deeper understanding of markets, track trends, or make better investment decisions. The high percentage of firms already using alternative data implies a growing trend and increasing adoption of these innovative data sources within the financial industry.
Less than 1% of all available data is used by organizations, creating a massive potential for the alternative data industry.
The statistic “Less than 1% of all available data is used by organizations, creating a massive potential for the alternative data industry” highlights the vast untapped resource that data presents for organizations. Despite the exponential growth of data generation in recent years, organizations are only scratching the surface in terms of utilizing this data to its full potential. This underutilization presents a significant opportunity for the alternative data industry, which specializes in gathering and analyzing unconventional data sources beyond traditional datasets such as financial reports or surveys. By tapping into this unused data reservoir, businesses can gain valuable insights, make more informed decisions, and drive innovation in various industries. The statistic underscores the importance of exploring alternative data sources to unlock the full potential of information available in the digital age.
Over 250 vendors are selling alternative data, a five-fold increase since 2012.
The statistic “Over 250 vendors are selling alternative data, a five-fold increase since 2012” indicates a significant rise in the availability and use of alternative data sources for various industries such as finance, marketing, and research. The term “alternative data” refers to non-traditional sources of information, like social media posts, satellite imagery, or sensor data, that are used to gain insights and make informed decisions. The increase from less than 50 vendors in 2012 to over 250 vendors currently suggests a growing interest in leveraging diverse and unique data sets to enhance analysis and forecasting capabilities, potentially leading to more innovative strategies and improved decision-making processes for businesses and organizations.
North America is predicted to hold the largest market share, with 39.5% by 2030.
The statistic indicates that North America is expected to dominate the market in the future, comprising 39.5% of the total market share by the year 2030. This projection suggests that North America will have a significant influence and presence in the market compared to other regions globally. Factors contributing to this prediction could include the region’s strong economic performance, robust infrastructure, technological advancements, market demand, and potentially favorable regulatory environments. Businesses and investors may find this information valuable for strategic decision-making, resource allocation, and market expansion opportunities in North America.
The alternative data industry was valued at around $1.64 billion in 2019.
The statistic indicates that the alternative data industry, which consists of non-traditional data sources used for investment and business decisions, was estimated to be worth approximately $1.64 billion in the year 2019. This valuation reflects the growing importance and adoption of alternative data by financial institutions, businesses, and other organizations looking to gain a competitive edge and insights beyond traditional data sources. The figure suggests that alternative data has become a significant market segment, attracting investment and attention due to its potential to provide unique, valuable insights that can inform decision-making and drive innovation in various industries.
Conclusion
The alternative data industry is rapidly evolving and playing a crucial role in shaping decision-making processes across various sectors. The statistics presented highlight the growth and significance of alternative data sources in providing valuable insights to businesses and investors. As the industry continues to expand, leveraging alternative data will be key for organizations to stay competitive and make informed decisions in a data-driven world.
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