Global Alternative Data Market Report 2022-2030: Rising Demand from Hedge Funds is Expected to Propel Growth

DUBLIN, April 12, 2022 /PRNewswire/ -- The "Alternative Data Global Market Report 2022 by Data Type, Industry, Application" report has been added to ResearchAndMarkets.com's offering.

The global alternative data market is expected to grow from $2.21 billion in 2021 to $3.23 billion in 2022 at a compound annual growth rate (CAGR) of 46.5%. The change in growth trend is mainly due to the growing demand for alternative data sources owing to the growing interest in stock market trading. The market is expected to reach $13.91 billion in 2026 at a CAGR of 44%.

Major players in the alternative data market are 1010Data Inc., Advan Research Corporation, Eagle Alpha Ltd., Preqin Ltd., Ravenpack International SL, The Earnest Research Company, Thinknum Inc., UBS Evidence Lab, YipitData, Dataminr Inc., M Science LLC, 7Park Data Inc., Convergence Inc., Geotab Inc., Jumpshot, JWN Energy and Talkingdata.

The alternative data market consists of sales of alternative data by entities (organizations, sole traders, and partnerships) that provide alternative data and helps in finding out the market insight. Alternative data is characterized as non-traditional data that can give an indicator of a firm future performance other than conventional sources such as corporate filings, analyst predictions, and management instructions. This information can be utilized in pre-trade investment evaluation as well as to assist investors in monitoring the financial health of a firm, industry, or nation.

The main data types in alternative data are credit and debit card transactions, email receipts, geo-location (foot traffic) records, mobile application usage, satellite and weather data, social and sentiment data, web scraped data, web traffic. A debit transaction is one in which the Cardholder chooses a check or a savings account to which the Cardholder's Nominated Card is permitted to get access.

Any transaction in which the return of money borrowed or a loan pledge is made, or payment for products, services, or assets sold or rented, is to be made at a future date or dates, is referred to as a credit transaction. The several sectors include automotive, BFSI, energy, industrial, IT and telecommunications, media and entertainment, real estate and construction, retail, transportation, logistics and is used in hedge fund operators, investment institutions, others.

The rising demand for alternative data from hedge funds is expected to propel the growth of the alternative data market in the coming years. Alternative data (or alt data) is non-financial data that predict financial results. Hedge funds and investment banks are among the top users of alt data as investors seek new data sources to provide speedier insight for improved decision-making. This is primarily since alternative data might aid in understanding the corporate performance and future consequences.

According to Chain of Demand, a Hong Kong-based predictive analysis company, as of April 2019, over 400 companies were offering alternative data to hedge funds, with a projected profit of $1 billion. Therefore, the rising demand for alternative data from hedge funds drives the growth of the alternative data market.

The launch of next-generation platforms has emerged as a key trend in the alternative data market. Major companies operating in the alternative data sector are focusing on introducing next-generation platforms to deliver new and timely insights to researchers, analysts, and businesses. For instance, in October 2020, ESG Data Services Inc., a Canada-based alternative data provider launched the next generation AI-powered ESG data, research, and analytics platform-ESG Analytics.

ESG Analytics is an API and web-based solution that uses artificial intelligence (AI) and broad-based alternative data sources to uncover opportunities and risks in social, environmental, and governance practices of companies, ETFs, and countries. Moreover, for investors going beyond the surface details that everyone else uses, ESG Analytics opens them to a world of deep and relevant analysis.

In January 2020, The Earnest Research Company, a US-based data analytics company has acquired Alpha Hat Inc. for an undisclosed amount. The acquisition would allow The Earnest Research Company to demonstrate the insights of the new data products of the highest quality and accuracy. Alpha Hat Inc. is a US-based, mobile geolocation intelligence provider that specializes in refining alternative data into actionable insights for investors.

North America was the largest region in the alternative data market in 2021. 

Key Topics Covered:

1. Executive Summary

2. Alternative Data Market Characteristics

3. Alternative Data Market Trends And Strategies

4. Impact Of COVID-19 On Alternative Data

5. Alternative Data Market Size And Growth
5.1. Global Alternative Data Historic Market, 2016-2021, $ Billion
5.1.1. Drivers Of The Market
5.1.2. Restraints On The Market
5.2. Global Alternative Data Forecast Market, 2021-2026F, 2031F, $ Billion
5.2.1. Drivers Of The Market
5.2.2. Restraints On the Market

6. Alternative Data Market Segmentation
6.1. Global Alternative Data Market, Segmentation By Data Type, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

• Credit And Debit Card Transactions
• Email Receipts
• Geo-location (Foot Traffic) Records
• Mobile Application Usage
• Satellite And Weather Data
• Social And Sentiment Data
• Web Scraped Data
• Web Traffic

6.2. Global Alternative Data Market, Segmentation By Industry, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

• Automotive
• BFSI
• Energy
• Industrial
• IT And Telecommunications
• Media And Entertainment
• Real Estate And Construction
• Retail
• Transportation And Logistics

6.3. Global Alternative Data Market, Segmentation By Application, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

• Hedge Fund Operators
• Investment Institutions
• Others

7. Alternative Data Market Regional And Country Analysis
7.1. Global Alternative Data Market, Split By Region, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
7.2. Global Alternative Data Market, Split By Country, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion

 Companies Mentioned

• 1010Data Inc.
• Advan Research Corporation
• Eagle Alpha Ltd.
• Preqin Ltd.
• Ravenpack International SL
• The Earnest Research Company
• Thinknum Inc.
• UBS Evidence Lab
• YipitData
• Dataminr Inc.
• M Science LLC
• 7Park Data Inc.
• Convergence Inc.
• Geotab Inc.
• Jumpshot
• JWN Energy
• Talkingdata

For more information about this report visit https://www.researchandmarkets.com/r/md9141

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1904
Fax (outside U.S.): +353-1-481-1716

SOURCE Research and Markets