Alternative data spending by investment management firms could top $15.4bn in 2025, according to Neudata's latest report

LONDON, Feb. 26, 2025 /PRNewswire/ -- How big is the alternative data market for investment management use cases? A new report from data scouting platform Neudata suggests it might be as large as $15.4 billion in 2025 – and could potentially reach nearly $40 billion by 2030. The report is available to download here >

Neudata – a provider of market intelligence to data buyers and sellers – has estimated the investment management industry spent a minimum of $2.5 billion on buying alternative datasets in 2024.

The report analysed data from Neudata's proprietary research catalogue, which includes information on nearly 8,000 unique datasets that are being sold to the investment management vertical.

Key findings from the report include:

• The alternative data market is growing. Since 2020, spending from investment management clients has grown at an average rate of 21% per year, but the rate of growth is picking up – in 2024, the market spending growth increased by 33%.
• Web-scraped and transactional datasets are dominating budgets. The two popular dataset types account for nearly 30% of total market spend. However, spending on datasets with global applicability is increasing faster than any other region.
• The average dataset generates $1.1 million per year, but a proportion of elite datasets earn over $20 million annually from investment clients alone.
• The investment management industry spent a minimum of $2.5 billion on alternative data in 2024, but the market's true spend last year could have been as high as $12.7 billion after considering adjustments to Neudata's methodology.

The report also makes some predictions about how the alternative data market will continue to evolve over the next five years, including:

1. Expanding buyer demand: 95% of data buyers expect their budgets to grow this year, Neudata found in its September 2024 Future of Alternative Data report, and firms new to alternative data could drive further market expansion.
2. Regulatory uncertainty: Tighter privacy laws and increased scrutiny from the US Securities and Exchange Commission and global regulators could reshape the market.
3. AI's double-edged impact: AI could both enhance data value and reduce reliance on third-party vendors as investment firms build their own datasets.
4. Market size projections: If current trends continue, Neudata estimates the size of the alternative data market in 2030 could range from $8.6 billion to $39.9 billion.

"The battle for dominance in the alternative data space is heating up, and the decisions made by investors, regulators and vendors in the coming years will shape its trajectory," said Rado Lipuš, CEO and founder of Neudata. "One thing is clear: alternative data is no longer a niche market – it's a multi-billion-dollar industry poised for even greater disruption."

About Neudata

The authoritative source for global data intelligence.

Neudata provides actionable, unbiased market intelligence to buyers and sellers of market and alternative data.

Combining human-powered data scouting services and a cutting-edge technology platform, Neudata's data expertise provides time - and money-saving insights for clients across the expanding data ecosystem.

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SOURCE Neudata